XBox to be spun-off into its own company [speculation]

[gsquared]

Take it with a grain of salt but thats the word on the street.

 

[WanderingTraveler]

Hmm.While anything is possible after the announcement today, Microsoft already has a lot on the line for the XBOX One.

Remember, their XBOX division is the only consumer-oriented division that generates profits for Microsoft. Their expertise and exclusive IPs create a Halo effect.

Pardon the pun.

 

[crash1989]

Take it with a grain of salt but thats the word on the street.

Don't want another early morning surprise for a few more weeks. :\

 

[martinmc78]

Hmm is that because Elop and Green are technically in charge of the same division?

Cant see it happening myself. Green will move sideways until Elop gets named as Balmers replacement and then its business as usual

 

[SnailUK]

Can't see it myself.

The whole vision is that Console/Phone/Tablet/Computer all use the same kernel, and apps can be easily ported between them.

Being that Android can do Phone/Tablet/Console (Ouya), Microsoft definitely need to be working on that.

 

[Zaxiusii]

I don't see that happening. After all the time Microsoft put into the "One experience on all devices" I think it would be stupid to devide that. The whole plan for Microsoft is to be in your living room, in your car, on your phone, on your tablet and everything be integrated and in your face at a moments notice. "One" is an extension of that. Rumors are Rumors but that one cant be true.

 

[Keith Wallace]

With the not-so-great Windows 8 market and the lagging Windows Phone matter, Xbox is one of the biggest brands with real success right now. They can't really do that now.

 

[gsquared]

Personally I'm undecided on whether it would be a good move. I actually think this whole talk is a few larger shareholders (hedge funds - aka, corporate raiders) wanting to release some value from the company. My gut says Big Bill will step-in and put an end to it.

 

[Keith Wallace]

How can you be undecided on it? I mean, what would Microsoft gain here? Xbox is their only real example of succeeding in the hardware sector so far, and with this intent to be a "devices and services" company, Xbox is the only device they have with renowned success.

 

[gsquared]

It would depend on whether they were able to keep majority control or not. If yes, the division may be able to better function on its own. If no, then they could change on what MSFT has been working towards. Like I stated, I think this is just an attempt by corporate raiders to release value from the company. Or stated otherwise; destroy shareholder value in the company for their own gain. Thats what they are good at.

 

[michfan]

How can MS succeed as a devices and services company without XBox console, Xbox games/apps, Xbox Music and Xbox Video? One of their major problems with Win8 and WinPhone is that they've done such a poor job of integrating these services across computer, phone, tablet and console. If they ever get this figured out, it'll be a goldmine.

 

[Blu3V3nom07]

I don't like that idea. Then its easier to kill off Xbox, and that's not so great. :/

 

[AR2186]

Not going to happen, it isn't really a stand alone business and it runs Windows

 

[a5cent]

Remember, their XBOX division is the only consumer-oriented division that generates profits for Microsoft.

No. The Xbox division is a financial failure. It has lost MS billions over the last decade.

I think there is a good chance that the Xbox division will be spun off if the Xbox One fails to be profitable. Although I consider that a terrible idea, investors have little interest in long term visions.

Unfortunately, popularity isn't the same as success.

 

[Polychrome]

I call this unlikely. VERY unlikely.

Whatever you think of Xbox, the purpose has always been to loop everything back to Windows. Love it or hate it, Microsoft likes *Windows* as the dominant gaming platform. Now they're doing all they can to merge the two at last, and *now* we're getting speculation that Xbox is going to somehow leave Microsoft?

Nah.

 

[TonyDedrick]

Who knows? Corporations have done stupider things in the past.

 

[spaulagain]

This has been rumored off and on ever since someone noted share holders wanted it sold off. Share holders wanted it sold for short term gain and fear of long term profit margins (or lack there of).

But it completely goes against the long term goals at Microsoft. And why would they pay $7b on the Nokia hardware decision only to turn around and sell they're only current hardware division.

Xbox is probably the most respected product/division at Microsoft. Not to mention it has a powerful fan base. It would be self defeating to sell it off.

Rumors like this should be flushed down the toilet like the rest of **** in the world.

 

[AR2186]

It also isn't a viable stand alone business, as it barely breaks even without the true costs of developing an OS (which they would have to do if it spun out). It works as a component of a larger strategy, but not by itself

 

[spaulagain]

No. The Xbox division is a financial failure. It has lost MS billions over the last decade.

I think there is a good chance that the Xbox division will be spun off if the Xbox One fails to be profitable. Although I consider that a terrible idea, investors have little interest in long term visions.

Unfortunately, popularity isn't the same as success.

Xbox would completely fall apart and the Xbox One would be worthless. Its so much more than just a game console now. Not too mention its built on Windows 8. Its an integral part of the ecosystem. It would be like cutting of they left leg.

Investors love to swing their **** around to strut their stuff, but ideas like this come from nut jobs only concerned about todays end dollar.

 

[spaulagain]

It also isn't a viable stand alone business, as it barely breaks even without the true costs of developing an OS (which they would have to do if it spun out). It works as a component of a larger strategy, but not by itself

Exactly, you'd have to be stupid to buy the thing. A) it's still financially unstable when it comes to profits B) it just doesn't stand on its own and would fall apart without Microsoft's control.