Can the Xbox Save Microsoft?

Microsoft (NASDAQ: MSFT ) is hoping that diehard gamers will save the day. Shares of the software giant moved sharply lower on Friday after posting disappointing quarterly results, but one of the rare pockets of inspirational growth in the report was a 20% spike in transactional revenue within Xbox Live

[Lovable]

I think it should be the other way around

"Can Microsoft save the Xbox"

MS doesn't need saving, they're filthy rich.

[ShugaCane]

Pre-orders suggest that the Xbox doesn't need saving either.

[Lovable]

Actually it does. The preorders suggest that PS4 is killing the competition no doubt about it. MS destroyed the name Xbox in the eyes of many people and the unbalance preorder we're seeing is the proof of that.

[Ragthorn]

@ShugaCane
Nice Attack on Titan profile pic Levi. Anyways I agree with you.

[SpideySpeakz]

Pre-orders suggest, compared to the PS4, the Xbone does need saving.

[thechosenone]

I want MS to go under and have Steam and Linux takeover.

[Sitdown]

@Loveable
So because the ps4 is killing the xbox that means it can't be profitable?.......thus needing to be saved? This is not a sprint but a marathon, and Microsoft's pocket can coexist along with Sony's and Nintendo's. Despite what you think, Microsoft has not destroyed xbox in the eyes of many people....at best it took a knock in the eyes of early adopters. 4 months to go, and most people don't even know about the next generation consoles.....and will have no idea of Microsoft's "stumble" out the gate.

[georgeenoob]

Last I checked both systems were sold out, so how exactly does this make PS4 pre-orders beat Xbox? Considering no numbers were even released?

Only trolls think Xbox is "doomed". Deep down they're scared sh*tless of Xbox, trolling every Xbox article on N4G. Sounds pathetic doesn't it? They will even lie to themselves and post false statements like with pre-orders.

[Lovable]

@Sitdown

I never said Xbone is not profitable did I? Xbox name has been tarnished that even the most hard core xbox fanboy is leaving the system. Stop being blind and accept the fact that MS destroyed their brand even before the start of next gen.

The sales of Xbox 360 in NA is proof of how they dominated the market. Now look at the pre orders. Also, stop saying "Oh only early adapters know about the disaster". NO! Word of mouth is stronger than what you think it is.

This is not a sprint, but a marathon , and we all know what happened this gen right?

@georgee

Problem is PS4 sold out in its first day while Xbone in few months after E3. See the difference between the demand.

[Moncole]

You do know companies dont put out a lot of pre-order consoles out so the supply will be limited so when people hear there selling out they will think they are in demand and popular.

[UltimateMaster]

"Can the Xbox save Microsoft"
Well, they have a new exciting business initiative called the Xbox One!!

Talk and chat using skype technology with all of your boardroom executive around the world and show just how professional you are by using a Microsoft Product toy.

Work in the office, that's so last gen. Play with all your fellow co-workers on Call of Duty. When your Job duties calls you, just hang up and enjoy your unlimited TV experience.

Xbox One, the future of irrelevant workers!

[WrAiTh Sp3cTr3]

Do you all have preorder figures? If not then you're just blowing smoke.

[Heartnet]

WHY IS EVERRY1 COMPARING IT TO THE PS4!!!

You dont need to sell more than the competition to succed LOL You guys think that only one company can do well?

The world isnt full of fanboys who only see Sony in the future lol... If ps4 sells 5 mil consoles and x1 sells 3 mil consoles they have both done well! WHY CAN YUOU NOT SEE THAT!

[scott182]

@Georgeenoob

"Only trolls think Xbox is "doomed". Deep down they're scared sh*tless of Xbox"

Actually I think a lot of people are scared of the Xbox. I don't want their spy camera watching and listening to everything I do 24/7. A law abiding citizen has the right to their privacy.

[WrAiTh Sp3cTr3]

Get your tin-foil hats and get off the grid, lol.

[FATAL1TY]

Can the Xbox Save Microsoft?

no.

"Can Microsoft save the Xbox?"

no -_-

[UltimateMaster]

Maybe we don't have pre-order figures, but last time I've checked.
The 360 released 250k units the first year where the PS4 released 500k units.

