Microsoft to take its time and promote from within to replace Mattrick, says analyst

EDGE: "Don Mattrick’s replacement at Microsoft will likely be promoted from within, and could take some time to appoint, an analyst has told us."

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Anon19741964d ago (Edited 1964d ago )

We'll have to wait until after the announcements with the massive reorg Microsoft is planning. We should have details in the next couple of weeks. I imagine there will be some shakeups within the Entertainment Division, if it isn't entirely scrapped altogether and merged with another division or reorganized and renamed. Analysts and shareholders alike have never been happy with the return on investment coming from the division. Analysts from Caris and Co. once compared the Entertainment division to a vampire, sucking the blood out of the rest of the company for terrible returns on investment. They said it needed to be "staked." I kid you not. Even with the EDD division profitable, compared to what Microsoft pumps into that division it simply hasn't historically produced the level of return that Microsoft shareholders expect. Of course, they aren't pumping billions into the Xbox One to just turn their back now, but I'm a bit nervous for what this upcoming reorg will do to the game division in the long run.

My money's on Julie Larson-Green taking over devices, including Xbox One.

nukeitall1964d ago (Edited 1964d ago )

If analyst aren't happy with MS E&D, makes you wonder what they think of the competitors!?

Nintendo's business implodes, PS3 is a massive money loosing black hole that dwarfs the profit of two generations of Playstation domination (PS1 & PS2).

To MS, the living room is the future as the desktop computer is destined to be replaced in the home so they will continue to heavily invest.

Which makes me wonder, since neither Nintendo or Sony is pushing to own the living room, they too will be extinct as the Apples and connected Android devices move in on their turf.

I already see games like Star Wars: the old republic on iPad and it is receiving rave reviews. It is just a matter of time, and as time goes on, the i-devices and android devices gain ground.

Either the consoles take over now, or it is gone in the next 5-years.

Anon19741964d ago

With Nintendo, it's a bit different as games are their business. But you're correct that there have certainly been some disparaging things said by analysts regarding Sony's game business as well. When a company is the size of Microsoft or Sony, it's easy for financial analysts to look at an underperforming business segment and say, "Cut it loose and reinvest elsewhere."

With Sony though it hasn't been as big of a focus for the analysts though as they struggle to turn around their key, television business. With Microsoft, software is their main focus and it's raking in billions and right from the start shareholders and analysts have been asking themselves "What the hell is a software company doing making hardware?"

Sony's main job is making electronics and not all succeed, so I think there's more of a tolerance there from analysts when a piece of equipment underperforms. Plus, look a the main reason behind the losses Sony's game division suffered. After the 2008 crash there was at times a 25% difference in the yen compared to western currencies than prior to 2008 and this has only now begun to stabilize. Analysts have noted this cause as being one of the primary reasons for Sony's predicament for years. When you sell to the west and suddenly that revenue stream is cut by 25%, that's a huge blow.

Microsoft's struggles with the EDD division was more of their own making (think rrod) and not due to currency fluctuations out of their control. I think this is one of the reasons Sony's gaming division has largely received a pass from financial analysts.

Nintendo I don't see attempting to own the living room, but Sony very much has taken over the living room, as evidenced by it's Blu-Ray functionality, the media playback abilities, the fact the PS3 is the most widely used device for streaming Netflix in NA, etc. Saying Sony isn't pushing into the living room is misleading. Sony's already pushed into living rooms and they aren't going anywhere. Sony's decision to augment tv's instead of trying to take them over completely has resonated with consumers and I think will continue to resonate. No one is looking for a new $500 device to fight with their cable boxes and add more layers of complexity to their TV viewing.

As for the rise of tablets as gaming devices, this is a different market entirely. People aren't ditching their consoles because they have an iPad, nor will they no matter what the games on the mobile devices look like. They're still mobile devices, and that's a different market, different experience from home consoles entirely. The DS was hugely popular and didn't kill off the Wii. The 3DS and Vita now offer outstanding quality titles that sometimes rival games seen on the consoles, but there's no danger of them replacing home consoles. They're completely different markets.

The Meerkat1964d ago

Nobody on their way up would want this job.

To be known as the guy who got his ass handed to him by Sony wouldn't look good on a future CV.

The best way out of this mess would be to admit defeat now, cancel the X1 and relaunch it next year with over twice the power and no Kinect.

ThatCanadianGuy5141964d ago

The kinect is whats going to kill them.It's the sole thing driving the price up, but it's the only thing that differentiates itself from the PS4.

The whole voice command OS thing is their shtick.Take that a way and it's just a weaker PS4.

Weird situation they're in.Total catch 22.

1964d ago
mandf1964d ago

Only a gamer should have this job. This is a type of job that needs a passionate gamer not a corporate yes man. I may be wrong but I don't believe they have any one at their company right now with a desire to drive the industry.

sarcastoid1964d ago

I think Steve Ballmer and Mattrick himself downvoted you. Cause you're exactly right.

Darrius Cole1964d ago

I wouldn't say that he has to be N4G hard-core, but it should be some one that is intimate with the gaming market.

The crap that Don Matrick tried to pull never even sounded like something that could work.

Whoever came up with the original Xbone strategy clearly did not understand his customer at all.

Pinkdolphin1964d ago

You dont know how a business works do you?

Septic1964d ago

Ah dammit man...why within?

Bring back J Allard. (Actually he is kind of within because he is on extended leave iirc).

majiebeast1964d ago (Edited 1964d ago )

So its between

-Botox monster
-Agent Phil
-Yusuf "TV" Medhi
-Marc Whitten
-Phil Spencer

My bet is on Medhi.

Allard isnt gonna come back he got the same boot as Kutaragi got at Sony. Peter Moore is far too comfortable at EA.

Baka-akaB1964d ago

I'm betting on Spencer . he said a lot of crap , yet somehow seems to irks people far less than the rest

Dlacy13g1964d ago (Edited 1964d ago )

I am guessing they will bring out the new head of Xbox at Gamescom. Rumors recently had Julie Larson-Green taking over.

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