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Shiperzz

Microsoft may sell off Xbox division?

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A report by BizJournals claims that ValueAct, a $2 billion Microsoft investor with a 1% stake in the company, is seeking to achieve some major changes at Microsoft. Long-term Microsoft analyst Rick Sherlund claims that big changes are going to take place very soon as other Microsoft shareholders support the decision to get rid of Steve Ballmer – in addition to the investment group ValueAct. According to the report ValueAct are seeking to replace Steve Ballmer because his strategy “inspires little confidence” in shareholders.

Apparently Microsoft has no choice but to give ValueAct a seat on the board otherwise they may launch a “public war” on Steve Ballmer and Microsoft which could end with serious turmoil at Microsoft.

“A decision by the board at Microsoft to offer a nomination for a board seat could keep the activist agenda behind closed doors and take longer for shareholders to see potential benefits” 
stated Sherlund.

 

 

Furthermore, it is believed they might target the Xbox division and try and get rid of it altogether. This would allow Microsoft to focus on other products and mainly Windows.

“Xbox is cool, but by our estimates Microsoft has not made money at this” 
believes Rick Sherlund.

 

 

Source: http://www.eteknix.com/microsoft-investor-wants-to-fire-ballmer-and-sell-xbox-division/

Edited by Shiperzz
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I can see this happening, because the Xbox hasn't been all that profitable, because the original Xbox was a catastrophe, and most of the 360 sales were really just reclaiming loses. If this happens, it could be either good or bad. Sony will have no competition and will reign, but that might mean less quality.

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I'm lost, how does that imply they're selling off the xbox division? "might target" isn't anything.. damn it would be cool if they sold the xbox to a company that actually had some kind of an idea on how to make a somewhat decent console.

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Haven't they made a profit the last few years in their gaming division?

 

They took a massive hit with the Xbox 1, something like $4 billion in losses. They must have recovered their losses with the 360, but now it looks like their going to take another big hit with the Xbone. 

 

Profit is all that matters to shareholders, so I wouldn't be suprised if something like this happened if the losses get to much. 

Edited by Shiperzz
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I fail to see how XBL haven't brought in money - I'm pretty sure $1B in annual profit was mentioned somewhere. It might have been mitigated by R&D for XBO, but that's how hardware business works. I vaguely recall someone from MS saying, that XBO will make, or at least won't loose money, from the get go, so that's much better situation than previous gen.

 

I also fail to see how MS could make more money by focusing on Windows specifically - everybody and their mother are already buying their OS, and most people think that Win8 came a bit too close after Win7, so increasing frequency will be met with an outrage. Maybe he actually wants MS to make it noticeably worth it to upgrade, so that more people do? Hopefully not by locking features behind "Win X required" wall.

 

Eh... fucking money people... they would prefer to cut the division and make no money, instead of it being there and making some money. It's either big or nothing these days. The same with games - make it blockbuster, or bust.

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The only way Microsoft is going to sell off the Xbox Division is if their software side (Windows, Office, ect) have an series of losses in a row. If that happens than YES that division would be the first MS would sell and gut out to offset the heavy losses. Last time I check they still slightly losing money on Xbox division while still gaining money on the software despite the heavy backlash Windows 8 has taken. So a series of losses YES that division is the first to go otherwise it's back to business as usual. 

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Selling the XBOX division so close to the next gen release? Yeah right, doesn't matter how bad the Xbone is looking to some people, the console isn't even out yet, we have no idea of how good/bad it will sell. If they decide to sell the division right now it would be better to just bury the console, who is going to buy it if the main developer has no faith in it?

Also, SONY needs a competition (Nintendo doesn't count), the main reason the PS4 looks so awesome is because of SONY seeking revenge for current gen's early disaster.

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Well, obviously they won't sell it right now, but I dunno, it doesn't to me as we'll be seeing MS in the gaming market next time around. Just if there was a division going to be sold, XBox seem viable because so far, it hasn't brought in too much profit and just caused massive lose with their first try.

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Selling the XBOX division so close to the next gen release? Yeah right, doesn't matter how bad the Xbone is looking to some people, the console isn't even out yet, we have no idea of how good/bad it will sell. If they decide to sell the division right now it would be better to just bury the console, who is going to buy it if the main developer has no faith in it?

Also, SONY needs a competition (Nintendo doesn't count), the main reason the PS4 looks so awesome is because of SONY seeking revenge for current gen's early disaster.

 

AWWWW HELL NO!

 

consoles.png

 

Nintendo has the ability to become a greater system, they just haven't done that yet. Heck look at Japan...

 ninty_figures_5.jpg

 

Although Europe and America haven't been as open, they still have good sales.

ninty_figures_6.jpg

ninty_figures_4.jpg

 

And then the people of the internet... 

Google-Comic.gif

 

 

But... back to the original post... I'm still waiting for Xstation lol. Finally no more "exclusives"...

ps3-xbox360-pc-case-1.jpg

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Selling the XBOX division so close to the next gen release? Yeah right

 

This is actually a great time to do it since they are more likely to pique interest and get more.