Obviously, it means nothing this gen around.
It's mere speculations.

[loulou]

loveable "Problem is PS4 sold out in its first day while Xbone in few months after E3. See the difference between the demand"

lol e3 was 1 month ago. you are desperate my sony sucking friend

[scott182]

Na, I'll stay on the grid and not buy an Xbox.

[Sitdown]

@Loveable
You stop being blind and realize what the xbox brand means to Microsoft.......it was never entirely about video games, but finding away to become the center of your living room given the shift from traditional PCs. Anyhow, perhaps you need to consult a dictionary on the meaning of "destroyed". You talk about how the 360 dominated NA and then say look at the preorders.....have you missed the articles saying that the xbox one prepares have actually surpassed the 360....and that is with a higher price point, being launched in the same Window as its main competitor, in the face of DRM, and under your title of having a "destroyed" brand......please make sense of all that for us. If word of mouth is strong, then we can assume the positive news will get around too right? You think this is going to stop a kid from demanding their parent purchase one? What happened this generation? Microsoft on its 2nd console captured a large market share.....with their division being profitable?

Ohhh, and again check the sources....xbox one sold out on its first day on Amazon, but then was reopened when more stock was allocated.

[QuickdrawMcgraw]

Really how many pre-orders do they have?

[dcj0524]

Think about this way. The vita is selling fine now but compared to the 3DS it needs help. To catch up. Same thing with xbox one ans PS4. Its doing fine. But compared to the ps4 it needs a little help.

[grimmweisse]

@george,

So now you trying to be credible. Stop being a pretenious twat!I find it ironic that you say people are finding Xbox articles to troll. Yet it is you I find on many articles trolling the most.

Both are seeing strong pre-orde

Oh, and for those pre-order numbers. US pre-orders released last month stood at:
PS4 - 75 000
Xbox One - 45 000

As it stands both have positive pre-orders. The demand has been two fold as apposed to the 360 and ps3 pre-orders.

[redwin]

I preordered my XboxOne and I'm going to download all my games on day one and that's what my friends are doing, maybe that's why there are less preorders in total. The days of swapping disks are over.

[cedaridge]

I haven't given up on xbox one, just not going to rush and buy it yet. I have purchase the ps4 for now. Just have to wait and see were microsoft is going wit XB1.
#BeingAFanboySoOLD

[KwietStorm_BLM]

You guys are not looking at the bigger picture. Having a large sum of money/stocks/cash doesn't determine the ever changing outlook of a company or corporation, and you can bet that the execs and shareholders are looking at the less than expected quarter under a high grade microscope.

[Machiavellian]

MS is a growth company. Stock owners have much less say to the direction and course of MS then you may think.

[fermcr]

"Can the Xbox Save Microsoft?"

LOL. What a stupid article. Nor does Microsoft need saving nor does the Xbox need saving.

It's true that the PS4 has more preorders then the X1, but it looks like the X1 is also doing well in the preorders department. Microsoft could increase the preorders if they released a cheaper X1 without Kinect.

"Can the PS4 Save Sony?" would be a more appropriate title for a future article.

[Bathyj]

Wouldn't be an appropriate title at all since the article is not about Sony

[GrownUpGamer]

@ fermcr
"Can the PS4 Save Sony?" would be a more appropriate title.

Yup 99% true. The reality is that Sony is the one who needs to be saved.

[Bathyj]

Oh, nice edit to make my comment seem wrong.
This is why I should wait 15 minutes before replying

[scott182]

Neither company needs saving at this point, but both need to be careful about their major business decisions...

[karl]

i agree but i doubt they will spend every damn cent trying to save the company or xbox division...

it may come a time when everyone will try to jump ship with as much money as they can..

im sure such a monster like MS can last quite a lot even without making profit but still... the ppl behind it may not want to lose much more money

and remember. shares can loss value.. things can be bad pretty quick for a company with many bad choices one after the other..

[BattleTorn]

+well said. *Exactly* (pretty much) what I came to say.

[miyamoto]

that is why its called "fool.com"

[reko]

yes they can.

and @georgenoob

youre a troll, wtf are you talking about?

[dedicatedtogamers]

Wait. WHAT?

