Top
280°

Could Microsoft sell off the Xbox?

Gamesindustry "It is, for the moment, just a conspiracy theory, and it goes something like this: Microsoft wants to get out of the games console business. It's planning to package up the Xbox part of the Devices & Studios division and separate it off from the rest of the company, so it can be sold as a going concern. Who's buying? Amazon, which views acquiring Xbox as a step towards dominance of the living room. If there's anything to this theory at all, the coming year or two could see the end of Microsoft Xbox and a warm welcome for Amazon Xbox."

Read Full Story >>
gamesindustry.biz
Oculus Quest Giveaway! Click Here to Enter
The story is too old to be commented.
Illionaire2191d ago (Edited 2191d ago )

Yes, they will. Sony will sell off divisions that don't work, so will Microsoft. For Microsoft that's the Xbox division. Stephen Elop was hired for that very reason.

Stephen Elop gets incentives for killing companies efficiently.
http://en.m.wikipedia.org/w...

Neonridr2191d ago

so Sony's TV, Computer, and Phone businesses aren't working (basically everything minus the gaming division is in trouble with Sony). You think Sony will stop making TV's or computers? I doubt that.

Illionaire2191d ago (Edited 2191d ago )

You can scale back on TV and computer production, you can't do that with a console.

Look at how things have gone.
1. Xbox One reveal.
2. Policies reversed.
3. Mattrick let go.
4. Ballmer let go.
5. The Xbox One outsold in NA and UK.
6. Xbox One outsold 2:1 in 3 months, the PS4 is never in stock.
7. Amazon rumors.
8. The price dropped.
9. Their biggest game given away.
10. Stephen Elop hired.

The division is getting axed. Anything less is wishful thinking.

tigertron2191d ago

What do you mean Sony's phone business isn't working? the Xperia division has been their most profitable next to Playstation.

As for their Vaio division, they're selling it off. So no they're not going to be making computers anymore.

sinjonezp2191d ago

In business, anything is within the realm of plausibility. When we look at the current timeline of change, I can foresee, in my opinion, and restructured model at MS. Look at how Balmer, Mattrick were let go, then the shareholders wanting a more focus business, removing Bing and Xbox division, then the hiring of the man who also supports that idea with a history of setting up such deals (ie Nokia). I believe he was brought in for that very reason. While it will not happen overnight and Microsoft will continue to push its gaming division, we could see a change in the next year if the gaming business development won't catch up. Granted I would love to see MS stay competitive because without them pushing Sony and Nintendo, the gaming market could become stagnant. The bottom line is that it is very plausible that something could shake at Microsoft in the near future.

Neonridr2191d ago

@tigertron - yeah I guess the Xperia has been doing ok for them, but I wouldn't call it a raging success. I mean next to Samsung and Apple, they are a niche market. I just meant that Sony is bleeding money in so many different areas that without the Playstation division, they would have gone under years ago. They need to streamline production. They are at least heading in the right direction when it comes to their TV lineup. They don't offer like 6000 different models anymore.

iceman062191d ago

@Neonridr..next to Apple and Samsung...EVERYTHING is a niche market. You named the two most profitable phones in the market! Sony is currently trimming the fat. They have gotten rid of VAIO and are starting to try to compete (price-wise) in their TV market. All of that was needed to stop the bleeding.
MS is in GREAT shape financially, but the shareholders are growing tired of the diminishing returns of their Xbox division.

ger23962191d ago

But Microsoft's main revenue is from software. They could sell the Xbox division at a profit. Its a business, all they care about is the bottom line. The Xbox has never been profitable for. Selling it is always a possibility. Regardless of what people think. This also applies to Sony or any company.

darkjalil152191d ago (Edited 2191d ago )

do you know sony pictures!??? spider man lol.... Breaking BAD!!! even the walking dead lol

slazer1012191d ago

@Neonridr

Sony is selling their computer business.

So yes I do think they will stop making computers.

http://www.pcworld.com/arti...

gaffyh2191d ago

@Neon - They bought back their phone share from Erikssen so they had more control over the design and release of their phones, and since the split, they have been doing very very well in the phone area.

