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Microsoft's New CEO Will Immediately Have A Huge Decision To Make Post-Ballmer

SEATTLE (Reuters) - The next CEO of Microsoft Corp has one big decision to make: press on with retiring chief executive Steve Ballmer's ambitious plan to transform the software giant into a broad-based devices and services company, or jettison that idea and rally resources around its proven strength in business software.

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modesign1449d ago ShowReplies(5)
GarrusVakarian1449d ago (Edited 1449d ago )

I hope they employ someone who is a little more in touch with gamers. Without sounding bias, one thing ive always like about Sony is their relationship with gamers (Kav, Tretton,Cerny). MS have always seemed a little disconnected and quick to forget about the core gamers. Just my opinion, of course.

I think with MS they come across as pure business, but with Sony its still business of course but you can imagine them playing videogames too, they just seem more passionate about games and more appreciative of gamers.

awi59511449d ago (Edited 1449d ago )

Double post sorry.

gdguide1449d ago

Not saying it's going to happen, but it does make you wonder who would buy the Xbox brand. Some companies would be tripping over eachother to buy the Xbox brand. Someone like Samsung would probably be all over this. Apple could also enter the picture.

Again though, I doubt they would sell Xbox. It's one of the things that is doing well. Although they sure did stumble with the X1 announcements.

Manic20141449d ago

In my opinion i think Samsung can do wonders with the Xbox division though i doubt MS will drop the Xbox division as they own many studios specialising in the xbox.

Anon19741449d ago (Edited 1449d ago )

Here's the problem though. The Xbox may be making money, but when you compare it to the return of capital Microsoft sees from other divisions, it's really paltry by comparison.

Imagine it like this. You have two divisions and 1 million dollars going into each division every year. One of those divisions is giving you 8% return on that money every year, the other a 40% return. Of course it's great that you're making money with both divisions, but what company wouldn't consider shifting that revenue stream to the division showing them the greater return?

That's the situation that Microsoft is facing. I've been pointing out for years this very point. Xbox sales have never been consistent. The Xbox's appeal still seemed primarily US based and never really expanded. Too much was invested to even get to this point. The returns they were seeing weren't on par with returns from other divisions. As a gamer, I saw the value in what the Xbox brand brought to the industry. As a financial advisor working in the brokerage industry for a decade, I saw a division that struggled to keep up with the rest of the company. I saw money that could be better invested elsewhere.

Analysts and other board members have been pointing this out for years as well but Ballmer was the 360's biggest proponent. Now he's leaving and we're already seeing the voices calling for the Xbox to be turfed growing louder and louder. I think it's all but assured at this point, especially considering the Xbox One doesn't appear to be poised to light the world on fire. The only question in my mind is will it be spun off into it's own company or simply sold?

Remember, this is just business. It has nothing to do with those ridiculous console wars. The Xbox division simply does not bring in the return on investment the other Microsoft divisions see, and the simple reality is it would be better for the company and for shareholders to see that capital invested internally where it can bring the best returns. It's not just the CEO, but the entire board that has to weigh on on what's best here.

Joe9131449d ago

I think Google, Samsung or even Amazon would buy it I doubt Apple would buy it but who knows.

awi59511449d ago

@Joe913

You did pull those numbers out of your but MIcrosoft announced in their conference call reporting they were making a profit of 50 dollars a console 5 to 6 years ago. So you just blatantly lied in the comment that got closed for trolling.
#2.1

That_Ninja_Gray_Fox1449d ago ShowReplies(1)
DragonKnight1449d ago

How many people are going to say "scrap/sell off Xbox?"

2 so far.

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