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

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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.

 
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ZippyDSMleeWell it could be worse, like skyrim out of the box, a shame DAI dose not have that level of editing...05/25/2015 - 5:58pm
Zenpretty well without getting "nasty". Many people are disappointed in the decision and the about face on the status of the games development.05/25/2015 - 4:22pm
ZenEvery market has horrible people...but being like this towards all of them in a group is not a way to garner support and can make people more hostile towards you. Ironically his response was to someone that wanted to state a disagreement, but worded it05/25/2015 - 4:22pm
Goth_SkunkAs demonstrated by Ian's remarks, that 'market of possible fans' is apparently negligible.05/25/2015 - 4:18pm
Zeninformation while other versions had everything talked about openly.05/25/2015 - 4:15pm
ZenYeah, I've read through it and wanted to make sure I had it quoted correctly. I get there are issues, but this is horribly unprofessional and just burning a market of possible fans..many of which supported them and were waiting while getting little to no05/25/2015 - 4:15pm
Goth_SkunkOh wow. That's not even misquoted, he actually said that. Though for additional context in previous pages, he truly does not think highly of Nintendo console owners, and claims that in the industry, he's not alone.05/25/2015 - 4:12pm
ZenI also took a screenshot of the statement in case it is taken down (via my Twitter): https://twitter.com/zenspath/status/60293960536562483205/25/2015 - 4:05pm
ZenLink for my previous post - http://forum.projectcarsgame.com/showthread.php?27584-Project-Cars-Sales-figures&p=942776&viewfull=1#post94277605/25/2015 - 4:03pm
ZenProject Cars basically canceled for Wii U, Slightlymad Studios Head, Ian Bell, states "Yup, and if you need to pass this on, we really dislike Nintendo users" on Forum to Wii U players waiting for the game and disappointed in the news.05/25/2015 - 4:03pm
Goth_SkunkAnd now, a humorous gif. Oblivious Otter is Oblivious. http://i.imgur.com/zdUZOWo.gif05/25/2015 - 3:49pm
Goth_Skunka bonified game dev.05/25/2015 - 3:45pm
Goth_SkunkGranted, most of that feedback is going to be vicious, but if a novice dev knows full well not to expect their hastily strewn together game as the next Grand Theft Auto, such curmudgeonly feedback shouldn't deter them from their ultimate goal of becoming05/25/2015 - 3:45pm
Goth_SkunkAdditionally, Steam is a platform whereby these novice devs can showcase what they were able to put together and see what kind of feedback they can get from the community.05/25/2015 - 3:44pm
Goth_SkunkI don't think it's wrong for a novice dev to want to recover any losses from people willing to pay money for what they have produced, either. After all, every game dev had to start somewhere.05/25/2015 - 3:41pm
Goth_SkunkI disagree. I think that for novice developers, this tactic still at a fundamental level teaching someone the ins and outs of video game development.05/25/2015 - 3:41pm
PHX Corp@MW There are things that developers are doing that drive me up the Wall as a consumer, reused Unity assets is no Exception to said rule05/25/2015 - 2:17pm
Matthew Wilsonhttps://www.youtube.com/watch?v=5svAoQ7D38k this is stupid, and the fact its allowed is stupid.05/25/2015 - 1:52pm
james_fudgeHappy Memorial Day to everyone05/25/2015 - 7:13am
Mattsworknamealso, in MGR, on higher levels, button mashing will get you reckt, you have to master parry to even have a prayer05/24/2015 - 8:52pm
 

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