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MS CEO candidate Stephen Elop said to consider selling Xbox business, killing Bing

Sell me if old

Microsoft CEO candidate Stephen Elop said to consider selling Xbox business, killing Bing

Microsoft is currently searching for a new CEO to replace Steve Ballmer who plans to retire within the next 10 months. Recent reports suggest the company has shortlisted Ford CEO Alan Mulally and former Nokia CEO Stephen Elop as external candidates. Mulally has stated he has no intentions to leave Ford, but a Bloomberg report claims that Elop has big plans if he’s made CEO. After a brief stint as the head of Microsoft’s business division, responsible for Office and other products, Elop’s return to Microsoft in the CEO position would reportedly involve a push for Office on Android and iOS.

Elop is reportedly considering a strategy shift away from Microsoft’s tradition of Office running primarily on Windows PCs. Bloomberg reports that Elop is formulating "some broad strategic outlines for Microsoft," in what is likely to be part of the interview process for the CEO position. Elop’s potential strategy is said to involve maximizing sales of Office instead of using it to push Windows PC and tablet sales. Microsoft’s Office and server software has been performing well in recent financial results, while Windows continues to struggle alongside a declining PC industry. Although Office has launched for iOS and Android, Microsoft could certainly do more to offer complete versions on those rival platforms.

Bloomberg also suggests that Elop is willing to shut down or sell some major Microsoft businesses. Elop would reportedly considering killing off the company’s Bing search engine, while contemplating selling the Xbox business. Some investors and analysts have previously called for the software giant to split off its Xbox business and give up on search. Microsoft co-founder Paul Allen appears to feel the same way. Allen’s $15 billion asset manager, Paul Ghaffari, revealed recently that Bing and Xbox have been distractions for Microsoft. "My view is there are some parts of that operation they should probably spin out, get rid of, to focus on the enterprise and focus on the cloud." Nomura analyst Rick Sherlund claims Microsoft’s financial earnings could be boosted by 40 percent in fiscal 2015 if the company sold its Bing and Xbox businesses.

Any sale of Bing or Xbox seems unlikely, despite continued suggestions over the years. Microsoft is moving to integrate its search engine experience directly into Windows 8.1 and Windows Phone, and the company is just weeks away from launching its next-generation Xbox One console. Bing also powers a number Xbox search and app features. Either way, Microsoft’s CEO search appears to be progressing with some suggesting the company may name a Ballmer successor by the end of the year.
http://www.theverge.com/2013/11/8/5080192/microsoft-ceo-candidate-stephen-elop-bing-xbox-rumors
 

Sendou

Member
Elop moving from one victim to another.

Actually killing Bing might not be such a bad move. Not so sure about Xbox. Even if it isn't profitable it's a big part of Microsoft's ecosystem right now.
 

Skeff

Member
This is being talked about so much now that I think it's safe to say that spinning off Xbox is a very realistic possibility.
 

MCD

Junior Member
There is a pertinent story about a man who was working on an oil platform in the North Sea. He woke up one night from a loud explosion, which suddenly set his entire oil platform on fire. In mere moments, he was surrounded by flames. Through the smoke and heat, he barely made his way out of the chaos to the platform’s edge. When he looked down over the edge, all he could see were the dark, cold, foreboding Atlantic waters.

As the fire approached him, the man had mere seconds to react. He could stand on the platform, and inevitably be consumed by the burning flames. Or, he could plunge 30 meters in to the freezing waters. The man was standing upon a “burning platform,” and he needed to make a choice.

He decided to jump. It was unexpected. In ordinary circumstances, the man would never consider plunging into icy waters. But these were not ordinary times – his platform was on fire. The man survived the fall and the waters. After he was rescued, he noted that a “burning platform” caused a radical change in his behavior.

We too, are standing on a “burning platform,” and we must decide how we are going to change our behavior.
 

gofreak

GAF's Bob Woodward
And here we go...

Allen's apparent support is even more significant, I guess.

Best case scenario - some fund or management group buys it in one piece and spins it off as its own game-centric business.

There are various other less appetising scenarios.
 
Was that stuff about the xbox division still being horribly unprofitable and hidden in the numbers bourne out as true?

If so this kinda makes sense, otherwise it's absurd.
 

