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Microsoft May Lose Xbox On Ballmer Exit

Xbox may fail on its own. If the Xbox division were to be spun off, it might be good for Microsoft, but the resulting company would face some big problems. There is only one big independent gaming hardware company: Nintendo. Nintendo is not a particularly strong performer, and manages to keep its business by operating differently to the Microsoft Corporation's Xbox.

Nintendo rarely releases expensive games consoles with the latest and greatest hardware, nor do they wrangle with publishers on exclusivity for major titles. The big expenses involved in running a game hardware company, particularly as a new console is being launched, means that cash reserves are needed.

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malokevi1452d ago

The articles have nothing to do with MS losing Xbox... this is ridiculous spin.

They are possibly considering separating the Xbox division from the rest of the company, because it can stand on its own right.

Personally, I'm glad for the integration, and I think it means a lot for pushing the W8 platform in all avenues. These articles are just that... articles. Nothing will come of it. Not in the foreseeable future.

No_Limit1452d ago

Agreed. There is a pattern to from whom and how these articles are submitted. Hmmm.

Anon19741452d ago (Edited 1452d ago )

You're correct. As a former investment advisor and FMA, after my decade in the industry, I have a tendency to still look at the industry from an investor standpoint as well as a gamer and developer and my articles are often from investor sites as well as gamer sites.

I'm much more likely to submit articles that examine the gaming industry from that perspective, and currently the investment world is none to pleased with the potential for Microsoft from the Xbox division. As Microsoft is in the business of making money and keeping their shareholders happy, the investment world is poised to have a big impact on the future of the Xbox brand, which has the potential to impact the entire gaming industry.

This article brings up an excellent point that if the Xbox division is spun off, which is looking likely, the resulting company won't have Microsoft's cash reserves to fund their operations, marketing and R&D. That could have huge ramifications for the evolution of the Xbox brand.

If you'd care to comment on the article and the issues it raises, I'd love to hear your thoughts.

XboxFun1452d ago

@Darkride

Where you this interested in submitting these types of articles when an investor wanted Sony to split and sell it's divisions off?

In fact:
http://n4g.com/user/news/da...

Looking through your submissions all you seem to do is post bad news or negativity about MS.
I'm starting to suspect a serious pattern with you.

kingdip901452d ago

@darkride

I agree with you in that spinning xbox off sounds logical and likely and also that it means that they will be cut off from freely using Microsoft's vast resources. That being said the share holders of xbox will be the same share holders as microsoft and unless they sell out may vote xbox extra funds from microsoft to protect their financial investment potential so access to funds may still exist just not as easily.

That is a lot of what if's though the stock holders could just as easily sell and a new board would have microsoft moving in a whole new direction. If xbox becomes a company that is focused entirely on games and not how much money they make on software usage (microsoft would profit there not xbox) then they may become (in my mind at least) a respectable gamimg company and may even gain my custom with freedom from the corperate beast that is microsoft.

Them being spun off is going to be very interesting indeed, assuming it happens

malokevi1452d ago

"spin off" and "sell off"... two different things.

You say you're looking at it from the perspective of an "investor". Well, how about investing some thought into what the article is actually saying.

JsonHenry1452d ago

Darkride66 is obviously not a Microsoft fan. His submissions are certainly proof of that. But that also doesn't make any of the points he has brought up any less valid.

If the xbox division is cut off from the rest of MS then it will mean radical differences in the way the future of the xbox shapes up. Will this be a good or bad thing? Who knows. But it will certainly change the way they have been doing thins up to this point.

Anon19741452d ago (Edited 1452d ago )

@XboxFun. While completely off topic, I do appreciate you bringing up the history of articles I've submitted, and the self pwnage made me smile. As anyone can see from your link, out of the 166 articles I've submitted over the years, only a small handful could be considered "negative" towards Microsoft. Sure there's a few in there. There's also some negative Sony and Nintendo articles as well. Lately I've submitted a few more MS articles than usual as Ballmer's exit has been making waves but you only have to page forward a couple of times to see there's no pattern. You're just seeing what you want to see.

Just quickly looking at the past 100 articles I've submitted, only about 1/3 had anything to do with Microsoft, and of those they were hardly all negative.

As for Sony being urged by Loeb to sell the PS4, the board met and quickly and unanimously rejected the proposal. I watched the matter with interest but it was only briefly covered by news sources and users already posted these articles to N4G.