I know this is a gaming site. I know people like the Xbox brand, but here's the truth: any money the XBox brand makes (or loses) is a drop in the bucket for Microsoft. I know this comes as a shock, but Microsoft DOES NOT CARE VERY MUCH about the Xbox division compared to their other larger and more profitable branches. Why else was Xbox buried within another division during the recent reorg?

I'm not bashing Xbox but honestly, Xbox is not going to save or hurt Microsoft. It's way too small of a division in the grand scheme of things.

[caseh]

Sounds about right to me.

A lot of people, the author of this article included don't seem to understand MS make all their money from software. They hold like 80% of all desktop OS installations and as popular as people may like to think Apple are, MS dominate this market and thats not even touching upon Windows Server which practically EVERY business in the world will be running on.

The Xbox One is simply an attempt to get their brandname into your everyday life. What better way to do it than with a games console that does a bit of everything as the chances are that if you own a PC, you run Windows.

If it fails, it will hardly make a dent in their company profile. Hell, just to see it make it into peoples homes and break even or even at a loss would be deemed a success due to the services they can provide via that piece of kit.

[BattleTorn]

Yup.

[Excalibur]

"However, keep in mind that the industry's been slumping since 2009. It wasn't the anticipation of new consoles that was holding back gamers then. The growing popularity of apps played on smartphones and tablets has siphoned off a lot of casual video-game players. It's not just Microsoft's Windows business that's been hurt by the growing popularity of iOS and Android devices."

I'm so tired of hearing about the Casual gamer, the casual gamer doesn't go out and spent $100.00's of dollars on consoles or high end PC's.
The casual gamer doesn't spend $60.00 a pop on games and then more on it's DLC later on, the casual gamer DL's a free or cheap game to mindlessly pass the time at the bus stop, stop lumping the casuals in with the hardcore.

And if Microsoft doesn't stop appealing less to the casual and more towards it's core, Xbox isn't going to save a damn thing, not that it would anyway, the Xbox brand is just a small part of Microsoft as a whole.

[H0RSE]

You are only emphasizing one possible meaning for "casual" gamer. A casual gamer doesn't necessarily need to be defined as a person who doesn't take gaming seriously and is likely not to spend much (if any) money on the medium. A casual could also include players that enjoy gaming and spends a descent buck, but just don't spend every waking minute playing games.

[Excalibur]

I know that, these articles always seem to lump casuals in like they traded in there consoles or high-end PC's and prefer to play angry birds on their phones instead.

[H0RSE]

It's a trick question - Microsoft isn't in need of saving...

Despite shares dropping and industry sales as a whole in decline, MS is still doing pretty good for itself. It's not like they'll be filing for bankruptcy anytime soon. Hell, overall, they are more wealthy than Sony.

[BattleTorn]

LOL - look at your disagrees.

Those in denial - ``NO! MS IS DYING! (at least I want them to)``

[Machiavellian]

Interesting enough, MS gained 6 billion more this year then last year. All of their major divisions increase profits and Revenue and people keep saying they are in decline. MS had to pay for the Surface, is this the first time MS had to write off a product that that did not do well. Its more impressive that they can take a 900 mill write off and still produce revenue and profits more than the previous year.

[THEDON82z1]

True, you are right but it wont last forever M$ will eventually sell off there gaming segment if it does not turn a profit in 3 years... They are in desperate need of finding a valuable solution to be profitable in this post PC era...Fact being Android and Apple are digging them and Intel a new A$$-hole...The big question is can they find there way because the writing on the wall says: That if they don't find a way to bring the PC back to the forefront of everybody's mind then EVENTUALLY IT IS ALL OVER FOR M$ AND INTEL!! M$ SURFACE FAIL..M$ WINDOWS8 STRUGGLING(ONLY ADVANTAGE IS THEY CORNERED THE MARKET..BUT EVERYBODY PREFERS WINDOWS 7)..They are looking for any leverage they can but the reality is they need to just listen to the consumer(like Sony is doing with PS4)to improve there future position!! I honestly think the culture of M$ is truly against that philosophy; and its really all about profits..AND THAT WAS WHAT F@CKED THEM UP WHEN THEY THOUGHT THE DRM POLICY COULD WORK..HOWEVER IT FAILED AND PUT THEM AT A DISADVANTAGE FOR THE NEXT GEN(GOOD!!)!!! ....

