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Rumour: Xbox being bought by Amazon?

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SPDIF

Member
Because companies very rarely make purchases of this size with cash, it's almost always a combination of financing, stock and cash. Why spend your own money when you can spend someone else's, especially with interest rates at record lows?

There are a hundred different reasons why Amazon wouldn't do this but financing isn't one of them

Right, but they already have razor thin profit margins. Let's just say that they do somehow manage to buy the division; with all that added bloat, what would the profits look like then? I'm not saying it's impossible, but it seems like a huge risk for Amazon. Why take that huge risk when they could take a much smaller one (build their own Android based console), which may turn out to be much more profitable in the future?
 

Chesskid1

Banned
free lifetime amazon video w/ xbone purchase

free overnight delivery on all xbone games

free xbox one with 5 yr prime agreement

the possibilities are endless!
 

flkraven

Member
So people think that Amazon, which has around $12 billion cash on hand, and made a grand total of $274 million in profit for the whole of 2013, can buy a division which is valued at around $17 billion? Why?


Theoretically there is leveraging and/or partial buyouts where Microsoft still retains certain rights (ie, Windows-based OS, etc). Doubt this is happening, just saying there are options.

While improbable, I'd be okay with an Amazon takeover.
 

bigmf

Member
I'm having a tough time seeing why Amazon would want to stick their hand into this particular blender. Wall Street is getting antsy because they're consistently missing earnings targets, and the first two years of Xbox One aren't going to help. I know, I know, synergies, economies of scale and other front-office high-impact buzzwords. Game consoles have a proven history of sucking up cash and throwing out losses. Particularly in the first few years of a cycle.The risk of them kicking the shit out of stock price is too big. If they're doing it, they're playing the long game and it'll be a shit-show in the early going.
 
This is weird but I had a dream last night that I was looking at Facebook on my laptop and Jeff Gerstmann had posted a statement from Major Nelson titled "Important Information On The Future Of The Xbox Brand". The first line was something like "As you may already be aware..." It was so vivid that I think I managed to wake myself up from the dream and went and logged straight on to gaf, half asleep, to see if it was real.
 
This, I think, is an educated guess based on the fact that Amazon is preparing for something big related to games, and that it's very well known MS investors want Xbox sold off. It's not going to happen. Xbox is one of Microsoft's most important consumer devices, and it's more than meets the eye in their overall strategy. It's quite strategically important, in that it's a very popular consumer means to further advance and protect their other products and services.

It would be foolish to just give that up. It would further endanger a lot of the other stuff they want to protect.
 

Yoday

Member
I don't know, I feel like at this point Amazon having the Xbox brand would be a win overall. MS has been doing some pretty shitty things lately, and completely driven me away from the brand. I would be really interested to see what kind of changes Amazon could put in place.
 
When you are a public figure you have to take responsibility for what you say publicly regardless of the vessel for the message.

He wants to be known and he wants to be regarded as credible. It's not the internet's job to pick and choose what they believe. It's his job to pick and choose what he says.

He's no dummy and he absolutely knows that this would happen.


Clearly I am a dummy because I thought the tone was such that it wouldn't be taken seriously. Nor did I make a thread about it here. Or make some sort of click-bait article for my blog.

I honestly don't think of myself as a public figure.

I'm credible when there are things I know. Like that Microsoft's internals showed a huge drop off in the first two weeks in January so I posted as much and said to watch the npds. I was right. Hooray! Like 3 people mentioned that I had said that. I don't feel like I'm any sort of big player. I don't have a giant ego. In fact I'm rather shy and don't like the attention. I totally feel for the Flappy Bird guy and think he lasted longer than I would.

I've also asked for this thread to be closed like 3 times. Not that I expect the mods to care what I want. If I could go back in time and not make those tweets I would. This entire thing is silly.


I also said that Denver was going to destroy Seattle because Peyton Manning is just too smart and would find a way to pick apart their defense. Sometimes I tweet that I pooped. Most of the time it's glimpses into how shitty my luck is.


If I have major news to share I'll do it here or on my blog (or both) . Maybe it's time to just make my twitter private.
 

KOHIPEET

Member
There's no smoke without fire.

Nuclear apocalypse if this becomes a reality, but I don't think it will. IMO, the rumor's source is some kind of negotiation between the two companies. I wouldn't be suprised if it was Amazon who actually reached out to MS first. (Again, if true.)
 
