bumidan on 12 August 2008
It makes sense from a financial point of view.
The XBox Division, whether profitable or not, is worth something.
To expand: Just because a company is losing money, does not mean it is worthless. If there are assets than are valuable, then it is worth something.
In his explanation, it is worth around $4Billion.
Basically, basic corporate finance theory is indicating that breaking the division will enable current MSFT shareholders to monetize (make money) by spinning off the division.
