A news story from Forbes is making the rounds this morning claiming that Microsoft will run into a massive financial cluster-fuck within three years.

“The entertainment division will be spun off, sold to someone like Sony or possibly Barnes & Noble, or dramatically reduced in size,” says Forbes contributor Adam Hartung.

While that sounds about as likely as Bill Cosby making another Leonard film, that hasn't stopped the speculation from gaining traction. Hartung goes on to paint a particularly bleak portrait of Micrrosoft's future.

“Unable to make a profit it will increasingly be seen as a distraction to the battle for saving Windows – and Microsoft leadership has long shown they have no idea how to profitably grow this business unit.” 

“Microsoft makes more than 75 per cent of its profits from Windows and Office. Less than 25 per cent comes from its vaunted servers and tools. And Microsoft makes nothing from its Xbox/Kinect entertainment division, while losing vast sums in its on-line division.

“No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits Microsoft is not sustainable. Failure is already inevitable. At this stage, not even a new CEO can save Microsoft. Game over. Ballmer loses. And if you keep your money invested in Microsoft it will disappear along with the company.”

We don't know what Microsoft or the Xbox has ever done to Hartung, but it's clear that Hartung has got his best vendetta suit on for this story. What do you guys think? All a bunch of BS or does this constitute legitimate reporting? Let us know.

[via Forbes]