I would worry for Sony. Competing agains Amazon is tough, they don't give a fuck and will do anything to win in a market.

People said the same thing about Microsoft haha (although the 360 did steal a ton of Marketshare from Sony).

Amazon seems to be a much more nimble company than MS though and I agree, this would worry Sony.
 
That's not how business works. Companies don't disregard profit since 2008, in favor of losses prior to that. It's called a write off. Fact of the matter is, the Xbox brand is profitable now and has been for a half decade. It is propping up their Entertainment division as a whole. Even with dead weight like Surface and Zune weighing it down, the division still brings in millions in profit, and it's pretty clear why.

I dont know why so many people cant understand this.
 

Cheddahz

Banned
Thinking about it now, this could be cool. You could use Amazon credit (gift cards and trade in credit) on downloadable games and (I'm just dreaming here) Amazon Prime replaces XBL Gold, so you can pay yearly for something that provides you with television and movies, online play, and free Prime shipping
 
Clearly I am a dummy because I thought the tone was such that it wouldn't be taken seriously. Nor did I make a thread about it here. Or make some sort of click-bait article for my blog.

I honestly don't think of myself as a public figure.

I'm credible when there are things I know. Like that Microsoft's internals showed a huge drop off in the first two weeks in January so I posted as much and said to watch the npds. I was right. Hooray! Like 3 people mentioned that I had said that. I don't feel like I'm any sort of big player. I don't have a giant ego. In fact I'm rather shy and don't like the attention. I totally feel for the Flappy Bird guy and think he lasted longer than I would.

I've also asked for this thread to be closed like 3 times. Not that I expect the mods to care what I want. If I could go back in time and not make those tweets I would. This entire thing is silly.


I also said that Denver was going to destroy Seattle because Peyton Manning is just too smart and would find a way to pick apart their defense. Sometimes I tweet that I pooped. Most of the time it's glimpses into how shitty my luck is.


If I have major news to share I'll do it here or on my blog (or both) . Maybe it's time to just make my twitter private.

As I posted earlier I dont think people should post stuff from active GAF members twitter accounts because if they have something to share they can make a thread.
 
I could see it happening but my guess is Amazon would not get ALL of the xbox branch. They do not need all of it anyway.

My guess is it would be split up between MS and Amazon.

MS keeps.

The underlying XBL network (Amazon will use its own)
Hardware design team (Amazon will use its own)
The OS team (Amazon will use its own and its based on Windows so why would they even want it?)

Amazon gets
The Xbox Brand
1th party studios and IP
3rd party relations team
Multi Media / TV-TV-TV-SPORTS-TV team
Manufacturing deals.


My guess is if the deal happened it would first happen with the xbox branch being spun off and co owned by MS and Amazon for the rest of the current gen as they migrate to a fully amazon owned console the next go around and Amazon buys MS's shares.
 

NolbertoS

Member
Well, they are both located in Seattle, probably Mortimer's sources saw the the new CEO and New Xbox Chief head over to Amazon's digs for some coffee and someone is saying they're in "high-level" talks. Seems plausible :p.if Amazon were to buy Xbox, don't think Sony or Nintendo would want there products on there website. Hmmm, there gains would be not much selling console software ad only restrict themselves to Xbox, I don't know. Amazon prides itself in selling everything on there website.
 

heidern

Junior Member
So people think that Amazon, which has around $12 billion cash on hand, and made a grand total of $274 million in profit for the whole of 2013, can buy a division which is valued at around $17 billion? Why?

Do you have a source for Xbox being worth $17B because I find that impossible to believe.
 

Darksol

Member
I won't believe it until I see it, but I would welcome Microsoft getting out of the video game business with open arms.
 
I could see it happening but my guess is Amazon would not get ALL of the xbox branch. They do not need all of it anyway.

My guess is it would be split up between MS and Amazon.

MS keeps.

The underlying XBL network (Amazon will use its own)
Hardware design team (Amazon will use its own)
The OS team (Amazon will use its own and its based on Windows so why would they even want it?)

Amazon gets
The Xbox Brand
1th party studios and IP
3rd party relations team
Multi Media / TV-TV-TV-SPORTS-TV team
Manufacturing deals.


My guess is if the deal happened it would first happen with the xbox branch being spun off and co owned by MS and Amazon for the rest of the current gen as they migrate to a fully amazon owned console the next go around and Amazon buys MS's shares.

