Goldman Sachs Recommends Microsoft Split Off Xbox Business

[FreeTalkLive]

HappySqurriel said:

Unlike Nintendo, I don't think Microsoft or Sony's game divisions would be viable if split apart from their parent company ... These companies will (probably) eliminate all profitability within the division when ramping up for the next generation, and then lose billions of dollars for the first couple of years of the next generation, before they stand the chance of being profitable later in a console's life.

I don't take a stance this strong on the issue but I partially agree with this post.  It seems like a very risky move and I think it would make MS less competitive in the videogame space.