Will Microsoft sell off its Xbox business? It doesn't look likely

Some Microsoft shareholders, including cofounder Paul Allen's investment group, have called on Microsoft to sell off its Xbox business as a means to boost profitability. Nokia CEO Stephen Elop, who now runs the Xbox business, was even reportedly interested in unloading the Xbox unit.

[fonger08]

It will be interesting to see what their E3 presentation is going to be like... whether they are focusing on the home media side or the games side more. They are not catching the Playstation this gen, but it will interesting to see if they have a 2yr, 5yr, or even a 10yr plan.

[Geoff900]

So you have already foreseen the future have you?

It's been a few months into the Xbox One's/PS4's life cycle, and you have already declared a 'winner'.

I find it amusing that people say such shit, without understanding business, it's not about sales it's about profits you can sell hundreds and millions of products, but if you aren't making money on it then it's pointless.

[fonger08]

The principal of math and logic are lost here... I would suggest not wasting the brain cells to argue any valid points...

[mrpsychoticstalker]

Sony has to sell twice as many ps4s in order to make the same profit Microsoft is making selling the Xbox one at $500. and now with a slight drop on price, it will do even better.

I think Microsoft already made hardware profit and now they will move to software, games, capabilities! using what they do best: Marketing!

there's no way they will sell the Xbox division.

only a small fraction of gamers read and follow N4G. there's a big world out there!

[headblackman]

the showed all games last e3 and got a lot of awards for the games that were shown. this year won't be any different!

[LexHazard79]

Cut the shit dude. E3 will be all about games just like last yr. MS has other venues to Intorduce any home media stuff.

[fonger08]

Wait wait wait, just because last year they had two separate Xbox one announcements one to showcase the media capabilities otherwise known as the "foot in mouth" show, then the E3 show to do the "reverse 180" show" does not mean they will not showcase media capabilities separate from E3 this year. Because if I go back to 2010 30 minutes in, 2011 28 minutes in, or 2012, 35 minutes in they are talking some heavy home media stuff. One E3 does not excluding from making home media announcements from the E3..

[iamnsuperman]

This article is extremely pointless. Lets ask a Microsoft employee who is the guy who runs the game studios/PR (since its sort of part of the job) department of Xbox if Microsoft are still thinking about selling off the business.

What answer were they going to give. Yep but keep buying our system.

[hollabox]

Agree, Sony would probably sell their division first given their current situation.

[Fz6soldier]

Sony needs Playstation, MS doesn't need Xbox. Playstation will be the last thing Sony sells off.

[Geoff900]

Hence why Sony is putting everything into PlayStation.

[hollabox]

@ GEOFF900 and Fz6solider

Sony may need Playstation but it wouldn't stop them from selling the brand in order to survive. Heck, over the last couple of months Sony has already made some cuts to their super talented first party developers and probably forced resignation of some key upper management employees. Basically what I'm saying, when comes down to the wire not even the Playstation brand will be safe from being dropped or sold despite what upper management might say.

[Geoff900]

Sony wouldn't sell their main product, which they have invested many decades in, hence the restructuring, the lay offs etc.

Sony has no intention of letting the PlayStation go, that's why they sold Viao, so on and so forth.

They make more money from PS, than quite a lot of their other lines.

The old age adage can be said here, Sony is putting all it's eggs in one basket, will this pay off is another matter.

[hollabox]

@ GEOFF900

Sony will sell any brand if they have to, its business, nothing more nothing less. If you purchased something on credit and found out later you can't afford, what do you do? You take it back or sell it. If times are tough and you need money, what do you do? You sell your personal belonging in order to survive.

If Sony runs out of money or PS4 money is not enough to keep the big wigs mansions clean, they will and have been laying off employees and contractors in the PlayStation division. Of course like every major company a PR statement will follow.

"Sony is committed to providing excellent quality products and services to our consumers. But in times of unfortunate circumstances we Sony cannot continue our current business model. Departmental cuts are unfortunately necessary, less profitable divisions will be closed or sold in order to maintain profitability. This is the unfortunate side of business. We are announcing today, the PlayStation Brand we build is being sold to Samsung! We trust in Samsung ability to continuing the PlayStation tradition in providing first class hardware and software to our consumers. We understand our fans frustration but in order to continue our business quality of life, selling the PlayStation brand is completely necessary. I want personally thank everyone for your support and understanding of this purely economical business decision."

