Goldman Sachs: Xbox Division Should be Spun Off

October 6, 2010 -

A Goldman Sachs analyst (whose company was saved by taxpayers, for the record - you're welcome) says that Microsoft should spin off its Xbox division and downgraded Microsoft share recommendations from buy to neutral. In a new report, Goldman Sachs said that "A break-up of the consumer businesses could potentially unlock hidden value, or more discipline on cost could turn the businesses into contributors to profitability and shareholder value."

Goldman Sachs: Microsoft should split off 'unprofitable' Xbox dept. Analyst Goldman Sachs has downgraded Microsoft share recommendations from 'buy' to 'neutral', and suggested that one way to resolve the firm's apparent difficulties is to split off its consumer entertainment division.

Goldman's Sarah Friar added that "The Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products' brand strength, and the business could show unlocked value with forced cost discipline compared to as a piece of Microsoft."

Other analysts strongly disagree with the assessment: "Pulling this off would be like Microsoft learning Geller-ian magic tricks, the equivalent of being able to bend spoons with its brain," said investor Paul Kedrosky.

Finally, analyst Matt Rosoff told ComputerWorld: "I think it's silly to spin off a profitable business. Xbox would lose more than it would gain by going it alone." Rosoff felt that the company would be better off carving its search business, due to the complexities of competing with Google.

Source: GI.biz

Posted in

Comments

Re: Goldman Sachs: Xbox Division Should be Spun Off

Dude, James...sorry to be a downer, but you really need to proofread your posts.  You've got a typo in almost every sentence ("you're welcomed", "In a new report from Goldman Sachs said that", that entire weird second paragraph that restates what's said in the first paragraph in a run-on sentence, "Other analyst strongly disagree with the assessment").

It's a good story, but it looks like you were really in a hurry when you put it up.  Take a minute to check your work before you hit that Post button.

Re: Goldman Sachs: Xbox Division Should be Spun Off

was supposed to be a reply...

 

Re: Goldman Sachs: Xbox Division Should be Spun Off

LOLWUT  This "analyst" doesn't understand anything about Microsoft and Xbox.

Pwnage of Empires Xbox 360 Indie RTS

Re: Goldman Sachs: Xbox Division Should be Spun Off

Yes, I'm sure one of the most successful companies in history is going to take the advice of one that had to be BAILED OUT BY TAXPAYERS!

Sorry, but that's just a LOT of fucking nerve right there. Jack Thompson-sized nerve, you know?

Re: Goldman Sachs: Xbox Division Should be Spun Off

Yeah... I don't see it.

Spinning off would be a great way to make some bankers some money, but I can not picture how it would do anything positive for Microsoft.

Re: Goldman Sachs: Xbox Division Should be Spun Off

100% accurate comment

Re: Goldman Sachs: Xbox Division Should be Spun Off

Yes, let's listen to the people known for falsely raising the value of their own stock.  Sure, Microsoft could probably burn their reputation into the ground and make a few bucks.  But who will bail them out when they eventually realize their stock is worth nothing and collapse?  They can't go crying to the government like Goldman did.

Bill Gates has done something Goldman has failed to do.  He has become richer than god, all the while establishing a brand that actually is worth something.  Goldman should keep their suggestions on "smart" business practices to themselves and leave business to the people who are actually good at it.

Re: Goldman Sachs: Xbox Division Should be Spun Off

I'm inclined to agree with Matt Rosoff here.  Microsoft letting go of the strong brand name and Xbox losing Microsoft's support would hurt both sides of the divorce if it went through.

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
ZippyDSMleePaypal shuts down Mega's payment system. https://torrentfreak.com/under-u-s-pressure-paypal-nukes-mega-for-encrypting-files-150227/03/01/2015 - 3:25pm
Matthew Wilsonvalvle planning to release a vr headset this year wtf http://www.pcgamer.com/valves-vr-headset-is-named-vive-and-htc-are-making-it/03/01/2015 - 1:05pm
ZippyDSMleeuuuhhhggg in other news been sick since last night.....uuhggg.....I iwsh it did not hurt so much when my tummy wants to leave my body..02/28/2015 - 11:39pm
ZippyDSMleeBrings me to the Q why alt costumes would be needed in competition anyway... http://www.eventhubs.com/news/2015/feb/28/dead-or-alive-community-aims-ban-over-120-overly-sexualized-costumes-dead-or-alive-5-last-round/02/28/2015 - 11:36pm
MonteThough from a business side, i would agree with the article. While it would be smarter for developers to slow down, you can't expect EA, Activision or ubisoft to do something like that. Nintnedo's gotta get the third party back.02/28/2015 - 4:36pm
MonteThough it does also help that nintendo's more colorful style is a lot less reliant on graphics than more realistic games. Wind Waker is over 10 years old and still looks good for its age.02/28/2015 - 4:33pm
MonteWith the Wii, nintnedo had the right idea. Hold back on shiny graphics and focus on the gameplay experience. Unfortunatly everyone else keeps pushing for newer graphics and it matters less and less each generation. I can barely notice the difference02/28/2015 - 4:29pm
MonteON third party developers; i kinda think they should slow down to nintendo's pace. They bemoan the rising costs of AAA gaming, but then constantly push for the best graphics which is makes up a lot of those costs. Be easier to afford if they held back02/28/2015 - 4:27pm
Matthew Wilsonhttp://www.forbes.com/sites/insertcoin/2015/02/28/the-world-is-nintendos-if-only-theyd-take-it/ I think this is a interesting op-ed, but yeah it kind of is stating the obvious.02/28/2015 - 2:52pm
prh99The government probably doesn't need an app, but I was think more along the lines of a company that was going to sell the collected info. “If you're not paying for the product, you are the product” sometimes even if you pay.02/28/2015 - 1:50pm
E. Zachary KnightWhat better way for the government to keep track of you than to get you to install an app that lets you insult the government.02/28/2015 - 11:03am
prh99No, but I looked it up and it's basically spyware. Their privacy policy says their apps tracks among other things your location and browsing habits via cookies.02/28/2015 - 8:20am
Ryan RardinHas anyone here heard of an app called iCitizen? It's basically Yelp for politicians.02/28/2015 - 5:16am
Andrew EisenAh, not linked in the way you (and everyone else) want and expect. That's true.02/27/2015 - 10:06pm
Matthew Wilsonthey are not linked in a way that tracks purchases though. the fact that they have to send a code for the other system shows that they are not linked in the way it counts.02/27/2015 - 9:39pm
Andrew EisenAccounts are already linked. Have been for quite a while. Also, Mario vs. Donkey Kong was announced as a cross-buy title during last January's Nintendo Direct.02/27/2015 - 9:25pm
Matthew Wilsonhttp://www.vg247.com/20…/…/27/olli-olli-3ds-wii-u-cross-buy/ I wounder if this is a sign that Nintendo may finally link accounts across the 3ds/wiiu in the near future.02/27/2015 - 9:18pm
prh99http://www.romanoriginals.co.uk/invt/70931?colour=Blue The dress does comes in white and blue but both have black lace and a sheer back top, I don't see gold or brown. 02/27/2015 - 8:54pm
ZippyDSMleeDungeons was a so bad so good game to me so I been keeping up with its sequel which will more of a Dungeon Keeper clone. As for pre order out of 7 preorders I was not burnt by 2... Add my contempt of most of modern game design.Ya I have all kinds of hurt.02/27/2015 - 8:40pm
MechaTama31I don't even want to know...02/27/2015 - 8:22pm
 

Be Heard - Contact Your Politician