CNBC Analyst Jim Cramer: Microsoft Is Planning To Spin Off Xbox Division After Mojang Purchase

[Nicklesbe]

Burek said:
Most people here misunderstood the point Cramer was making.
MS will not sell XBox division.
They will merely spin it off to a new, standalone company, which would still be owned by Microsoft. They could then seek minority shareholders, and adding Minecraft would only increase the value of the new company. That new company would include Surface as well, most likely.

Given the money spent on Minecraft, it woyld certainly be the cornerstone of the new independent company, which would probably focus more on mobile/handheld/tablet audience, with console business remaining only as a pet project.

EA is touting iPhone6 as powerful as next-gen consoles. XBox will probably work in that direction as well, bringing Minecraft, but also a rebooted Gears of War to mobile, along with already existing Halo mobile titles.

It might be too soon, but I expect Surface rebranded to XBox tablet next holuday season, launching with Minecraft Infinite, Gears of War: Rebirth and Halo: Spartan Assault 2 on Windows 9 devices.

Spinning it off is literally selling it off but maintaining high shares so they could have strong say in direction and still recieve profits from those shares but it would be a completely different company owned by different people, with seperate investors. In order to make it stand alone, or to make it core as Cramer put it they have to sell it. What you think "spinning off" means is literally what happened when they made the Xbox Division in the first place. In order for it to be a core company it has to be cut off from MS and given its own leaders and investor. Only way to do that is to sell it.