I see this "Quick, look over there" response quite a bit when people don't want to discuss (or have no valid points to add) issues raised in these types of articles. Do you really have nothing to say about the topic at hand other than to just point at the messenger and yell "Witch!"?

Why not join the conversation?

XboxFun1452d ago (Edited 1452d ago )

It really isn't off topic since just the last four articles submitted from you have been doom articles about MS.

And seeing you had a blog way early in your career about MS is doomed, did you remove this blog? A Hindenburg blimp crashing and burning? I wonder what that was suppose to symbolize?

http://n4g.com/user/blogpos...

One stroll through your earlier comments suggest that you keep coming back to this "MS is doomed" topic. You continue to predict and promote Xbox's downfall or failure. It's not going to happen Darkride, no matter how many no name sites and user blogs you get submitted to N4G.

And then there's this:
http://n4g.com/news/416137/...

An early article submitted by you about how 360 is a console in decline. With the 360 logo in the toilet no doubt. Too cute.
How can anyone seriously want to discuss anything MS or MS console related when your agenda is so clear?

You can spin and deflect and accuse me of going off topic or trying to turn the conversation into something it's not but all I am doing is looking through history and current actions from you. And it seems one side is heavier than the next.

Anon19741452d ago (Edited 1452d ago )

@XboxFun. Again, just keep digging that hole.
As anyone can see, my last few submissions are about as far from MS "doom" articles as you can get. They're discussing real issues that could currently have an impact on the gaming industry, the Xbox One in particular. No a single one of those articles has anything to do with "doom" nor do they predict the downfall of the Xbox in any way, shape or form.

As for that first blog, it was referring to sizable drop in Microsoft's EDD profit of 130% year over year, as you can see from the comments were backed up by Microsoft's own released financials. You keep bringing this up like it's some sort of damning thing that I tried to have a conversation about the 360's problems at the time. As I've pointed out in the past, the 360's sales and revenue for the division have been anything but stable. I'm certainly not the only one who's noticed this over the years. The Hindenburg picture clearly expressed my opinion that such a drop was disastrous. I stand by that.

In fact, I had opined many times, backed up by hard facts and data that MS needed to do something to turn the 360 around, and they did. MS hit the ball out of the park with Kinect, something I've pointed out time and time again. As you can see from my article history, I've posted quite a number of positive Kinect articles as well as some that expressed skepticism.

It's funny that you point out those two articles, because as it turned out I was 100% correct, and Microsoft was able to turn it around thanks to Kinect. No spin. As for my agenda, of all the times I praised Kinect's success, or geeked out about Halo, or Gears, or Fable, or Alan Wake...was my agenda clear then as well? You only see what you want to see.

So you've taken your personal shots at me with your two bubbles as the community has obviously seen fit to reward you for your own posting trends. Again, what on earth does any of this have to do with the article here or the valid points they bring up? Rather then attack gamers for having different views than your own, why not use your 2 bubbles to add to the conversation for a change?

Might be something to consider when you're stripped down to one bubble and abandon that account and create another duplicate account. I'll still be here if you ever want to actually discuss gaming or issues relevant to the industry. I'm not going anywhere.

JokesOnYou1452d ago (Edited 1452d ago )

Here are darkrides xbox related submissions out of his last 20:

Microsoft May Lose Xbox On Ballmer Exit

Is a New Console Reason Enough to Buy Microsoft?

Microsoft’s Changing Policies Show Lack of Xbox Conviction

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

Indie retailers desperate for Xbox One pre-owned answers

Why the Xbox One is scaring gamers

Microsoft's game plan for E3 2013: Damage control

With Xbox One, Microsoft Emphasizes TV over Games

What Microsoft did wrong at the Xbox reveal

Xbox 360’s Kinect causes trouble for users during next-gen livestream reveal

Xbox One is a desperate prayer to stop time

-I bet nobody would be amazed that the other 9 are not negative sony news pieces.

-Confirmed microsoft hater with an agenda but come on everybody already knew that, I dont see any scrutiny of sonys business finances but well thats because sony is of course printing money with ps3/ps4. Hell I just wonder how many other accounts he trolls with on his personal time, when he's not hard at work covering up sonys financial problems as a special "investment advisor".

