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?

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.

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

Is that even true?

@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!

@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.

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

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?

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

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

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.

@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.

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.

@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").

@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!

@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.

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

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.

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

@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.

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

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

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.

@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.

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.

THIS IS WHAT THE MAYANS PREDICTED SHEEPLES

@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.

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.