Disappearing Act: Xbox Sales Plummet While Microsoft's Other Devices Continue To Struggle. (With spacing)

[DirtyP2002]

method114 said:

Yes but rumors are saying that they are hiding the losses from the xbox with the profits from Android patents. It only makes sense otherwise why would investors want to get rid of a division that is making money regardless of how small?

Those rumors were debunked months ago.

Investors (they only own a tiny fraction of MS btw. I think about 3% or something like that, but don't quote me on that one) think about opportunity cost. They know they are making money with the Xbox, but they think they would make even more money if they invested this money in the next Windows or Office. That is their logic.

I think it is flawed, because of a couple of reasons. Here are 2:

1st) MS depends on the global PC market performance. They have a huge market share in the OS market, they basically own that market anyway. The ups and downs of the PC market is a direct indicator how good MS is doing. Even if they invested another 2 billion USD in Windows instead Xbox, they still can't influence a global economy. If a financial crisis is hurting PC sales in emerging countries, an investment made by MS won't change that.

2nd) MS sits on 85 billion (!!!) USD. That is their "total cash, cash equivalents and short-term investments". So it is not like the Xbox business is blocking other businesses, because it takes the resources / investments these other businesses need. If MS saw a great market opportunity, they would invest no matter what.