More Signals That Microsoft May Bow Out Of Console Market

There have been some rumblings over at Microsoft, rumblings that are starting to put the future of the Xbox franchise on somewhat shaky ground.

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Godmars2901737d ago

So if the XB1's launch turns out to be a mess, could it possibly be a result of insider sabotage? Someone who want to split off the brand so MS's stocks soars?

zeal0us1736d ago (Edited 1736d ago )

I doubt it far as the insider sabotage goes. Doing so would only affect the stock even worse. Even if that was the case it would takes some time before stock were back up like in 2000s. Overall it would be huge gamble.

ValueAct and Elop possibly believe that is the reason why stocks are down. Its obvious why ValueAct would want to do such a thing. Especially given their two billion dollar investment. However Elop I am not so sure about. He's the guy that handed Nokia to MS.

Killing off Bing wouldn't be hard. However selling the Xbox division wouldn't be easy. Just look at Vivendi with Activision. Vivendi had a hard trying to sell Activision. Lucky for them Activision brought back itself. Xbox division probably 10 to 30 times as much as Activision if not more. What company has enough money to buy it? Apple probably does but I doubt they would throw most of that cash away just to buy it.

cleft51736d ago

Hopefully all of this is just rumors, but regardless it doesn't give the informed consumer a great deal of long term faith in the stability of the Xbox One. That combined with the fact that Julie Larson Green hasn't said a word one way or the other about what is happening with the Xbox brand really makes me wonder. Hopefully, this is all nothing but only time will tell.

pixelsword1736d ago

Sometimes stocks are artificially "deflated" so that the big boys can make money on the stock when it rises.

This would definitely raise the stock if it's news people traders to hear.

Godmars2901736d ago

I can't be the only one who thought Bing became a complete embarrassment if not failure when it was discovered that it was using information from Google. How that served as example of MS's underhandedness. So it will likely just be allowed to die if cut away.

As for Xbox, sorry, but between the first Xbox mess ups then the RRoD the brand should have collapsed upon itself. Unless what dev houses it has are given some creative freedom and use it effectually, it wont last long without support from MS. Can't see anyone buying it either. Not without major restructuring.

The_Con-Sept1736d ago

The stock market has a huge influence over the decision tbat a company makes. If something isn't working then why try to keep fixing it if, in the long run, it will only let you down? I see the xbox brand dieing if they can not topple over sony and the playstation brand. They haven't quite toppled the ps3 yet and this generation is still going.

kparks1736d ago

Bye bye Microsoft hello....... SEGAAAAAAAAA. Featuring blast processing 2.0!

Blachek1736d ago

I would be soo jacked up if Sega re-entered the console market. Dreamcast was incredible.

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showtimefolks1736d ago

IMO if Xbox was a separate brand and had nothing to do with MS or its crazy twisted executives, it could be even more successful

Imagine Nintendo buying Xbox brand and having best of their exclusives, with Xboxlive as its only network and strong mature titles like Halo,Alan wake etc,

But I don't see MS ever selling Xbox

XisThatKid1736d ago (Edited 1736d ago )

This would be an awesome accord but I just can't shake that one of the giants may fall in next couple gens. The Romans didn't see it coming either.

DeathOfTheFanBoy1736d ago

This is proper tin foil hat brigade BS. Lets spend billions on a game division then sweep it under the floor...

Erm... no.

Xbox is as important as ANY other division regardless of profitability, Microsoft see xbox as a way to stay relevant across multiple markets, it's vital to the overall vision that includes tablets/phones/PC etc, its an all in one vision...

Xbox does not have to make a single penny to remain a vital part of that eco system.

torchic1736d ago (Edited 1736d ago )

you're delusional if you think that a business will carry a section that hardly contributes to the whole business in anyway; monetary wise or otherwise

Xbox is Microsoft's pet project much like Zune and had the 360 sold like the original Xbox, Microsoft would've killed the brand again, much like Zune. Microsoft saw Xbox as a way of pushing Microsoft into the living room and since it isn't working they may well pull the plug.

