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Cramer: Microsoft spinning Xbox

CNBC's David Faber and Jim Cramer discuss Microsoft's potential buy of Sweden's "Mojang," the maker of the "Minecraft" video game. Cramer says Xbox is not core to Microsoft and this is the beginning of a spin off.

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Quicktim31071d ago

wow bold prediction. hes pretty much saying that this is a done deal and xbox will soon be a goner.

that would not be good...

pedrof931071d ago (Edited 1071d ago )

I belive that the minecraft deal is to put minecraft in every windows PC. Like minesweeper and pinball but this time with minecraft. Either that and their going totally software. What's the point of Xbox (and tablets) in software only company anyway ? But Xbox spin off would be bad, because Sony without direct competition would simply slow down and it would be bad for us gamers.

Mr Pumblechook1070d ago (Edited 1070d ago )

The commentator thinks the acquisition of Mojang by Microsoft signals their desire to make the Xbox division attractive to any potential buyers - I disagree.

I think most commentators on N4G, myself included, can tell you that is a strange deduction. When you are looking to sell you don't SPEND $2 Billion! Minecraft, appealing as it is, is not the one IP that would make a company want to buy Xbox, MS already have Halo.

Microsoft's purchase of Gears of War and Halo from Bungie demonstrates they buy valuable IP to help promote their platforms and Minecraft is very attractive.

-Foxtrot1070d ago (Edited 1070d ago )

Sony will have Nintendo though to compete against, it wouldn't really be about sales then but would be about games and exclusives.

I'm guessing if the focus was on that in direct competition with Nintendo like back with the PS1 and N64 Sony would want to keep trying to find it's Mario and Zelda. They did this with Crash Bandicoot, hell look at the ads back then with Crash standing outside Nintendos office..."Your worst nightmare has arrived".

I don't think it would be that bad to be honest, gamers might stop making it about sales and start making it about games again. I'd rather hear "My console is better then yours because of X, Y, Z games" then "My console is better then yours because it's got 10 million sales". I'd like to think Sony aswell would get serious with JRPGs with Nintendo housing some on their console.

Charybdis1070d ago (Edited 1070d ago )

xbox brand will not go away looking at the video it seems that he is interested in owning a part of the xbox and brand if spin off hapens.

1070d ago
fr0sty1070d ago

Minecraft has nowhere near the popularity to justify a 2 billion dollar purchase.

SilentNegotiator1070d ago

They don't even include MineSWEEPER anymore.

k3rn3ll1070d ago

I'm afraid you all have the wrong idea as to what spinning off is. It would basically make xbox it's own corporation. Not selling anything. They would then have their own ipo which would create more money for future acquisitions. Sorry to disappoint everyone that wants xbox to disappear because a spin off would not be the case.

ABizzel11070d ago

Well, well, well looky here. I think this is all a bit of a stretch, and I don't see how buying Mojang could represent MS spinning off Xbox. However, I truly do hope this is the beginning of my 3 platform future.

Sony sticking to the console business
Xbox going back to their PC roots with a PConsole hybrid
Nintendo making a Handheld-console hybrid

All 3 platforms would still be great gaming devices, but each would be unique and and dominate their niche, and hopefully sales will be great for all 3.

Sony would have the traditional console, sticking with the PS consoles.

The Xbox system would be similar to Steam Machine, or basically a PC in an Xbox case. They would be able to use straight off the shelf products allowing them to make a powerful, but affordable PConsole, and best of all it would benefit PC gaming since it can become the target hardware for PC game standards allowing rigs to scale up or down from the Xbox.

Nintendo is best suited for a Handheld-hybrid console their handhelds greatly outsell their consoles and Japan is a handheld / mobile market, and a hybrid device would allow them to not only get the usual 80m - +100m handheld sales, and at the like Sony is doing with the PS4 they can focus their entire 1st party on one platform and not have to split their efforts on two different devices.

