370°

ValueAct Still Pursuing A Microsoft Board Seat, Wants To Sell Off The Xbox Division

Steve Ballmer just announced his retirement, and the CEO of Microsoft has decided to call it a day within the next 12 months. The head of Redmond had been under fire from several circles, former employees, media and investors.

Back in April ValueAct spent $2 billion in order to take over 1 percent stake in Microsoft. And now gossip is flowing that the investment firm may be pushing for some big changes within the Redmond campus.

A top Microsoft analyst reveals that ValueAct is still pursuing a seat in the company’s board of directors.

Read Full Story >>
eyeonwindows.com
DEEBO3889d ago

well that sucks.even though i like sony more then MS.i hate see console makers go,hopefully this never happens.maybe this was the plan from the beginning.build the xbox brand up then sale it.

Bigpappy3889d ago

You don't even need to read the article to know that what you are implying is not the case. Just read the title and the summary.

JokesOnYou3889d ago (Edited 3889d ago )

Yeah 1% and they want them to sell the division...sounds like some nutjobs trying to make some quick cash. Not going to happen, expecially since Xbox brand unlike Zune and other investments that have failed.

MWong3889d ago (Edited 3889d ago )

Well if enough boardmembers get behind ValueAct and they get a seat on the board of directors it doesn't matter what percentage of stake they have in M$. They just have to convience the a majority of the board that the XBox division isn't profitable. The lack of a solid vision and leadership of the division would make that easy to argue.

I doubt they will get on the board though, but if they do I wonder who might buy XBox.

Anon19743889d ago (Edited 3889d ago )

The question isn't is the Xbox profitable. The question the board has to ask themselves is is the Xbox profitable enough. Could that money be better spent? That's what ValueAct does. They come in and work with the boards of company's to get them the most bang for their buck. They simply don't think that for Microsoft they're getting their money's worth out of any of their devices, Xbox included, compared to the returns they see from other divisions. They aren't alone in thinking this either, as other board members and analysts have been saying this long before ValueAct became involved.

Edit below: And he's dismissing the fact that ValueAct isn't in this alone. They'd just be adding their voice to those who've been calling for this for some time now but have been blocked by Ballmer.

HiddenMission3889d ago

@JokesOnYou

I guess the jokes really on you considering that nut job you speak of is an investment company that spent 2 billion dollars let me repeat that 2 billion dollars for 1% and will be getting a seat on the board of directors.

Over the years many investors have not been happy with the profit/loss margin that the XBOX brand earns/loses. They have been calling for Balmer to be removed for several years and XBOX to be sold off.

With the new director from the investment firm and Balmer retiring there is a very good chance that XBOX end up becoming a separate company...which means no more massive spending for exclusives. Essentially the XBOX brand would be in the same boat as Sony and Nintendo so the fields from a capital point of view would be more level than ever.

Bigpappy3889d ago

Seems like too many of you are getting ahead of yourselves here.

@ HiddenMission: The article clearly states the ValueAct is STILL PURSUING a seat on the Board. They are not on the board yet. And if they do get on, they with have one vote, but will obvious have more say. But they are not on the board.

@ darkride: Most of what you are saying makes sense to me. But ValueAct has no say in whether Ballmer stays or goes.

You guys are acting like Patcher here. You are looking at a few fact and trying to fill in the blanks. But there is no way to predict Who will replace Ballmer and how much influence ValueAct will have over the running of M$. So you should all make it clear that you really do not know how this will affect Xbox, except for the fact that Ballmer was a huge supporter.

You guy also ignore an even bigger supporter of Xbox (Bill Gates). He still owns more shares and has more influence over M$ than anyone else.

MWong3889d ago (Edited 3889d ago )

@ darkride66
Well said, +1 bubble

@Bigpappy
I don't think anybody is getting ahead of themselves. I think people are just stating possiblities. Especially, based off your initial comment to the OP. Bill Gates doesn't run M$, the board of directors run the company. The majority vote will decide the fate of the XBox, if it ever came to a vote.

Honestly, while I would hate to see the XBox go. However, I do think some of their money could be better allocated. $100 million for the controller design to make it look like an improved 360 controller. Not to mention the amount of money they have spent on R&D for the E3 XBone model. To just change it and spend more R&D money. Not to mention, paying for exclusives.

