Exactly. If you only own 1% of the company than you don't get a say in the matter. This is the same thing with that one guy who owns part of Sony and wanted to split the company up.
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Microsoft Investor Wants To Fire Ballmer And Sell Xbox Division
- Thread starter Syphon Filter
- Start date
Exactly. If you only own 1% of the company than you don't get a say in the matter. This is the same thing with that one guy who owns part of Sony and wanted to split the company up.
MS' entertainment division has become profitable YOY, yes, but from an investment standpoint you have to consider the money Microsoft has invested into the Xbox venture as a whole, and investors are right to feel doubtful if it still hasn't turned a profit, overall, after more than a decade.
*sigh* not saying they care, I am just showing compasion....
Thats actually a lot for Microsoft. Bill Gates only owns a bit over 4%, and he's first or second in terms of shares owned.
They spent $100m designing a controller. One hundered million dollars.
Probably had no effect on profits, I just still can't believe what a crazy figure it is.
Nintendo has no desire to do that :/
I have a hard time understanding how Xbox has not been profitable for MS. I understand they have to put a ridiculous amount of money into R&D and also a absurd amount of money creating Xbox live, but with over 70 million consoles sold, plus $5 a month for Xbox live plus whatever cut they get from publishers for selling games it's hard to imagine they are not making money off the console.
I forgot that mattrick wanted Xbox to be its own thing....
Investors are probably tired of shit like red rings and how much was put into kinect. Wondering if they are at the point of saying fuck it if the x1 flounders in the first few years..
Dat struggling entertainment sector
Investors are probably tired of shit like red rings and how much was put into kinect. Wondering if they are at the point of saying fuck it if the x1 flounders in the first few years..
Dat struggling entertainment sector
Don't know if that is accurate but if true than it's understandable that investors would say this.
Edit: Beaten
Not to mention the loss they are (or will) be taking on the Xbox One.... they already said the Kinect costs as much as the console does, and we know the console is about on par with the PS4 which is taking a loss at $399. Then there is the development costs for the controller (which seems absurd).
toxicgonzo
Taxes?! Isn't this the line for Metallica?
I'm gonna go out on a limb here (I don't have the numbers to prove it) but although the Xbox division has made money, the investors feel the xbox division has a smaller profit margin than other divisions.
And you have to remember investors care about the bottom line.
And you have to remember investors care about the bottom line.
BritBloke916
Member
I think that the Xbox brand would actually be pretty fearsome stripped of all the MS tribalism and conflicting agendas. At least Sony's gaming division know that Kaz understands what they do pretty intimately (and has stated for the record that he sees that division as crucial to his vision for Sony).
LapinAgile
Member
It's an interesting proposition, I am sure Amazon has people on the case already.
Swordsman VII
Member
I guess I just figured they had started to overcome that by now. 360 seemed to be selling pretty well since the start, plus the live subscriptions.
400 mil NFL deal.
Maybe he was right? As far as I know, Xbox is in the same division as Windows Phone and Surface so that cannot be helping its look among investors.
That's what happens when you're a massive company with mass audience products for the worldwide market, I suppose: lots and lots of stock holders, and the biggest ones have even less than 10% of the whole stock.
I think he knew what was coming, what was happening (in terms of the effect integration would have on Xbox).
Remember: he gave up the opportunity to head the new hardware division. I think because he saw it would potentially create a dilution of Xbox's importance within the company and he didn't want to lead that up.
I've said for a while I'd prefer Xbox to be spun off and go back to its more independent roots - or what appeared to be more independent roots, at least.
Dunno about selling it though. To whom?
No shit sherlock. How did you calculate that?
Very inaccurate.
That's what doesn't make sense. MS spent billions to make Xbox the brand it has become so why just get rid of it? I could maybe understand MS selling Xbox and going the IBM route.
BadAss2961
Member
It begins?
Maximilian Kolbe
Member
Then bing and WP should die first
Palette Swap
Member
Yeah, that and opportunity cost: while they're chasing that gaming market and its revenue, aren't there other, more profitable or less risky development opportunities?
Freeza Under The Shower
Member
pretty much what I thought.
Short term is the only term to shareholders.
Ooph. That would be a battle of titans indeed....
w1gglyjones
Member
But he didn't account for them getting a seat on the board... did he?
blizzardjesus
Banned
Nintendo could buy if that happens.
One comparison that you can make between Microsoft as a whole and Sony as a whole is this. Microsoft, for the last several years, has made a profit. Sony, on the other hand, has not made a profit in like 8 years. They just recently made a profit last year. Of course this is talking about the companies as a whole and not the Xbox and Playstation divisions.
Don't know if that is accurate but if true than it's understandable that investors would say this.
Edit: Beaten
Uhm, not really. It has made money the 5 last years and it's very very very unlikely that it will ever make the kinds of looses like the first Xbox.
But the biggest reason to not sell or close the XBox Division is Live (Gold). It is basicly a license to print money, you must be really dumb to kill something like this.
Mobius and pet octopus
Member
If msft gets rid of xbox its not like xbox will cease to exist, it will be sold to another company or perhaps the ieb div or whatever they are called will become its own company.
Well, they wouldn't "get rid of it", they would sell it to someone else, either completely or in parts. Ultimately, it depends on the perspective of how much income Xbox represents to Microsoft as a whole, and how are the prospects of it returning the money spent.
But they wouldn't be killing it, they would be selling it.
When put that way, I am kind of with you. On that chart it does start to show growth over the last few years finally, but I wonder what the advertising, R&D, and other manufacturing costs will impact that with the One and how much will it pay off? I would expect another dip if they most of those expenses are reflected in FY13.
Apparently the investors have no confidence in the One going forward is what it means to me.
w1gglyjones
Member
Not to mention the uncertainty with the Xbox business during this new console generation transition.
I had to laugh at the implication that MS had to give a board seat to ValueAct. They don't have to do shit. As for selling the XBox division, its more likely that they will just spin it off as a new public company.
But they won't do that either since MS is using XBox as a trojan horse strategy to get into your living room. Its almost a loss leader strategy as long as its in your house, it has done its job.
But they won't do that either since MS is using XBox as a trojan horse strategy to get into your living room. Its almost a loss leader strategy as long as its in your house, it has done its job.
Septimus Prime
Member
Windows 7, Windows Server, Azure, and Office disagree with you.
It's really just Windows 8 and Windows Phone (and arguably Xbox One) that are tanking.
E: And Windows 8 is actually doing okay, despite consumer backlash.
BritBloke916
Member
That's a very interesting scenario.
Hellsing321
Member
I could see someone like Google or Amazon interested in the Xbox division if this actually came to pass. I doubt it will though.
