Microsoft is doomed! Game over man, GAME OVER!

#1 Posted by Abendlaender (2764 posts) -

Analysts. We all love them, don't we? Well according to Adam Hartung Microsoft is doomed. He actually said that. He predicts they will sell their Xbox division to "someone like Sony" and if they don't they will DIE!!

Here is the full statement from MCV UK

A US business analyst has claimed that Microsoft’s inability to adapt to market changes means that its “failure is already inevitable”.

And chief amongst the victims of this downfall will be its entertainment division, which is of course home to Xbox.

“The entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size,” Forbes contributor Adam Hartung stated. “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 predict “enormous layoffs over the next three years”, with as many as half of its employees being shed. He also expects a closure of its online division as Microsoft continues to plough resources into battling iOS – a battle that Hartung unsurprisingly thinks it cannot win.

“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. Game over. Ballmer loses. And if you keep your money invested in Microsoft it will disappear along with the company.”

So, Microsoft is done, Nintendo anyway, PC gaming is dying since 1985 and Sony isn't doing so well too (apparently well enough to buy Xbox though). I guess OUYA is the future?

#2 Posted by SomeJerk (3144 posts) -

He's like the opposite of American analysts that crap on non-American gaming ventures. Only a tiny bit more clueless.
 
Microsoft are doing just fine. Their investors (owners, masters really) don't care as long as they make money, which they're struggling with only in the mobile division with all the moneyhatting put into that.

#3 Posted by cmblasko (1123 posts) -

"And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division"

Is that even true?

#4 Posted by niamahai (1405 posts) -

@cmblasko said:

"And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division"

Is that even true?

IT MUST BE!

DIDN'T YOU READ!

IT WAS FROM AN ANALYST!

GAWD!

#5 Posted by TooWalrus (13137 posts) -

@cmblasko said:

"And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division"

Is that even true?

All that Xbox Live money has to be going somewhere, this guy's (probably) full of shit.

#6 Posted by TheSouthernDandy (3787 posts) -

Yeah you're right guy, Sony who is hemmoraging money is totally in the position to buy Microsoft! You are good at your job!

#7 Edited by rahulricky (209 posts) -

The Xbox division of Microsoft has made loads of money, but little of it has actually been profit. But I think Microsoft as a whole is doing a damned sight better than Sony is.

*edit*

"Microsoft's Xbox division reported disappointing results, recording a 16 percent drop in revenue, to $1.62 billion. The unit also reported a $229 million operating loss, versus a $210 million profit a year ago." - http://www.pcmag.com/article2/0,2817,2403294,00.asp

a turnover of more than 1.5bn while operating a loss isn't great. I mean the loss is probably down to R&D for the next gen but at this point they should be far more profitable right?

#8 Posted by endaround (2138 posts) -

Forbes contributor----guy wrote a free article for Forbes.com one time

#9 Posted by mikey87144 (1664 posts) -

Wow, can I get paid to make terrible analytically articles like this?

#10 Posted by pw2566ch (480 posts) -

Analysts are the last things you should ever trust in the video game business. Most of the time, their predictions are wrong. Besides, there's no way Sony would by Microsoft when Sony isn't doing that well in their console division.

#11 Posted by endaround (2138 posts) -

@mikey87144 said:

Wow, can I get paid to make terrible analytically articles like this?

No, you have to do it for free. Hope you say something outlandish enough to draw huge page views so you get a an invite to CNBC or Bloomberg to fill time. Say somethign outlandish enough there to get called back a bunch of time, and then you start to get a book deal together. And then you might get set up.

#12 Posted by WinterSnowblind (7613 posts) -

Microsoft have spent so much money, while making little profit, precisely to build up the brand. Just selling it off when it's finally become a household name doesn't make a whole lot of sense.

And what would Sony do with it, even if they were in a position to buy something like that? Other than effectively killing one of their competitors, I don't see what value it would be to them.

#13 Posted by alternate (2682 posts) -

@rahulricky said:

The Xbox division of Microsoft has made loads of money, but little of it has actually been profit. But I think Microsoft as a whole is doing a damned sight better than Sony is.

That $1b write down on the RROD fiasco pretty much doomed their profitability. If they screw up on hardware reliability a second time then they probably should sell to Barnes & Noble (where the fuck did that come from? he might as well have said "sell to KFC").