Bigpappy3889d ago (Edited 3889d ago )

@ MWong: When you reply to my comment please make sure that what you accuse me of saying is what I did say. I never said Bill Gates run Microsoft.

Now you also state that the board of directors run M$. If that is true, why did they not have Xbox as a separate company while Ballmer was CEO? No the do not run M$. It is run buy the CEO and the chairman. The board gets to pick who runs the company, but they do NOT run it.

The next CEO gets to decide the fate of Xbox business.

Diver3889d ago (Edited 3889d ago )

Well jokesonyou you don't realize that 1% makes them a top investor. Also they ain't alone on this.

If errr, when the Xbox has a bad start this gen it could force investors looking at bad office and windows sales to push the issue through.

Overall Xbox has yet to turn a profit. They're still down from the first box days.

Startin with attacking opengl to ram directx down our throats Microsoft is the worst thing ever to happen to gaming.

Christopher3889d ago

@JOY: Actually, this isn't the first time that board of directors people (or shareholders) have discussed selling off the Xbox division. The reason? It's one of the least profitable divisions in the company but has one of the highest expense rates outside of software divisions.

JokesOnYou3889d ago (Edited 3889d ago )

All I see here is SPECULATION with nothing even close solid to go on, no different then speculation sony would split the ps division. No coincidence people giving a firm who has 1% stake and currently no board seat in a huge corporation so much weight are the usual suspects. Nothing to see here but wishful thinking really.

Here's some black and white facts for all the speculation:

"Microsoft Profits Up, Xbox Division Up 55%"

"The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services including Office 365, Windows Azure, Xbox LIVE, and Skype," said Microsoft CEO Steve Ballmer. "While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term."
http://www.vgchartz.com/art...

-I SPECULATE that based on these latest financial FACTS micro will now commence their world domination plan to take over the planet, or maybe just continue to support the Xbox brand. Who knows? lol

JohnnyBadfinger3889d ago

It's bad enough having Microsoft in charge of Xbox if it were sold I'd put my money on activision or EA even Ubisoft as the main publishers they could make heaps from having their own console.

morganfell3889d ago

There is a reason they want to divest themselves of the division. Here are thre pieces of info from Gaf:

http://i.imgur.com/UwdTasL....

http://i.imgur.com/ZUJHD.pn...

And the third piece is from a post where the individual stated that it should be considered how the Xbox division will be viewed early next year post initial launch. If Sony appears to be widening a lead it could drive some radical changes.

3888d ago
+ Show (10) more repliesLast reply 3888d ago
Anon19743889d ago (Edited 3889d ago )

It's no secret that other board members and investors have long had the knives out for the Xbox. Looking at it from a business perspective, even though the Xbox makes money now the return on money invested is paltry compared to what we see coming out of Microsoft's other divisions. You can understand why they might want to see it go when the capital could be spent boosting a much more profitable software division. But Ballmer was always the reason that this talk never went anywhere. He was a huge Xbox supporter. And now he's gone.

With ValueAct now adding its considerable influence to a board that was already unsure of the Xbox but held in check by Ballmer that leaves the division on shaky ground if the Xbox One fails to deliver, and with Windows 8 not exactly taking off and PC sales continuing to slump, Microsoft despite making obscene amounts of money could suddenly start to feel the pressure.

There's already been a number of analysts sounding the alarms regarding an uncertain future for the company. That's not saying they're in danger of going bankrupt or any such nonsense, but who knows what the company will look like even 5 years out.

So the question is, if Valueact and other board members get their way with the XBox, what then? Will it be spun off into it's own company, relatively intact or simply sold? And if sold, to who? When the analysts started talking again about the Xbox division being sold recently, Samsung was the name most often thrown about.

I wouldn't write off the influence that ValueAct has over the company. It's already being speculated that they're the once who've forced Ballmer out, and they don't even have their board seat yet. And they'd just be adding their voices to the others that think the Xbox divisions money could be better spent on a more profitable division, but have been held in check by Ballmer over the years.

vigilante_man3889d ago

Samsung make great hardware. We could see amazing hardware from both Sony and Samsung.

We need competition, where ever it comes from. This summer has taught us that.

