Saturday, August 31, 2013

Could Microsoft Spin Off XBox?

With Steve Ballmer's announcement that he will retire within the next 12 months as Microsoft's CEO, investors may be clamoring for more value from the stock.  According to the report, a possible scenario could have Microsoft spinning off XBox into a separate business.  Certainly, XBox has been one of the true winners in recent years for Microsoft.  And while their operating system has been their main source of revenue, the decline in computer sales has put pressure on the business.  Microsoft needs XBox as well as other new innovations.  Whether their Surface Tablet can achieve that status remains to be seen, but till then, a spin off of XBox seems quite short sighted. 

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