Yeah but Amazon (and others) would probably rather just buy parts. A studio here or there that fits a need, or maybe some patents.
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Microsoft Investor Wants To Fire Ballmer And Sell Xbox Division
- Thread starter Syphon Filter
- Start date
Yeah but Amazon (and others) would probably rather just buy parts. A studio here or there that fits a need, or maybe some patents.
I don't think a lot of posters understand that a 1% shareholder is a huge part of a big company like Microsoft. Like others have said, Gates only owns 4%. If this shareholder continues to rally support, there could be big changes after this upcoming generation.
It's not time to panic or expect Microsoft to abandon the Xbox division, but the chances of that happening aren't as remote as you might think.
It's not time to panic or expect Microsoft to abandon the Xbox division, but the chances of that happening aren't as remote as you might think.
Interceptor
Banned
yes
No because they have not yet made back the money used for R&D
ThoughtsOfSpeaking
Banned
The Q4 report is where things get interesting.
cpp_is_king
Member
Considering that the 2 billion dollars they invested into Microsoft most likely came from other investments, I would say that they probably make wildly better decisions than you or I, on average.
FrostuTheNinja
Member
No worries guys, that investor is "just projecting from his little bubble".
Melchiah
Member
Don't forget that Microsoft has pumped a lot of relatively "free" money into the gaming industry by overpaying for a lot of things. Even if you don't count the ridiculous fleecing the Stamper Bros pulled off on them by selling Rare, they pay for other stuff in order to have a stronger foothold in the industry.
Angelus Errare
Banned
Man they're trying to bring Gates back? That would be interesting. Short term, stocks would most definitely increase at such news, but would/can Gates lead MS in this kind of market?
MS is definitely profitable on Xbox as a whole. Especially 360.
The Spoony Hou
Member
Nintendo should buy it just to get the Rare IPs back.
lol
Kicking Ballmer in the balls is good too, though.
lol
Kicking Ballmer in the balls is good too, though.
Sure, but MS could sell its division in many different ways, separating studios, IPs and all. I do think some companies would be interested in (almost) the whole package, though.
Yes, and all the bad press is already a feast for investors against the division, a lackluster Xbone performance would probably move a lot of investors towards this shareholder's opinion.
idrinkalone
Banned
Amazonbox powered by Microsoft. I would get it. They would just buy out every developer out there though.
The Abominable Snowman
Member
Right! I looked back through some old articles and it was Mattrick.
Personally, I would be ecstatic if they spun off the Xbox brand into its own entity. I'm no MS stockholder, but it seems a move like that would appease quite a few.
I could see Xbox as an entity, and the "Xbox One" taking brand recognition like the "Apple iPhone" or the "Ford Focus"
In return, Xbox could provide entertainment services back to Microsoft, with less pressure to focus on other things than gaming, like Skype currently does. A Steam-like Xbox Live client and backend that goes cross-platform and cross-medium.
It would also cut off Microsoft from diluting the Xbox brand like they have done with Xbox Music and Xbox Video. Xbox will forever be a set top box brand, that offers subscription services that are not of its own. That gives far greater flexibility and access to Xbox.
It would also push them to be individually successful, having to stand on their own two to meander profitability and consumer good will. Not be tied down to Microsoft's and obscured.
And it would make threads way more fun.
CadetMahoney
Member
It's all about money. You have finance grads and accountants and investors run companies into the ground and then they move on. It's all about profit margins, not making the best products because you can/want to etc.
You see it in every industry. How many executives and leaders of companies even know how to make the products they're selling or how it used?
I'll mention HP, they brought some European CEO over to run the company. He didn't have the first clue about computer manufacture, software development. Just interested in double digit growth and profit margins. He decides to completely shit on Palm and their purchase and of development of the Touchpad. Then, he announces HP wants to leave manufacturing altogether and become a cloud and server leader like Oracle and spends billions yo buy some shitty Autonomy company. Within a day, HP stock dropped nearly 25% and by the time he was ousted, had dropped nearly 40%.
Eh whatever. Hope this investor realizes that a lot of goodwill and money to Microsoft comes from the Xbox division and that they've become like the dominant games company now. It's not always about the bottom line.
You see it in every industry. How many executives and leaders of companies even know how to make the products they're selling or how it used?
I'll mention HP, they brought some European CEO over to run the company. He didn't have the first clue about computer manufacture, software development. Just interested in double digit growth and profit margins. He decides to completely shit on Palm and their purchase and of development of the Touchpad. Then, he announces HP wants to leave manufacturing altogether and become a cloud and server leader like Oracle and spends billions yo buy some shitty Autonomy company. Within a day, HP stock dropped nearly 25% and by the time he was ousted, had dropped nearly 40%.
Eh whatever. Hope this investor realizes that a lot of goodwill and money to Microsoft comes from the Xbox division and that they've become like the dominant games company now. It's not always about the bottom line.
