Adam Hartung, Forbes contributor, is convinced that Microsoft’s Xbox brand is in a financial black-hole and could face mass lay-offs and forced sale. The analyst in a recent article predicts that Microsoft will face “enormous layoffs over the next three years” as they inject more money into fighting competing companies Apple and iOS. He speculates that Microsoft’s entertainment department would likely be sold to Sony or Barnes and Noble.

“Microsoft makes more than 75 per cent of its profits from Windows and Office, less than 25 per cent comes from its vaunted servers and tools. And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division.”

No wonder the original article has since been taken down from Forbes website, it’s silly to say that Microsoft makes nothing off of the Xbox and it’s various components. Hartung seems like he just isn’t a fan of the people who run Microsoft:

“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 they have no idea how to profitably grow this business unit,” Hartung then concluded,“Failure is already inevitable. At this stage, not even a new CEO can save Microsoft. Game over. Ballmer loses.”

Think Hartung could be right? Let us know!

Source: EGM

About The Author

Nikki P
News Editor/Community Assistant

I'm Nikki and I like video games.