+ Show (6) more repliesLast reply 2191d ago
Mr Pumblechook2191d ago

Jeff Bezos would love to get his hands on Xbox.

badboy7762191d ago

Not a Matter Of if but When!

JeffGUNZ2191d ago

@ Illionaire

Dude, come one. The consoles haven't even been out six months and you're making this assumption? It is currently exceeding their expectations, which is great for them. The big reason why people think X1 is doing bad is because Sony is selling PS4's at astronomical rates. No one expected the PS4 to sell like this, not even diehard fanboys expected these numbers. Just because the PS4 is doing remarkably well, does not mean Xbox is doing poorly. It's all about the bottom dollar, simple as that. As long as they are meeting or in this case currently, exceeding their projected numbers, they are doing great in their eyes.

Also, the price drop was in the UK where everyone knows was overpriced. Also, Titanfall is their exclusive so packaging it with X1 will bring them higher profit by pushing the console then just a game itself. Additionally, MS ALWAYS has bundles with big games like Halo and what not.

MS isn't like Sony, they have so much money to play around with it's ridiculous. Look at how their doing a titanfall release party, look at all the over the top advertising they do. They just invested 1 billion into their studios and already are stating they have more announced exclusives to reveal at E3. To think Xbox is going anywhere soon is just fanboy drivel. No one here is doubting or hating on PS, we get it, they are selling like hotcakes, but to think X1 is going to he sold off with all the money being invested in Xbox just doesn't make sense.

devwan2191d ago (Edited 2191d ago )

Dude, come on. The consoles haven't even been out six months and they're cutting the price and giving away their supposed box-shifting ace card in titanfall.

The reason why people think X1 is doing bad is because after an initially decent start, demand didn't just fall off a cliff, it sailed right off niagara falls.

"Also, the price drop was in the UK where everyone knows was overpriced. Also, Titanfall is their exclusive so packaging it with X1 will bring them higher profit by pushing the console then just a game itself."

If things are a-ok you don't resort to a price drop AND giving away your apparent system seller, if people were really that hyped they'd be fighting to find them in stores and paying over the odds just to have one.

"MS isn't like Sony, they have so much money to play around with it's ridiculous. Look at how their doing a titanfall release party, look at all the over the top advertising they do."

I'm sorry, you're somehow offering this as a positive? You don't see mismanagement and a complete lack of direction here compared to a ps4 that is merrily selling itself on merit alone? You think xbox is just a plaything for microsoft to continue to lavish their profits on "just because"...?

Who do you think is profiting at this point?

dcbronco2191d ago (Edited 2191d ago )

devwan

Xbox makes a ton of money foe Microsoft. Just take a second and learn how the gaming business works and then reconsider this article. No one in their right mind with any real knowledge of the business side of gaming would consider selling off Xbox. It is a business that will only grow and will eventually eclipse MSs other businesses. Don't be fooled. Just like the author admits not having insight into the division, Elop didn't either. Once he takes a real look at it he will quickly change his mind.

People make the mistake of thinking a person with a certain title must know things. Elop obviously didn't. I bet he does now.

JeffGUNZ2191d ago

Devwan

Xbox 306 sold really well and the Xbox One is outpacing the 360, how is that "sailing right off niagra falls"? The consoles launched during the busiest shopping time of the year, of course numbers will drop. Same happened with the previous consoles, especially the PS3 when it had its high price tag.

Your logic about the price drop makes no real sense. I love my Xbox One, but I would not have paid $750 or whatever the conversion to American Dollars was. Never. It was OVERPRICED in UK, so they adjusted it to the market, which is what they should have done and how it should have been priced at launch there. I love titanfall, day one for me, but I am not dropping 750 if I live in the UK, just overpriced.

How is constant advertising bad? Currently, the Xbox One is pushing more software then the PS4 and the PS4 is higher in hardware sales. How is that bad?!

Microsoft is profiting from their 360's and X1 right now. MS has announced they are exceeding their projected numbers in the territories they launched, so they are making profit. People here compare the two thinking that since PS4 is selling extremely well, X1 must be failing when in reality, X1 was very health sales numbers for the short period it's on the market. In a week or two it should pass Wii U in America.

