170°

Microsoft's New CEO Will Immediately Have A Huge Decision To Make Post-Ballmer

SEATTLE (Reuters) - The next CEO of Microsoft Corp has one big decision to make: press on with retiring chief executive Steve Ballmer's ambitious plan to transform the software giant into a broad-based devices and services company, or jettison that idea and rally resources around its proven strength in business software.

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businessinsider.com
modesign3892d ago ShowReplies(5)
GarrusVakarian3892d ago (Edited 3892d ago )

I hope they employ someone who is a little more in touch with gamers. Without sounding bias, one thing ive always like about Sony is their relationship with gamers (Kav, Tretton,Cerny). MS have always seemed a little disconnected and quick to forget about the core gamers. Just my opinion, of course.

I think with MS they come across as pure business, but with Sony its still business of course but you can imagine them playing videogames too, they just seem more passionate about games and more appreciative of gamers.

awi59513892d ago (Edited 3892d ago )

Double post sorry.

gdguide3892d ago

Not saying it's going to happen, but it does make you wonder who would buy the Xbox brand. Some companies would be tripping over eachother to buy the Xbox brand. Someone like Samsung would probably be all over this. Apple could also enter the picture.

Again though, I doubt they would sell Xbox. It's one of the things that is doing well. Although they sure did stumble with the X1 announcements.

Manic20143892d ago

In my opinion i think Samsung can do wonders with the Xbox division though i doubt MS will drop the Xbox division as they own many studios specialising in the xbox.

Anon19743892d ago (Edited 3892d ago )

Here's the problem though. The Xbox may be making money, but when you compare it to the return of capital Microsoft sees from other divisions, it's really paltry by comparison.

Imagine it like this. You have two divisions and 1 million dollars going into each division every year. One of those divisions is giving you 8% return on that money every year, the other a 40% return. Of course it's great that you're making money with both divisions, but what company wouldn't consider shifting that revenue stream to the division showing them the greater return?

That's the situation that Microsoft is facing. I've been pointing out for years this very point. Xbox sales have never been consistent. The Xbox's appeal still seemed primarily US based and never really expanded. Too much was invested to even get to this point. The returns they were seeing weren't on par with returns from other divisions. As a gamer, I saw the value in what the Xbox brand brought to the industry. As a financial advisor working in the brokerage industry for a decade, I saw a division that struggled to keep up with the rest of the company. I saw money that could be better invested elsewhere.

Analysts and other board members have been pointing this out for years as well but Ballmer was the 360's biggest proponent. Now he's leaving and we're already seeing the voices calling for the Xbox to be turfed growing louder and louder. I think it's all but assured at this point, especially considering the Xbox One doesn't appear to be poised to light the world on fire. The only question in my mind is will it be spun off into it's own company or simply sold?

Remember, this is just business. It has nothing to do with those ridiculous console wars. The Xbox division simply does not bring in the return on investment the other Microsoft divisions see, and the simple reality is it would be better for the company and for shareholders to see that capital invested internally where it can bring the best returns. It's not just the CEO, but the entire board that has to weigh on on what's best here.

Joe9133892d ago

I think Google, Samsung or even Amazon would buy it I doubt Apple would buy it but who knows.

awi59513892d ago

@Joe913

You did pull those numbers out of your but MIcrosoft announced in their conference call reporting they were making a profit of 50 dollars a console 5 to 6 years ago. So you just blatantly lied in the comment that got closed for trolling.
#2.1

That_Ninja_Gray_Fox3892d ago ShowReplies(1)
DragonKnight3892d ago

How many people are going to say "scrap/sell off Xbox?"

2 so far.

Show all comments (27)
140°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

Read Full Story >>
theverge.com
darthv7213h ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle16m ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

purple1012h ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos2h ago

I'm not surprised surface is struggling they aren't relevant anymore

XBManiac1h ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad1h ago(Edited 1h ago)

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple10144m ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos15m ago(Edited 13m ago)

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Show all comments (9)
300°

Microsoft Seemingly Closes Bethesda France

As part of its plans to cut 1,900 jobs, Microsoft has reportedly shut down operations at Bethesda France, letting go roughly 15 people

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insider-gaming.com
Hereandthere1d 9h ago

Microsoft should have left them stay 3rd party

GamerRN1d 7h ago

If they are let go, they can be whatever they want. They ARE 3rd party now... 🤦

Barlos1d 4h ago

Yeah, they're also jobless.

GamerRN21h ago

They can form a company if they want, they are just as jobless as if "Microsoft had left them as 3rd party".

peppeaccardo23h ago

"MIcrosoft leaves Bethesda do what they know how to do best" ... close! Oh the irony ....
(Citation from a week old article)

ChasterMies19h ago

I think Microsoft and other game publishers are letting people go because they think ai will replace them. Doesn’t matter how much profit they make. They were always going to be let go.