TheTwelve3889d ago

You're speaking too much sense too early on these pages, bro! As much as Xbox supporters say this is a Sony-site, you will see them come out to disagree with you on this!

Ripsta7th3889d ago (Edited 3889d ago )

Xbox brand isnt dying anytime soon
@TheTwelve -you should be grateful he isnt right because if samsung takes over xbox its game over for sony Lol

Anon19743889d ago (Edited 3889d ago )

No one says the XBox is dying. That's not what this is about. The problem that shareholders and others on the board had was how much the Xbox division was profiting compared to capital invested with other divisions.

To simplify what we're talking about there, If you have two different revenue streams going into two different divisions and one revenue stream is making you 20% return and the other 5% return, it just makes sense that you may consider switching both streams into the division making bigger returns. With Microsoft, there are a number of divisions which would produce more returns for that invested capital, which analysts and board members have been pointing out for years but were blocked by Ballmer.

ValueAct "sourcing investments in companies they believe to be fundamentally undervalued, and then working with management and the company's board to implement strategies that generate superior returns on invested capital." It's all about more bang for your buck, and any business would be foolish if it didn't reassess it's invested capital versus returns from time to time. If it were just ValueAct saying this, you could probably just ignore them, but this has been simmering well before ValueAct made their move.

It has nothing to do with the Xbox brand "dying" or even being in danger. The question is, could Microsoft be spending that money better elsewhere, and many have long thought they could but have been stopped by Ballmer who just presided over the worst quarter the company has seen in recent history. And now he's stepping down.

Edit: On a side note, I'm surprised no one has chimed in yet and said "But..but Sony!" Usually, you can't discuss a company's financials without someone trying to shift the conversation to Sony's ongoing troubles.

TheTwelve3889d ago

@Ripsta7th

--- It was supposedly "gameover" for Sony when Microsoft entered. I recall recommendations that people sell Sony stock when Halo 3 came out...

...and now we find ourselves here, today.

I'm not worried about Sony. They know how to battle.

12

Deadpoolio3889d ago

I'm sorry I stopped reading after Valueact and considerable influence...When you have a 1% stake in a company you have NOTHING...Most companies don't even let 1% shareholders attend the meetings let alone would they ever even consider listening to anything that came out of a 1% stakeholder's mouth

creatchee3889d ago (Edited 3889d ago )

@TheTwelve

"--- It was supposedly "gameover" for Sony when Microsoft entered. I recall recommendations that people sell Sony stock when Halo 3 came out...

...and now we find ourselves here, today."

Halo 3 came out in September 2007. Sony's market cap was $54 billion in December 2007.

Today, Sony's market cap is $20.43 billion.

Selling Sony stock would have been an extremely good move if you did so before Halo 3 came out. Just saying.

TheSauce3888d ago

Samsung would probably love to buy xbox. They've always said that one of their goals is to have a step-up in the western market. Xbox is pretty much North America so buying them would be a huge bone for Samsung.

+ Show (5) more repliesLast reply 3888d ago
kewlkat0073889d ago

" $2 billion in order to take over 1 percent stake"

Dayummm

Mystogan3889d ago

Microsoft selling their Xbox Division will never Happen. Its a multibillion dollar business, These guys are pretty dumb if they really think that.

PlayStation_43889d ago

Samsung may be a nice console hardware manufacturer

Eddie201013888d ago

Selling the Xbox division to another company would be the best thing to happen to the gaming industry. Still would have the competition without the take over the world attitude that Microsoft has.

hqgamez3888d ago

Sorry to break it, but its probably the truth. MS spends most of the money trying to market the game console everywhere and purchase exclusives and dlc because they want to hurt the others reps.
if you think back towards the gta iv dlc for 50 million, that is a bunch of money, deals like COD dlc 30 days is private because that is probably some 100million plus deal, fifa 14 on every X1 EU (EA must been paid!!)
they hope they can build a name by buying off stuff to bring the fans which is the wrong way. even tho they brought some in. it's not working. They believed they own this generation and introduced the Xbox One with policies that users will follow and become a cash king. This is probably where they hoped to dominate and flow cash. Now you see how that went.

+ Show (4) more repliesLast reply 3888d ago
markbob3889d ago

Im sure MS will do exactly what Sony did and tell the "activist investor" to take a hike

lastofgen3889d ago

I agree.
I'm glad sony told the other guy off and I hope ms does the same with these new valueact people.