[Blachek]

It's interesting to watch as MS attempts to buy into the Surface Tablet Market. With Apple so staunchly holding market share, despite their crappy overpriced junk, the rest of the competitive companies trying to break into the market have to dump money into the monster that is advertising just to pull sales to recoup initial investments. There is no way anybody producing a tablet would be in the black with Apple so ingrained in consumer minds.

But that brings me to my point, Microsoft has the capitol to grind it out where they need to and despite a lot of people believing that they are doing poorly, they are unfazed. This is a gaming website, every bit of relevant gaming information is scrutinized, combed over through a brush of fan-boy hate, and then spit back out with a lot of poorly thought out arguments. This goes both ways for Sony & Microsoft, but the truth is Sony is a Hardware Company, Microsoft is a Software company. Their products rarely compete with one another, despite this initial passion over the XB1, Microsoft is doing just fine.

As a request to everybody here at N4G can we stop using the $ symbol as an S? Yes, you are clever... they look alike. However, you are using it to "mock?" companies that aren't not-for-profits, of course they are out to make money. Grow up.

[animegamingnerd]

i doubt M$ is in need of saving i am pretty sure they have more money then sony and nintendo

[Sarobi]

Microsoft isn't in need of saving. While I'm sure they aren't happy with their shares and sales figures on certain products, they aren't going to fold over.

[JBSleek]

Lol the same Microsoft who has record stock highs and continuing massive profits. The same Microsoft who just posted an almost $20 billion quarterly revenue earning.

Talk about needing saving.

/s

[Electric-flamingo]

This site is funny because anyone can post anything. Anything at all. A N Y T H I N G

than the N4G analysts come out of the word work and say how ms is going to die and suffer and burnnnnn

[BattleTorn]

woodwork*

[BillytheBarbarian]

That 20% spike is from the big sales they've been doing lately. Full games for 5-10 dollars on demand? Yeah, people are going to snatch up those deals. Batman AC was only 10 bucks for awhile. I'm sure people downloaded it.

[Megaton]

The entire Xbox division is peanuts for Microsoft. However, it's actually a popular product for them. They keep putting out multi-billion dollar flops, subsidized by their nearly-endless Windows bankroll. The Xbox is one of the only Microsoft products to actually gain traction in its respective marketplace.

Popularity aside, no, Xbox is too small to "save" anything. Microsoft needs to grow it tenfold before that even becomes a serious question. Windows will keep them afloat for now, as it always has, but with the way tablets and phones are becoming the go-to internet device for many people growing up in 2013, they definitely need to grow their few non-Windows successes if they want to be relevant in 10 - 20 years. They can't keep hemorrhaging billions on Bing and their massively unpopular phones and tablets forever. That Windows money will eventually start to dry up as the world, and the definition of a computer, keeps changing.

[AD705]

So one of the top richest companies in the world needs saving? The world has gone crazy.

[AO1JMM]

Microsft needs saving? Fail

[thetruthx1]

Even if the xbox one does lower than expected numbers this year, Master chief will save them next spring at 60 fps

Marcus fenix will arrive next riding a Brumak :)

The new Halo and Gears are going to look incredible with better graphics

[MultiConsoleGamer]

This is done hardcore, fantasy driven, fanboy spin.

And it comes from a website named "fool." Very appropriate.

[BattleTorn]

Yup.

Just living up to their name - fool.

[n4rc]

What a completely retarded title..

Microsoft makes like 50 billion a year.. Its the last company that needs saving..

[My_Outer_Heaven]

Nope!

[Miacosa]

No, most of the money MS makes is from Office, Windows, and Enterprise software licensing. The Xbox division is a very small part of the whole if anything it could cost them money if they make the wrong bets.

[AzureskyZ]

Isnt the real question is can microsoft salvage the xbox-- having gamed and still continue to game mostly on 360-- im left pretty damn disappointed in MS not only for their new console but with their os, and yes even their tablet.

[Kingthrash360]

wow......such a backwards article.....
1. should be the other way around.....lets not forget the only reason the 360 didnt fail after the rrod billion dollar loss was because ms could afford to keep it afloat. xbox is a branch of a much larger tree that is ms.

