Forbes: Microsoft Should Give XBox One To Nintendo

[Pemalite]

nuckles87 said:

superryo said:
So MS sold so much better than the original X360 and it's a failure? Where did the loss of billions a year come from? I thought they are selling the One at a profit? Seems like a lot of "journalists" are using the PIDOOMA (pulled it directly out of my ass) theory. As for not being the most powerful and not selling as much as the competitors mean you should close shop then Apple should close as well since doesn't Android (mostly Samsung) owns 80% of the market and in some cases have much more powerful devices? How come none of the "journalists" are calling Apple to close shop and selling to Google?

It's not "pulled out of his ass". The Xbox division has been a money loser for most of it's existence, and when the division did make profits those profits were slim. And apparently, those profits were not coming from the Xbox part of that division, but rather then Android part of it:

http://www.escapistmagazine.com/forums/read/7.833461-Microsoft-Loses-2-Billion-Per-Year-On-Xbox-Analyst-Says

Seriously dude, that link was in the OP. Looking at this, I don't really see WHY MS would continue investing in this business. They've lost billions of dollars on the Xbox and have yet to win a generation's market share. Xbox One looks to be losing a lot of the ground 360 gained, and within this console generation most of the One's TV and multimedia features will be found in your typical Smart TV. This thing will be obsolete for everything but gaming before this generation is out.

If MS wants to be the center of the living room, they'd be better off investing in Smart TV software, because I don't see how the One will gain them anything.

There is more to it than that.

The Xbox as a device may loose money.
However, things like Skype, First Party Games, Bing and all those other services brings in money, some of which are not reported in the same department.
It also creates brand awareness for Microsoft.
Plus, there is a strong push for the Cloud at the moment, developers/publishers will be buying chunks of Azure, paying Microsoft large sums of cash in the process, regardless if it's for Xbox, PC, WiiU, Playstation 4, Tablets or Phones.

It's less black and white than what people would assume when it comes to making money, everything has a flow-on effect in Microsoft's empire.
Sony was in a different situation, it didn't generate extra side-revenue from televisions or PC's that wen't into other departments.

Getting rid of the Xbox would be bad, not only financially (potentially) but from a competition point of view. (Less innovation, higher prices.)