PassNextquestion1d 9h ago (Edited 1d 9h ago )

Bethesda France was made up of roughly 15 people... they couldn't of being doing much

Bethesda France mainly did publishing and marketing within the region

blacktiger1d 7h ago

that's a shame for you to say that, i'm sure Elite loves hearing what you just said.

Mr Logic17h ago

What a stupid thing to say. The elites give 0 fucks what we say on an obscure website in the comments section.

Crows9016h ago

You can always reach out and give them jobs at your company man. Don't wait

Profchaos1d 9h ago (Edited 1d 9h ago )

Bethesda France focused on publishing and marketing in the region. And 15 people lost their jobs as part of the closure.

I wonder if this is part of Microsoft's strategy to abandoned physical media or possibly gamepass advertising makes their roles redundant you don't need to market a game as hard when the majority of players get the game as part of a sub which already promoted upcoming games

Tacoboto1d 9h ago

It's France too, there's a high likelihood only 1-2 people on the team even had an Xbox.

Profchaos1d 8h ago

Possibly guven all the leaks we know the Xbox brand is really struggling in the region.

Yi-Long1d 5h ago

Well, if your consoles and games are barely found in any stores any more, of course you're gonna struggle finding consumers ...

XiNatsuDragnel1d 8h ago

Tbh Microsoft I think Bethesda being 3rd party same with Activision would probably more competitive than thus scenario imo

Profchaos1d 6h ago (Edited 1d 6h ago )

I think it would have been better for all parties really especially gamers

TheColbertinator1d 7h ago

The recently purchased Activision French offices might take over all the licensing and marketing for Microsoft in France from now on.

Show all comments (21)
280°

Xbox's Preservation Step Sets A Much-Needed Example, Especially For Nintendo

Hanzla from eXputer inquires: "If Xbox can care about preserving its games and legacy, what exactly is wrong with Nintendo, trying to kill game preservation single-handedly?"

purple10112d ago

Ahh yes the good old game preservation of saving all your games to a removable hhd on the Xbox 360, taking it round your mates house, setting up multiple tvs to
Be met with “save data corrupted, please re download”

Or how about removing 360 games
From the store
, download them now or else, and, better hope to god that save data doesn’t corrupt, or it’s lost for ever

Nice one ☝️

Zeref11d ago

It's better than what Nintendo and Playstation is doing. It might not be perfect but at least they are TRYING. Unlike the others.

DarXyde11d ago

Trying? Take off the blinders for a moment, mate.

1. A failure to preserve games is just that: a failure to preserve games. Don't try to sugarcoat it: NO ONE is doing it properly. Better than awful is nothing to write home about.

2. At the time of this comment, isn't it the case that you need an internet connection to play Xbox games even if you buy physical discs that are hardly in circulation anymore? I don't have a Series X and I can't verify, but I think that is correct. I'm fairly certain you can at least play PS5 games at version 1.0 (not much of a win really when many games require day one patches). I think Microsoft's all digital, licensing approach is by far more aggressive than anyone else's. They really try to push you to game pass where you lose your entire library by umm.... Skipping a month of payments.

I don't think anyone is doing it right whatsoever. Don't get me started on Nintendo, who goes after anyone looking to preserve their games better than they ever would with extreme litigation.

Don't be a simp for any of these companies. Get it together.

PhillyDonJawn11d ago (Edited 11d ago )

@DarX never speak on Xbox again. You lost all credibility with your internet connection comment. Smh you have 0 clue and misinformed yet speaking on something you don't no squat about.

Einhander197211d ago

What has Sony done exactly? You guys keep deflecting to Sony but I am not actually seeing any results, and ai am certain nothing that you can come up with even comes close to what Microsoft has done and what they have tried and failed to do, like tie all your disks to your account on xbone.

Microsoft removed their whole indie section when they moved to the xbone because they were going to only allow games on the service that came from a publisher, id@xbox started after xbone launched and it only exists because Sony embraced indie and Microsoft was forced to cancel their plans and reverse course.

And every single game that was part of games for windows live including disk games (I have gta 4 on disk that won't work) so hundreds of games that use that DRM no longer work unless the company themselves patched it out which of course very few did.

MrBaskerville11d ago

Not trying. Tried. they killed of the backcomp program years ago. They set something up again, but sounds like it's more of an attempt to save the current library on whatever they are planning next. With luck they save everything and more, but let's see. I could see them killing off parts of the OG xbox and 360 libraries. Can't imagine that they would allow us to play Forza 5-7 in the future.

With that said, I do like what they've done and really wish they could have done more.

shinoff218311d ago

Zeref

So killing off physical media is trying what exactly. Ms don't really give a fk if you think they do your kidding yourself.

Profchaos11d ago

They are not trying this team is established for forward compatability the team is. It interested in preserving Xbox or 360 games.

+ Show (3) more repliesLast reply 11d ago
isarai12d ago

Is that why Hellblade 2 is digital only?

