As Xbox One Hits Shelves, Microsoft Ponders Sale Of Gaming Console Division

Microsoft's Xbox One launched just after midnight on Friday, following hard on the heels of Sony's PlayStation Four. But Microsoft may not be in the gaming console business much longer.

Microsoft doesn’t break down what its Xbox division generates in terms of revenue. But it’s believed to be breaking even at best.

Chris Ciaccia is technology editor for financial news website TheStreet. He says Xbox’s survival within Microsoft depends on who the company brings in to replace departing CEO Steve Ballmer. One of the top prospects for the job is Ford CEO Alan Mulally.

“There’s a chance that an outsider like Mulally would come in, say, ‘What does this really do for us?’ and then just either sell it or maybe even spin it off into its own company, so maybe that unlocks value for shareholders that way.”

Ciaccia says that any such move isn’t likely for at least a year. In the near term, he expects sales of the new console to be brisk.

“If you haven’t preordered the Xbox One and you see it, don’t hesitate, otherwise there’s a very good chance that you won’t have it for the holiday season.” 

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...