Bottom line is it is doing good. Is their room for improvement, of course!

KYU21302191d ago

now look at what you just send. They are throwing money behind software and advertising. MS is more a software company and they know that. Xbox brand is the only real hardware success they have ever had.

Am i saying that because its been struggling coming out the gate they they would dump the hardware portion of it? No. But it would make good business sense. Sell of the hardware portion and in the contract terms MS keep the privilege of doing the software version of the system. It would look more like a partnership with someone else responsible for hardware and MS get to focus on what it does best the OS and games.

you would end up with an Xbox logo that says
Xbox powered by Microsoft.

+ Show (1) more replyLast reply 2191d ago
Manic20142191d ago

Stephen elop, is heading the entertainment and device division, he has no right in selling the xbox division, thats all the CEO's decision.

BitbyDeath2191d ago

The guy is known as an axeman and he replaced Julie who had only been in that position for 6 months.

Why replace her in such short time and yet with a guy who's had a history of preparing companies for sale? Not to mention how he has already talked about selling Xbox.

Sounds like the business has already decided it's fate by placing him there.

bleedsoe9mm2191d ago

usually not a good idea to devalue something you own before you sell it , elop's hire is payback for nokia nothing more , and if he doesn't turn it around he won't last long

Magicite2191d ago

Knack have already outsold Ryse and Dead Rising 3 and is close to Forza 5. Imagine what happens when Infamous SS and Order comes out!
Despite review scores, PS4 games are beating X1 big time.

VforVideogames2191d ago

And this is why we only have one bubble..... fanboys

Charybdis2191d ago (Edited 2191d ago )

Ridiculous they might do spinn of as the profit margins of the xbox isn't as high as the other divisions of Microsoft.

http://n4g.com/news/1457673...

Ofcourse mr Elop doesn't wants to destroy the value of the xbox division or his own career for that matter. Luckily he didn't become CEO of Microsoft.

There simply is no financial reason for Microsoft to sell the division to another company (especially when they can do spin-of) or for that matter trying to destroy the xbox division and then sell it.

gameon19852191d ago

I said yesterday that people need to stop with these Microsoft selling Xbox articles, and should worry more about Sony selling the PlayStation. we are already seeing how Sony financial problems are effecting the play station brand with all the lay offs going around. The ironic thing is the company that is supposed to be not spending much money on game studios because they are going to sell (microsoft) are hiring the people Sony are laying off. That alone should be enough for people to stop with these bs articles. I really think Sony fans are now posting these articles out of fear, fear that Sony financial problems will cost more problems then they expected for the PlayStation brand. So they post Xbox doom articles out of spite.

Mystogan2191d ago (Edited 2191d ago )

Then Sony should sell Playstation too... Microsoft makes just as much money from Xbox as Sony does from playstation,Maybe even more because of Xbox Live Gold subs. And third party games sold more on Xbox 360 than on PS3.

The Xbox isn't doing as bad as you want it to do. Sure the Xbox One is struggling to keep up with the PS4 sales but its still doing very good, considering it only launched in 13 countries and suffered major backlash.

only difference is. Microsoft has the money to keep going. Sony does not.

Microsoft is going to spend 1 billion dollars on Exclusives. Sony does not even MAKE the same amount of money in a year.

Sony NET Income 2013 $458 Million.

http://en.wikipedia.org/wik...

Microsoft Net Income 2013 $21.86 billion.

http://en.wikipedia.org/wik...

This is why Sony is being so friendly to indie devs this time around. They don't have the money to keep coming up with their own exclusives! It's not because they love Indies, its because they NEED them.

http://www.hollywoodreporte...

They are predicting a 1 billion dollar loss this year. They can't afford to keep going like this. My bet is they should sell everything but PlayStation to be profitable again. They'll become like Nintendo.

gameon19852191d ago

Got damn, I couldn't said it better my self. bubble for you my brother/sister

GW2122191d ago

That's just not how it works. Neither Sony's nor Microsoft's gaming divisions have access to the full pool of net income of the consolidated company. I cannot get into it any more than that right now without going on for paragraphs regarding general financial statement accounting/analysis and corporate finance and governance.