Still competition, but each having their own lane to dominate, and offering something completely different from one another.

mikeslemonade1070d ago

SMH the users here on N4G don't know what's good for them.

Tomb Raider a timed exclusive, a good thing.

Mojang bought out, a good thing.

Final Fantasy multiplat, bad.

Resident Evil multiplat, bad.

MGS multiplat, bad.

You need differentiation and more reasons to buy a system.

redwin1070d ago (Edited 1070d ago )

If we loose MS in Xbox, Sony will bring us back to Walkmans .. Oh lord !

choujij1070d ago (Edited 1070d ago )

Either way, I think something's eventually going down. If it is spun off, I question whether it's ip portfolio, investors or the potential acquisition of Mojang and it's ip will be able to keep Xbox afloat. Especially in it's current state. Without MS' deep pockets, it may end up with the same fate as Atari or Sega.

+ Show (8) more repliesLast reply 1070d ago
Kayant1071d ago

"xbox will soon be a goner" - Console wise maybe but not brand wise.

DonDon1070d ago

I like that there are multiple competitors to keep Sony on it's toes. However, I don't think Microsoft is good enough. MS has introduced more harmful things to gaming in just a generation than any other company has since the beginning of gaming. All MS does is throw money aro7nd to turn otherwise multiplatform games into exclusives--which doesn't add anything positive to gaming industry because xbox was getting that 3rd party game by default anyway (since it's 3rd party). Why not just create their own new IP's like Sony does? Plus parity clause, misleading commercials about 3rd party games, introducing the pay for online scheme in the first place, lack of Japanese support, and overall disinterest on what actual gamers want, etc. To hell with Microsoft. Let them fade away and sell the Xbox Brand to a company who can turn it around.

S2Killinit1070d ago

Totally agree with you. I dont want Xbox to be gone but i do want MS to step aside from gaming, they are not in it for games/gamers. Another company taking over cbox would be good, as long as xbox itself sticks around.

1070d ago
k3rn3ll1070d ago

Yea cuz when studios and ip are up for sale all the big players should just back away and not buy shit. Stop acting like when a company is up for sell its only because MS offered them. You don't know business son. That's how shit works in the Movies. IRL businesses are bought because they are up for sale. Not just because they're are conglomerates throwing at them and they switch their position to selling

bleedsoe9mm1070d ago (Edited 1070d ago )

thats not what he said at all , he said xbox spins off , and with the influx of cash from having its own stock holders (and as leverage) they get even bigger acquiring more studios , mojang being the corner stone .

k3rn3ll1070d ago

I'm amazed. I thought I was the only one who knows what a spin off is. Everyone else thinks it means sell off. But you are correct. No one will notice they will go back into saying the purchase on mine craft is the end of days lol

BitbyDeath1070d ago

I still think it'll be Amazon who buys them if anyone.
Amazon have been doing a few things behind the scenes which points to them getting into the gaming industry.

Charybdis1070d ago (Edited 1070d ago )

would be interesting to see what would happen with the equivalant shares given to the microsoft shareholders. a major bid of amazone on majority shares on the spinn of would increase the value of the shares and capital for the xb brand

MrPerfect8131070d ago

I agree, the amazon fire phone has been a flop so far. But I could see amazon integrating their services into Xbox even more than they are already.

Charybdis1070d ago (Edited 1070d ago )

not really spin offs are quite common and would make sense for microsoft investors. It would most likely increase investor returns as this is the case and reason for most spinn offs. As a seperate entity the xbox brand should be able to focus more on it entertainment services and branding.

Biggest takeaway is that a corporate spinn of isnt really a divestment or a sale in this case it would allow the xbox brand to distance itself from the corporate brand image and history while still beeing backed by Microsoft.

Dlacy13g1070d ago

+bub for getting how this could work

jnemesh1070d ago

You are right! It would not be good, it would be GREAT! The sooner Microsoft exits the market, the better off gamers will be!

llxKonanxll1070d ago

How would Xbox spinning off into it's own "thing" be any different than Nintendo?? It would definitely not have the financial backing that would benefit it's weak sales. But it wouldn't necessarily mean it would be a "goner".

