I don't agree with selling it, but I agree with keeping it its own like how Playstation used to be.  I mean the X-Box brand can probably grow more if MIcrosoft expands on it.  But they're piggy backing their other entertainment products on top of the X-Box brand, so it won't become its own thing.

That's the silly idea. MS is better off with 360 integration with PC and Windows Phone 7.

If Kinect does well I'm sure it will change Goldman Sach's stance on things.

Also the whole division is a mislabeling of the 360 - it could profit more without Zune and Windows Mobile.

You know during the bailouts, whereas other companies would sell bad assets/securities at anywhere from 40-70%, GS refused anything below 100%. They were unwilling to compromise and cooperate. There was a lot of coverage about this on NPR a while back, so I can't really source it either.

Still, they did take a gamble and it paid off (not related to the above comment); I think NYT called them "peerless in finance" or something? That was a while ago, I can't remember.

This is a really silly suggestion by them.

It wouldn't be smart at all, at a time when Apple is thriving thanks to its I-Phone and I-Pad and I-Pod Microsoft needs its additional ventures to make the company look good.

Also what happens if X-Box broke from Microsoft and then had to launch a new platform. If they launched anything like the first or 360 their would be several years of nothing but losses. Except X-Box wouldn't have any other ventures to off set the losses. Shareholders would bail and the company would likely go bankrupt.

But if they remain part of Microsoft then when X-Box isn't profitable Microsoft can offset their losses with sales of operating systems and other devices.

This is sounding alot like something Michael Pachter would say, GS you've lost your minds!

What was wrong with my thread!?!

http://gamrconnect.vgchartz.com/thread.php?id=117499&page=1&str=1825784579#

Anyway, I don't think MS will do this but I do see where GS are coming from.

MS share price overall does seem to be suffering a bit due to the confusion in its focus and the mix of high margin business solutions and much lower margin entertainment division.

Central to their arguement is that while the 360 does make money it makes low margin money, and it affects the value of the company as a whole - which seems true, although I guess with GS in a position to downgrade MS they are in a position to make their arguements a self fufilling prophecy.

But I think MS Entertainment division is too fragile to survive on its own at this point.  It's profitable now but overall is probably in the red, even with 360 success the console has sold quite a bit behind the big hitting consoles of the past, for every success with 360 there seems to have been a failure or lack of success in mobile entertainment, and overall I just think seperated off the division would struggle to survive on it's own if it couldn't bank on MS to provide the excess cash needed to keep the momentum going.

And will Ballmer making sure to mention the division regularly I don't think this is looking likely.

Lol Has anyone taken this seriously?

Even Steve Ballmer isn't that dumb to even consider this as an option.

MS is making great profits out of X360 making up for Zune and the rest in the Division and Goldman Sachs is suggesting MS just pull the plug?

Biggest Bullshit Suggestion ever.

When Goldman Sachs downgrade your stock options and criticise your strategy, you pay some attention.  And this is certainly far from the biggest bullshit suggestion ever.

You need to remember GS don't give a damn about videogames or what you might want as a fan, just what will make a company more profitable and grow faster, and there is no doubt that for all it's recent success MS has had average at best success in entertainment overall particularly when balanced against the investment to date.

Profits from 360 are modest for a high margin technology company and will probably always remain so, which is the issue most analysts have with it.  Also MS has only achieved spotty success overall, still being trounched in mobile areas and spending a lot to get a decent but hardly devestating foothold in the home console/entertainment space.

Personally, I doubt MS will do this and no because of 360 but because of Live.  Live is MS one real success, and their first true success as gaining ownership of their own closed, no corporate community.  Live is why they shouldn't split off Xbox, Zune, etc.

If it wasn't for Live from a business perspective I'd agree completely with GS.  But Live gives MS a chance of slowly gaining a strong community they own and can shape, much as Apple and other competitors have with their own non-corporate communities, and it's Live that makes it worth MS continuing, at least for say another generation of consoles and handheld devices as well as to see how much of the home digital entertainment market it can grab.

"For example, the Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products’ brand strength"

This guy calls historical success to a brand that was released in 2001 and only gave profits in 2008?

I think Pachter has a brother.