Xbox makes profit, but compared to other divisions it's not so much. The main reasons for microsoft to keep Xbox is that it's their well known entertainment brand, it has face value for microsoft.
They have kinect and apple is going after kinect like experience. They have a windows entertainment console named Xbox One and Amazon is going after an android entertainment console and unlike amazon they have very good and strong IPs, studious (like T10, 343i, Lionhead, Rare, Black Tusk, other good 3rd Party partners) and Xbox Live.
Even if they want to sell xbox this is very bad time for doing it. Xbox One is just lunched 3 month ago and Xbox 360 still sells well (for an 8 years console).
If they wanted to sell Xbox I have to wonder, who would even buy it?
Given all their studios seems like a lot to unload. It would have to be someone with an absolute butt-ton of money, limiting it to just a few corporations.
I guess the only real contender I could think of would be somebody looking to make a splash in gaming, with fairly deep pockets, like Amazon (most likely) or Google (doesn't seem to fit for many reasons). Samsung would be an obvious guess, but I really doubt they have any interest for the console gaming biz (it's not particularly profitable in the best of times, Sammy can sell smartphones and count money).
I dont even know if Amazon has those kind of pockets, they aren't intensely profitable like Microsoft, with tons of cash on hand. Also obviously there's the whole matter of them apparently doing their own console currently. Buying a small time outfit like Double Helix is a far cry from taking on Microsoft's raft of 1st party devs.
I imagine the opposing console fans who drive a lot of these rumors, dream scenario would be what? some non-threatening company like Panasonic (I dont know the first thing about them), acquiring the Xbox brand and fading it away quietly? Looking up Panny on Wiki, they certainly seem to have the size for it (330k employees). But I cant really think of a single CE product from them offhand. They seem to embody "massive faceless asian conglomerate". seem to be struggling with profitability currently as a lot of Japan companies as well. Toshiba might be in that non-threatening passive vein too, but they were in the past actually allied with Sony. Hard to imagine those companies being aggressive.
This is the part that i wouldn't understand. With the sales, the live subscriptions, the gaming license and being able to not really reduce the price very much. I would expect the 360 to be a healthy product with good earnings. Even taking the RROD billion loss into account.
I think this is a good analysis. Based on everything I know yes my guess was 360 as a whole was profitable. Probably socking away pretty decent profits the last 3-4 years.
Of course some would say it's all comparative. Even Apple cant compete with Microsoft's software margins.
I dont know that there's really a space for that anymore though, I cant think of a huge, rising, or highly profitable software company. Apple is really a hardware company. Google is a "web services" company based on search I'd say. I dont think software is really a viable path. the only reason MS does it is they are in the unique and un-reproducable position of having a legacy OS monopoly in the PC space.
In the end I do take some pleasure that hardware was >software in general. It always bugged me how many give short thrift to the import of hardware in any industry. I n the end, hardware is that thing you cant steal, unlike one's and zero's. You cant download your TV. I'd be wary of being in a business of something that can be easily stolen (software).
Considering the money they have spend on craptastic products it's a no brainer to keep the XBOX alive
Zune? What was it, Kin? Do I get a prize?
Surface may be a possible debacle too, haven't kept up lately.
