kowenicki said:
It doesnt cost that much (relatively) but it is key to a move into hardware. I think dropping it could actually harm the stock price longer term. Xbox and the microsoft label attached help surface, help mobile and will help all of their new hardware ventures in the future. |
I wouldn't call them idiots. It's a money suck, the question is whether the lost money is worth the synergy with other products like surface and mobile as you say. If I was offered Balmer's job tomorrow I'd probably keep it and buy up a couple key 3rd parties to increase the amount of exclusive software. As it stands though, a better approach may be emphasing entertainment software for other devices like phones, tablets and PC's, and ditching the challenging game hardware segment. XBox has been very good for MS's brand image among youth in the US, but there could be better ways to spend their money, especially if PS4 becomes the dominant gaming platform in the west. XBox has been a key part of the "whole home" approach MSFT has taken, which I do like, however.