According to Forbes' Adam Hartung, Microsoft's “entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size. Unable to make a profit it will increasingly be seen as a distraction to the battle for saving Windows – and Microsoft leadership has long shown they have no idea how to profitably grow this business unit.”
Hartung went on to paint an even gloomier picture for the Xbox manufacturer, not only predicting that we'll see “enormous layoffs over the next three years” but also downright failure.
Microsoft makes more than 75 per cent of its profits from Windows and Office. Less than 25 percent comes from its vaunted servers and tools. And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division.
No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits Microsoft is not sustainable.
Failure is already inevitable. At this stage, not even a new CEO can save Microsoft. Game over. Ballmer loses. And if you keep your money invested in Microsoft it will disappear along with the company.
Is Microsoft really in trouble? Could the next Xbox truly be the last console from the company? As long as I continue to get more Halo (be it on a Sony or Nintendo platform) I'll be happy. Share your thoughts in the comments below.