 

Fact: XBox has been a money pit for Microsoft. They have lost $10 BILLION over ten years.

 

http://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years

 

It makes sense that Microsoft tries to focus on their core business (Windows) instead of trying to spread out to video games and music (Zune) and lose boatloads of money.

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But... back to the original post... I'm still waiting for Xstation lol. Finally no more "exclusives"...

ps3-xbox360-pc-case-1.jpg

Or the Nintendo PlayBox. Can finally play Mario, Uncharted and Halo on one console.

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hey why doesnt sega buy out??

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hey why doesnt sega buy out??

 

  • Sega's market cap is $7.01 billion. To absorb $10 billion in losses and pay fair market value for XBox assets, intellectual and physical,Sega would have to at least triple their market share or risk bankruptcy
  • Sega was in the console market and it almost forced them into bankruptcy already. Sega Saturn was the reason and Sega Dreamcast was the Swansong
  • As Sega  has found out since abandoning consoles, making software across multiple platforms instead of being committed to proprietary hardware is far more profitable.
  • Sega just invested $141 million in buying Atlus' parent company Index. Any future acquisitions will likely be in that price range as well.
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AWWWW HELL NO!

 

None of this data is relevant in the slightest. Well, maybe the fact that 3DS is dominating hand held market, but that's a different story.

 

I won't cry doom, but it's undeniable fact that Wii U is selling bad. Really bad. And it's 3rd party support is abysmal.

 

It failed to connect to Wii's core audience (which are casuals, families and elderly) - because they don't need anything else than Wii.

It failing to interest core gamers, because not only lack of 3rd party games, but also lack of any interesting titles what so ever - even by Nintendo. They throw something in from time to time, but that might be too little, too late. And much too slowly. They wasted a year of advantage, and only managed to sell ~3.8mil units in this timeframe.

 

Everything is on the way for Sony to beat that number by the end of 2013, or early 2014. They predict 5 mil until end of fiscal year, and no one is laughing.

I can't imagine MS being far behind - sure, they will probably be noticeably beaten by PS4 this time around, but if they fail to score 3-4 mil until end of fiscal, it will be somewhat bad.

 

At the same time - sure, Nintendo have some cool games coming this holiday, but will they even manage to break through with the message? Especially to new consumers? Core Nintendo fans already have Wii U and are waiting for their Marios, Zeldas and Metroids. That's not who Nintendo need to appeal to. And sure, maybe some GAFers will get it, because of disappointing launches from new generation, but how many of those are there? For young Joe and Jane Consumer next gen will be visible everywhere this holiday, and Nintendo is just sitting there, on the sidelines.

 

So yeah, Nintendo is going strong on hand held market, especially in Japan. But big consoles? They are neigh irrelevant now and nowhere near real competition to Sony or Microsoft.

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Game divisions aren't profitable until sometimes decades later. The PlayStation division didn't show a profit until what, 2010 or so, and that was when the PlayStation and especially the PS2 dominated absolutely everything sales wise. I doubt Microsoft will get out of the console business anytime soon, they have a lot more money to throw around than Sony so even if they have failed consoles they can take the hit. 

 

 

Parker

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AWWWW HELL NO!

 

\/

I won't cry doom, but it's undeniable fact that Wii U is selling bad. Really bad. And it's 3rd party support is abysmal.

This is pretty much what I meant, maybe Nintendo will come out with another killer console but right now, the Wii U is nowere close to compete with SONY and MS, on home consoles at least. There is not deniying that Nintendo is the big daddy of handhelds though.

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This is actually a great time to do it since they are more likely to pique interest and get more.

 

Fact: XBox has been a money pit for Microsoft. They have lost $10 BILLION over ten years.

 

http://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years

 

It makes sense that Microsoft tries to focus on their core business (Windows) instead of trying to spread out to video games and music (Zune) and lose boatloads of money.

 

............. That post report shows Microsoft losing 3 Billion not 10 Billion. Also it says that Sony has lost 5 Billion. I hate to say this but it looks that gaming could spell disaster for these companies in their futures . :( 

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  • Sega's market cap is $7.01 billion. To absorb $10 billion in losses and pay fair market value for XBox assets, intellectual and physical,Sega would have to at least triple their market share or risk bankruptcy
  • Sega was in the console market and it almost forced them into bankruptcy already. Sega Saturn was the reason and Sega Dreamcast was the Swansong
  • As Sega  has found out since abandoning consoles, making software across multiple platforms instead of being committed to proprietary hardware is far more profitable.
  • Sega just invested $141 million in buying Atlus' parent company Index. Any future acquisitions will likely be in that price range as well.
I was jk because of Sega recent acquisition of index and the fact that Microsoft completely ran with segas hard work an jus capitalized from it
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I doubt MS will sell the X-Box Division anytime soon.

Unless the X-Box One bombs big time,then I think they'll sell the X-Box Division.

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