Microsoft has a new toy now, in Nokia (and Surface) so we'll see what happens next.

if Xbox was such a vital component part of the business it wouldn't be as lacklustre as it is right now; they would have put their best executives at the helm and supported it a whole lot more than they currently do.

PlayStation (PSone/PS2/PS3) was very important to Sony as it pushed Sony engineered/backed media formats and technologies into the mainstream. while it didn't make much money, Sony as a whole benefited thoroughly.

can you say the same for Xbox? all it has done is lose money and just about challenged Sony (Xbox 360 was a great effort) when they were at their weakest. with PS4/Xbox One it is a return to the usual script, Sony selling multiples more than Microsoft.

sprinterboy1736d ago

I am a Sony fan but in defence of MS, I agree people have the're tin foil out lol

Blachek1736d ago

@ torchic

The point DeathOfTheFanBoy was tring to make was that Microsoft doesn't need to see a big profit with the console division to be getting value back from it.

Their prime competitor is Apple & Microsoft wants to integrate them in every way possible.

Microsoft vs. Apple

They want to put people in front of their OS's in the living room, on their cell phone, at the computer, and anywhere else they can. The Apple business model was one with a "central hub", being the Apple Computer which could synergize with other Apple products (iPod, iPhone, Apple TV) creating additional value for utilizing more than 1 Apple product. Microsoft is attempting to emulate this model with their push to have a presence in the living room that coincides with a similar one on the computer, phone, and television.

They can hang onto a semi-profitable division if it means they have a greater value for consumers who can buy more of their products because they work well together. On top of them, it expands their brand and establishes loyalty (See 'Fanboys')

As for dragging Sony and the PlayStation into the argument, why? Yes, they drove consumers into newer media formats quicker than had they not adopted the technologies... but product life cycles were at a point where it needed to be done to begin with. Save the PS3 and Blu-Ray, which benefited customers in terms of value exchange the actual format wasn't necessary for this generation.

HighResHero1736d ago (Edited 1736d ago )

Who knows but it would probably be a little bit different than that :]

Anyway it would be pretty crazy to see Sega get the funds together to buy them out and then launch Halo 7 along with a new Shenmue.

Ps4Console1736d ago

They were going to last generation because they wanted to do an entertainment console but with no games music & video that type of thing but decided to go with the gaming console .

We must be careful we want strong competition in the gaming market or otherwise if we had one bad generation we could lose gaming consoles for ever & I don't want to play games on a gaming rig oh no those keyboards no way .

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staticdash221737d ago

I don't see them dong this. If they did, it surely wouldn't happen this next gen. This could be 7 years down the line, but I think their brand is so established now that it can stand on its own. It depends on leadership, if that's where the leadership wants to go.

The most I see happening is spinning off the xbox division. The brand has generated enough money and has good legs to stands as it's own.

lets_go_gunners1736d ago

I doubt it. The console itself was never the means for xbox to profit. It was the software and xbox live. If they can atleast half the sales of the 360 and have 50% of costumers subscribed to live how can they possibly fail.

christrules00411736d ago

With next gen consoles there is more details that has to be put into a game. With current gen games artists can skimp over some corners but when a game looks great on next gen consoles then if they skimp on a corner it'll stick out like a sore thumb. More time to make the same level at a higher level of detail which turns out for higher development costs. Or they could hire more artists but either way it costs more money to make the games.

The more powerful tech gets the more powerful AAA games are to make. It's easy to loose money in the gaming industry.

cyhm31121736d ago

xbox live and software need hardware to happen

solidboss071736d ago

Because this is the real world. Microsoft have fucked up with the XBone.

jspillen1736d ago

I agree that the brand is solid enough to be successful. It's been engineering choices in the 360 and the 720 that have been insanely costly. The consumers and the demand were there, but bad decisions kept them from truly cashing in.

So, with that in mind I can't imagine you wouldn't just spend the time and money to do it right now that a pipeline to consumers wallets is already in place.

Bathyj1736d ago

But is that what they're doing. Spending the time and money to do it right?

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