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Microsoft Advised To Separate Consumer Entertainment Division

Microsoft has been advised to split off its consumer entertainment division to increase its financial stability by analysts.

Investment firm Goldman Sachs released a report in which it has advised Microsoft to divide its business into two separate entities, one dedicated to the business and enterprise market, and the other for consumer market, reports X Bit Laboratories.

“The Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products’ brand strength, and the business could show unlocked value with forced cost discipline compared to as a piece of Microsoft," the report by Goldman Sachs reveals.

Sarah Friar, an analyst at Goldman, has said that despite the belief at Redmond to remain successful with a joint business venture, it is advisable to break up into two and focus on two different strategies at the same time.

The suggestion has been criticised by many, as it is noted that Microsoft’s software is used by home and business consumers alike, whereas companies like Apple and Oracle offer distinct products for distinct categories of consumers.