This is the same thing that happened to Sega! Sega said they would not exit the console business right before Dreamcast launched. There were reports Sega was down to $2 billion in assets with $600 million in cash and people including myself was questioning if $2 billion is enough to support a console. A couple of years later what did Sega do? Well we know already, they crushed fans hearts myself included. I don't want this to happened, I was laid off myself along with 76 former co-workers in 2009 after my company promised me my division would not be affected by cuts.

[christocolus]

MS has been investing like crazy into the xbox division of late, more ips, new studios, expansion of their 1st party studios(new hires) and with their rumored plans for VR ..I think the console definitly has a great future and xbox fans should be happy about that besides the xbox one isn't selling badly at all. 4mill consoles sold in 13 countries in 4months isn't a bad figure by any standard....it seems highly unlikely they will want to sell it off.. Since the console is doing ok and they seem to be on the right track now.

[prettyboy12]

4mill where did you get that nnmber?last i checked they were still at 3mill almost 4.stop reaching dude its pathetic

[BX81]

Yeah stop reaching. We all know when a prettyboy checks numbers, They don't update till prettyboy checks them again.

[LexHazard79]

Your the one reaching! What you still going off an almost two week old vg charts? If it was @ 3.9 mil then I think its safe to say its surpass 4mil! No big deal dude just keep it moving with all your hating!

[Software_Lover]

............... Just when this idea had left the crevices of my mind, someone brings it back up.

Why people, why?

[BX81]

Sulcus

[MilkMan]

TO bad, I heard Nintendo is in the market to buy.

[stuna1]

Just because a business continues to operate and invest in projects doesn't automatically exclude or, nagate the possibility of it being sold off! They still want to profit as much as possible if the eventuality arises! If anything it could possibly sweeten the pot for potential buyers if it does happen.

[SmielmaN]

Exactly. If they were looking to sell it they need to pump the tires and put fresh coats of paint on it to get too dollar return. Anyone who speaks from MS on the subject is going to say no way will they sell. Well, because if you said you were looking to sell then ppl wouldn't buy all the products you have put out for it waiting to see who is taking it over and you kill the bigger money offers you want to get. It's business 101.

Would you buy my car if I told you that it may not have replacement parts in a year or two and that the company that makes it is looking to ditch it completely? No, you wouldn't. Let's use our heads ppl and understand that you will never know when or of MS will sell of the Xbox division until it's sold. Just like Facebook snapping up oculus for 2 billion. Did anyone see that coming except for the 12 hrs before it happened? Do you think FB just on a whim threw out 2 billion in a day or maybe there was lots of behind the scenes negotiating and strict confidentiality agreements in place?

My thoughts right now are how pissed some charge holders on MS are right now that a headset device just made 2 billion and they are still trying to beat the Xbox horse to death to get a few hundred mill out of it. I can bet there are phone calls going on saying "2-3 billion for Xbox division would sure be nice to my stock portfolio with MS".

[ZombieDust]

Just want to prove how stupid your comparisons are.

First the car one. I have a 15 year old pontiac, pontiac doesnt exist anymore, I still can get parts and the car can still be taken in for recalls and all that fun stuff.

Also Xbox selling the brand would not mean it would cease to exist. Xbox would be bought by someone else and likely still supported, just by a different company.

[SmielmaN]

Zombie dust:
Sorry but your rebuttal to my comment is just a reason to personally attack me. Your using a specific comparison to a very specific vehicle that is almost 2 decades old. I'm speaking with regards to a relatively brand new product. So your wrong because your using a incorrect comparison. Very ignorant on your part.

Second, no where in my comment did I say the xbone would cease to exist. However, it's a possibility when a company sells off it's divisions and assets. You would have no idea what the intentions of the new company are. Again, your just personally attacking me and making things up in your fanboy rage comment. Why don't you add me to your ignore list as your response to my comment is absolutely useless, uneducated, ignorant, and spiteful. Grow up.

[ZombieDust]

@smielnman you are the one who brought up the car situation lol. I just said how it doesnt compare to the xbox situation.

Relax my man, nowhere in my comment did I say you said it would cease to exist.

Read and understand what you and others have said before trying to argue what they are saying. You have contradicted yourself and overreacted... Personal attack? Little sensitive are we?

