It makes plenty of sense for Microsoft to drop Xbox.
It's just not a core piece of what Microsoft does. Its not developing killer games for Windows Phone. It could help in the living room, but that's a ways away. And Microsoft would likely retain a stake in an Xbox company, so it could enjoy the upside.
The Xbox doesn't make money for Microsoft. Entertainment and Devices posted a $110 million loss last quarter. For fiscal 2013, its operating income was less than a billion. Microsoft's overall operating income was $26.7 billion.
This is a pretty interesting read. I couldn't imagine Microsoft selling the Xbox brand, but with that kind of a loss in the Entertainment and Devices division, well, I can see how it may make fiscal sense for that to be a possibility, BUT, it's the end of the consoles life cycle, i.e. console sales are down, as well as the launch of a new console, which comes, I'm sure, with tons of R&D expenditures,
Sony's Q1 2013 earnings show a $149 loss, pretty much for the same reasons as stated above. This info can be found on page two of their Earnings Report.
What are your thoughts? Do you think Microsoft would really sell the Xbox brand?
via Business Insider