Prophet-Gamer3888d ago

MS isn't the same company as Sony and the implications of the two are different. MS makes a ton of money off of their Enterprise division with Windows, Xbox represents a tiny part of their revenues. If you look at it that way, selling off Xbox or spinning it off would be good for the company.

On the Sony side, PlayStation is one of the few profitable things inside Sony, they haven't made money in years. Iirc Loeb wanted to do was split the entertainment side from the hardware side which would have made him tons of money but pretty much destroyed Sony. Selling off Xbox wouldn't make so much as a dent in MS, in fact it may help them free up money to invest in their OS side. Splitting Playstation from Sony would have pretty much ended a good portion of Sony.

Thatguy-3103889d ago (Edited 3889d ago )

"We've always had different competitors, we were in the space before Microsoft and we may be in the space after Microsoft,"
Like Sony said that they see competition come and go.
http://www.computerandvideo...

Belking3889d ago (Edited 3889d ago )

I'm sure they said similar things about Samsung and Apple too...lol

n4rc3889d ago

1% doesnt hold much sway.. just because they have backing on one issue doesnt mean xbox is going anywhere

Anon19743889d ago (Edited 3889d ago )

It's more than just ValueAct though. Analysts, other board members and investors alike have long been mulling the value of the division to the overall company. The only reason that talk never went anywhere was because of Ballmer, and now he's stepping out. ValueAct would already be adding their voice to the voices already calling for this. And if the Xbox One doesn't meet expectations, you can be damn sure these voices are going to be heard with no Ballmer to protect the division.

It's already speculated that the reason Ballmer is stepping down was due to ValueAct looking to force him out otherwise. I wouldn't write off the impact they could potentially have on the company, especially when they aren't alone on the board in thinking that something better could be done with the money currently being invested into the Xbox.

Edit below: Are any of you even listening? This has nothing to do with Xbox not being successful. You all forget, they're being measured against the rest of Microsoft's divisions which are making obscene amounts of profit while they aren't. That's what this is all about. Microsoft getting the most bang for their buck.

thetruthx13889d ago

@darkride66 you sound silly Xbox ain't going nowhere except a bigger user base in near future

kewlkat0073889d ago

All the Xbox brand has seen is growth from one gen to the next..No longer in the red year-on-year.

What board member would not be happy..

tokugawa3889d ago (Edited 3889d ago )

edit forget it

gamer20133888d ago

Here's someone that wants to see MS leave the gaming industry.

Prophet-Gamer3888d ago

The amount of people disagreeing with you is insane. seems a lot of people put their fingers in their ears and refuse to listen. Apparently, some of the people on this site know better than top business analysts and billionaire investors.

+ Show (2) more repliesLast reply 3888d ago
jukins3889d ago

whenever some investor with a lot of shares wants to sell off a division its always for the quick payout instead of trying to have money constantly trickling in over a long period. its sad thats how things work.

Show all comments (96)
280°

Xbox's Preservation Step Sets A Much-Needed Example, Especially For Nintendo

Hanzla from eXputer inquires: "If Xbox can care about preserving its games and legacy, what exactly is wrong with Nintendo, trying to kill game preservation single-handedly?"

purple1013d ago

Ahh yes the good old game preservation of saving all your games to a removable hhd on the Xbox 360, taking it round your mates house, setting up multiple tvs to
Be met with “save data corrupted, please re download”

Or how about removing 360 games
From the store
, download them now or else, and, better hope to god that save data doesn’t corrupt, or it’s lost for ever

Nice one ☝️

Zeref2d ago

It's better than what Nintendo and Playstation is doing. It might not be perfect but at least they are TRYING. Unlike the others.

DarXyde2d ago

Trying? Take off the blinders for a moment, mate.

1. A failure to preserve games is just that: a failure to preserve games. Don't try to sugarcoat it: NO ONE is doing it properly. Better than awful is nothing to write home about.

2. At the time of this comment, isn't it the case that you need an internet connection to play Xbox games even if you buy physical discs that are hardly in circulation anymore? I don't have a Series X and I can't verify, but I think that is correct. I'm fairly certain you can at least play PS5 games at version 1.0 (not much of a win really when many games require day one patches). I think Microsoft's all digital, licensing approach is by far more aggressive than anyone else's. They really try to push you to game pass where you lose your entire library by umm.... Skipping a month of payments.