2. ms + pc software YEARS of success..not to mention the other companies they've bought....with failures like zune not even making them flench how something as trivial as xb1 supposed to "save" ms?

3. save ms? are they in trouble? last I heard xb1 was in more of a questionable state than ms....can ms save xb1? while that don't makes sense yet because of the fact that it hasn't been released would have been a more understandable article....and the answer is yes....if it could save the 360 then it could save the xb1.....ms are some rich mf's.

one point.....anyone who mentions sony jn their comment needs to stop it....this article has nada to do with sony......and no im no fanboy im getting both...sony first tho...xb1 next year....

[danny818]

More like will the one save the xbox brand. Not microsft lol

[horndog]

What a phucking moron! Can the xbox save MS? Where do people find this crap, does this idiot even know the worth of MS? Do they kn ow that MS owns the xbox and not the other way around. Sold out preorders also indicate the x1 is doing fine and so are the record breaking pre orders for both consoles which means x1 is already doing better than the 360 and has already stablished itself as a major player that will be around way after sony goes broke.

[kenshiro100]

I remembered articles like this for Sony. My, have the times changed.

[kakashi81]

They need to upgrade from 8GB to 12GB with a faster clock speed in the cpu. I will be content then, other than that they are done with if they don't.

[Underworld]

Anyone who thinks the X1 hasn't been damaged and needs help is deluding themselves. I do think the X1 will do fine now they changed the policies, but many people, including 360 fans are still angry and have jumped to PS4. I have both current consoles, but won't be getting an X1, and every friend I've spoken to about the next gen consoles hasn't had good things to say about Microsoft and X1.
Again, I think it'll do fine, but it has been damaged and does need help.

And both PS4 and X1 day one launch editions have sold out on Amazon US, but PS4 is third on the list and X1 is sixth, which shows Amazon had more PS4s. Not to mention every other Amazon website has PS4 leading X1.

[D-riders]

MS has been leading in sales, in the united states. however I have felt that MS failed the hardcore gamer this generation and will lose a lot of market share this gen. I feel that xbox 360 was the benefit of a few factors, cross game chat an industry changing advantage. The ease of use of cross game chat, made xbox a clear choice in a growing communication market. However, by charging to use it was a smart idea and a horrendous idea in the same. Yes,xbox live generated lots of money, however cross game chat is attached to it. Xbox live has to prove it self against Sony service that is offering cross game chat for free. MS has to prove its advantage over Sony service when marketing to gamers. The xbox 360 is filled with advertisements. next MS failed to create more franchises on the xbox 360, leading them to be forced to create more expensive titles that arent established. Also having to go head to head against sony with numerous studios and more games coming. that is a bad spot to be in. Next the abysmal launch of xbox one sen the complete wrong message. Something a company should never do, especially after an abysmal launch of the xbox 360 (rrod). personally i bought 16 xbox 360s and have intention of getting an xbox 1. That is a huge problem for ms to over come, because i am not the only one. MS is forward think but forgot who they where for , gamers market isnt a normal market. They are a verbal and loud community. Attempting to mix them with the general population immediately , was infamously historic in gaming.

[MonkeyOne]

The Microsoft and Sony console divisions (or entertainment divisions) have lost billions since the PS2 era of gaming ended.

The math of stuffing $800 worth of PC parts into a $399 console never worked.

Also remember Microsoft had to drop another 1 Billion on the while RROD fiasco.

Sony lost 6.4 billion in fiscal year ending March 2012.

The losses have been staggering.

The real console war for Sony and Microsoft is one of profitability and survival in an era of 99 cent tablet games and free-to-play MMOs.

Not RAM clock speeds and GPU fill rates.

[vigilante_man]

Silly article. MS have more money than sense. They'll be okay.

Well done Chris Froome - winner of 100th Tour de France.

2 British winners in 12 months - both CLEAN!

[Stevino123]

@georgenoob
The PS4 was sold out weeks before The Xbox One, It also only has one edition, so every bundle and edition would overwhelm the Xbox by a ton, PS4 has the lead and Xbox is hanging on a thread, it has hope for the few people on it, but not as popular as the Xbox 360.