Yeah..this is true. Microsoft moved the Xbone into their devices department, and it just so happened that their devices department makes enough money to hide the gigantic debt that the Xbone has created.
But this debt shouldn't be a surprise to anyone, developing, manufacturing and shipping millions of consoles costs a ton of money...
Jesus people MSFT current market cap is 315 Billion dollars. Year over year they have grown by 31% due to strong financial reports through out the year and the economy growing in general. They remain one of the top 10 largest companies in the world.
All this 'OMG MS loosing so much money they gonna slash and burn divisions' tard topics that keep popping up on this board are stupid.
What MS is doing is the same thing Apple and Google are doing. They want an 'ECO-system' of platforms, think operating systems. The X Box One will be part of that. MS is behind in the smart phone and tablet category but wayyyyyy ahead in the PC world, and about tied in the web browser category. MS views the X1 as another way to bring the windows platform to customers. These different things they are doing are all interconnected in some way.
Now as someone who currently does invest in individual stocks let me explain something about how that works. Investor interest are not always in line with company interest. Many investors are looking to make money fast and cash out. Investors love buy back programs because it pushes the stock up, they sell, and from that point they couldn't care less how that company does. They have already made their money. That is just one example. Long term investors tend to care more about long term success of a company.
There are literally thousands of articles on the internet every day saying 'this company should do this or that'. Hell I read an article not long ago suggesting that Sony should drop most of it's hardware lines (think playstations, cameras, phones, tablets) and focus more on it's insurance business in japan. Do I take that article seriously or think it will happen? No, absolutely not.