Regardless of what Iwata says, It is Microsoft who can not compete according to Sean Malstrom.

[gergroy]

fatslob-:O said:

gergroy said:

yeah, follow that link back to the original article.  It is an analyst that is saying that, not the investors.  Like I said, unconfirmed.  The investors haven't and won't publicly say what they want to do, because they are looking for a spot on the board.  Something that activist investors tend to do.  Just like the activist investors did with yahoo to try and get them to sell to microsoft, and as we know yahoo is owned by microsoft... oh wait, they aren't... Also, doesn't prove anything against what I said.  Investors might want to lose the xbox division because it doesn't make enough profit to be worth it to them, not because it doesn't make a profit. Like I said, the 360 made a profit, but in microsoft terms in was very small...

Regardless, ValueAct wants to see "big changes" in mircosoft. I'm not sure if they included the xbox divison but it's plausible since the xbox brand hasn't even broke to even yet!

What does it matter, they are activist investors.  They invest in companies to try and break them apart or sell them off for a quick buck before they divest.  That is what they do.  

Also, just because they haven't broken even yet (which also may not be true) doesn't mean you want to sell the division off.  If a product is on an upward trend, like the xbox, then you keep at it.  The x1 is looking like the hardware will be sold at a profit from day 1, I don't see how these activist investors could convince the other 95% of the investors to sell off a division that is currently making a profit.  Even if historically the division hasn't been profitable, all that matters  is the current reality for investors.