I don't think anyone is doing it right whatsoever. Don't get me started on Nintendo, who goes after anyone looking to preserve their games better than they ever would with extreme litigation.

Don't be a simp for any of these companies. Get it together.

PhillyDonJawn2d ago (Edited 2d ago )

@DarX never speak on Xbox again. You lost all credibility with your internet connection comment. Smh you have 0 clue and misinformed yet speaking on something you don't no squat about.

Einhander19722d ago

What has Sony done exactly? You guys keep deflecting to Sony but I am not actually seeing any results, and ai am certain nothing that you can come up with even comes close to what Microsoft has done and what they have tried and failed to do, like tie all your disks to your account on xbone.

Microsoft removed their whole indie section when they moved to the xbone because they were going to only allow games on the service that came from a publisher, id@xbox started after xbone launched and it only exists because Sony embraced indie and Microsoft was forced to cancel their plans and reverse course.

And every single game that was part of games for windows live including disk games (I have gta 4 on disk that won't work) so hundreds of games that use that DRM no longer work unless the company themselves patched it out which of course very few did.

MrBaskerville2d ago

Not trying. Tried. they killed of the backcomp program years ago. They set something up again, but sounds like it's more of an attempt to save the current library on whatever they are planning next. With luck they save everything and more, but let's see. I could see them killing off parts of the OG xbox and 360 libraries. Can't imagine that they would allow us to play Forza 5-7 in the future.

With that said, I do like what they've done and really wish they could have done more.

shinoff21831d 23h ago

Zeref

So killing off physical media is trying what exactly. Ms don't really give a fk if you think they do your kidding yourself.

Profchaos1d 22h ago

They are not trying this team is established for forward compatability the team is. It interested in preserving Xbox or 360 games.

+ Show (3) more repliesLast reply 1d 22h ago
isarai3d ago

Is that why Hellblade 2 is digital only?

Zeref2d ago

Just because it's digital only doesn't mean you can't preserve it. Just put it on an external and you have the exact same functionality of what a disc does.

MrNinosan2d ago

Guess you're trolling, but if you actually think that's how it works, I'd recommend buying some braincells.

mkis0071d 14h ago (Edited 1d 14h ago )

Volitile vs nonvolitile data. A disc will not corrupt either. A drive can be corrupted.

Einhander19722d ago

This is just a scammy PR move to distract from the fact they are going digital only and trying to push streaming and subscriptions only.

No gaming company has pushed harder to remove ownership than Microsoft.

Without discs there is no preservation, preservation can't be done by the rights holders it can only be done by the consumers, anything else is a lie.

2d ago Replies(3)
Einhander19722d ago

Anyone remember xblig which Microsoft removed their whole 360 indie section removing hundreds of games from people?

2d ago
2d ago
Zeref2d ago

Do you know you can put your games on an external and preserve them that way? There are no benefits to discs. ZERO. Idk why some of you are still obsessed with them.

DarXyde2d ago

Because games like Persona 5 exist. It's STILL V1.00. On Playstation, that's a win because 1.00 is installed on the disc—no need to download anything.

If a game does not require any updates, it's all on the disc.

Extremely low bar in the modern era, of course. It's not much of a win by any stretch.

But for now, physical media does have a purpose, at least on Playstation.

Einhander19722d ago

That is factually not how game licensing works, try plugging your hard drive into someone else xbox, It's not going to work, and it won't work if the licensing servers ever go down.

Einhander19722d ago

Anyone remember games for windows live.

I have around a dozen games, some on Steam itself that will not work because Microsoft shut off the licensing servers.

BehindTheRows2d ago (Edited 2d ago )

I do. I STILL have games (Gears of War being the big one) I cannot access because Games for Windows LIVE is total garbage and no one has held Microsoft accountable.

Zeref2d ago (Edited 2d ago )

You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership.

Chevalier2d ago

"You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership."

Damn how many times do people got to explain your idiocy to you? You can take a copy of Persona 5 like someone used as an example and play that game on ANY console WITHOUT logging in which means I can lend the game to a friend without internet and they can play my game. Can you lend your hard drive to anyone without logging in for them to play? NOPE. That is a huge difference and if you think otherwise then sorry you're an idiot.

