Goldman Sachs' analysts punked Microsoft's stock rating and archly suggested that the company spin off the Xbox 360 division, saying such a sale could unlock hidden value within the unit and free it from the company's more sluggish performance.
The report, released over the weekend, downgraded Microsoft from "buy" to "neutral" (which, if a stock was a triple-A title, is like going from an 8.0 to a 7.5 on a game rating scale. Yeah. It's that bad.) In bemoaning the company's Windows-based revenue, Goldman Sachs said that corporate overhead was harming the Entertainment and Devices Division, home of the Xbox 360.
"The Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products' brand strength," the firm wrote, suggesting that Microsoft become two entities, one focused on consumer products and another on enterprise business, akin to Apple in the former and Oracle in the latter.
Fun telling other people what to do with their money, isn't it?
Goldman Downgrades Microsoft, Makes Case For Major Overhaul [TechFlash]