Just like in the title, Microsoft should spin off the Xbox division so that it operates as an independant company because that gives it more flexibility in operating and forming partnerships with other companies. Its too close to the main business and it can cause conflicts of interest between Microsoft and its partners. For example, the reason why the Radeon 9700 was so shit storming hot, was because Microsoft got into a scuffle with Nvidia and witheld the direct X 9 specifications and paid Nvidia back dearly for the Xbox1 debacle. The problem is at the moment is that the Xbox division cannot pick and choose the partners and so cannot easily take advantage of opportunity.
There are many different partners that could Ally with an independant Xbox division but no so easily Microsoft itself. EA is looking to expand and a close partnership with a console maker could be exactly what they want. Apple is looking to find new ways to deliver its content, so again an independant Xbox division could do so quite nicely.
Lastly, there is a conflict of interest between what is best for Microsoft as a whole and what is best for the gaming division. We have seen this stark conflict so clearly with the PS3 and Blu ray. For the division to prosper it must do whats best for itself and not act as a sacrafice for other segments of the company.
Tease.