Tacoboto2d ago

"No gaming company has pushed harder to remove ownership than Microsoft."

Ubisoft is literally erasing games people bought from their libraries... My PS1-3 discs are useless on modern hardware. Nintendo's re-published and resold almost their entire Wii U library, and the eShop is completely dead with no BC mechanism in the Switch software. Microsoft publishes everything they make today day one on Steam and Xbox/Windows. Sony only brings to PC the titles they think you might want some years later and Nintendo won't even design a functional long-lasting joystick.

You're absolutely trolling and not serious if you think Microsoft today is the worst offender.

shinoff21831d 23h ago

Yay steam

Not everyone fks with computers though. The disc is still the best way as a console player. Period.

Tacoboto1d 21h ago

How do Sony and Nintendo feel about these discs from 2001-2013?

Don't be stupid, you know Xbox is the best at this today.

+ Show (3) more repliesLast reply 1d 21h ago
Hofstaderman2d ago

Nobody wants this. Sales or the lack of it in the case of XBOX is very telling. I wonder how the adorably all digital series X will fare. Adorably dismal perhaps?

crazyCoconuts2d ago

Only time will tell, but for from someone like me suspecting that Xbox is trying to gracefully exit the console market, that "forward compatibility" team is trying to get Xbox games playing on Windows PCs. I mean, it's nice that they're not planning on exiting with a "enjoy your games while the hardware still works" message, so that's nice. They still have a brand to protect via Microsoft so probably feel obligated to have a better exit strategy.

Xeofate2d ago (Edited 2d ago )

That is not their plan, their plan is to transfer users accounts to the cloud.

Phil Spencer himself said as much a few months back, plans could have changed but I think people are reading way too much into one statement where Phil said he would allow Epic on xbox because he wants to be able to sell xbox games directly on other platforms. Aka, instead of selling Sea of Thives through PSN he wants to have an xbox store to sell his games on PlayStation without giving PlayStation any money.

Again, it's extremely unlikely that Phil plans to put PC on xbox and licensing would prevent them from just giving out other publishers games purchased on xbox copies of thier games on PC, Microsoft does not own their games.

crazyCoconuts1d 9h ago

The thing that doesn't align with the cloud strategy is the giving up on exclusives. You'd still need strong exclusives for cloud streaming - it's still a "platform" , just with a lower upfront hardware investment. I feel like they've learned what PS learned with PSNow long ago. We're not ready to stream games and it's only gonna lose them money to try at this point

FinalFantasyFanatic1d 17h ago

I would love that, I'd buy up some of the Xbox games if they could run on PC, like the Rare Replay, Lost Odyssey and Dead or Alive Ultimate, probably a pipe dream though.

Show all comments (43)
370°

Could Xbox Soon Become The Next Dreamcast?

Microsoft's future in the video game space is murky right now, so let's break it all down.

Read Full Story >>
thegamer.com
ApocalypseShadow15d ago (Edited 15d ago )

Not anytime soon. But they're on that path.

One thing not mentioned in the article is Microsoft's money bags. If Sega had Microsoft's money, they would have still been around as a hardware manufacturer. Xbox as a platform only survives because of the money bags. They can continue making consoles for the core and port to PC.

The multiplatform strategy is only the result of arrogance and misguided leadership that blew up in their face. They thought gamers would jump on Xbox in droves if they knew that many of their favorite games would be only on Xbox. But that's not happening at all. Sales didn't increase. They decreased. Why? Because the dumb asses thought giving away these expensively made games in a cheap service would also turn the tide.

Gamers on other platforms are willing to buy quality. They don't need to be handed nearly free games in a service that aren't even finished and sometimes average in their development. Gamers buy Nintendo games. They buy Sony games. Microsoft groomed their base to not buy games. Even the quality ones. It has always been their plan to go digital. But most gamers still like single player gaming. Still like physical releases.

Microsoft's problem has always been that they don't produce high quality games at the same output as Nintendo and Sony. Actually, they should be producing quite a lot more because they're worth over 2 TRILLION. How they don't have more is ridiculous and no excuse. Buying publishers to take away from competition only backfired. Because it still takes millions of dollars to continue to make those games from the publishers they snatched. Their only choice was to crawl back to their competitors to help sustain those developers because Nintendo and Sony platforms were the ones buying games.

