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Old March 12 2014, 12:51 PM   #10
Robert Maxwell
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Re: Is Microsoft Planning To Dump Xbox?

The Xbox division has been a long-term loser for Microsoft. The original Xbox eventually became slightly profitable. The 360 did a little better, but thus far the Xbox One has been a huge loser. Considering Microsoft has been in this sector since 2001, and taking into account all the money they've spent, to have such poor results is pretty pathetic. They've lost billions of dollars trying to gain a foothold in this market segment, and to date that's basically they've got: a foothold, and one that costs them a lot of money to keep.

Contrast with Sony, which had breakout hits with the first two PlayStation generations and eventually had a good run with the PS3, followed by a stellar PS4 launch, and it's pretty obvious who is winning the console war.

MS put up a good fight and I don't think their exit from the market would be a good thing overall, but from a financial standpoint it would make a lot of sense since it's just not a division likely to show substantial profits anytime soon. The Xbox One stands virtually no chance of ameliorating the long-term losses of the Xbox division, either. Rather, it looks poised simply to make them worse.
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