35 replies to this topic

[nbond3040]

That sucks.

 

http://www.kotaku.co...-xbox-division/

 

[tboss]

proubly wont happen, and if it does, chances are some other company will buy and continue the brand. 

 

the second option sounds so much better than the first.

[Nollog]

hehehe.

But no, if Bill Gates has any friends still in control of the company, it won't happen.
His dream was for his company to have a do everything box in every living room.

[SailtheSeas]

I think whether or not Microsoft will remain in the games industry is very much down to how profitable and successful the Xbox One is at the end of its life cycle. If it shifts a massive amounts like the 360 and makes Microsoft an overall net profit then I think there will be some investors who will change their mind and will want to keep it. 

 

I can see why there are a number of Microsoft investors who want shot of Bing, Surface and the Xbox because none of these ventures have been profitable for Microsoft so far and companies can diversify a little too much and take their eye off their core markets. 

 

I know Microsoft Co-founder Paul Allen stated that he'd like to see the Xbox Division sold off, but who will buy it? I can only see Apple, Google and Amazon as potential purchasers. What I think will happen if Microsoft does decide to exit the games industry is that they'll asset strip the division and sell those assets off to the highest bidders. 

[Chrop]

I don't see why they don't just abandon it already, it hasn't made them any money at all ever since it came out (2011 and before, I'm not sure what it's been like the past 3 years but I don't think it's gotten any better). And now with the Xbox One, the Kinect itself costs just as much to make as the Xbox Itself + Selling it at a loss, I don't believe they'll make a profit from that either. From a business standpoint It's best just to ditch/sell it and carry on making software for computers.

Although that would leave the market to Sony and Nintendo, Seeing as they're 2 completely different companies when it comes to these things, it won't be much of a competition (which is a bad thing from a business standpoint)

[Auzzie Wingman]

I don't see Microsoft ditching anytime soon, not with the X1 having been recently released. Like Nintendo will with the Wii U, Microsoft will continue what support they can muster for the X1 for a decent amount of time.

 

I do think the Xbox brand won't be continuing in the console market, but will still exist in some form or manner. I don't see them ditching it entirely. Don't know how that works out, but the brand is one of their more well known elements.

 

I kind of want to see the brand doomed though. It's not the truth (I'm sure there are other examples), but I've always felt it was the 360 that brought about the money grubbing image the industry has today. I never felt that many developers were all that into making DLC/subscriptions and were all about quality games before it arrived.

[SailtheSeas]

 but I've always felt it was the 360 that brought about the money grubbing image the industry has today. I never felt that many developers were all that into making DLC/subscriptions and were all about quality games before it arrived.

You've clearly never played PC games pre-2005 then. 

[Rockodoodle]

The problem with Microsoft is that people don't need to upgrade their computers and their software suite like they used to (unless they want to make Word a serious publishing tool somehow- even then, that's a small sector that would need advanced functionality)......  So, I can see how XBone can be somewhat of a gateway for other services and things will integrate nicely between phone, tablet, computer etc.  I think they should keep it.

[Raiden]

[MorbidGod]

Microsoft leaving the Xbox Brand behind would be a very stupid thing. After abandoning Zune Branding for entertainment, if they do it again with the Xbox then Microsoft will have a serious problem on their hands.

Plus, the Xbox 360 did rather well and the Xbox One is doing good too. Why leave a successful product behind?

[grahamf]

Selling a lot and making a profit are two different things. Microsoft can't afford to support a loss-leader forver.

[Raiden]

The whole point of making a product to sell is to make money. When you been losing billions on it for 13 years then what the hell is the point?

[Rockodoodle]

Which then begs the question, who will be dumb enough to buy it?  I suppose they can spin it off, tho I wonder how much investor excitement it will generate.  IMO, they should stick with it and find ways to sell other services with it.  

 

 

 

The whole point of making a product to sell is to make money. When you been losing billions on it for 13 years then what the hell is the point?

[Socalmuscle]

Ms won't sell xbox. But they'll try to converge systems and interoperability.

The only problem with xbox currently is the fallout from bad initial messaging.

It's a good system with a lot of potential.

I hope ms has learned their lesson.

Ballmer going out is great. Anyone is better than him. But the new guy isn't a giant leap. He is more of an engineer though, focused on enterprise. Not sure he will be able to make the right calls on the consumer level. And the CE market is one area that has eluded MS for a long time. From Zune to Windows Mobile, to Surface, MS can't seem to win outside of Xbox. MS NEEDS to embrace and succeed in the consumer market as their old bread and butter, enterprise, is rapidly changing and adopting new technologies from competitors, much of which is free and open source.

But I guess ms can't get away from old, bald headed CEOs.

Edited by Socalmuscle, 12 February 2014 - 10:46 PM.

[Mewbot]

I can't blame them, it's losing them over a billion dollars a year. 

 

And, as a gamer, I can't imagine this would be too bad. Microsoft hasn't really contributed much to the games industry at all.

[MorbidGod]

Selling a lot and making a profit are two different things. Microsoft can't afford to support a loss-leader forver.

So, with all of the halo games sold, all the Xbox Live Subscriptions, all the Xbox 360's sold, all the Kinects sold, you don't think Microsoft made some profit? I mean, I highly doubt it was a total loss with everything considered.

Back in 2005, MS was loosing like ten bucks per system on the base model. http://www.macworld....box360cost.html

Price would have come down by now. I doubt they are loosing money on the products sold now.

