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Microsoft shouldn’t hire any CEO who wants to kill Bing and Xbox

According to "people with knowledge of his thinking," Bloomberg is reporting that, should Stephen Elop become Microsoft's next CEO, he would consider shutting down or selling parts of the company to "sharpen its focus." The two divisions mentioned specifically are Xbox and Bing

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arstechnica.com
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ElementX963d ago

I can see shutting down Bing. They should also ditch their mobile division, they have hardly any market share.

BX81963d ago

I've never used bing that I know of.

Eonjay963d ago

There are a lot of factors that can go into a decision like this. Ultimately, they (the board as representatives of shareholders) will have to decide if profits can be maximized by selling the brand; and possibly retaining ownership of Live as a service that is provided to the purchaser.

kneon963d ago

I always use Bing, but it's really not core to their business so I can see it going away,

While their mobile market share is low right now it has been growing quite nicely lately and still has a lot of potential.

Xbox is not part of their core business so unless it can consistently show profit I can see them selling it off. It won't go away, it will just find a new owner as the brand has too much value.

lastdual963d ago (Edited 963d ago )

I occasionally use it. Google's results have dropped a bit in quality over the past two years, and Bing is basically like the old Google, so that's a plus for me.

If they do sell it off, I just hope it keeps going. Bing also powers Yahoo, and is Google's only real competitor in English markets. Google having total monopoly power isn't something I want to see (yes, Google has done plenty of stuff just as, if not more shady than MS).

Competition is a good thing.

UltimateMaster963d ago

Even if Xbox is independent or sold to another company, it's not the end or the world, it's the beginning of a new chapter.

Lord Anubis963d ago

da fk if those two are bleeding money and it doesn't return dividend then kill them. luckily i don't own stocks in ms. so carry on.

kreate963d ago

I highly doubt, anyone is interested in buying the Xbox division from Microsoft. Unless its being sold for cheap.

They got halo IP included. Hopefully Google will buy it.

BX81962d ago

Why does it cost money to run bing? Is for up keep or advertisement purposes. I just don't get how a web browser would cost a company money. Thanks for helpful responses.

+ Show (4) more repliesLast reply 962d ago
s8anicslayer963d ago (Edited 963d ago )

Elop should be the last guy on the list of candidates, I don't understand how Microsoft can consider a man who stood at the helm of a struggling Nokia helm to run their ship? There are stronger more well qualified candidates to run Microsoft.

Joe913963d ago

With or without Elop on list it will still be on the table MS board members have been asking for this for a while that's why they are pushing Ballmer out and trying to get rid of Gates I think Elop is saying this so he can get the CEO position by sounding like he will do what the board members have been asking.

vulcanproject963d ago (Edited 963d ago )

Microsoft have a problem, and its if they have to compete, they usually struggle.

The company just isn't familiar with competition. Sometimes it seems they move like treacle, the bigger you are the slower it seems you react to market changes. It applies to Microsoft well enough, that's for sure.

It is harder for comfortable management to look and see what the future might be. It is very easy for them to play safe.

There is little room for visionaries if you run a corporation the way Microsoft do.

The simple fact is Microsoft believed they could waltze into console gaming, or search, late in the party with established names to play against and beat them all with raw cash.

Cash only gets you so far. When you are throwing more and more into what might seem like an aside of your core business, in a shrinking sector like console gaming there comes a point where a smart business person realises bottomless holes shouldn't be fed any longer. Bing is a money pit, Entertainment (Xbox etc) isn't too much better, and it isn't very stable.

Windows, business software and the server sector makes Microsoft money. Entertainment has a good revenue, but either costs them money, or makes them peanuts profit relative to those other three.

s8anicslayer963d ago

I didn't know that so many people feels strong for elop

Mosiac77963d ago

what the hell is wrong with microsoft hiring all this gaming haters people. First Dumb Mattrick and now this guy. Comon Microsoft hire somebody that understand gaming.

