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Washington post: Investors want MS to kill Xbox
- Thread starter tipoo
- Start date
Can't believe the shortsightness of people wanting the Xbox to die. Reality check time. Sony is on as others have said life support. If ms pulls the plug don't you think Sony's investors won't want the same? Steam boxes while are a good in theory they are still waiting for the big hitters to being there games to Linux. Then we have the diverse range which could fragment the market like android. Nintendo are Nintendo and they either hit out of the park or stick there head in the sand. I want Sony Nintendo valve Amazon Apple Google all have console be then micro of full to push, innovate and most importantly keep gaming healthy.
This might be a smart business decision in the long run.. But as others have stated, it would be super dumb of them to bail on it right now, after spending all the initial costs of R&D and producing/launching a console...
I expect that if they did bail, it would be in a few years after they recoup some costs.
I personally think the PS4 on a hardware level is blowing the XBONE away right now, but if you look at the software on the docket and sales numbers, its hard to think the XBONE doesn't have a solid shot still!
I expect that if they did bail, it would be in a few years after they recoup some costs.
I personally think the PS4 on a hardware level is blowing the XBONE away right now, but if you look at the software on the docket and sales numbers, its hard to think the XBONE doesn't have a solid shot still!
This, if it takes MS to sell Xbox division, so be it...
Ken Masters
Banned
How is me kinect 2 technically amazing when there is still lag and so many reports of it having trouble recognizing?
Seriously. Bing is the the only one of the three properties that I would miss.
badcrumble
Member
I think the "pay lip service to investors but chair their own course" thing was a hallmark of the Ballmer era, and that's over. Ballmer was ousted specifically because investors want more control over the company and want to make sure it stops sabotaging its future.
It's not totally unfeasible that all 3 will exit the scene at some point (though rather unlikely), but lets be clear.
Someone else will step in.
Google or Apple or Amazon would love the data mine treasure trove that is peoples living rooms. Google already knows you behaviour on the internet. Something like Xbox One would have to have a strong appeal to them. What do you do when you aren't on your tablet/phone/PC? How can we aggregate and then sell that metadata in conjunction with what we already have?
Even if all 3 console holders went out, someone will step into the space. Amazon, Apple and Google are all looking to make a move as is. I would assume one of them would write a 10 figure check to pick up a division of one of these companies.
Killroyskbg
Member
Here you can clearly see how small the Xbox division is for Microsoft when it comes to profit. Using the money now given to the xbox division which have not have had any significant growth compared to other business areas where they might generate more profit is not hard for the investors to propose.
Lactose_Intolerant
Member
http://www.businessinsider.com/microsoft-earns-2-billion-per-year-from-android-patent-royalties-2013-11
That might be one reason to sell it off.
edit, banned site , chose a new one
The only good thing about Bing is Bing Video. I would probably scrap it if I were MS. Xbox has subscriptions and will make money if it isn't already. They should definitely keep that. Surface is ok but the tablet/smart phone market is fierce. I don't think they have a chance of ever toppling Apple or Android.
RurouniZel
Asks questions so Ezalc doesn't have to
This is so par for the course for Microsoft. The Xbox 360 was a huge success but this company just has zero sense of product confidence and follow-through. Their solution every single time is to release something that tries to be innovative (but in truth is just annoying to the consumer) then ignore feedback from the users, and subsequently can the product because it isn't perfect and they have no interest in fixing it.
Let's list some failed Microsoft products here:
But alas, MS as usual is focusing on the short term and possibly punishing those who "bought in" to their early hype. While I don't think they're going to "shit can" the Xbox One at this point, this brings into question if there will be another Xbox or if this is the end of the line. There is a long and sordid history of Microsoft rapidly losing interest in products that are not quickly adopted. If they don't start to get behind their products, support them, and LISTEN to feedback of the consumer rather than just walk away under criticism, then they'll be fated forever to survive off of the monopoly they have on office software. It is obvious that MS is after that iPad / iPhone / Playstation 2 level of success with their respective products but without confidence from within and some flexibility this is never going to happen, and each item they scrap will only push them further from it, alienatoing those precious few who are willing to buy in early.