Also MS could possibly keep Kinect, if they want it.
 

aeolist

Banned
That's not how business works. Companies don't disregard profit since 2008, in favor of losses prior to that. It's called a write off. Fact of the matter is, the Xbox brand is profitable now and has been for a half decade. It is propping up their Entertainment division as a whole. Even with dead weight like Surface and Zune weighing it down, the division still brings in millions in profit, and it's pretty clear why.

sure, patent royalties
 

New002

Member
Clearly I am a dummy because I thought the tone was such that it wouldn't be taken seriously. Nor did I make a thread about it here. Or make some sort of click-bait article for my blog.

I honestly don't think of myself as a public figure.

I'm credible when there are things I know. Like that Microsoft's internals showed a huge drop off in the first two weeks in January so I posted as much and said to watch the npds. I was right. Hooray! Like 3 people mentioned that I had said that. I don't feel like I'm any sort of big player. I don't have a giant ego. In fact I'm rather shy and don't like the attention. I totally feel for the Flappy Bird guy and think he lasted longer than I would.

I've also asked for this thread to be closed like 3 times. Not that I expect the mods to care what I want. If I could go back in time and not make those tweets I would. This entire thing is silly.


I also said that Denver was going to destroy Seattle because Peyton Manning is just too smart and would find a way to pick apart their defense. Sometimes I tweet that I pooped. Most of the time it's glimpses into how shitty my luck is.


If I have major news to share I'll do it here or on my blog (or both) . Maybe it's time to just make my twitter private.

Given your reputation as a guy with inside info, when you put out something game related like this people are going to take it and run with it. It also doesn't matter if you don't post it here, it's going to end up on Neogaf.
 

Loakum

Banned
It could happen. Their wealthy investors has been very vocal in wanting Microsoft to sell off their gaming (Xbox) division of the company. I wouldn't be too quick to dismiss this rumor.
 

Ponn

Banned
Clearly I am a dummy because I thought the tone was such that it wouldn't be taken seriously. Nor did I make a thread about it here. Or make some sort of click-bait article for my blog.

I honestly don't think of myself as a public figure.

I'm credible when there are things I know. Like that Microsoft's internals showed a huge drop off in the first two weeks in January so I posted as much and said to watch the npds. I was right. Hooray! Like 3 people mentioned that I had said that. I don't feel like I'm any sort of big player. I don't have a giant ego. In fact I'm rather shy and don't like the attention. I totally feel for the Flappy Bird guy and think he lasted longer than I would.

I've also asked for this thread to be closed like 3 times. Not that I expect the mods to care what I want. If I could go back in time and not make those tweets I would. This entire thing is silly.


I also said that Denver was going to destroy Seattle because Peyton Manning is just too smart and would find a way to pick apart their defense. Sometimes I tweet that I pooped. Most of the time it's glimpses into how shitty my luck is.


If I have major news to share I'll do it here or on my blog (or both) . Maybe it's time to just make my twitter private.

Try not to let it get you to down. Unfortunately the internet is like a beast that feeds on hype and drama and can turn on you in a moment. People need to start taking a bit more responsibility for their own emotions and susceptibility to hype that is constantly being manipulated by corporations and people.
 

DryvBy

Member
If it ends up happening, would Amazon even be interested in all of Microsoft's IPs?

Maybe they would keep the big ones (Halo) and sell the underused ones? It would be great to see most of Rare's IPs back at Nintendo (assuming they would be interested in them).

This. Rehire Chris Seaver and do another Conker title.
 

BajiRav

Member
No, he is right, there are board members who would like Microsoft to get out of products and stick to software and services. Physical products haven't exactly been good for them. The xbox division as a whole is still way in the red. Surface is way in the red. Zune was way in the red. Windows phone is way in the red. Microsoft doesn't make money here. They keep trying because if something does catch on the upside is huge. But it hasn't happened yet.


That said, this still shouldn't be a thread.
Xbox division has been in profit for last few years. The losses they made in Xbox1 or RROD don't matter anymore (because..accounting).
Zune was in red but shouldn't have beena big dent as such because they never put big money (compared to Xbox) in it. (why are we even talking about it? it's been dead for a good 3+ years)
Windows Phone has traction in almost all markets outside of US (even if as a distant third). The person in charge of Windows Phone OS now heads the entire OS division. They didn't have any hardware division in Windows Phone until they bought Nokia late last year. They were purely software & services in WP until that point.
There is only one board member that wants Microsoft to sell Xbox and they haven't joined the board yet.

