Xbox 360 News

Xbox a 'disaster' for Microsoft

Investment adviser dismisses gaming strategy

Expert investment analyst Roger Ehrenberg has come out with a surprise statement describing Microsoft's gaming initiatives as a 'disaster', adding that Redmond should not just reconsider their Xbox strategy, but also the approach of their entire Home & Entertainment division.

Ehrenberg reckons that based on Microsoft's own financial statements, 5.4 billion USD has so far been lost as part of the software giant's Xbox endeavors.

"Microsoft needs to take a long, hard look at its gaming strategy: and, in fact, its entire H&E," the adviser told Forbes.com. "At what point, regardless of its virtually endless financial resources, does it say 'enough is enough'?"

"Would we have been better served by returning the extra cash to shareholders rather than investing it in a franchise that seems to have questionable prospects for turning around? These are the kinds of questions Microsoft management should be asking. And hopefully, for shareholders' sakes, they are."

Ehrenberg states that the Xbox is too obsessed with hardcore gamers, and believes that MS should be looking at Nintendo's mass market approach with the Wii.

What are your thoughts on this? More Xbox chatter as we get it.

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