[MorePowerOfGreen]

Just wishful thinking by PS4 fanboys. The topic use to bring in hordes of fanboy traffic. If I were a PS4 fanboy I'd be more worried about Sony and how this is more likely to happen to Playstation than Xbox. IMO some fanboys keep digging for articles written by media trying to cash on this topic, as a diversion from the real Sony problems.

Funny how fanboys keep hoping and praying over this rumor/topic, that has been called out by MSFT many times. I imagine Sony fanboys can sense that XB1 is going to make a come back on Sony due to actual offerings and innovation vs the PS4 simply selling based on hype and internet agenda(hate). So they try to do as much damage to Xb1 as possible spreading false impressions and implying that xbox is done.

Sony and fanboys will ignore Sony employees leaving Sony while continuing to spread that made up topic about spinning xbox off(based on twisting a MSFT higher up's words)

XB1 coming with a unmatched game lineup and a long term game investment, with XB1 coming out with tons of new software features is the reason this topic still hanging on to life.

Is Evilsnuggle MariaHelFutura?

[stuna1]

PS fanboy this! PS fanboy that! In what way did I attack Microsoft!? Bt your comment goes on to attack me, the PlayStation fans, and Sony! Seems like you fit the description more than I do!

I stated a well known business tactic that has been around as long as businesses! But of course I understand a lot of peoples disagrees are dictated solely on their love for a machine, which can and does overpower common sense.

As a to people leaving Sony studios, how is that a comparison to top CEO's leaving Microsoft the company!?

[LexHazard79]

So your saying a potential buyer wants to buy a company that keeps spending Billions of dollars in this industry of risky business? Dont think so!

[gameon1985]

I just said yesterday, that it's ridiculous for people to keep posting these articles when there is no reason to post them. Notice they only pop up when Sony gets bad news like the lay offs from yesterday. You would think the way thing are going at Sony you would see more articles about Sony selling the PS instead of Microsoft selling the Xbox. I mean seriously Microsoft has been opening new studios and hiring like crazy. Yet, people still insist they will sell. There is no way a company is prepping for a sell of one of its division, and still invest the kind of money Microsoft is investing in their studios.

[Evilsnuggle]

gameon1985
There are such a differences in managing Development projects and selling a brand. Sony is still investing In game development what are you talking about. There has never been a rumors of Sony selling the PlayStation brand. There are numerous sources that said shareholders are calling for the selling of xbox brand. The Playstation brand has been a huge success PS 1 2 4. A candidate For CEO Stephen Elop said he would sale xbox brand if CEO. No one at Sony ever talk about selling PS4. The Xbox has been unsuccessful for 13 years and has lost billions. The shareholders and head of xbox want to sale xbox brand because it's not possible profitable. If trends continue the PS4 will greatly out sale xbone. The xbone will be less successful than the 360 worldwide if sale trends continue. The 360 was the largest selling consoles of all times in the U.K . The 360 out sold the PS3 in the USA and U.K. Now the PS4 is out selling xbone in the USA and out sold xbone 3 to 1 in the United Kingdom. This will be the last xbox consoles hardware . If you want to sale something you don't devalue it. Just because Microsoft Is investing in xbone doesn’t mean they won't sell it. You guys know nothing about business or selling . If you want to sale your car or house first fix it and get more money for it. First you must invest some money and time in it . Like fixing it up and cleaning it up. That way it's more attractive to potential buyers. Business 101

http://www.gamesindustry.bi...

[LexHazard79]

I like how you compare it to the sale of a house or car! MS didnt need to invest Billions to sell division tho and that why I think its not happening!

When a sports team is being sold. They dont go and sign max contract players and add 10k seats to the stadium! They leave that up to new owners and management! Just saying!

[D3ATH_DRIV3R_777]

@gameon1985

Since when MS opened up new studios? i haven't read anything about them opening up studios, all i ever hear about MS is them buying 3rd party games. Not once i read about them opening up new studios! where did you get that from? i totally disagree with that. They're lucky that they're not in the hole from what i been seeing from them, but they can't rely on luck too long! i hope that they don't sell it, but at the rate they're at, they won't have no choice. Disagree monster jam, here it comes!

[gameon1985]

Dude where the hell have you been? Microsoft have been opening new studios since 2011. And have announced a new studio or 2 every year at E3 and I bet they will announce a new this year.