Nintendo should buy it
hmmm?
RurouniZel
Asks questions so Ezalc doesn't have to
I could definitely see MS selling the division piecemeal over the next 5-10 years. It would suck for the core gamer I'd imagine, but Microsoft's biggest business has always been in software, not hardware.
It's not surprising at all that MS's investors would want to cut off the hardware division and focus on software only.
It's not surprising at all that MS's investors would want to cut off the hardware division and focus on software only.
This is probably not true, and you certainly can't prove it one way or another.
Future PhaZe
Member
To be fair these decisions aren't that easy to make. If they were to just rest on their laurels with Windows in an environment where new OS adoption has never been so significant, then they could be in a really bad space in a decade or so.
That's why you branch out when you're profitable and invest in different areas to remain future proof. Profit wise their efforts haven't been great when it comes to this, but there is something to be said for the gains they've made in terms of mindshare with these developments that could help push a product to be high heights if they can nail it, whatever that is.
A lot, but not so much as no one could pay up. If they are sold, I just hope they sell their IP's and studios instead of putting them on windows 8 exclusive, that is the true worst case scenario.
Nemesis121
Member
Ain't the Xbox lump together with the entertainment division? and has a whole the division is horrible, 360 the only one making money...
The amount of people who have no idea how corporate and investor politics actually work is pretty surprising. Well that's not surprising. What's surprising is the number of people who profess to know something about these subjects, but really do not.
There are countless instances of a shareholder consortium holding 1% of a large corporation, influencing large changes within how the company is run. This is especially true when that 1% shareholder group represents one of the top 10 biggest shareholders in the company.
There are countless instances of a shareholder consortium holding 1% of a large corporation, influencing large changes within how the company is run. This is especially true when that 1% shareholder group represents one of the top 10 biggest shareholders in the company.
BritBloke916
Member
Sony's Gaikai initiative may evolve into exactly that. The entire Sony video gaming catalogue, spanning multiple generations and devices, all playable on your platform of choice as an online subscription service (with favourable discounts for those playing via PS4APU-powered Sony smart TV).
FlyingTeacup
Member
i wonder who has the money to spend on xbox div, samsung? apple? or a consortium of banks? activision-blizzard?
i feel that we still need ms so sony won't get too cocky again, and vice versa. No I have no idea what's nintendo is doing.
i feel that we still need ms so sony won't get too cocky again, and vice versa. No I have no idea what's nintendo is doing.
SlowRevolution
Member
I'd be shocked if Apple did.
They've been using Xbox profits to hide much more disastrous losses for a while. Zune, phones, etc. There is no public information I know of regarding whether Xbox itself has been profitable over its life.
But it would be foolish to spin it off regardless.
Well the division hasn't been profitable (and please don't bring up creative accounting and its ability to mitigate some of their loses, it's not relevant) and even if it did recover said loses the profits would be so insignificant compared to MS' other divisions that it's no surprise investors (this guy is not alone in his thinking) would rather see the resources puts elsewhere.
Beer Monkey
Member
True.
Do you have a source for those numbers? Somebody's ass doesn't count as a source.
Microsoft doesn't publish gaming income/loss numbers.
They wouldn't sell it they would most likely spin it off as its own publisher dump the hardware side and own a 25-33% in the business unit.
But things will get interesting seen as Gates is still chairman of the board he may block them.
Flakster99
Member
Been a while since I've seen that graph.
Anyways, As The Console World Turns I guess.. I won't miss the big lug.
zomgbbqftw
Banned
Immediate thought. Say hello to $80/y for Xbox Live. Easy way to get short term profitability up and prove that it's worth keeping the division around.
What will happen to the Xbox is something that will not be decided before the new boss is in place, I will assume. So within a year, which can be sooner than we think. If everyone knows that Ballmer is on the way out, then I don't think it will be wise to wait too long with the change of captain. Uncertainty as to who will be the new leader can make investors nervous.
After a new boss is in place, then all bets are off. Normally, this is the time when a company get rid of the least profitable parts of the company.
After a new boss is in place, then all bets are off. Normally, this is the time when a company get rid of the least profitable parts of the company.
Anticitizen One
Banned
If the xbox division is shuttered what will happen to the RARE IPs?
Beer Monkey
Member
Yeah, there's no source for the Xbox numbers there either...
BlackGoku03
Member
You have a better chart?
GraveRobberX
Platinum Trophy: Learned to Shit While Upright Again.
That's what MS wants to be in one area, but the investors don't want them to
Investors gave MS time to create a new avenue with Xbox, it's not bringing in the $$$$ as they hoped for
They want MS to give up or start selling it off and go back to it's roots
Sooner or later investment calls are made, if the company like sit or not
They have obviously made revenue, but it has not broke even, forget turning a profit.
GraveRobberX
Platinum Trophy: Learned to Shit While Upright Again.
Sell back to Ninty for an amazing 90% discount or Sony gets a crack at them lol