Is a New Console Reason Enough to Buy Microsoft?

Microsoft has been on good run this year, up nearly 20% in 2013, better than the broader market.

Part of the enthusiasm likely stems from the new Xbox video game console, which the company revealed earlier this year. While the Xbox One console will likely be a hit with gamers, are investors right to place their hopes on a new video game system?

Let's put video games into proper context for Microsoft. The entertainment and devices division -- the segment responsible for developing and producing the Xbox -- made up just 13% of the company's revenue last year.

Even looking at the years immediately after the release of the Xbox 360, the division was still just a drop in the bucket.

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MariaHelFutura1935d ago

Investors like the Xbox division is shaking because of the position the PS4 has put them in, it could lose alot of people alot of money. They're losing every battle. The hardcore chose, the softcore will follow. Microsoft loses Murica, it's over for the Xbox division and we all know it.

Kuse1935d ago

What are you smoking...?

MariaHelFutura1935d ago

The truth.

Who said the Xbox One would be delayed? Me
Who said the Kinect was an issue that would be changed? Me
Who said the PS4 would out preorder the Xbox One in Murica? Me
Who said DRM was not going to be on the PS4? Me
Who said Always on had nothing to do w/ game sharing? Me
Who said cloud computing couldn't be used for graphic renderings? Me
Who said the PS4 was more powerful? Me
Who said MS has no clue what their doing? Me
Who said the PS3 would outsell the 360? Me

Maybe you guys, should start listening to me.

AngelicIceDiamond1935d ago

Offtopic Any new users that join N4G I highly, HIGHLY suggest you avoid @Maria.

If your a PlayStation fan (not fanboy) Don't let this person convert you into something your not, a fanboy.

Everything this person says is severely misleading, lies has an agenda to have a following of all Sony fanboys here.

Just mark this user down for trolling don't even bother reading.

The face of gaming is what you prefer and not to be determined by Maria.

I'll get marked down for offtopic but its worth it.

SignifiedSix911935d ago

I highly agree with you. All she does is troll any MS article, positive or negative.

I thought she was gone for good because I haven't seen her in a while, but I guess I was wrong.

Spoons1935d ago (Edited 1935d ago )

Would I buy MS stocks before the console comes out? Yes, for obvious reasons. The stocks will go up even if they "lose" the "war" to Sony. Although Microsoft may lose the console war this gen I doubt it will be a crushing financial blow if anything.

Even though they have apparently invested well over a billion dollars on the One this gen it is minute compared to their over all fortune.

EDIT: Further investigation reveals that the Xbox division is almost literally insignificant financially for Microsoft. They could drop it right know and suffer minor losses. Remember their A-game is really in their home computer software department.

Wikkid6661935d ago

Investors could care less about fictitious wars. They care about one thing... and that's profits. The Xbox division has really never brought a lot of money in, but it's continuing to grow and has a lot of potential.

Investors like to see a company continuing to diversify... expand their product lines. Putting all your eggs in one basket in never good business.

Spoons1935d ago

Yup. You've got it right. For us gamers it is important for some reasons that they win this fictitious war but adults in the real world simply don't care.

The question is simply:

Will MS turn a profit? If yes buy stock for future selling. If no do not buy stock.

Belking1935d ago (Edited 1935d ago )

Just looking at the name of that website tells you all you need to know about this

Kuse1935d ago

The Motley Fool...oh bah gawd its one of the most biased corrupted news source material of all time lol

Anon19741935d ago (Edited 1935d ago )

Care to comment on the article and the points they raise? Why not join the conversation rather then just attacking the messenger?

I think they raise an excellent point. Historically, investors really couldn't care less about the Xbox when compared to the larger company. When analysts look at Microsoft, the Xbox is hardly even a footnote most of the time. And for the Xbox division, that puts them in a bit of a predicament considering the division doesn't bring in the type of returns that other divisions see.

What the Motley Fool does here is add some much needed context to the discussion of the importance of the Xbox to Microsoft as a whole, and that plays very much into the larger discussion of would Microsoft sell off or spin off the Xbox division.

And here's another interesting question. Why is it that articles discussing Microsoft's XBox future are currently being flagged by the quality filter and censored?