Elop could kill Bing and sell Xbox if he's made CEO

[anony_mouse]

You are missing the point about the XBox. It is first and foremost a gaming console and all the other features are extras who want more from their console. It is designed for gamers in mind, not for those looking for a TV solution. It's not like you would buy a PS3 just because you wanted to use it for Blu Rays when there are cheaper, standalone blu ray players out there. MS has no intention of going into that TV player market at the moment so I don't know why you keep bringing it up.

[Deep breath]
This is exactly my point! Exactly, precisely, 100% my point! I believe you yourself advocated that Microsoft should be "in entertainment". Let me check...
[Scrolls up the page]
[Scrolls back down again]
Indeed, sir/madam, you did! A cheap(er) TV box could be a good way to do this, yes? And bring those TV (etc) services, and integration with tablets, PCs (etc) to the masses? What's not to like?

Also why would you say that a cheaper TV box would make them money? As succesful as Apple and Google are their own Apple TV and Google TV, Nexus Q etc didn't sell too well. Chromecast looks like a good idea but it has some key issues and hasn't really caught on as well. For someone that is saying that MS has their fingers in too many pies you want them to make another device as well?

[And another deep breath]
I said that some things Microsoft does internally, might be better done externally. Not that Microsoft should never get into another business.
Would it make them money? Well, again, some people (even those in this thread, believe it or not!) have suggested that Microsoft should be 'in entertainment'. Now, consumer electronics is a difficult market, as our friend above quite rightly pointed out. Maybe Microsoft should get out now while they still can. But if they want to make their services a success, surely it would be good to get those services as widely used as possible?
Perhaps, just perhaps, do you think they could actually make something better than Apple TV or Chromecast?

 

[Reflexx]

The article is not very convincing.

It is if you understand the technology.

For Bing, it misses the point that Microsoft could buy search from Google, an independent Bing, or whoever. They could choose whoever offers the best terms and the best service. There's no reason why they have to do everything internally - very few companies have the resources or the expertise to do this. The question is whether independence on search is worth $1bn per year (as quoted in the article) to Microsoft, and whether it is the best use of the talent that Microsoft has available. I see many complaints here about features missing from WP - perhaps the Bing talented engineers would be better employed fixing that.

You don't understand what Bing is. It isn't just an internet search engine. It's a much broader technology than that. It's a way of sifting through and aggregating data from all sorts of applications; not just from the net.

The future will require applications to communicate with each other and share information. For Microsoft, Bing is a HUGE part of this.

Removing Bing would require almost every other department in MS to lose years of work. It would put them behind technologically.

In order to recover, they'd have to replace it with something internal because of how deeply embedded it will be with the operating system. Essentially, they'd have to recreate Bing.

I was surprised at how badly xbox performs, but I still doubt Microsoft will sell or dispose of it. It is at least nominally profitable over the life of a games console. This quote from the article is very odd:
"The Xbox also continues to be valuable as a hedge against the possible (if unlikely) rise of smart TVs and streaming set-top boxes."
Why does Microsoft need to hedge against the rise of Smart TVs and streaming set-top boxes? How would they damage Microsoft's interests? It's hard to believe that a games console costing 500 euros will compete with products like Google Chomecast, which cost less the a tenth of that. Why doesn't Microsoft address the TV market properly?

The purpose of XBOX is as a delivery method. For now, it's a stand-alone console. In the future, XBOX may end up being integrated into TVs or Set-Top Boxes.

They are building a service infrastructure for the future. However, the most efficient delivery method for those services right now is through a console.

What do you suggest? They should wait a decade before acting? Be late to the game?

Regarding the comment above "That was a good reality check and explains why selling off divisions would only cater to investors." Once again - please explain how the interests of Microsoft differ from the interests of investors.

The long-term interests of Microsoft are very different than the interests of the new breed of short-term investors.

Short-term investors don't care about long term strategy. They don't care about future growth. They don't care about making the investments necessary to be relevant 10-20 years from now.

They just want the quick buck. And they're perfectly willing to sacrifice the company to get it.

 

[Reflexx]

As for a stand-alone XBOX that doesn't focus on games...

Who says that isn't in the pipeline?

The XBOX brand is mainly linked to games. A stand-alone may not be very viable right now because the brand itself is so tied to gaming.

But as the XBOX ONE starts establishing itself more in multimedia, and the brand starts becoming accepted as something broader, then creating a cheaper unit that is not gaming focused may become viable.

 

[tgp]

The long-term interests of Microsoft are very different than the interests of the new breed of short-term investors.

Short-term investors don't care about long term strategy. They don't care about future growth. They don't care about making the investments necessary to be relevant 10-20 years from now.

They just want the quick buck. And they're perfectly willing to sacrifice the company to get it.

Long term investments don't always work out as expected either. I'm sure that if someone would've told the powers that be at WP's launch 3 years ago that in 3 years their global market share would be < 5%, they would've said that that's ridiculous.

 

[Jas00555]

Alright, well I already voiced my opinion on what I think Microsoft should do about Xbox (though I admit I don't everything about their inner workings), and I think its a solid idea, now after thinking hard about it, I think I have an answer about Bing.

What if, instead of keeping Bing as its own entity that investors can determine if it should be sold (and really, its not but investors see it that way), what if they integrated it to such an extent that its basically a part of the OS and its one if those things that you just can't get rid of. They've already started that with Bing smart search in W8, but by integrating it into WP, W8.X, and maybe Xbox, though I'm not 100% sure how it would work with Xbox, they could basically tell investors that its too vital and taking away Bing would be like taking away internet explorer or something like that.

Again, this is on the assumption that the next CEO is being hounded by investors to kill Bing.

