Xbox Co-creator: Here's Why Microsoft Shouldn't Spin Out Xbox

Now that Xbox is a profitable, established brand, why not spin it out as its own company, where it has to fend for itself and it can innovate without worrying about the bureaucracy of a massive parent corporation?

We put the question to one of Xbox's founders, Kevin Bachus. His response: Xbox is a really good fit for Microsoft, now more than ever, as tech companies start fighting for the living room, and expanding their mobile gaming on smartphones.

Today, Xbox has earned its own spot in the world of gaming. It doesn't need Microsoft to gain consumer trust.
But, in a slightly ironic twist, Microsoft needs Xbox more than ever before.

While Xbox might look like an odd duck from the outside, it's quickly becoming an integral part of the business. Spinning it out now, when it's about to be more important than ever makes no sense.

http://www.businessinsider.com/xbox-microsoft-2010-9