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Xbox Spinoff Seen More Likely With Ballmer Exit

After 13 years of declining value, some Microsoft Corp.investors want Steve Ballmer’s replacement to take bolder steps to reverse the slide at the world’s largest software maker. That could mean spinning off the Xbox video-game business.

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bloomberg.com
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Abash1486d ago

It would be my dream come true if SEGA took over the Xbox brand and re-entered the console business with it

Baka-akaB1486d ago (Edited 1486d ago )

I dunno why you would dream of that . Sega is quite bad at manageing its consoles .. and can't even currently manage its own ips bare Yakuza and Miku .

I picture them at having even more baffling decisions and issues ... even more so when the competent folks of yore arent even anymore at sega for the most part

user74029311486d ago

sega would be better, I agree.

blackbeld1486d ago

Oh yeah. Sega should re-enter the gaming business.

Back in those days we never heard of fanboys. Since Microsoft introduce that flamewar I suggest they better put on the white flag and exit.

Gamers will be united again like before.

Darrius Cole1486d ago

Errrr....Sega was in the business before Sony and got put out of the console business. If Sega was any better they would have shown it then.

SHORYUKEN1486d ago

Agreed.

Xbox better go exit. Sega should call the new console SEGA RETURNS.

silverbeld1486d ago

Ha, I saw this coming a long time. Xbox better proof themselves with ONE otherwise its exit.

Baka-akaB1486d ago (Edited 1486d ago )

"Back in those days we never heard of fanboys. Since Microsoft introduce that flamewar I suggest they better put on the white flag and exit."

What , put out those nostalgia googles? Sega was even agressive for its era in ads .

The only ingredient missing was the internet to spread the flames of the Nintendo Sega fanboy wars ... then Sony VS Sega .

To this day some even blames the ps2 for the Sega's own mismanagement of the initially successful Dreamcast

JokesOnYou1486d ago

"We have never retreated from any type of internal development at all, we continue to invest worldwide. Microsoft Studios as an organisation is growing globally. Sure, one of the reasons I was hired is to help grow our European business, that’s why I’m here. And I think we demonstrated some really positive strides with that. So I think we’ve got some amazing talent in our organisation that’s gonna be a great thing for our platform."

-Doesn't sound like there are any plans to "spinoff" to me, they are growing.

+ Show (5) more repliesLast reply 1486d ago
Dlacy13g1486d ago

And what if it is spun off....

I think in many ways that could benefit Xbox as they could completely focus on the Xbox Game platform and not worry about other agendas in the company that need the xbox to comply. Perhaps Sony and Nintendo should be doing what they can to keep Xbox part of MS>

torchic1486d ago

why should Sony & Nintendo worry about anything?

your comment was going really well until that awful spin at the end.

Mike134nl1486d ago (Edited 1486d ago )

True would be a big plus. though to be clear I don't think it would end up being sold to another company, but simply the formation of a separate entity/daughter company by the issuing out of new shares.

Simply because it is not really part of their core business and most important because of the low operating margin of the xbox division removing them would mean a higher overall profit margin for Microsoft core businesses.

I really hope this happens as this would xbox at least in theory as they can focus more on gamer demands.

*only see google or apple interested and having enough assets to even think about acquiring xbox devision.

PlayStation_41486d ago

I hope that a company like Samsung purchase M$'s Xbox division, or another Asian company that manufactures quality hardware

hakeem09961485d ago

I know most of you hate MS but for the love of God please use your brains .Out of all MS projects (cellphone,tablet,xbox),The Xbox Division is the only profitable department right now .The 360 was in the green during it's life circle even in the RROD days . why in the world would MS sell the one great success stories they had since WINDOWS ?

PlayStation_41485d ago

M$ have lost around 4 billion dollars on xbox.

and M$ is a lot more than just phones, tablets and xbox you know.

they made a $25b profit for 2012 iirc

dlocsta1486d ago

It is about as likely as the plague making a return. There is no financial incentive to divest, it would remove the uniform ecosystem MS is trying to achieve, and it removes a viable profit center from the company list of assets. Not to mention that a person with a ONE PERCENT interest in the company can speak up all they like but they do not have as much pool as you may believe. Ballmer alone has more stock than that, and that one percent is a company not an individual.

