Looks like an US analyst is sure that Microsoft will be doomed to sell the non-Windows Microsoft products, aka the entertainment division where the Xbox resides. The main reason for this prediction is Microsoft’s inability to adapt to market changes.
Forbes contributor Adam Hartung argues: “The 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 also suggests the company will be hit with “enormous layoffs over the next three years”, with as many as half of its employees being shed.
“Microsoft makes more than 75 per cent of its profits from Windows and Office”, he added. “Less than 25 per cent 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”.
An harsh article indeed, is sure Microsoft didn’t sell well with the new Surface tablets and the fight with iOs and Android is stronger than ever with the advent of the mobile generation. Also with Sony selling its buildings in New York the major producers of our favorite entertainment machines are facing a difficult period and Microsoft once announced that the development of a new console is a bargain at a loss for many years due to high costs of research and development; and Sony and Microsoft are in the development process right now.