Anon19741452d ago (Edited 1452d ago )

@Jokes. Yep. Just as I said above, lately I've submitted a few more articles about MS than usual due to the abundance of news related to MS recently. I hate to break it to you, but if you've been following Microsoft's news since Feb the bulk of it hasn't been smiles and sunshine. Here, I can cherry pick articles I submitted too.

Microsoft Could Make Billions if Chinese Ban is Lifted

Analyst: Xbox 360 Top Platform in US for November

Microsoft vs. Google trial over patents ends

Halo's Success Runs Parallel With Xbox 360's

Inside Microsoft’s Fanboy Fantasy, the Star Wars Xbox 360

Why We Need Xbox for Enterprises

Microsoft earnings preview: Can you say 'Kinect'?

Xbox sales overtake flagging Wii

Hacking Microsoft's Kinect: Two Weeks In, Six Amazing Projects

What does that have to do with the valid points raised in this article? Are you guys truly incapable of actually discussing issues brought up in these articles? You guys can point the finger and scream "fanboy" all you want, it doesn't change the issues being discussed here, as much as you want to shift focus away from them. You try to hijack discussions over and over again, but all your doing is making yourselves look desperate.

Now, care to comment on the article and join other gamers above? I agree with JsonHenry and kingdip90 above. Certainly having the Xbox division separate from MS as a whole could have profound implications for the way the division does business. My concern is without the backing of the parent company we could potentially see a solo Xbox company take fewer risks due to the removal of MS's financial safety net.

What do you think?

JokesOnYou1452d ago (Edited 1452d ago )

darkride do you really think anybody believes your soap box grand standing here?

I just went beyond your 1st page looking for those posts you just pasted and ironically all I saw was more and more negative xbox/microsoft posts. lol Hell you say its just recently but its all over your history which made it so hard to find the posts you pasted just now that its a waist of time because clearly microsoft must have slapped your momma. Wow its sort of creepy how much you hate microsoft, bro relax its videogames and why would I need to actually go on about the same Ballmer topic with you #1 I already yesterday gave my opinion why this is just much to do about nothing and #2 you're obsessed with seeing micro fail so there's no reasoning with you. I'd have better luck telling Maria stop spamming every thread with those same old BS numbers or specs.

Seriously anyone doubtful just look at his submission history.

Anon19741451d ago (Edited 1451d ago )

I welcome everyone to check out my submission history, or my posting history for that matter. Then, just for fun, look at Jokes and XboxFun. Rather than attacking, labeling, belittling and generally bullying other members on this site I like to try to stick to the issues being discussed and offer intelligent, counter points when I don't agree with someone rather then picking fights. I know. I'm wacky that way.

But it doesn't look like there's going to be any actual discussion among gamers here as the topic has been hijacked, and I'm out of bubbles anyway. Cheers!

glennco1451d ago

Well this is n4g, this place thrives on rubbish troll articles.

+ Show (10) more repliesLast reply 1451d ago
negative1452d ago

Ten years from now gaming will be altogether different anyway. I'd be surprised if Xbox and Playstation still exist as we know it.

MariaHelFutura1452d ago (Edited 1452d ago )

Of course if they lose Murica, it's over for the Xbox division and we all know it. The number right now the Xbox is losing, heavily.

Preorders: Sony
http://n4g.com/news/1342347...
Specs: Sony (link is not needed)
Games: Sony 33>23 (link is not needed)
Countries: Sony 32>13 (link is not needed)
Restrictions: Sony 1>81
http://n4g.com/news/1338295...
Price: Sony 399>499 (link is not needed)
Backflips: 5<0 (link is not needed)
Polls: Sony (link is not needed)
Recording time: 15>5 (link is not needed)

The hardcore decided, the softcore will follow.

It's over.

malokevi1452d ago (Edited 1452d ago )

uhhh yeah, "we all know that"

lol.

I've seen you post that same crap 100 times. At this point, it's spam, and I'm happy to report it. Prepare for comment restriction in 5.... 4... 3...

You're a sad individual.

nick3091452d ago

If x1 wont sell enough on launch, im buying you a ps4.

iamnsuperman1452d ago (Edited 1452d ago )

Maria this isn't relevant to the topic at hand.

OT: I can see this happening it just depends who the CEO is. The next CEO has other things that really need sorting out (the bad stuff Ballmer's leadership has done to Microsoft). But if Microsoft put in a CEO who is like Ballmer (I personally think that would be a bad move as they need new blood and a new thought process) they won't do it.