Joe913963d ago

Because MS is not a gaming company that's why they want xbox division gone they want MS to focus on their bread and butter if you think of it like a business person and not a gamer it makes sense I honestly think they will sell and a company like Google or Apple grab it if one of those companies bought xbox I would actually get one

rocky619619963d ago

@joe913 If Apple had it you could see the price going up even higher then it already is and if Google had it, they would be shoving Google + down people's throats, just like they are doing to Youtube.

Jeedai Infidel963d ago

And Apple would probably have a new variant every eight months.

AceBlazer13963d ago

2013 - Xbox One
2014- Xbox OneS
2015- Xbox Two
2016- Xbox TwoS

Apple would run this industry into the ground if they enter.

+ Show (1) more replyLast reply 963d ago
mhunterjr963d ago

The funny thing is, the CEO candidate who allegedly wants to sell off the Xbox brand, is the head of mobile...

Caleb_H963d ago

Bing is a good search engine. But is that really the battle you want to be fighting? I'll answer that for you, No. You can't just drop xbox though, that would look pretty bad. They could potentially sell it to, oh I don't know.... Valve. Nah, that'll never happen, but I'd like to see some people more creative than MS get their hands on a console.

Campy da Camper963d ago

If valve bought Xbox it would be a whole new world. Wow. I don't know what I would do and I'm being totally serious. I love PC gaming just don't do a lot of it since I'm big on couch and controller and dedicated hardware and no driver issues and dealing with all that. But if valve took over Xbox and integrated steam....hmmm.

Jeedai Infidel963d ago

Maybe we could finally play Half Life 3.

UnholyLight963d ago

Uhh Bing maybe, Mobile division no.

I remember I just read a couple days ago that they made quite a bit of bank off their mobile division. It's hard to capture market share when you are competing against idiotic consumers buying into Apple products every 9 months, but they're picking up some of the share!

creatchee963d ago

I'm on my second Windows Phone and I love the OS. Still, it's not for everyone, but it is a refreshing change from iOS and Android, which are basically twins who deny that fact.

UnholyLight961d ago

It's the theory of economies of scale.

Microsoft may have like what an 8% share of the market with Windows Phone, but that still equals ~1billion in revenue to rake in.

Small share of the pie, took some away from the competition, and made a good profit on it.

Windows Phone will continue on and will continue to grow in the market.

OrangePowerz963d ago

I don`t know how much they spend on Bing, but it`s probably too much.

I still don`t get why they bought Nokia, I see little chance for MS to get a lot of traction on the smartphone area with Android and iOS.

I think the Xbox division could be profitable if they change the way they do business. Right now they spend an insane amount of money for timed exclusive DLC and games. Something like Titanfall or the annual CoD DLC will cost them a huge amount of money and on top of that they have to pay for things like the exclusive NFL rights.

kewlkat007963d ago (Edited 963d ago )

Here is what MS should do..

-Buy SEGA
-Hire a SEGA exec for gaming.
-Bring some great first-party titles to the box.

I can't imagine with Microsoft's pockets the games
SEGA teams can cook up. Japan never really supported SEGA anyhow but you could still have Japan's SEGA arm console the xbox brand over there.

-end

Jeedai Infidel963d ago

I'm up for a new Skies of Arcadia. Maybe a new kinect Seaman? And for crying out loud, give me Shenmue 3 already!

I miss my Dreamcast :-(

heliumhead2030963d ago (Edited 963d ago )

Bing yes, Xbox division no, mobile division know

M$ should try and do something with Google and let their mobile focus more on gameing handhelds

ovnipc963d ago

Bing or xbox are not going anywere. Xbox live makes lots of money for ms and that money was used to grow azure. Ms its not stupid u think xbox was going to be shut down, ms woukd had invested 2.2 billions in making in, NO! If ms would not want any competition they have the power to buy ps.

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lifeisgamesok963d ago (Edited 963d ago )

He'd be one hated CEO for killing the best product line of Microsoft in my opinion Xbox is the most promising and valuable and with this launch they'll be starting with a profit

Gamers need options also

zeroskie963d ago

I agree I would like to see M$ continue to make Xbox and support it in the future. However, from a business perspective it costs M$ $2B a year, so...