Am I sorry for Microsoft? Hell no! They deserved last place for putting in the least effort. They deserved the fallout for buying up the industry and didn't make a single blip on the radar against their competitors where they now need those same gamers they took away games from to support them. Part of it may have been to cash in on their competition. But the result is the slow death of their platform. They may go 3rd party. They may keep making hardware. I don't give a shit about them to worry about it. I only give a shit about the destructive nature of their industry moves that only negatively affect gamers. They could sell and drop out of the industry and I wouldn't blink. Probably laugh. But not blink. They deserve whatever comes to them. At least Sega put in the effort when it came to games. They just had poor leadership. Microsoft has poor leadership and barely makes memorable games. That's a killer combination. And not in a good way.

Cacabunga14d ago

That would be an insult to Dreamcast.. it had a crazy line up of legendary critically acclaimed games.

Crows9014d ago

I was thinking the same. Dreamcast had incredible games in such a short amount of time. It was truly exceptional.

darthv7214d ago

...and yet all those great games were not enough to sway people from the looming release of the PS2 at the time. Sony just has that kind of brand loyalty.

Cacabunga14d ago

Darth

I do not agree.. Sony had even better games thanks to an unprecedented 3rd party support..
DC had amazing lineup but 90% were arcade games..

88314d ago

@darth:
And Sony showed off "The Emotion Engine" and their real time demos that made everyone think they would miss out on REAL next gen 128bit magic if they jumped in before PS2s polygon pushing monster (and early lack of anti-aliasing with a healthy heap of shimmer + DVD playback) stepped up. PS2 was a fantastic system though with amazing games.

+ Show (1) more replyLast reply 14d ago
blacktiger14d ago

That's not true. Just because Microsoft has the money doesn't mean Microsoft can allow xbox to bleed entire Microsoft money. It doesn't work like they. Also SEC will be watching and investor won't allow it. Lot of reasons why Microsoft can not continue even if they wanted to. SEC regulations is expensive.

fr0sty14d ago (Edited 14d ago )

Exactly this... Microsoft is a publicly traded company, mostly owned by their shareholders (Approximately 59.24% of the company's stock is owned by Institutional Investors, 7.73% is owned by Insiders and 33.03% is owned by Public Companies and Individual Investors.). Their shareholders call the shots on the business decisions, and their shareholders want one thing and one thing only, for their stock price to go up. Losses do not make stock prices go up... so if the division continually posts losses on hardware, but shows profits on software and services (which has been the case with Xbox its entire lifespan, for over 20 years now), the shareholders are going to grow impatient and demand they stop making hardware and focus on the only thing that has ever made them money, software and services.

When Microsoft bought Blizzard and Activision for almost 100 billion, I knew that was the nail in the coffin for Xbox as a console... as the shareholders were going to expect a quick return on that investment, and when it didn't materialize, they were going to be out for blood... out to force Xbox to sell those games on as many consoles as possible, "and while you're at it, sell those first party exclusives that aren't selling well on other consoles as well... hell, just stop making consoles and sell games."

If there is another Xbox console generation, it will definitely be the last, but I doubt there even will be one at this point. I think the Xbox division planning on it just in case, but I don't think the project has been greenlit from Microsoft itself. The rumors that they have not yet even secured the chips needed from the chip fabrication facilities ties into this.

shinoff218314d ago

While I usually agree with you . Alot of what was said can just also be asked before any of that.

How long will the shareholders wait? It doesn't appear long at all

Babadook713d ago

I think I get your point. Like just because MS has money does not mean they are content to throw it away on a dying ecosystem. Xbox has to be profitable or “what’s the point?”

ifinitygamer14d ago

Money bags, yes, but are we ignoring that Xbox actually makes a profit on games and GamePass? Hardware is often a loss leader, and they're probably making profit 4 years into the life cycle, but games and services revenue have been very profitable while other parts of Microsoft's business is struggling. Say what you will about the quality of those games, of course, but this is kind of a reverse Dreamcast situation, where the console was dragging down the company and put it at risk of shuttering entirely. Killing that console saved the business and allowed it to continue to make games on multiple platforms. In this case, the service is very profitable, as are the games, and they're also double-dipping into Multiplatform to extend this further, while their hardware is just sort of what they believe to be the best for gamers and their own titles (whether that is the case or not...)

fr0sty14d ago (Edited 14d ago )

The issue is, they aren't selling enough hardware to make their exclusives profitable, and now that they've bought half the gaming publisher/dev industry, they have no choice but to go third party to make a profit... and that is making their shareholders take a real close look at their hardware division under the microscope... why keep making the hardware if the software is all that is making them money, and they continually, generation after generation come in dead last with hardware sales?