Let's list some failed Microsoft products here:
- Zune
- 'Clippy'
- Tablet PC (the early one)
- Windows Vista
- Smartwatch
- MSN messenger
- Pocket PC
- Windows Media Center
- Games For Windows Live
- Windows Phone (you know they'll cut that soon)
- Bing (see above)
- Possibly Surface (see above)
- Possibly Xbox One (see above)
But alas, MS as usual is focusing on the short term and possibly punishing those who "bought in" to their early hype. While I don't think they're going to "shit can" the Xbox One at this point, this brings into question if there will be another Xbox or if this is the end of the line. There is a long and sordid history of Microsoft rapidly losing interest in products that are not quickly adopted. If they don't start to get behind their products, support them, and LISTEN to feedback of the consumer rather than just walk away under criticism, then they'll be fated forever to survive off of the monopoly they have on office software. It is obvious that MS is after that iPad / iPhone / Playstation 2 level of success with their respective products but without confidence from within and some flexibility this is never going to happen, and each item they scrap will only push them further from it, alienatoing those precious few who are willing to buy in early.
Hybrids are gaining traction in my uni but not the surface, people prefer VAIO, Lenovo and other companies.
KojiKnight
Member
In the long run, this is true. Amazon is already poised to make an entrance and they are easily the strongest possible competitor to do so in a long long time (since Microsoft first did so with the original xbox).
Dreams-Visions
Member
In principle, I agree.
However in this case Bob has proven that he doesn't have very good ideas beyond pizza anymore, and where those products turn to gold every time he touches them...everything else he seems to touch turns to rust no matter how much money he throws at it. So at least pizza isn't losing Bob money and profits are steady.
I don't remember the last financially successful product Microsoft had outside of Office, IE and Windows. Maybe that's because they've never had one. It's hard to make a winner on the scale of what Microsoft's "winners" have looked like. If it were easy, they'd have a portfolio foll of billion-dollar money-makers. It's particularly hard when you have the agility of a 90 year-old woman with a walker...which is what Microsoft has been for the last 20 years.
I also really like Bing Maps. I guess Bing's motto should be "Directions & Erections"
thunder_snail
Member
Investors want short term profit. The real goal of Xbox division from the business point of view is bringing MS brand to the living room which can eventually become a steady cash cow if they pulls it off right. Unfortunately, they are doing it wrong imo.
Nightengale
Member
If Sony had a ton of high-margin, healthy business, they would.
The painful reality for Sony right now is that Playstation is undeniably one of the core businesses that is extremely difficult for competitors to commodify, unlike their previously treasured TV/PC business that has been turned into worthless businesses thanks to Korea & China.
That's why for the short-term, even though Sony is all sorts of problematic, gaming is nowhere near a concern because Sony has a lot of bigger problems in other business units.
VicDaMoan03
Member
No way Microsoft kills Xbox. Selling it to another party is a slight possibility but I would doubt it given their investment.
I wholeheartedly agree with Nadella and Gates that:
- Everything is moving to the cloud, productivity and entertainment
- People do both (productivity and entertainment) throughout their daily lives
- Microsoft should own the hardware that enables delivery of core innovative experiences that draw more people to the ecosystem
To give up on entertainment would just eventually push more people to other ecosystems, leaving WIndows, Azure, Office, etc. with a dwindling consumer base.
The long term strategy is sound. They need to execute better, faster on innovation. Ballmer let them get too far behind far too often.
Their cloud services make billions. I think Azure gains something like 1,000 new customers a day and Office 365 (online version) is growing quick.
If I was the new CEO of Microsoft:
1. Kill Bing
2. Kill Surface
3. Sell Xbox to Samsung
The war for the living room is over. Microsoft lost. It's just not a core competency of theirs; Samsung, OTOH, has a much better idea of what consumers want.
As an IT person, Microsoft is a great company to do business with. They know what they're doing with their server software and services lines. They're the new IBM, and should focus on those competencies. They had a really great thing with the Xbox 360, but it's pretty obvious it was more a happy accident than competent leadership. They never wanted the focus to be on games, something which is painfully obvious today.
If the Xbox One actually did the other "stuff" competently, that would be one thing. But the VR sucks, the TV integration sucks, the Kinect has no killer app, it's just a mess.
After the PS3 debacle, I did not particularly relish picking up a PS4 instead of an Xbox One. But Microsoft didn't give me a very appealing option as somebody who wants a) games, and b) light media capabilities.
1. Kill Bing
2. Kill Surface
3. Sell Xbox to Samsung
The war for the living room is over. Microsoft lost. It's just not a core competency of theirs; Samsung, OTOH, has a much better idea of what consumers want.
As an IT person, Microsoft is a great company to do business with. They know what they're doing with their server software and services lines. They're the new IBM, and should focus on those competencies. They had a really great thing with the Xbox 360, but it's pretty obvious it was more a happy accident than competent leadership. They never wanted the focus to be on games, something which is painfully obvious today.
