Goldman Sachs Recommends Microsoft Split Off Xbox Business

[ironman]

Stinky said:

dallas said:

without looking at the numbers, i'd imagine so.......windows doesn't have much competition, i mean apple will never be big.....MS office is dominant.........etc

Apple is currently the second most valuable company in the world, ahead of Microsoft. Regardless, MS invested a lot to get into the gaming business and it's been profitable for the past couple of years. Estimates are that xbox live alone brings in $1B profit, let alone the profits from the very high game unit sales and systems.

The area can only get more profitable. The future lies in IPTV and video on demand, xbox is making very strong inroads there.

Apple's wealth is not from it's operating system, which is obviously what Dallas was refering to when he said "windows doesn't have much competition, apple will never be big" it was a poor choice of words, but the intent was quite clear.

If the estimates are correct, MS would be stupid to sell off Xbox, it's making a profit and looks like it will continue to do so for the forseeable future.