Edit: also, I forgot to mention that by integrating it, MS could potentially just include it as OS development. They make enough off the OS to offset Bing.

Thoughts anyone?

 

[Reflexx]

Long term investments don't always work out as expected either. I'm sure that if someone would've told the powers that be at WP's launch 3 years ago that in 3 years their global market share would be < 5%, they would've said that that's ridiculous.

3 years isn't exactly long-term.

 

[Reflexx]

Alright, well I already voiced my opinion on what I think Microsoft should do about Xbox (though I admit I don't everything about their inner workings), and I think its a solid idea, now after thinking hard about it, I think I have an answer about Bing.

What if, instead of keeping Bing as its own entity that investors can determine if it should be sold (and really, its not but investors see it that way), what if they integrated it to such an extent that its basically a part of the OS and its one if those things that you just can't get rid of. They've already started that with Bing smart search in W8, but by integrating it into WP, W8.X, and maybe Xbox, though I'm not 100% sure how it would work with Xbox, they could basically tell investors that its too vital and taking away Bing would be like taking away internet explorer or something like that.

Again, this is on the assumption that the next CEO is being hounded by investors to kill Bing.

Edit: also, I forgot to mention that by integrating it, MS could potentially just include it as OS development. They make enough off the OS to offset Bing.

Thoughts anyone?

It's pretty much true though. It is being tightly integrated.

The whole story is BS.

The board is actively looking for a CEO that can continue the path that has been laid out. They have already publicly stated this.

If anyone is to make the short list, it's because they meet that requirement.

 

[tgp]

3 years isn't exactly long-term.

You're right, 3 years isn't long term, but I'm sure that they thought market share would be much higher after 3 years than it is.

 

[HeyCori]

I will also like to point out that spinning off Xbox or Bing into a separate business, or even selling them to another company, could have far deeper consequences than simply a loss of potential revenue. Especially in regards to Bing. Bing isn't just a search engine. As Ars again put it:

The Bing integration in Windows 8.1 is a sign that the company is working to put those days behind it. The Bing group's knowledge and expertise—collection and processing of vast amounts of data, extraction of semantic meaning—is being used to make another group's product—Windows—better.

Now say Bing is spun off. Let's even say that Microsoft handpicks the CEO and has a exclusive license for the next five years. Things change in five years. That handpicked CEO might get tossed out if he can't turn a profit. A new CEO might come in that isn't so Microsoft friendly. And when it comes time to renew that exclusive license, suddenly Bing Inc. sees more opportunity in licensing their software to everyone. Should we call that the Marissa Mayer effect?

Microsoft can't have its cake and eat it too. Basically, it can't spin Bing off while also maintaining 100% control over it. At some point, Bing Inc. could very well break ties with Microsoft. While Bing isn't profitable, the software behind it is a HUGE weapon. You don't want that just floating out in the wild. You don't want Bing to get snapped up by a competitor like Samsung or Apple. As Reflexx said, losing Bing would be a huge setback and erase any chance of them ever challenging Google.

 

[Jas00555]

It's pretty much true though. It is being tightly integrated.

The whole story is BS.

The board is actively looking for a CEO that can continue the path that has been laid out. They have already publicly stated this.

If anyone is to make the short list, it's because they meet that requirement.

Oh, I agree, the whole thing with Elop is a bunch of BS. I can't say for certain since I'm not Elop, but I'd be willing to bet money. That still doesn't change the fact that I see analysts and (some) investors begging MS to get rid of Bing and Xbox.

 

[The Hustleman]

Recent reports suggest the company has shortlisted Ford CEO Alan Mulally and former Nokia CEO Stephen Elop as external candidates. Mulally has stated he has no intentions to leave Ford, but a Bloomberg report claims that Elop has big plans if he?s made CEO.

Elop?s return to Microsoft in the CEO position would reportedly involve a push for Office on Android and iOS. Elop is reportedly considering a strategy shift away from Microsoft?s tradition of Office running primarily on Windows PCs. Elop?s potential strategy is said to involve maximizing sales of Office instead of using it to push Windows PC and tablet sales.

Bloomberg also suggests that Elop is willing to shut down or sell some major Microsoft businesses. Elop would reportedly considering killing off the company?s Bing search engine, while contemplating selling the Xbox business.

Some investors and analysts have previously called for the software giant to split off its Xbox business and give up on search. Microsoft co-founder Paul Allen appears to feel the same way. Allen?s $15 billion asset manager, Paul Ghaffari, revealed recently that Bing and Xbox have been distractions for Microsoft. "My view is there are some parts of that operation they should probably spin out, get rid of, to focus on the enterprise and focus on the cloud." Nomura analyst Rick Sherlund claims Microsoft?s financial earnings could be boosted by 40 percent in fiscal 2015 if the company sold its Bing and Xbox businesses.

Any sale of Bing or Xbox seems unlikely, despite continued suggestions over the years. Microsoft is moving to integrate its search engine experience directly into Windows 8.1 and Windows Phone, and the company is just weeks away from launching its next-generation Xbox One console. Bing also powers a number Xbox search and app features.

Source: http://www.windowscentral.com/elop-dropping-bing-xbox-if-appointed-microsoft-ceo

Why would you want to sell xbox when it's like the main money maker for Microsoft right now?

They're raking in billions from the xbox and we're about to enter the 8th gen, first with the ps4 then the xbox one, no way you sell it!

 

[alv3st3r]

Why would you want to sell xbox when it's like the main money maker for Microsoft right now?

They're raking in billions from the xbox and we're about to enter the 8th gen, first with the ps4 then the xbox one, no way you sell it!

You missed a lot of posts here, didn't you?