Minato-Namikaze963d ago

Thats alot of assuming. Didnt a report recently say the xbox division has been losing 2 billion a year but they been hiding the loses in the android patents? The xbox money timeline even seems to follow it very closely.

C-H-E-F963d ago

@life
You are aware that because of these "exclusive" deals that Microsoft make with companies like EA and Activision they lose close to 2 Billion dollars a year on the xbox division? Then they try to hide the losses with the profits of their android income? So with your comment saying it's "the most promising and valuable" is incorrect. Microsoft isn't really a company of creators, they through their money at creators, they take credit like a kid that pays another kid to do his/her homework. This model has been working for Microsoft for years in the software dept., but in the gaming realm. They have failed to find success because they bid on bad apples and/or buy into these 2week/1month/6month exclusive deals, the xbox division is bleeding Microsoft dry. The sooner you see this the sooner you'll realize how smart business wise it is to either sell the division or restructure the heck out of their business plan. If they don't turn this around, I doubt there will be another xbox, the Steambox may be the new console to compete.

jgrigs09963d ago

If you want to talk about a console losing money and sell it off. Playstation knocks that one out of the park. They lost 8 Billion dollars of just that part of the electronics division. Maybe they are better off departing with that division? Playstation 4 is expected to lose 60 or more dollars per console sold praying the games will make up for that. As for Xbox One predicted to break even for every console sold. shoo sooo shoo fanboy

C-H-E-F963d ago (Edited 963d ago )

@jgrigs
You do realize that because you "break even " in xbox one CONSOLE sales doesn't mean Microsoft is making the xbox division money (or keeping them even)? Seeing that they are taking losses for blu-ray, nfl app deal (along with other deals), exclusivity deals (gaming), amongst other things like advertisements. You need to learn to think for yourself bro. stop letting the big wigs dictate your train of thought. You're so caught up in this fanboy ish that you fail to realize that what I said was from a logical business standpoint. Also, your touch on the Playstation, I believe if the ps4 doesn't perform like it needs to that they need to make changes as well, but this TOPIC isn't about Playstation it's about Microsoft and Xbox so why are you bringing the Playstation and Sony up? Yet you call me the fanboy? haha the irony.

Boody-Bandit963d ago (Edited 963d ago )

jgrigs

Who is talking about the Playstation here?
+off topic

And you guys that are disagreeing with those talking about MS losing 2 Billion per year with their Xbox division are disagreeing with facts. Just because you don't want to hear it doesn't make it so.

If MS does eventually end up selling the XBOX division I hope Samsung buys it. They are Sony's biggest competitor overall and it would really drive this industry hard.

Either or we need to have no less than 2 consoles in the industry to keep the manufacturers honest. At the rate Nintendo is going I don't see the Wii U lasting a full 5 year life cycle. It makes you wonder if they will go handheld or bring out another console.

We are about to start a new generation and we are getting somewhat discouraging news from MS and Nintendo.

BitbyDeath963d ago

@jhrigs09,
everything you said was twisted to fit your agenda.

1. 'Electronics division' is more than just playstation. Playstation is profitable.

2. PS4 is expected to lose $60 in the US.
Europe breaks even.

3. Unless the Xbone itself is only worth $250 then MS will be losing money as Kinect is said to cost the same as it.

http://www.extremetech.com/...

Investigate what you write first otherwise you too can be seen as a fanboy.

lifeisgamesok963d ago (Edited 963d ago )

Microsoft isn't selling at a huge loss per console anymore so they'll have a bigger gain this time from the Xbox division. They've also helped AMD with audio to go on their graphics cards

Preorders are better than the 360's they'll make a crap load off Halo alone

Halo 4 made $220,000,000 when it 1st launched

Combine these factors and they are in great shape

Sony loss 3 billion on the ps3 compared to Microsoft's 2 billion

+ Show (2) more repliesLast reply 963d ago
Pope_Kaz_Hirai_II963d ago

It would be great for gaming if the xbox division closed its not like we would be missing out on much.. Ms dont give a shit about the industry and i would like to see another company step into their place.