The Xbox division is a very small ripple in Microsoft's pool of profits. There is a valid argument to separate it from Microsoft (let it stand on its own but there are important issues involved in this) or get rid of it so Microsoft can concentrate on the more important issues (Apple and Google invading their space). I am glad I am not the new CEO of Microsoft. I wouldn't want to make that kind of decision (as I would like it to stay).

Spoons1452d ago

How do we "all know it". I actually think it unlikely that the One will fail as horribly as predicted by PS4 fans. I remember when people thought the PS3 would fail, hell I even remember when the disk man was a joke.

MariaHelFutura1452d ago (Edited 1452d ago )

I've posted it twice and it's all true and will lead to the division not existing. Instead of trying to police me, speak your points and prove me wrong. Nothing I said is incorrect. Ballmer supported the division, it's SUPER relevant.

Spoons1452d ago (Edited 1452d ago )

Everything you said was either biased or a personal opinion.

Opinions:
"Of course if they lose Murica, it's over for the Xbox division and we all know it."

"The hardcore decided, the softcore will follow.

It's over."

About 50% of you comment.

malokevi1452d ago (Edited 1452d ago )

@maria

How do you expect anyone to respond to:

"Preorders: Sony
http://n4g.com/news/1342347...
Specs: Sony (link is not needed)
Games: Sony 33>23 (link is not needed)
Countries: Sony 32>13 (link is not needed)
Restrictions: Sony 1>81
http://n4g.com/news/1338295...
Price: Sony 399>499 (link is not needed)
Backflips: 5<0 (link is not needed)
Polls: Sony (link is not needed)
Recording time: 15>5 (link is not needed) "

I wouldn't even know where to begin. That whole blurb is laden with BS. And even if I did know where to begin, I don't want to have a conversation with you. It would be tiring, and I don't care NEARLY as much as you do... which is surprising, because I'm the one who will actually be buying the console.

I'd rather just call a spade a spade and be done with it. Enjoy your... trolling.

ZHZ901452d ago

Seriously Maria you are giving us PS fans a bad reputation.

+ Show (5) more repliesLast reply 1452d ago
Mystogan1452d ago

The whole point of the restructuring is the unification of all their products. Including Xbox. It's like Apple selling their iPad division. It just won't happen.

iamnsuperman1452d ago (Edited 1452d ago )

Well not really as the ipad division makes up a large amount of apple's profits. The whole i division is the reason why Apple has become so successful. The Xbox division is a small profit for Microsoft (I think I read somewhere the whole entertainment product division is something like 13%, might even be less I will try and find the report, of profits is made by the skype/xbox/product.... division). Microsoft is popular and successful because of Windows and other related stuff. Not because of the Xbox

Mystogan1451d ago

@iamnsuperman.

Xbox is their third most popular consumer focused business after windows and Skype.

What are you smoking? Are you saying that Xbox is not popular? Its just as popular as Playstation.

Anon19741452d ago

On a side note, anyone know why currently any articles related to Microsoft's decision regarding the Xbox division are being filtered by the quality filter and censored? There's nothing wrong with the quality of the articles or their sources, and the ramifications of an Xbox sale could have a huge impact on the industry, which is why it's being so widely reported. Anyone else find this odd that it's being censored on N4G?

+ Show (2) more repliesLast reply 1451d ago
threefootwang1452d ago

This looks like it was written by a 12 year old. Absolutely brutal grammar/punctuation lol

NateCole1452d ago

lol! No. Ballmer is an idiot. If anything MS is better off without him including the xbox.

I see some people defending him but truth is he lacked vision and conviction.Always reacting instead of setting trends. MS as a company was too big to fail which is why the damaged he made was soften.

Personally i do hope that MS picks a good CEO.

BOWZER351452d ago

I doubt Xbox will become its own, Microsoft needs it.

giovonni1452d ago

I would like to see ms take it's name off the xbox, but still own the rights to the system, and limit their hands in creating it. For example, partner with Samsung and let them design the look of the system, and ms just handles the specs, operating systems, and publishing. While Samsung's name appears on the physical hardware ms still has their hands in it.

However, Xbox is MS's money maker compared to other divisions, where popularity is concerned. They just haven't been able to gain a significant profit from the division, and to tell you the truth the Samsung Xbox just doesn't roll off the tongue.