All of this courtesy of the Windows Weekly podcast, which frankly has more reliable and credible sources for Microsoft rumors.
 

Nibiru

Banned
It would be surprising that's for sure but at the same time MS is really destroying the brand so they might see the downward trend and want to seek the most they possibly can before it's potentially worthless.
 

ironcreed

Banned
Given your reputation as a guy with inside info, when you put out something game related like this people are going to take it and run with it. It also doesn't matter if you don't post it here, it's going to end up on Neogaf.

Precisely. He knows full well what kind of shit storm such a 'rumor' would start.
 

EL CUCO

Member
Too soon to put out the Butt signal clarification?


My guess is they'd make another push to try to get numbers up. I just dont ever see them surpassing Sony, not even in the US.

Im sure theres some enquiries being made by curious parties with fat stacks. If they do sell, they'd have to sell while riding high, maybe after a killer new IP announcement or some Halo 5 news, something Megaton of that nature. Right now Xbox looking kind of low, not exactly the best time make a move. Its not all doom and gloom at Redmond just yet.

MS still has a few tricks up their sleeves, question is what will be their intentions when the division is temporarily riding high?
 

Jack_AG

Banned
Clearly I am a dummy because I thought the tone was such that it wouldn't be taken seriously. Nor did I make a thread about it here. Or make some sort of click-bait article for my blog.

I honestly don't think of myself as a public figure.

I'm credible when there are things I know. Like that Microsoft's internals showed a huge drop off in the first two weeks in January so I posted as much and said to watch the npds. I was right. Hooray! Like 3 people mentioned that I had said that. I don't feel like I'm any sort of big player. I don't have a giant ego. In fact I'm rather shy and don't like the attention. I totally feel for the Flappy Bird guy and think he lasted longer than I would.

I've also asked for this thread to be closed like 3 times. Not that I expect the mods to care what I want. If I could go back in time and not make those tweets I would. This entire thing is silly.


I also said that Denver was going to destroy Seattle because Peyton Manning is just too smart and would find a way to pick apart their defense. Sometimes I tweet that I pooped. Most of the time it's glimpses into how shitty my luck is.


If I have major news to share I'll do it here or on my blog (or both) . Maybe it's time to just make my twitter private.
No offense, you know the exact reaction people will give when you post things. This isn't your first rodeo, man. Not your second and not your third. No need to play the "shy" card when you post here, on twitter and have a public blog. These aren't the things shy people not looking for attention do.

Just saying, man. You know exactly where you are stepping before you put your foot down.
 
Just an FYI, this is a rumour that has been floating around in the City for a while. It's not something that is taken seriously.

I know! That's what im trying to convey.


And for the record, the tweet got about 7 responses. The thread here, which shouldn't exist, is at like 7000.

Im totally in agreement with the dude who said if a gaffer makes a comment on social media either he/she should make the thread here or there shouldn't be one. And in this case I believe there shouldn't be one. It's a rumor. Rumor. Not factual. Rumorrrrrrr.
 

graywolf323

Member
So people think that Amazon, which has around $12 billion cash on hand, and made a grand total of $274 million in profit for the whole of 2013, can buy a division which is valued at around $17 billion? Why?

why do you assume they would even want the entire division? Microsoft wouldn't be selling the Android patents they own regardless and Amazon wouldn't want Surface (they have Kindle Fire after all)

this is highly unlikely but some of the reasoning people are using to claim it's impossible is just not thought out well

edit: not to mention the people taking the shoot the messenger approach towards famousmortimer, this is just ridiculous
 

sn00zer

Member
I like to believe someone read my comment and is fucking with him
I wonder who they could sell the brand to.....Amazon?



It is surprisingly incredibly unprofitable......and they threw billions at RandD for X1 so it will take years before costs are made up
 
No offense, you know the exact reaction people will give when you post things. This isn't your first rodeo, man. Not your second and not your third. No need to play the "shy" card when you post here, on twitter and have a public blog. These aren't the things shy people not looking for attention do.

Just saying, man. You know exactly where you are stepping before you put your foot down.

Wow, you know me better than I know me. That's quite a feat.


I do like attention. Positive attention. I don't really enjoy the negative attention. I also find it impossible to ignore.

