ValueAct Capital, the “activist investor” group that is (justifiably) unhappy with the returns from Microsoft’s Xbox video game console business, has officially been offered a seat on the company’s board of directors.
What? "justifiably unhappy"? Uh, does this author not realize that Xbox division is one of the most profitable divisions of MS???? Please disregard this article If Xbox gets made into a separate division that would actually be good for XBox fans, because the larger parent company would step out of the way.
It makes a lot of money but not enough to cover the losses. Microsoft can eat the losses because they are a rich company. As far as I know...
Xbox division is not where MS makes its profit. If Xbox division disbands the conglomerate company and acts independently then they will have less capital and increases costs of production. You seemingly have no awareness when it comes to business. http://www.neowin.net/news/...
In the article you posted it says Microsoft has lost $3 billion in the last 10 years on the Xbox, and Sony has lost $5 billion in the same time with the Playstation. It's just amazing how either company is launching a new console with losses like that. Guess you have to lose money to make money. The last 5 have been profitable years for the Xbox, but still not enough seeing how they are still $3 billion under. Not sure about Sony.
So much in one quarter, remember xbox division is not just xbox. They threw zune and windows phone. So what ever profits from xbox were cycled back into launching other products. http://www.joystiq.com/2012... http://www.gamesindustry.bi...
^ @ Bzone24: This isn't about Sony, but if you want to make it about them, they've had the best games since the PS2 days to now, and will continue the trend with the PS4. Sony cares about the industry, Microsoft clearly does not. Sony cares to a point where they let developers decide what they wanted the PS4 to be. They let anyone publish on PS4. They buy developers to continue having them make games. They don't have ridiculous policies that keep games OFF of their console. Look at everything Microsoft had to change for Xbox One. Never has a "gaming" division received so much hate. The fact that they were even set to release the console like that goes to show how much they really care about consumers. If it weren't for Sony being the way they are, Microsoft wouldn't have changed a damn thing. Microsoft, as they currently are, have no vision, no business in the future of gaming.
Wow Enemy, defensive much? I was just commenting on the article Dino posted. If you think that was some sort of attack on you or sony, I'm not sorry, because you are being way too defensive. I know that any perceived negative towards Sony must be attacked on here, but that wasn't my intentions. You should calm down.
@corvusmd "If Xbox gets made into a separate division that would actually be good for XBox fans, because the larger parent company would step out of the way." I would 100% agree, with this if the people who first founded the xbox platform was still in charge, like ED fries, robbie bach,seamus blackley , otto, an jay. but the fact the orig 10 execs are all gone. This may not be, that great because the people in charge of the xbox platform right now may not be that gamer focused. An i am Not talking about the xboxone engineers, because they did a great job on the design. Just the Admin's in charge are not doing right by the xbox platform in my opinion. selling it off to be by itself is short term thinking which means could be even a public buyout, bad if you would want to keep the xboxplatform in house, getting this part sold off would or could be good short term, but long term could be drastic measure of loss of the entire spin off because parts could be sold off to the highest bidder leaving the other less profit bearing of the spin off to die on the vine. wither til there is nothing left.
Ummmm NO it is not the most profitable division in anyway shape or form...Please know what your talking about before you actually comment...They have not made 1 nickel off of the Xbox going all the way back to it's conception. And any chance they had of a profit with the 360 was killed the minute that decided to release a faulty defective product with a 55% failure rate, that they spent 4+ years correcting. That cost them billions genius...... Again the Xbox division has not made them a penny and has actually cost them money....they make more money on their SOFTWARE than anything else...Are you mentally retarded in some form cause nothing would be more profitable for Microsoft than their software
This is rediculous. This has nothing to do with games. Here come all the N4G financial analysts. Here's an idea. Every time you feel like trolling This article, Remember that Sony was doing so bad, they had to sell BUILDINGS, to stay relevant.
Xbox has nothing to do with games then? A lot of us knew that for awhile but you just confirmed it. Speaking of relevant! Nice job bringing up Sony, who pretty much owns the gaming industry year after year. :)
Yet they don't have someone on the board of directors that wants to SELL THE BRAND.
Yes Sony did Major (needed) restructuring and they posted a profit this year...
The net profit of about $30 millions also taken into account for the selling of buildings in their financial statement. Without those buildings sale, Sony would be in another quarter of loss.
True, but the outlook of the company is significantly better in a financial sense, due to the restructuring and increased sales of hardware units. Not to mention the popularity of the PS4 and their Viacom deal that could bring cable-less tv to many of their hardware units.
Something that Microsoft has not done with the Xbox in 10 years....Obviously the Microsoft fanatics are mentally retarded or just slow....Microsoft has NOT made 1 single solitary penny off of the Xbox brand, it is in reality their least profitable division. The majority of their money has and always will come from their software....