+ Show (2) more repliesLast reply 1485d ago
SliceOfTruth8881486d ago

Anyone who thinks this will happen must bleed Sony

staticdash221486d ago

Are all of you xbox fans this ignorant?

jimbobwahey1486d ago

Yeah, really. This would benefit Xbox gamers and the Xbox division as well, SliceOfTruth888 really is one horribly insecure Xbox fanboy if he sees this and starts crying about Sony.

IcicleTrepan1486d ago

heh.. yeah it would really benefit the xbox to be cut off from Microsoft R&D.. dolts.

LoveOfTheGame1486d ago

It may help by focusing on games more entirely, but wouldn't a separation from MS take away Xbox's best features, i.e. Xbox Live and Azure's servers?

AceBlazer131486d ago

Guess some of the share holders must bleed sony.

Joe9131486d ago (Edited 1486d ago )

You must bleed Microsoft I knew this was going to be news once they said he was leaving. Shareholders and other MS execs been begging him to get rid of the xbox division and bing since bing do not make money and like the article says xbox makes money but on their low end. So how is it so hard to believe I'm not dogging on MS but if Ballmer was not CEO MS would have gotten rid of xbox after the original. I'm calling it now I think Google will buy the xbox brand that would be weird lol.

IcicleTrepan1486d ago (Edited 1486d ago )

As far as I recall, there was ONE shareholder with a total of 1% of the vote wanting this. Do you have links to stories of more?

By the way, Bill Gates owns about 40% (worth 14 billion) and is the majority stockholder. He can veto anything so stop. Ballmer has more than 1%. I don't know the exact percentage but he owns 333.3 MILLION shares worth 10 billion. I would peg him at 35% of the shares in the company.

So basically, nothing gets done unless these guys agree to it even if they don't work there.

Baka-akaB1486d ago (Edited 1486d ago )

Er no , Bill Gates has been selling part of his share regularly .

When Bill Gates left his day-to-day role at Microsoft, he owned just over a billion shares of the company, about 9.6% of shares.

Last i heard he was at 6.4% .

The other biggest shareholders are in the 5% ballpark

hakeem09961485d ago

I sgree that xbox makes money but on their low end what about the playstation who was in the red 80% of it's life circle .Don't you think Sony has a better reason to sell the playstation division compare to MS ?
The XBOX was profitable and the PS3 and the vita wasn't who needs the money more ?

Darrius Cole1486d ago

Actually, it's more like they must not understand gaming or the gaming market.

The Xbox has had a major mess-up every time. The first Xbox was a plain failure. The 360 got bailed out by the combination of Microsoft's deep pockets and of Sony pricing the PS3 a full $200 higher than the Xbox was at that time. The Xbox One jr. is facing a myriad of problems and looks to be on the route to follow the Xbox 1 sr.

If the Xbox division were to be spun-off (especially if they do it without Xbox Live which is a different division now) it would either magically become a more competent company or it would promptly go out of business. As the article points out, gaming is a tough business the road is littered with carcasses.

I personally think Microsoft needs the Xbox if they are ever going to compete with Android & iOS tablets.

+ Show (1) more replyLast reply 1485d ago
scott1821486d ago

As much as i love the playstation. Microsoft would be crazy to leave the game business, it will only get better for them I think.

staticdash221486d ago

They're not leaving man lol. Spinning off the brand is an idea from the investors, because they believe the xbox division might be strong enough to stand on its own. There are complications to that but it aligns with their goal of transforming the company into a services hub.

Darrius Cole1486d ago

More like they are tired of make these huge investments to keep the company operational.

However, I think the Xbox is the only place where Microsoft has a foothold in a growing market. Assuming, of course, that they don't squander the foothold with ridiculous Xbox One policies.

FLYINGDOG1486d ago

To much hate at Xbox.. Most close doors.. Or made it manufacture by others company's ala CDI from de past

n4rc1486d ago

Didn't they have like 12 billion in revenue last quarter?

Hell... I'd love to have a slide like that.. Lol

dcj05241486d ago

The losses were greater thsn the revenue.

n4rc1486d ago

Not even remotely close.. They turned a massive profit last year.. Financial statements are public record ad they are publicially traded

Swiggins1486d ago

If they Spin the Xbox...would it fly?

I mean an X is just like a helicopter rotor....

Nevermind, this joke went nowhere

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