Respawn

Banned
This is not good news for anyone buying Xbox. This news must have some traction somewhere to be brought up again.
 
Ok so joking aside what would selling the Xbox division actually entail?

Like do all the staff go too or would they likely be retained at MS people like Ken Lobb, Phil Spencer, Phil Harrison ?
 

Skeff

Member
Does SAMSUNG even want to get into the gaming business???

It's a pie, Samsung love putting fingers in pies.

I don't think they've spoke specifically about it, but they appear to be the biggest company who seem likely to want to get into it and aren't already developing their own console.
 

gofreak

GAF's Bob Woodward
Was that stuff about the xbox division still being horribly unprofitable and hidden in the numbers bourne out as true?

If so this kinda makes sense, otherwise it's absurd.

That analyst 'leak' of that info wasn't by accident.

Knives our out among various factions at MS, targeting certain parts of the business.
 
So if xbox will be gone, does it mean that it will be PS4 vs Wii U vs Steambox? I wonder who will buy what xbox exclusive game rights then.
 
Nintendo buying Xbox would be awesome. They could probably bump Zelda up to next gen without upsetting its schedule. Obvioulsy zero chance of this happening.
 

Skeff

Member
So if xbox will be gone, does it mean that it will be PS4 vs Wii U vs Steambox? I wonder who will buy what xbox exclusive game rights then.

It will still be XB1 vs. PS4 vs. Wii U vs. Steam

But XB1 would likely reduce in moneyhats. The next generation would be where the big changes happen.
 

Blueblur1

Member
If that happened I can't imagine the Xbox business transitioning without taking a hit. Especially with how the Xbox One uses other Microsoft services like Azure.
 

Ploid 3.0

Member
There is a pertinent story about a man who was working on an oil platform in the North Sea. He woke up one night from a loud explosion, which suddenly set his entire oil platform on fire. In mere moments, he was surrounded by flames. Through the smoke and heat, he barely made his way out of the chaos to the platform’s edge. When he looked down over the edge, all he could see were the dark, cold, foreboding Atlantic waters.

As the fire approached him, the man had mere seconds to react. He could stand on the platform, and inevitably be consumed by the burning flames. Or, he could plunge 30 meters in to the freezing waters. The man was standing upon a “burning platform,” and he needed to make a choice.

He decided to jump. It was unexpected. In ordinary circumstances, the man would never consider plunging into icy waters. But these were not ordinary times – his platform was on fire. The man survived the fall and the waters. After he was rescued, he noted that a “burning platform” caused a radical change in his behavior.

We too, are standing on a “burning platform,” and we must decide how we are going to change our behavior.

Bail out post. If xbox really is sucking money up and burning it not gaining them money it seem like it really will be dealt with somehow, especially if they don't do well this gen. Samsung buying Xbox? Would they really want it?
 

Pop

Member
With all the news coming out like the one here, seems to me Xbox is on it's last legs. Xbox better sell what they have predicted, if not shits about to get crazy.
 

Ulumsk

Member
Down the line, sure. It doesn't seem to make them money, but killing it after having spent hundres of millions, if not billions on R&D and not seeing the payoff seems rash.
 

RamzaIsCool

The Amiga Brotherhood
The videogame business is a pretty low margin affair. Why should companies like Apple or Samsung want to enter it? I have a feeling that most of us don't understand how lucky we actually are that companies like Microsoft and Sony are willing to put up with this shit and stay in videogames.
 

Raist

Banned
Although MS probably did bring some healthy competition in the VG scene, I think overall they should have stayed clear of hardware stuff. Most of their projects have been huge failures.
 

gofreak

GAF's Bob Woodward
If that happened I can't imagine the Xbox business transitioning without taking a hit. Especially with how the Xbox One uses other Microsoft services like Azure.

Deals with MS could continue.

But the only way I could see it transitioning without major change would be if a very well heeled corporate picked it up and was interested in the console biz. A setup like Xbox needs a lot of capital backup.
 

witness

Member
In order for Nintendo to buy the Xbox brand they would need a CEO willing to spend money, which they certainly don't have yet. Too bad Sony isn't in a better financial situation, because the meltdowns of Sony buying the Xbox division would be the greatest day ever on the internet.
 
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