@warewolf You sound pretty bitter about the whole thing, talking about selling buildings and whatnot. If anyone is trolling it's you. You can at the point you say 'rediculous' For this reason I'm pointing out that is that you can now change your name to werewolf
It directly involves the Xbox brand, so, yeah, it actually does have something to do with games... :P
Page is now back up.
Works for me.
Tick Toc Mr M$ man, that is the sound of your time with the xbox running out (said in a Bane voice)
That's corney man. Sit back and read what you just wrote. Don't you feel foolish at all? If you couldn't post anonymously, you wouldn't be posting at all.
"If you couldn't post anonymously, you wouldn't be posting at all." Your damn right, too many weirdos out there!
It's corny, not corney. And why waste your post with such a pointless one of your own? Hell, even your first post was stupid. A new member of Microsoft's board has expressed rather strong interest in selling off Xbox. How does the potential selling of the Xbox brand have nothing to do with gaming? And yet you're among the first to start tossing "trolling" and "fanboy" around, when only a fanboy could make the sort of blinded comments you frequently post.
Most of MSFT investors are large institutions and they have wanted MS to spin off the Xbox as a separate division for a few years now. This activist investor on the board is a first for MS, so the news is everywhere. http://www.theregister.co.u... Microsoft cedes board seat to activist investor http://online.wsj.com/artic... Activist Storms Microsoft's Board The MSFT investors wanting Xbox to spin off on its own is a minor issue with them. Surface lost almost $1 Billion, and there are many other issues that MSFT investors want some accountability and major changes.
Surface lost them billions..... Zune lost them billions...... Windows phones aren't making money. Xbox has not been profitable at all ever. They lost quite a bit on the original Xbox and then since they knowing released a faulty, defective product in the 360 have spent billions more fixing the product they already spent billions on creating.. Microsoft's profits have and always will be in their software....
Wont happen they cannot rely on their core business to stay afloat. You have to be able to as a company overtime to adapt and change with the market. What if as time progresses your main revenue stream becomes punctured and becomes irrelevent. Its happening right now with the shift towards mobile and tablets, less people are buying into their windows and office platforms and buying into the mobile and tablet market. Microsoft as a company needs to establish strong pillars in the company that will become valuable souces of income for the future. Investors usually care about short term profits which is why i can see them wanting to sell the xbox division but for the long term thats a terrible idea especially considering the fact that windows isnt doing too well now. As a matter of fact i would even go as far as to say that the xbox division is in a very good spot with the way the industry is heading towards in the next 10 years because of microsofts Azure cloud infrastructure being a perfect suit for a cloud only video game future more so than nintendo and to an extent sony with their gaikia service.
The end is nigh. Now let's get Sega back, obliterate DLC out of the industry and the universe will be course corrected.
how the mighty have fallen
how much did they spend on the controller again? i can see why, with all the steps theyve taken it seems like it would be lacking although i wouldnt doubt theyll make it back eventually :p
Sony or Nintendo buys it. Huehuehue
Calm down people, nothing will change. Xbox will live on and Halo 10 will be there for XB1 in 2020. The amount of happy people on this thread is amusing. ;)
lol!. Clam down sunshine.
Multiple agenda press websites have submitted this same story to n4g in the past 24 hours. Meanwhile, 1%.
Xbox isn't going anywhere. That being said Microsoft will sell it off or make it it's own company. The board has wanted to get out of the video game market since they got in. Xbox will branch out on it's own but Microsoft will probably continue with gaming software since it's easier to gain a profit margin. Again, Xbox is not going anywhere but the Microsoft logo on an Xbox probably is.
It would be interesting to know what the Xbox division is actually worth, that way we could actually come up with some proper speculation as to who could be in the running to purchase Xbox. Are Activision or EA big enough to buy Xbox?
If I was Microsoft I would sell the Xbox brand to be able to pour more money into their PC district, which is where the real money is at. However, too a company like MS diversifying is never a bad thing.
The most that the board would do would be to break off the xbox division into its own entity. That would be good for the brand though since they would then be able to create their own priorities instead what the whole of MS wanted.
This would not be good for them to be honest. While it won't mean the end of Xbox they will be less competitive. How do you think they're able to strike the deals they do and advertise as they do? Xbox breaking out on it's own won't be as difficult because they do have an install base but they will have challenges.
I am not gonna lose any sleep over this. Maybe the Xbox Division gets splintered off...possibly sold...or maybe it stays. I really don't have a worry about it one way or another until if / when something is actually said. As far as I am concerned its more internal manuevering similar to what happened with Sony not so far back.
I was just dreaming about Xbox brand vanishing from the gaming world. The gritty feeling in the world was gone and THEN i woke up to reality. Goddamn.
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