If the Xbox One actually did the other "stuff" competently, that would be one thing. But the VR sucks, the TV integration sucks, the Kinect has no killer app, it's just a mess.
After the PS3 debacle, I did not particularly relish picking up a PS4 instead of an Xbox One. But Microsoft didn't give me a very appealing option as somebody who wants a) games, and b) light media capabilities.
gaming_noob
Member
I wouldn't mind the Samsung Xbox.
Killroyskbg
Member
Sony seems to be pushing PlayStation more than ever now and compared to MS it is one of their key businesses.
Yeah, people are always surprised at how unprofitable Xbox and Playstation have been. Even in boom times, the margins have been thin.
Sony shouldn't sell the Playstation business, though. In a weird sort of semi-compliment to Microsoft, MS is simply in a vastly better business position overall, and what represents a mediocre performance for them represents a solid performance for a company like Sony who doesn't have anything remotely like Microsoft's business/office/windows segments.
Ken Masters
Banned
With all the sickening money hating going on I want a one console future
I don't think anyone thinks MS would just kill the Xbox name. They could make a lot of money selling the name and walking away.
LMAO
Well, he like many, are enjoying because they're not facing those problems? And it'll receive continuous improvements (in fact tomorrows Xbox one update).
digoutyoursoul
Member
Apple ? Google? Samsung? Walmart?
Baron_Calamity
Member
At this particular moment, I would be more upset at losing Bing than Xbox but both look like their in danger.
I could see the Xbox One continuing at the same time, all future game console R&D being killed. I really doubt we will see a console after Xbox One.
I could see the Xbox One continuing at the same time, all future game console R&D being killed. I really doubt we will see a console after Xbox One.
Azure is doing quite well so far, and their server enterprise is extremely successful. But yes, MS has lots of very poor showings, and Xbox is the best performing of their consumer hardware. Generally, I think Microsoft's moving away from consumer-focused hardware.
K
kittens
Unconfirmed Member
As long as Halo survives. :-(
None of these so called analysts ever care to explain how the division was profitable before Microsoft started receiving Android royalties. Unless you believe the Kin and Zune were keeping the division afloat?
ReturnOfTheRAT
Member
Bing should go. Those with money invested in the company have wanted to cut their losses their for the longest time.
Bedameister
Member
I could imagine this being the last Xbox from Microsoft. I don't think it would happen but it wouldn't surprise me if they would sell the Xbox division.
RottenTanuki
Member
I'd be much happier if Xbox were spun into its own company run by people who don't come from enterprise software background.
The Abominable Snowman
Member
War in the living room is lost? I'm sure MS' aim is just to sell as many or a bit more Xbox Ones per year than they did Xbox 360s. They're not doing too bad.
Their aim is just to grab some foothold in the market, make their niche profitable, and make a name for themselves. Same as with Windows Phone. They'd be happy with a 10% marketshare.
Your advice makes no sense.
Pancakes R Us
Member
Even though Xbox doesn't really interest me, I think it's in the best interests of console gaming for it to stay. The more players we have in this market, the better. This way, when one of them gets greedy/makes stupid decisions etc. there's always another two to pick up the pieces. I don't ever want another situation where one company becomes the super power in gaming again.
zenosparadox
Member
Closing or selling the Xbox division will bring about the end of Windows? How did you arrive at that conclusion?
Which would be going back to the roots of Xbox. They are heavily integrated with all other aspects of Microsoft which kind of sucks because it could be much more focused.
Amazon it is then.
CadetMahoney
Member
Not at this point but the writing is on the wall if you ask me. Give it a year of being irrelevant everywhere outside of North America with no signs of growth coupled with a distant second place in it's strongest market and they will drop it harder than a frozen turkey.
Xbox brand is having no growth and has no chance of succeeding. Not listening to feedback is only part of the problem, it's like they actively did the opposite of what even an idiot expected them to do with xbox one, so I don't think anyone feels sorry for them if they abandon the console endeavor.
Even a forum dweller could make better decisions with the xbox one direction than they did. The damage control despite that was hilarious too.
Wolfgunblood Garopa
Member
A company as large as Microsoft is going to have businesses that are significant and beneficial without having to make a lot of money. Everyone knows what Xbox is, that it's fun, and that it's Microsoft. That bleeds over into the overall public perception of the company. Xbox isn't going anywhere.
KZObsessed
Member
I'd argue that .NET/Visual Studio has been a successful product line. Just look at how many web sites are developed in .NET. And this is not even taking into account the number of Windows applications in .NET as well. It's not my favorite development platform, even though I use it every day, but it certainly has a large market share.
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