News: Analyst Predicts The Downfall & Sale Of Xbox Brand

xbox 360 consoleAnalysts are fickle creatures, one day they are lavishing praise upon a company or product, the next they are disregarding them as dead-weights and no-hopers.

This time, it’s Forbes contributor Adam Hartung who is spelling the demise of one of the most popular and recognisable brands on the planet.

“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.”

“Microsoft makes more than 75 per cent of its profits from Windows and Office,” says Hartung. “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. Game over. Ballmer loses. And if you keep your money invested in Microsoft it will disappear along with the company.”

Despite what you may think, theirs actually some very reasonable points being made. Xbox isn’t Microsofts most valuable asset at this point in time, and with the growing market for non-Microsoft computers and phones, most of their effort is being ploughed into remaining profitable on those fronts.

However, the Xbox brand is a worldwide force to be reckoned with, but maybe the fact that the Playstation 3 recently surpassed the Xbox 360’s lifetime shipments may point to an unclear future for the brand.

One thing I do think is a bit ridiculous is the notion that Sony would buy into the Xbox. The Playstation brand is standing strong and Sony as readying themselves for a good year with the upcoming release of the Playstation 4, steady sales of the Playstation Vita and the sale of it’s US headquarters bringing some cash into the kitty. What would Sony gain from buying out Microsoft? Of course, it would be ideal for Sony to have one less competitor in the home console market, but that would be one hell of a dent in the wallet, one that Sony can’t really afford at this time. Only time will tell, but I reckon the Xbox brand is safe for a few more years yet.

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What do you think? Reckon Sony will purchase the Xbox brand? Or maybe Barnes & Noble? Or do you reckon it’s a load of codswallop? Let us know in the comments below.

Source: Forbes

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