http://bgr.com/2013/11/26/xbox-one-profit-estimate/
Despite selling more than a million Xbox Ones in less than 24 hours after launch, Microsoft is not going to make money off its latest gaming console anytime soon, prompting some analysts to advise a spin-off for the Xbox division. Barrons points us to note sent on Friday by Nomura Equity Research analyst Rick Sherlund to investors claiming that Microsoft stands to lose more than $1 billion this year from its Xbox venture,
a number that looks slightly better than the initial $2 billion Xbox One loss forecast from the same research firm.
Sherlund estimates that Microsoft will sell around 4.2 million Xbox One units, although the number may be too optimistic considering existing competition from the PlayStation 4 and early supply problems. Furthermore, in Sherlunds opinion, the Xbox One cant become a strong player in the entertainment business, as it faces increased competition from non-console devices including the iPhone, iPad and other smartphones and tablets that can be used for games and media consumption.
Therefore, the Xbox One would be a good candidate to spin-off to shareholders, Sherlund concludes. This isnt the first time weve seen the analyst take this stance regarding Microsofts Xbox business. In previous notes to investors, he argued that the Xbox division should be sold, right alongside another cash-bleeding Microsoft business, the Bing search engine. Interestingly, rumored Microsoft CEO candidate Stephen Elop would reportedly be in agreement with these suggestions.
http://bgr.com/2013/11/26/xbox-one-profit-estimate/