And since Sony was able to provide PS3 with an online service for free, and MS been charging for that, I doubt loosing money at the start mattered.

Plus, again, money is made when games are sold. Money is made when MS makes games and they make sales. Again, money is made when people buy extra controllers and when people buy Xbox movies and music.

So yes, over all, they made a profit. I don't see any evidence that they are loosing billions a year on the Xbox Division.

I can't blame them, it's losing them over a billion dollars a year.

And, as a gamer, I can't imagine this would be too bad. Microsoft hasn't really contributed much to the games industry at all.

That's not true at all. Xbox Live changed online gaming forever. Kinect is also pretty damn cool. But, Live is pretty important evolution. If it wasn't, then why is it so bad that Nintendo isn't focusing online?

Edited by MorbidGod, 12 February 2014 - 11:19 PM.

[Nollog]

The problem with Microsoft is that people don't need to upgrade their computers and their software suite like they used to (unless they want to make Word a serious publishing tool somehow- even then, that's a small sector that would need advanced functionality)......  So, I can see how XBone can be somewhat of a gateway for other services and things will integrate nicely between phone, tablet, computer etc.  I think they should keep it.

Actually, that's exactly the opposite.
They're doing fantastically in the business sector, it's the consumer-facing product line that's killing them.
That is Zune, xbox, and co.
Windows, Office and co. are bringing them much profits.

Microsoft leaving the Xbox Brand behind would be a very stupid thing. After abandoning Zune Branding for entertainment, if they do it again with the Xbox then Microsoft will have a serious problem on their hands.

Plus, the Xbox 360 did rather well and the Xbox One is doing good too. Why leave a successful product behind?

Not if they wanted to leave the consumer electronics space.
They have a respectable name in business, which is what investors are calling on them to focus on.

[Mewbot]

That's not true at all. Xbox Live changed online gaming forever... Live is pretty important evolution. If it wasn't, then why is it so bad that Nintendo isn't focusing online?

I think sony was heading in that direction with the PS3 anyway. And Live isn't free. That's a step backwards IMO.

Edited by R00bot, 13 February 2014 - 02:58 AM.

[SailtheSeas]

Microsoft leaving the Xbox Brand behind would be a very stupid thing. After abandoning Zune Branding for entertainment, if they do it again with the Xbox then Microsoft will have a serious problem on their hands.

Plus, the Xbox 360 did rather well and the Xbox One is doing good too. Why leave a successful product behind?

 

Was the 360 a successful product for Microsoft? In terms of unit sales, yes, it was, but did the 360 make Microsoft an overall net profit? No, the 360 was an abject failure, Microsoft lost billions from the 360. Therefore it is in my opinion that the 360 was an abject failure, in fact the only successful console out of the last generation consoles was the Wii which netted Nintendo a massive net profit due to its cheap hardware, it's price point, it's software and the popularity of the product. 

 

I actually think Microsoft investors are right to want to see the back of Zune, Bing, the Xbox and Surface. If these business ventures are losing Microsoft money then Microsoft should seek to sell these unprofitable ventures. 

 

Also the XB1 is doing well and if it nets Microsoft an overall net profit, then I think Microsoft will keep the Xbox Division, if it doesn't then I think there will be pressure on Nadella to sell off the division. 

Which then begs the question, who will be dumb enough to buy it?  I suppose they can spin it off, tho I wonder how much investor excitement it will generate.  IMO, they should stick with it and find ways to sell other services with it.  

 

It wouldn't surprise me if Microsoft were forced to asset strip the Xbox division and sell off the individual parts to other companies. I doubt many companies would be prepared or would be able to afford the entire division, it will cost a company billions and as you say if it's an unprofitable division would many companies really want to take a risk with it? 

 

That said all the moves Microsoft are making at the moment suggest to me that they see themselves a part of the games industry for the long-term. They've just bought Gears of War and they are planning to go into the PC gaming market from what I've read. 

I can't blame them, it's losing them over a billion dollars a year. 

 

And, as a gamer, I can't imagine this would be too bad. Microsoft hasn't really contributed much to the games industry at all.

 

Neither has Sony and yet Sony has been hailed as this great games company. All Sony and Microsoft have done along with companies like Electronic Arts is make the games industry all about treating the consumer as a cash cow. At least with Nintendo you get a full game for your money, you don't get half a game with the rest sold to you via a season pass. Bugs and glitches are kept to a minimum with Pokemon X and Y being the only Nintendo game in recent time that I recall having a glitch and that glitch never once affected me and apparently it was fixed within a week or two. 

 

This is why the industry needs Nintendo because they're the only company that really cares about creating great products and cares about their customers not to rip them off with DLC, microtransactions and broken games. 

I think sony was heading in that direction with the PS3 anyway. And Live isn't free. That's a step backwards IMO.

 

Sony were forced in that direction by Sega with the Dreamcast and Microsoft's introduction to the console industry. I believe the Dreamcast was the first console with an Ethernet port on their console. 

[Rockodoodle]

I'm talking more long term.....  How much can they improve Office?  I'm going to guess that ten years from now, they won't be able to charge a premium and that their domination of the office productivity software will erode as google, apple start offering cheaper alternatives that will eventually end up being just as good.   

 

 

 

Actually, that's exactly the opposite.
They're doing fantastically in the business sector, it's the consumer-facing product line that's killing them.
That is Zune, xbox, and co.
Windows, Office and co. are bringing them much profits.

Not if they wanted to leave the consumer electronics space.
They have a respectable name in business, which is what investors are calling on them to focus on.