Microsoft Corporation (NASDAQ:MSFT) should exit the gaming industry, Josh Brown reacted after a report on CNBC about the company’s event at the Electronic Entertainment Expo (E3).
The comment came after CNBC’s Julia Boorstin reported about Microsoft Corporation (NASDAQ:MSFT) Xbox division chief Phil Spencer commencing the company’s press event at the conference. The CNBC team agreed that the lack of games for the Xbox One is certainly a factor as to why the gaming console is not selling as well as the PlayStation 4. According to the FMHR trader, gaming is not a great business for the Windows-maker.
Brown said that though Microsoft Corporation (NASDAQ:MSFT) may think that their gaming business is strategic and that they are not going to get rid of it soon, people on Wall Street may not care or might even be relieved if the company does exit the gaming industry.
The CNBC contributor then added that the gaming business that the software giant’s gaming business has “never made money”. He continued that while the division has some “pretty good” products, it is “hard to say that they have to be in this business.”
The team then compared Microsoft Corporation’s (NASDAQ:MSFT) gaming business to GameStop Corp. (NYSE:GME) which they said is a “more pure” gaming company.
Meanwhile, Boorstin, at the start of the report, recapped what the company has focused on during their E3 event. Microsoft said during its presentation that they have listened to their customers. The company then assured its fans that there are a lot of games for the Xbox One. Last year, industry observers noted that games was just one of the focus points for the company during their E3 unveiling of the Xbox One. However, this year’s presentation is all about games, and then some more games.
Investors in the Redmond, Washington-based software giant includes Michael Lowenstein’s Kensico Capital which had 5.4 million shares in the company as of March 31. Furthermore, Charles De Vaulx’s International Value Advisers also reported 4.7 million Microsoft Corporation (NASDAQ:MSFT) shares. Another shareholder is Thomas Steyer’s Farallon Capital which held 4.56 million shares in the company by the end of the first quarter of 2014.