[WeAreLegion]

They've thrown too much money at it lately to sell.

[Dread]

True that.

[Dread]

I am not concerned at all. If they were planning to dump the division, I do not think they would have spent so much money in a new system, new studios, and buying Gears of War for god knows how much,, etc.

[Dewitt]

Microsoft has exponentially increased its player base over the last two iterations. They came in with next to no console experience. The first box sold 22 million, the 360 sold close to 80 million. The One has sold 4 million in 3 1/2 months with the huge disadvantage they had coming in with the negative PR from the media. They have turned a profit in the division the last 6 years straight, why would they sell it off? Would make absolutely no sense.

[prettyboy12]

where are you getting these numbers from there still at 3mill+.not 4mill

[llmut]

even if they did decide to sell, who has that kind of money, not only to but it but to invest into the business as well.

[Dewitt]

Amazon and Google have already expressed interest when the rumors were floating around. MS won't sell off the side of their company with limitless future possibilities.

[Mikefizzled]

Can we just agree to stop using pictures of Don? He hasn't worked at Microsoft for nearly 9 months.

[welly300]

2015
1st xbox1
2nd wii u
3rd ps4 (no longer in production)
R.i.p sony
:)

[prettyboy12]

lol!!!your almost right lets remove the first one with the 3rd one and you have sauce!!!LOL!!!

[TheRedButterfly]

Okay dude, I'm Xbox all day every day with Wii U as my secondary console, but cut the crap. PS4 is doing great and won't be going away any time soon. If any of the big 3 should be "worried" it'd be Nintendo. Sony (as a business) are facing hard times, but the PS brand is stronger than it has been for the past decade.

Xbox One is going to do great (it already is)
PlayStation 4 is going to do great (it already is)
Wii U is [hopefully] going to do well (meh…?)

2015 will be an interesting year, but there won't be any winners until at least 2016 or 2017.

[TheRedButterfly]

If people put as much stock in MS's responses to this as they do Pennelo's tweets about the dGPU, this conversation would have ended months ago.

How about some consistency people?

[Hicken]

Because they're not the same situation.

The dGPU thing is a quantifiable fact. You can literally take an XB1 apart and see that was BS. And there was never ANYTHING more than delusional fanboy speculation to that rumor.

Obviously, the idea that MS might sell Xbox has considerably more substance to it. And because it's based on intent, which you can't really quantify, it's hard to prove or disprove. Not to mention the common sense idea that there's no way Microsoft would come out and admit they were selling it right now.

[Picnic]

Anyone who's bought an Xbox One (the actual machine only says 'Xbox' on it which doesn't bode well- suggests a closing full circle for the Xbox brand) knows that it wants to educate you (Ted), it wants to make you fit (Xbox Fitness), it wants to make you stick your hands out in front of you until you accidentally choose the wrong app, it wants your bank details to do anything built in to it that you once got for free on the PS3, it wants to not easily allow you to search for information on upcoming games nor past games.

It's all tastefully Windowsised but what it isn't is wonderfully quirky in its games in the way that Sony and Nintendo can be.

It is a barely disguised cash cow. A corporate cash register. With graphics that once looked better on a trailer because that trailer was taken from the PC (if not from the PS4 version).

Don't knock its design - it's a nice looking machine with a nice controller. And it may have had that 2 tone shiny/ matte idea before the PS4 did. If you like living in a word of slanty consoles instead that's your call. But the Xbox One badly needs ports of the best PC games to make a rich and interesting library. Instead it's like it's aiming at a 2.4 children family where no-one ever played anything particularly out of the ordinary.

[JediDiah]

If EA bought Xbox.....that would be a real game changer. Imagine EA games only on Xbox.

[Rockyrob]

Hey Evilsnuggle ... Great story! You must really be in the know. By the way, When will Titanfall ship for Xbox One? You really write the most up to date stuff.

[kenshiro100]

Microsoft won't sell the XB brand. They would have to be really stupid to do that.

[mediate-this]

If microsoft sold their division that would be hilariously stupid on their part, you dont spend that type of money on exclusivity, r&d, franchises to just sell it off. Would be a dumb move, billions down drain for nothing.

If anything i can see them shutting it down, locking up their ip's, maybe selling halo and gears. But they dont need the money, its hard to anticipate micro.