Evilsnuggle1070d ago (Edited 1070d ago )

Let explain just because microsoft wants to spin off xbox brand. Doesn't mean that x1 or xbox brand is doomed . Not at all go check my comment I have said here on n4g multiple times . That microsoft want to spin off xbox brand . why because microsoft doesn't know really know how much money xbox brand is costing the parent company. If microsoft spins xbox brand off then they can see if it's losing money or making money .

The only real problem that x1 will face is if xbox brand is spin off .x1 would be on a budget . No more endless advertisements or less spending on 3rd party exclusive . This comes at a bad times being so badly out sold by PS4 . x1 could use that money to help even the playing with PS4.

Personally think that this will be the last xbox brand hardware. I think that microsoft will turn xbox in to a cloud games streaming service like a gaming netflix.

Analyst Rick Sherlund believes that staggering losses on the Xbox business are being masked by Android royalties.

It's hard to make money making game consoles but the assumption, as I understand it, is that if a company can power through the lean early years, it'll eventually figure out how to start turning a profit on the things - not a lot of profit, perhaps, but at least a little bit.

According to Nomura analyst Rick Sherlund, however, Microsoft isn't quite over that hump just yet. It is, in fact, bleeding money at an alarming rate, but nobody's noticed because the losses are masked by Android licensing revenues.

"If we start with the overall traditional [Entertainment and Devices Division] business that actually loses money before corporate allocations and back out the nearly $2 billion 95 percent gross margin Android phone royalties, we conclude that Xbox platform plus Windows phone and Skype lose about $2.5 billion per year, and we estimate that the Xbox platform may account for roughly $2 billion of this," Sherlund said.

http://www.escapistmagazine...

VealParmHero1070d ago

If this was true, and they do "spin off" xbox, that doesn't mean it needs to be closed down. It just means xbox becomes independent of MS and becomes its own company with its own executives etc. I mean who knows what would happen then, but I just want to point out that a spin off does not mean selling off each part and breaking the brand up. So this would not mean the end of xbox, at least not directly.

Christopher1070d ago

How do you translate to mean Xbox will be a goner? They're talking about Xbox being spinned off into its own company with its own stockholders and whatnot. Essentially MS thinks this is viable enough of a product, they want to make it its own entertainment focus under just the Xbox brand and with its own officers, stockholders, and whatnot.

TruthInsider 1070d ago

Please be true, please be true!

Microsoft need to dissapear, gaming has gone downhill ever since they came into the console business and took everyone for foolish, backward cash cows!

Good riddance!

+ Show (9) more repliesLast reply 1070d ago
aviator1891071d ago

I doubt they're going to spin it off.
The best reason ms is buying mojang is to further push minecraft's influence everywhere and to gain that additional revenue stream that minecraft produces, something that would be wise to have for the xbox division.

MRMagoo1231070d ago

further push minecraft..........seriously ??? minecraft pushed further to the market, the market where even a cat would knows what minecraft is. I dont think minecraft needs any help at all with marketing.

Sayai jin1070d ago

@MRM- Minecraft is very popular, but marketing would go into licensing, money, etc. More money for things like movies, kits, clothing, spin-offs, making it part of the OS games, etc. I think people are assuming MS is making this deal for just Minecraft, but I believe its a lot more than that. They will be able to provide more money to push the brand. Mojang could be working on a new project. MS would get a cut of the profit. The MS Top Exec said they were going to bring the Xbox brand/MS to the mobile arena....minecraft wwill help grease the reels.

djtek1841071d ago

Somebody send me the embedded video link so I can fix it

uptownsoul1070d ago (Edited 1070d ago )

this what you looking for? http://video.cnbc.com/galle...

Sorry, the description says Cramer and Microsoft but the videos are all random