Spinoff #3: Microsoft (MSFT) Spinning off Xbox and Other “Devices”
Console video games are not exactly the way of the future, but the Xbox division at Microsoft (MSFT) is certainly attractive to some and has seen big growth during the past few years. In fact, one of the reasons MSFT just posted record revenue was a strong Xbox One launch during the final three months of calendar 2013.
This is clearly a different animal than enterprise software, and could benefit from being freed up from the Microsoft bureaucracy to live the life of a true video game software company. After all, hardware is in many minds on the way out — and online services like Xbox Live or megahit franchises like the MSFT-owned Halo series are going to be the big driver of profits for any video game company.
And if you really want to get crazy … why not spin off the entire Microsoft devices unit that includes Surface tablets and Windows phone operations? After all, Microsoft just snapped up the hardware arm of Nokia (NOK), and former Nokia CEO Stephen Elop will be heading up the “devices” division going forward.
Of course, while Xbox is a big revenue driver, it’s not yet a big profit driver. And let’s not even get started about Surface posting profits on its own.
Still, if you want to think big about the future of Microsoft and separate legacy enterprise services and software from the “growth” parts of the company … this would be a way. And who knows? Maybe the shakeup would provide new leadership and agility that resulted in the kind of creative energy necessary to take MSFT devices to the next level.