actually.. that's a terrible analogy.  BMW isn't losing billions in building motorcycles.  BMW started out making motorcycles before they ever made cars.. in the present, they just happen to produce/sell more cars than motorcycles because bikes are a luxury commodity.

real world, it's like every segment or division of the parent company.  If you don't make profit, you're liable to be outed/disband/closed down.  Same as Sony with their computer and tv division.. it would be no different for Microsoft and xbox.  I'd bank my whole life savings if it wasn't the fact that xbox was parented by Microsoft, that division under any other company would of already closed up shop as much as they have bled money.. 15 years worth.  think about that.  you're not going to continue to waste money for no gains.

like my opinion post earlier, the brand is worth more than the product at this point.. this console gen is still early and we have yet to see what really happens a few years from now, but if it goes any worse than what's happening already this early, then it would make more sense for MS to integrate future/next iteration xbox branding as a gaming service for MS mobile & cloud products, which would put that division more in line with MS's shift in their strategic business focuses.  i don't believe xbox will die.. but as a standalone console, the x1 could very well be the last.

I don't see what so surprising here, they make most of their money from their OS and other line of software and now by providing cloud computing to different corporation. xbox is just a small division

I know MS. Your core is to make money. Im not mistaking the XB1 to do anything like that;)

Source?

fyi Xbox was a reactionary shot from MS, they got scared PS would become a challenger to PC cause Sony talked it up and as s full entertainment system jadda jadda of the future and bs that MS took way to seriously.

So they got into it out of fear that some how PS would be a threat to their core business, while that happened Iphone and tablets actually became what they feared PS would a new os a new eco system that would threatening their bread and butter and it has done exactly that. So in all honesty there is no point for MS to be making a console, they are suited for pc tablet and phone well least attempting two of them. Console is pointless as far as they are concerned.

Anytime anyone tells me context doesn't matter I have to raise an eyebrow.  Its a clear sign that you are selectively taken what you want to hear and dismissing the rest.

@BOLDED:  Not buying it.  A business unit does not have to be a core function of a corporation to get support.  The Xbox division will never be a core division of MS because they are not a consumer hardware company.  Consoles do not sell on the same level as mobile phones, Office, OS or their cloud platform.  Consoles does not sell on the same level as their server software or development software either.  Are you telling me you rather have the CEO blow sunshine up your butt or tell it plain and simple.  "Xbox not core but its still integral to our business".  Thats basically what he said.  The Xbox division connects a lot of stuff they are trying to do and it also have benefits within their core units.

@2ndBolded:  I am 100% sure you would never find such statements from me even during all the doom and gloom during the PS3 era.  This is how I look at the Xbox division in MS business stragety.  It allow them to sell just about all their services to consumers.  From music, TV and Movies purchase as well as rentals, games either retail or indie.  Its a platform for development which means you sell your tools like Visual Studio.  Its a place to leverage your cloud platform Azure.  Giving developers and publishers access to free dedicated servers is a way for them to get those same people to use Azure for their business.

When it all comes down to it, people are getting silly over the term core business unit as if that means MS will suddenly drop the Xbox.  Was Skype, Visual Studio, SQL Server etc considered as core.  All of these units work together within a large corporation like MS but they do not have to be core business units to get funding and support.  There are certain areas you need to lead and others you need to innovate and others you need to have a present in.

Here you go but you know you cloud have done this google search yourself

http://www.gamespot.com/articles/sony-rejects-investors-proposal-to-spin-off-entertainment-business/1100-6412564/

You know investors like this ask for corporations to spin off divisions all the time.  The problem is they have no vote so they can make those request all the time but as long as the board and CEO is going a different directions these actions mean nothing.

I don't know if you guys read the same letter I did...but here is what I saw:

" As a large company, I think it's critical to define the core, but it's important to make smart choices on other businesses in which we can have fundamental impact and success. " - What success has the XBox One had, other than a strong launch? Sales this year are anything but "successful"...the same goes for the entire HISTORY of Xbox...they have NEVER been profitable. Now, some here will claim that they HAVE been profitable lately...but THAT is due to them lumping in the extortion money they are getting from Android into their CE division. Xbox by itself has been a money pit for 15 years now.

"The single biggest digital life category, measured in both time and money spent, in a mobile-first world is gaming." - "mobile first" doesn't sound much like the current Xbox does it?

"Xbox is one of the most-revered consumer brands, with a growing online community and service, and a raving fan base." - So the BRAND is important. I see nothing here that says they are committed to the current Xbox CONSOLE.

My takeaway from all of this is that the Xbox BRAND will survive, and be used to promote MOBILE gaming. The console itself? It will probably survive, in it's current form, for a while longer...and it might not. I would bet, though, that MS keeps it alive a while longer. LONG TERM, however, I can see Microsoft leaving the gaming industry completely, as it has never done for the company what they thought it would, and the "threat" from Sony was quickly eclipsed by the threats from Apple and Android.

Think of it this way...again, LONG TERM, it is FAR more important for MS to be successful with Windows Phone and Surface, along with Office and Windows, than it is for them to pour MILLIONS MORE into Xbox, which still shows no signs of being profitable on it's own.

In my company, which is a very large one, if the CEO says that a product does not belong to the core business anymore, it means that it will be discontinued or sold for sure. I experienced this several times in the last years. And at each and every shareholder meeting, shareholders demand that the company sells all non-core business which will eventually happen.

Therefore this is a very big and unexpected statement. If I want to buy a system, I want to be 100% sure that it is still supported in the next years to come. For the X1 this assurance cannot be given anymore, MS could now sell or discontinue it anytime, especially if it will stay behind the Wii-U in worldwide sales for a much longer time which seems to be the case. The (shrinking) market is not big enough for 3 consoles.

Sell the Xbox division to someone who belongs in the game industry.. Sell it to Sega!