+ Show (1) more replyLast reply 963d ago
Relientk77963d ago

They can get rid of Bing go ahead

Google is where it's at

YodaCracker963d ago (Edited 963d ago )

I use Bing to accumulate credits for free Xbox Live gift cards, but that's about it.

theWB27963d ago (Edited 963d ago )

Nice article. I'd hate for Microsoft to sell off Xbox. I'm an Xbox gamer through and through...it sucked when Sega dropped out and I'm hoping the next CEO makes the right decision.

@BX81
If gamers got past their "woe is me" stance then they'd realize how much gaming has been pushed forward since Micro has been there to push Sony. The PS4 wouldn't be the system it is if this gen hadn't gone the way it has for Sony.

BX81963d ago

Yeah I think the big 3 need each other.

capjacksparrow963d ago

I say hire him! He seems to know about business. Get rid of the non profit sections that are losing money.

theWB27963d ago (Edited 963d ago )

That's not how business works. Case in point- Sony refusing to split and or sell off divisions that weren't performing.

@Konsoru
All businesses go through measures to make money back. Apple doesn't have debt...but do you think none of their divisions constantly lose money?

KonsoruMasuta963d ago (Edited 963d ago )

Sony had to go through other measures to make the money back though.

Either way, something has to go.

KonsoruMasuta963d ago

I know all businesses have to go through measures to make money back. That is exactly why I said "something has to go".

I also know Apple's divisions lose money. Just last month they had to cut back on production orders for one of their IPhone because they had a lower than expected demand.

Bigpappy963d ago (Edited 963d ago )

I agree. Sony should hire him they are the ones with financial difficulties.

I don't see the board letting him run the company. M$ has never had an outsider run the company and having him do so will change the culture. I don't see the board wanting to do that.
M$ is more focused on innovation than consolidation. This guy is known for consolidating, has to record on innovation.

He is more suited for a company on the verge of bankruptcy.

giovonni963d ago

Correct Bigpappy, I wouldn't hire this guy unless my company was filing for Bankruptcy and I needed to liquidate assets to recover. As I stated before a CEO that understand the consumer and not just a studier of numbers should be hired. Steve Jobs is a prime example. He rescued Apple from bankruptcy because Jobs knew his audience. He dressed like a consumer, talked like one, and made him self accessible to his customers.

BitbyDeath963d ago (Edited 963d ago )

@Bigpappy,

Stephen Elop has already been shortlisted.

http://www.reuters.com/arti...

giovonni963d ago

so using that same logic Steve Jobs should have sold apple because it wasn't profitable when he came back? The problem with MS is their CEO's are out of tune with their customers needs. Find a CEO that looks at more than just numbers! Simply selling off things that don't make money doesn't solve anything if your CEO has no idea what the consumer wants.
Change the culture of your CEO, and things will change. Until then, MS will never evolve even if they sell off bing and xbox.

jgrigs09963d ago

Yea maybe Sony should pick him up. I mean Playstation just lost a whopping 8 billion dollars. Playstation 4 is going to lose money per console sold. Xbox One will most likely break even, if they avoid Red Ring Of Death or other issues. Sony even admitted that they expect to have the games and accessories to make up for those loses. If ANYONE needs to help it's Sony.

Joe913963d ago

Comparing the playstation division is ass backward even though they are both gaming divisions MS xbox division is more like Sony's TV division ppl make it seem like since Sony is having money issues it is all about playstation not true Sony's TV division is what is losing all the money and Sony should sell it off but if Sony sell off playstation they would be killing themselves not the same for MS if they got rid of xbox and Bing they would be making more money you quick to call ppl fan boys but if you can't look at it like a business person then you are the fan boy this shouldn't be on a gaming site cause some gamers don't see the business end

+ Show (1) more replyLast reply 963d ago