Look at a game like Spiderman 2... if it had been an Xbox exclusive, with the amount it cost to develop, it would have been a huge failure... simply not enough consoles out there to sell it on. They would have been lucky to break even.

ifinitygamer14d ago

@fr0sty agreed completely, which is why they're hedging by releasing other games to multiplatform, plus they have PC to make up for the difference in a lot of ways, which is why their games are not complete money pits. It brings up the question of whether or not those exclusives would drive sales of consoles, though. Let's say Spiderman 2 was an Xbox exclusive, it would certainly have pushed console sales, though who's to say how much is anyone's guess.

fr0sty13d ago

That's why you can't rely on just one exclusive, Sony has always delivered on a wide range of solid exclusives, even this generation (even if they haven't been strong on the first party exclusives, they've made up for it with third party). They don't rely on just one "system seller", they have a portfolio of them.

14d ago
JBlaze22613d ago

ApocalypseShadow To be honest Sony has more of a chance to go 3rd party because like you said Microsoft has money, Sony does not. Sony does not have games, Only games they have come from 3rd party. Sony has been losing money for years and you. Saying Microsoft has been putting the least effort just proves you have no idea what's been going on. All Sony has done is repeat and recycle, never innovating or doing something new. All Sony has is brand loyalty nothing else and it shows.

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LG_Fox_Brazil15d ago

Not sure about that. It's been two decades and I still think about Power Stone, Shenmue, Crazy Taxi, Jet Set Radio, Seaman and others, but I'm not sure I'll remember Xbox Series X/S games in a few years from now... Maybe I'll remember about the franchises that the Xbox brand spawned, but I don't believe that the Xbox Series lives up to the late Dreamcast or even to the Xbox name itself. I do have great memories about the 360 with Blue Dragon, Gears 2 and Lost Odyssey though

isarai15d ago

Nah, sega actually makes good games

Becuzisaid14d ago

No, Dreamcast was ahead of it's time and most still have very fond memories of it that had one. It also had some good games on it even in it's short lifespan. Xbox has none of these qualities.

Profchaos14d ago

I remember it coming out at the time in a really bad place they hit the market before the PS2 but it was during this transitional time when Sony was promoting the power of the PS2 and so many of the Dreamcast games were awesome but often third parties simply ported the PS1 version increased resolution and performance but rarely fully utilise the capabilities of the console.

I think in the end bad marketing done it in and like the GameCube so many people are fond of it now but at the time it was looked at in the lense of the day and it didn't stack up.

Personally I miss Sega in hardware they took risks that many companies won't

Becuzisaid14d ago

I never owned it, and got the PS2 right when it launched. But there were certain games it had that I was always jealous of that I didn't have access to - Sonic adventure, crazy taxi, power Stone, code Veronica, shenmue, skies of Arcadia. I always thought it was a really cool machine though. I've never heard a bad thing about it though from those that had it.

FinalFantasyFanatic14d ago

I only ever saw one Dreamcast, and that was one my friend owned, pity I never got to play it, I wonder what games he had for it?

It would be nice if some of those games got ported to modern systems.

Profchaos14d ago

Oh man sonic adventure on the Dreamcast made me so jealous as a huge sonic fan on the mega drive who also moved to PlayStation 2 I never got the chance to play it back in the day either. The Dreamcast in Australia where I am was always relegated to the smallest corner of EB Games it was kind of a strong first indicator that things were not going well at the time.

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Microsoft Rewards app on Xbox and weekly streaks to be killed off soon

Microsoft has announced the Microsoft Rewards app on Xbox will be discontinued in April and has confirmed that weekly streaks will also be coming to an end.

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