Redmond continues the search for a new CEO, but one rather interesting decision the new leader will have to take what to do with the Bing and Xbox divisions. There are voices that say Microsoft is better off spinning these businesses, as they require substantial financial investments.
Roger Kay of Endpoint Technologies Associates is one analyst that seems to be in the former camp. The market watcher recently said that Microsoft has a surefire chance at success with the Xbox One, and the company can conquer the living room with the console.
And this could combine with Microsoft’s leadership in the PC business to bring good results:
“The profit margin of that business is more defensible than the current PC business. Microsoft has a more solid shot at the living room, by way of Xbox, than it does through PCs.
There’s a lot of monetization possible if you can take over the living room, so Microsoft is highly motivated to make that game platform as versatile as possible.”
The same goes for the Bing search service.
While the search engine is still a few leagues away from becoming a threat for Google Search, it is at least there as an alternative — and keeps on growing by small margins every month. So why quit now?
Now whether the next Microsoft leader ignores the calls to spin off these divisions is something that remains to be seen. But this much is certain that the company has few other reasons, if any, other than financial to get rid of these two products.