And like I said before, my twitter followers all seemed to get it. No one cared. But somehow this is a giant thread now. But I guess I knew this was going to happen even though I honestly had no goddamn idea this was going to happen. But you know me better than I know myself so I bow to your knowledge.
 
Man this is one of those rumors that will just not seem to die away. Seems anytime the dust settles on one rumor, another creeps up. Starts to make you wonder eventually.

And now we have a name to the possible future console maker in Amazon. Some thought it could be Google interested in the console gaming space.

BUT, I do remember this same type of response anytime someone brought up the downfall of Sega and how they would become a software only company. Of course it seems unbelievable, but in the end business is business. Shareholders of Microsoft see a giant black hole right now sucking in billions of dollars in profit and spitting out nothing in return. If the forecasts for the sales of the Xbox One have to be lowered significantly from the original margins, who knows you know. MS def. is not the type of company to just continue to get hammered in the PR world and the Business world for too long before it just cuts off the arm with the infection. If the Xbox One continues to lose the company money, and continues to get beat badly in Worldwide sales, how much will the shareholders put up with?
 
It isn't going to happen because Amazon doesn't need Microsoft.

I have no doubts talks have occurred but the truth is Amazon can get the Best of Microsoft by just Headhunting their best guys. Their first console doesn't need to be anything more than dipping their feet in the waters.

Alot of you guys are fooling yourself if you think that Amazon are even close to competing in the traditional AAA space both with hardware and software. What the first Kindle box will be is a glorified OUYA. Its the second and third iteration (Which, by the way is probably going to follow the smartphone/tablet model of upgrades) Is when they ramp up their ambitions.

Basically, even if they wanted Microsofts spot in the Console space (which they don't) they woukd a good 5 years and much blood sweat and tears of being ready to take over such a business. Likewise, Microsoft arent going to sell Xbox anytime for the next few years. If it does go, its at least 2 years away.
 

markom58

Neo Member
Clearly I am a dummy because I thought the tone was such that it wouldn't be taken seriously. Nor did I make a thread about it here. Or make some sort of click-bait article for my blog.

I honestly don't think of myself as a public figure.

I'm credible when there are things I know. Like that Microsoft's internals showed a huge drop off in the first two weeks in January so I posted as much and said to watch the npds. I was right. Hooray! Like 3 people mentioned that I had said that. I don't feel like I'm any sort of big player. I don't have a giant ego. In fact I'm rather shy and don't like the attention. I totally feel for the Flappy Bird guy and think he lasted longer than I would.

I've also asked for this thread to be closed like 3 times. Not that I expect the mods to care what I want. If I could go back in time and not make those tweets I would. This entire thing is silly.


I also said that Denver was going to destroy Seattle because Peyton Manning is just too smart and would find a way to pick apart their defense. Sometimes I tweet that I pooped. Most of the time it's glimpses into how shitty my luck is.


If I have major news to share I'll do it here or on my blog (or both) . Maybe it's time to just make my twitter private.

Wow. :lol
 

Lmo911

Member
I don't know what to think. Amazon is offering playstation titles on their web store and now they want to buy Xbox? It's weird.

Amazon views devices like the fire, kindle, etc. as gateway products to their store. They don't really care about what they sell as long as you buy it from them. It's why they have their own e-readers and tablets but also freely make apps to use their products on ios devices. It's also why their products are usually cheaper than the rest, they have an entire market to off set it.

Amazon taking over the living room is a much better proposal than xbox because microsoft is just providing the gateway, while amazon buying xbox would be giving you the gateway and the destination. Microsoft has never been able to seal the deal on the destination, and never would be able to on the level that amazon could.

It's odd compared to the console business but they make bank on this philosophy. Of course I won't believe it until I see it.
 

Mondy

Banned
This. Rehire Chris Seaver and do another Conker title.

This. Thank you.

Assuming for a moment that this actually is true, would it have to be made public before E3? I reckon so. MS aren't going to bust their arse setting up a decent E3 display if they intend to offload the division within a couple of years.

To be honest though, it really wouldn't surprise me. Microsoft have been dragging their feet in regards to EVERYTHING related to video gaming for quite awhile. They know the money is there to be made with their other software lines and that's where they'll go.

I just find it humorous that the Xbox One has been the perfect fart in a balloon to send them out of the console gaming industry with a whimper.
 
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