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Analyst states Microsoft will sell Xbox One Division in 2015

Xbox 360 Microsoft’s Xbox division has finally started turning a profit after operating unsuccessfully during its initial years. The recent ...

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News 08 Jan 2015, 17:26 IST
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Xbox 360

Microsoft’s Xbox division has finally started turning a profit after operating unsuccessfully during its initial years. The recent success of the division can be largely credited to the success of the Xbox 360 and the launch of Xbox One a year back. But according to the latest statements by The Street’s market analyst Jack Mohr, Microsoft might be selling their Xbox division some time in 2015. While his statements may seem a bit farfetched right now, it is not entirely unbelievable and Mohr has presented a few facts to back up his claim on the impending sale.

Firstly he has mentioned Microsoft’s recent shift in leadership. Mohr claims that the new CEO, Satya Nadella, is a “methodical innovator with a long-term bent” who will probably spearhead the spin off as this will generate cash for Microsoft’s investors as well as provide extra cash for re-investment in other operations. But this does not seem like a decision Nadella will make as it will come at the cost of the entire Xbox division. Also Nadella’s comment last May clearly shows that he does not have any plans to sell the division:

“I have no intent to do anything with Xbox other than what we’re doing today”

However, this statement was a response to Bill Gates, who mentioned that he would completely support Nadella if he wished to spin-off the Xbox division.

Mohr also claims that Microsoft is “a computing, not a gaming company and a sale of Xbox will leave the company flush with cash.” While this statement may have been true back in early 2000’s, it is not the case now. Xbox initially struggled during its introduction to the console market earlier but it has done well ever since, which is a great feat for a company that was just known just for computing. It has shown how much Microsoft has grown over the years. The company has already branched out into various divisions with their own line of phones and tablets that run the Windows OS. Also this is just one analyst’s prediction and probably should not be taken too seriously as of now.

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