Zeref11d ago

Just because it's digital only doesn't mean you can't preserve it. Just put it on an external and you have the exact same functionality of what a disc does.

MrNinosan11d ago

Guess you're trolling, but if you actually think that's how it works, I'd recommend buying some braincells.

mkis00711d ago (Edited 11d ago )

Volitile vs nonvolitile data. A disc will not corrupt either. A drive can be corrupted.

Einhander197212d ago

This is just a scammy PR move to distract from the fact they are going digital only and trying to push streaming and subscriptions only.

No gaming company has pushed harder to remove ownership than Microsoft.

Without discs there is no preservation, preservation can't be done by the rights holders it can only be done by the consumers, anything else is a lie.

12d ago Replies(3)
Einhander197212d ago

Anyone remember xblig which Microsoft removed their whole 360 indie section removing hundreds of games from people?

12d ago
12d ago
Zeref11d ago

Do you know you can put your games on an external and preserve them that way? There are no benefits to discs. ZERO. Idk why some of you are still obsessed with them.

DarXyde11d ago

Because games like Persona 5 exist. It's STILL V1.00. On Playstation, that's a win because 1.00 is installed on the disc—no need to download anything.

If a game does not require any updates, it's all on the disc.

Extremely low bar in the modern era, of course. It's not much of a win by any stretch.

But for now, physical media does have a purpose, at least on Playstation.

Einhander197211d ago

That is factually not how game licensing works, try plugging your hard drive into someone else xbox, It's not going to work, and it won't work if the licensing servers ever go down.

Einhander197211d ago

Anyone remember games for windows live.

I have around a dozen games, some on Steam itself that will not work because Microsoft shut off the licensing servers.

BehindTheRows11d ago (Edited 11d ago )

I do. I STILL have games (Gears of War being the big one) I cannot access because Games for Windows LIVE is total garbage and no one has held Microsoft accountable.

Zeref11d ago (Edited 11d ago )

You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership.

Chevalier11d ago

"You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership."

Damn how many times do people got to explain your idiocy to you? You can take a copy of Persona 5 like someone used as an example and play that game on ANY console WITHOUT logging in which means I can lend the game to a friend without internet and they can play my game. Can you lend your hard drive to anyone without logging in for them to play? NOPE. That is a huge difference and if you think otherwise then sorry you're an idiot.

Tacoboto11d ago

"No gaming company has pushed harder to remove ownership than Microsoft."

Ubisoft is literally erasing games people bought from their libraries... My PS1-3 discs are useless on modern hardware. Nintendo's re-published and resold almost their entire Wii U library, and the eShop is completely dead with no BC mechanism in the Switch software. Microsoft publishes everything they make today day one on Steam and Xbox/Windows. Sony only brings to PC the titles they think you might want some years later and Nintendo won't even design a functional long-lasting joystick.

You're absolutely trolling and not serious if you think Microsoft today is the worst offender.

shinoff218311d ago

Yay steam

Not everyone fks with computers though. The disc is still the best way as a console player. Period.

Tacoboto11d ago

How do Sony and Nintendo feel about these discs from 2001-2013?

Don't be stupid, you know Xbox is the best at this today.

+ Show (3) more repliesLast reply 11d ago
Hofstaderman11d ago

Nobody wants this. Sales or the lack of it in the case of XBOX is very telling. I wonder how the adorably all digital series X will fare. Adorably dismal perhaps?

crazyCoconuts11d ago

Only time will tell, but for from someone like me suspecting that Xbox is trying to gracefully exit the console market, that "forward compatibility" team is trying to get Xbox games playing on Windows PCs. I mean, it's nice that they're not planning on exiting with a "enjoy your games while the hardware still works" message, so that's nice. They still have a brand to protect via Microsoft so probably feel obligated to have a better exit strategy.

Xeofate11d ago (Edited 11d ago )

That is not their plan, their plan is to transfer users accounts to the cloud.

Phil Spencer himself said as much a few months back, plans could have changed but I think people are reading way too much into one statement where Phil said he would allow Epic on xbox because he wants to be able to sell xbox games directly on other platforms. Aka, instead of selling Sea of Thives through PSN he wants to have an xbox store to sell his games on PlayStation without giving PlayStation any money.

Again, it's extremely unlikely that Phil plans to put PC on xbox and licensing would prevent them from just giving out other publishers games purchased on xbox copies of thier games on PC, Microsoft does not own their games.

crazyCoconuts10d ago

The thing that doesn't align with the cloud strategy is the giving up on exclusives. You'd still need strong exclusives for cloud streaming - it's still a "platform" , just with a lower upfront hardware investment. I feel like they've learned what PS learned with PSNow long ago. We're not ready to stream games and it's only gonna lose them money to try at this point

FinalFantasyFanatic11d ago

I would love that, I'd buy up some of the Xbox games if they could run on PC, like the Rare Replay, Lost Odyssey and Dead or Alive Ultimate, probably a pipe dream though.

Show all comments (43)