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 :

Poll

Have you visited a video game arcade in the last year?:

Shout box

You're not permitted to post shouts.
MechaTama31I sure have. Dorky's barcade in Tacoma, WA.08/20/2014 - 5:56pm
Matthew WilsonI have not been to a arcade in years. I know arcades are still big in japan.08/20/2014 - 5:38pm
Sleaker@AE - Ah no it's called GroundKontrol - I was just referring to it as a Bar-Arcade.08/20/2014 - 4:39pm
Andrew EisenStill looking for confirmation that High Moon Studios (dev behind the PS3/360 versions) isn't working on it.08/20/2014 - 4:38pm
ZenGotcha.08/20/2014 - 4:37pm
Andrew EisenI already updated the story with it!08/20/2014 - 4:36pm
Zenhttp://www.gonintendo.com/s/235574-treyarch-isn-t-working-call-of-duty-advanced-warfare-for-wii-u-either08/20/2014 - 4:36pm
ZenLet me send the link for the Tweet as well...they state Treyarch is not working on it. Grabbing it now.08/20/2014 - 4:34pm
Andrew EisenWhere does it say that "NO dev is working on it"?08/20/2014 - 4:33pm
ZenHere's the link for my last comment: http://www.ign.com/articles/2014/08/20/call-of-duty-advanced-warfare-not-coming-to-wii-u08/20/2014 - 4:24pm
ZenWell, Call of Duty is skipping Wii U completely it seems...they updated that NO dev is working on it. Great way to just skip a market.08/20/2014 - 4:24pm
Andrew EisenYeah, Dave and Busters back in 2011 was the last time for me.08/20/2014 - 4:16pm
ZenWell, I tried lol. We just got a Dave and Busters on the beach but haven't been there yet...may go this weekend.08/20/2014 - 3:52pm
Andrew EisenIt's called The Bar-Arcade? Missed opportunity. I would have gone with Barcade.08/20/2014 - 3:25pm
SleakerThe Bar-Arcade however did have a lot of good pinball machines, they were however always taken as the place was packed..08/20/2014 - 1:17pm
Sleakerso I've been to an Arcade-Bar, not that great of a place has some okay machines, but generally over-packed. And then all the kid-friendly ones have is ticket-games nothing actually good unfortunately :(08/20/2014 - 1:14pm
Andrew EisenIf it has an area dedicated to arcade machines, I'd say it counts. Arcade machine in your house though, nope.08/20/2014 - 12:16pm
ZenDoes it count if you have actual arcade machines in your house?08/20/2014 - 12:01pm
E. Zachary KnightWith the current poll, I guess it all depends on how one defines "arcade". If Chuck E Cheese or similar multipurpose businesses count, then that is a yes for me.08/20/2014 - 11:59am
ZenLet the ax fall Sleaker...lessons MUST be learned...08/20/2014 - 11:44am
 

Be Heard - Contact Your Politician