Further, either company divesting their gaming divisions does NOT necessarily mean a bad thing.

Anon19742191d ago (Edited 2191d ago )

"QUICK, LOOK OVER THERE! SONY!"

Yeah, if you can't discuss the issues without needing to change the topic, it's time to rethink your position. But given your posting history, should anyone really be surprised you have no interest in discussing the article?

You didn't refute one point raised.

3-4-52191d ago

They didn't bring him in for his "vibe" or anything.

He's there for a reason, and that reason is to make shareholders money.

He will do whatever is in THEIR ( shareholders) best interests.

That is almost certainly a fact.

3-4-52190d ago

They brought Elop in for a reason.

To make shareholders money.

That is usually NOT in the best interests of gamers.

* The thing is, there are only so many companies who have the money to even purchase Xbox, and then to have the money to maintain that brand and take over everything that comes with it.

That transition could be more dangerous than anything.

+ Show (8) more repliesLast reply 2190d ago
Wizziokid2191d ago

I think it will depend on how things go, it's a business after all and if they see that it might not be as profitable as they hoped it's possible they could sell. It's all about money at the end of the day.

I don't think they will sell but they could.

Anon19742191d ago

Exactly. This article isn't bad, but something that I'm surprised they glossed over is the fact that investors and board members alike would like to spin off the Xbox as they view it as a costly distraction when the money being spent on the console could go into businesses with much, much higher return on investment.

The author calls this "a conspiracy theory" multiple times but it's no theory. Big MS investors and board members have flat out said...we want to sell the Xbox. This isn't a rumor. It's been publicly stated a number of times, so we know Microsoft is under pressure to make a decision regarding the console's future. There's no "theory" there, it's a fact.

At the end of the day, Microsoft is a software and services company that has also dabbled in hardware with widely varying degrees of success. We know the Xbox division is still $3 billion in the hole over the past decade. We know the divisions ROI is paltry compared to other division's within Microsoft and we've heard that the Xbox is still losing 2 billion annually within the division (and when you start looking at the XBox's reported revenue versus the cost of revenue, marketing, R&D, headcount expenses, etc..it certainly seems feasible).

Frankly, the only reason I think the XBox wasn't turfed long ago along with the Zune, WebTV and the PocketPC was simply that it was Ballmer's baby. He was responsible for bringing about the original Xbox and he supported it despite the huge loses over time.

Now Ballmer's gone and the company is reorganizing, and the Xbox sticks out from the rest of the company as one of the worst performers.

AgitatedOcelot2191d ago (Edited 2191d ago )

EA will turn it into the first free to play console. They give you the console but it only works for an hour a day, and you have to buy gold to unlock all of the various features and make it work for more than an hour at a time.

Want all of the buttons on your controller to work? Just $4.99 on origin for the 30 day elite controller pack. Or for just $1.99 you can buy individual buttons back for 30 days.

(As absurd as this sounds it's exactly how it is in SWTOR, you have to pay to unlock the game interface on the F2P version.)

hennessey862191d ago

I hope not, some of my best gaming experiences have been on Xbox from halo and PGR on the original to forza and gears on the 360. I'm yet to purchase a one for obvious reasons but I will if they can sort there mess out starting with axing kinect.

Illionaire2191d ago

What people need to realise is the people who created the Xbox 360 are not the same people who created the Xbox One.

Look at both reveals and both operating systems. The 360 was created by gamers, thd Xbox One wasn't. Everything has gone downhill for the Xbox brand since the departure of J Allard.

Nekroo912191d ago

Even if they sell it, the xbox brand will continue and maybe the new owner will invest more in games instead of entertainment.

Sell it so samsung at least their motion recognition on tvs is better than kinect

iceman062191d ago

You wouldn't necessarily be missing all of that. It just wouldn't be backed by MS anymore. I'm more than sure that those IP would survive since they are part and partial of the Xbox brand. Maybe not as exclusives, but they would be there.

MasterCornholio2191d ago (Edited 2191d ago )

If they do sell who would buy Xbox?

P.S I heard rumors about amazon but I can't see them buying Xbox.