#14 Posted by Hailinel (23915 posts) -

@WinterSnowblind said:

Microsoft have spent so much money, while making little profit, precisely to build up the brand. Just selling it off when it's finally become a household name doesn't make a whole lot of sense.

And what would Sony do with it, even if they were in a position to buy something like that? Other than effectively killing one of their competitors, I don't see what value it would be to them.

PlayStation 4: Better with Kinect!

#15 Posted by mikey87144 (1664 posts) -

@endaround said:

@mikey87144 said:

Wow, can I get paid to make terrible analytically articles like this?

No, you have to do it for free. Hope you say something outlandish enough to draw huge page views so you get a an invite to CNBC or Bloomberg to fill time. Say somethign outlandish enough there to get called back a bunch of time, and then you start to get a book deal together. And then you might get set up.

Sounding like a complete and total dumbass shouldn't involve that much work.

#16 Posted by CptBedlam (4449 posts) -

Sounds legit. Sony will just have to sell another headquarter or two.

#17 Posted by NoelVeiga (1073 posts) -

This is grossly out of context. I'm going to go ahead and assume this guys was originally talking about a potential Windows 8 failure? Because that's what seems to be going on in this, right? Can't adapt to a changing market, Win8 fails, a lot of other parts of MS that were meant to work together with the success of 8 suffer, too. Or maybe not, the MCV report is terrible, so who knows waht the guy was actually trying to say.

That said, even assuming that Win8 doesn't do what MS needs it to do, it's not like this is the first time a Windows OS is a massive bomb. MS may not be fast to react to the market, but we've learned multiple times that they are great at pulling a quick revision on a catastrophically flawed product when they have to.

#18 Posted by dropabombonit (1484 posts) -

Why are people in this thread making it out like Sony have no money. Have you not read this: http://uk.ign.com/articles/2013/01/18/sony-expected-to-turn-first-profit-since-2008

#19 Posted by WinterSnowblind (7613 posts) -

@dropabombonit said:

Why are people in this thread making it out like Sony have no money. Have you not read this: http://uk.ign.com/articles/2013/01/18/sony-expected-to-turn-first-profit-since-2008

The Playstation is very successful, their other divisions are dying a horrible death.

#20 Posted by Demoskinos (14563 posts) -

I predict that the Ouya is going to suck. There, I'm in analyst. Wheres my goddamn money?

#21 Posted by The_Laughing_Man (13629 posts) -

Its funny cause one of the linked articles is about Sony selling their HQ. 

#22 Posted by pekarn (86 posts) -

The thing is, if he is wrong most people will not even remember his prediction and it won't change anything, if he is correct he will be seen as an amazing analyst for predicting it. So he has nothing to lose.

#23 Posted by DoctorWelch (2774 posts) -

@cmblasko said:

"And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division"

Is that even true?

Well, to pit one idiotic analyst against another, Michael Pachter thinks each Xbox sold makes Microsoft around $115 profit. That means Microsoft has made $8 Billion on the Xbox.

#24 Posted by DeF (4802 posts) -

Wait what? Articles like this exist for other companies, too? I thought analysts only say that about Nintendo every five minutes. It's so weird to see a "Microsoft doomed" thread for a change hahah.

#25 Posted by deathstriker666 (1337 posts) -

THIS IS WHAT THE MAYANS PREDICTED SHEEPLES

#26 Edited by C0V3RT (1352 posts) -

@TooWalrus said:

@cmblasko said:

"And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division"

Is that even true?

All that Xbox Live money has to be going somewhere, this guy's (probably) full of shit.

Nah, all that Xbox Live money goes towards getting Gold members HOT features like Facebook and Twitter!

Edit: Totally wasted my 1000th post...FML.

#27 Posted by ValeYard (149 posts) -

Who knows what will happen to a company that is so big as Microsoft. Rather than predicting doom and gloom for the company as a whole, I reckon Steve Ballmer's days are numbered though.

What does worry me is the way the Xbox department appears to be losing its independence. I mean, the dashboard is full of ads, it looks like Windows 8, Smart Glass has no utility so far... The Xbox department was like a shiny island of creativity at Microsoft and I feel that has changed towards the end of the 360's life.

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