Microsoft will soon sell its entertainment division – the home of Xbox – according to a US business analyst.
The prediction was one of half a dozen that Forbes contributor Adam Hartung made regarding the company, whose future he claimed was already in jeopardy.
“No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits, it’s hard to see how long Microsoft can remain sustainable,” he wrote.
“Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division (negative $350M-$750M/quarter).
“The entertainment division could be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size.
“Unable to make a profit it will increasingly be seen as a distraction to the battle for saving Windows, and Microsoft leadership has long shown it doesn’t know how to profitably grow this business unit.”
Slow sales of Microsoft’s Surface tablets and Windows 8 were also harbingers of doom, claimed Hartung.
“Expect substantial layoffs over the next 3 years,” he wrote.
“They could even reach 50-60%, or more, of employees.
“The future is looking very difficult for Microsoft–and for your investment if you own Microsoft’s stock.”