Xbox One Microsoft CEO candidate Stephen Elop said to consider selling Xbox business

blackbagel

blackbagel

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What do you guys think about the new CEO candidate thinking of selling the Xbox business? I personally think they shouldn't do this because it's one of the things that people love about Microsoft.

Elop is reportedly considering a strategy shift away from Microsoft’s tradition of Office running primarily on Windows PCs. Bloomberg reports that Elop is formulating "some broad strategic outlines for Microsoft," in what is likely to be part of the interview process for the CEO position. Elop’s potential strategy is said to involve maximizing sales of Office instead of using it to push Windows PC and tablet sales. Microsoft’s Office and server software has been performing well in recent financial results, while Windows continues to struggle alongside a declining PC industry. Although Office has launched for iOS and Android, Microsoft could certainly do more to offer complete versions on those rival platforms.

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.
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via The Verge
 
I read about this and it was a bit unsettling. Probably not the type of news you want to release prior to a big game system release. Have to say, MS definitely has been tripping over themselves since they first announced the XB1.

J
 
Worst idea ive heard all day. If they killed xbox and bing the microsoft brand would take a serious blow
 
Derek H said:
Worst idea ive heard all day. If they killed xbox and bing the microsoft brand would take a serious blow
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Well not kill it, sell it. Either way I think it's a terrible idea.
 
This RUMOR has already been DEBUNKED by Microsoft. Bloomberg is just starting RUMORS.. Microsoft would rather consider shutting down their gaming division rather than selling off the XBOX Brand!


"Countering comments from Nomura Equity Research, other analysts tell us that selling off the Xbox business would be "beyond stupid"
http://www.gamesindustry.biz/articl...e-games-business-before-selling-xbox-division

"Microsoft shouldn’t hire any CEO who wants to kill Bing and Xbox"
http://arstechnica.com/information-...hire-any-ceo-who-wants-to-kill-bing-and-xbox/


Report: As Microsoft CEO, Elop could kill Bing, sell Xbox business
by Cyril Kowaliski — 5:11 PM on November 8, 2013


The search for a new Microsoft CEO is still underway. According to Reuters, the top five candidates include current Ford CEO Alan Mulally and former Nokia CEO Stephen Elop. Bloomberg also believes Elop is a contender—and the news agency has learned some juicy details about what Microsoft might look like under his leadership.

Before joining Nokia in 2010, Elop headed Microsoft's Business Division, where he reportedly "pushed the company to enhance and find new ways to sell [Office] software." Bloomberg says Elop would pursue that same strategy if named CEO. Quoting "three people with knowledge of his thinking," the news agency says Elop would "consider" making Office software "available on a broad variety of smartphones and tablets"—including iOS and Android devices.

Bloomberg also says Elop would "consider" shuttering Bing, Microsoft's search engine, and selling off "healthy businesses," including the Xbox, "if he determined they weren't critical to the company's strategy."

Well, isn't that interesting? As little as I care for Bing, I'm not sure killing the only viable rival to Google's search engine would be a good idea. The same goes for selling the Xbox business, which, in addition to being successful, has given Microsoft a pretty huge presence in the living room. Of course, a leaner and meaner Microsoft might do a better job with its core products—Windows and Office. Hmm.

Good thing this is all pure speculation. When asked by Bloomberg to comment, Microsoft replied, "We appreciate Bloomberg's foray into fiction and look forward to future episodes." (Thanks to The Verge for the tip.)

http://techreport.com/news/25629/report-as-microsoft-ceo-elop-could-kill-bing-sell-xbox-business
 
Doubt it. Microsoft is too smart to give up one of their best selling divisions. Xbox has been their highest grossing product since the 360.

J
 
Jedioutcast said:
Doubt it. Microsoft is too smart to give up one of their best selling divisions. Xbox has been their highest grossing product since the 360.

J
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Actually recent rumors by Wallstreet analyst state the XBOX 360 has been costing MSFT 2 billion a year in recent years, but the XBOX division is the same division as the patents used for Android which make up for the difference. This is however contrary to news we had heard in the past which said after the 3rd year the 360 became profitable.
 
KN1GHTMARE said:
Actually recent rumors by Wallstreet analyst state the XBOX 360 has been costing MSFT 2 billion a year in recent years, but the XBOX division is the same division as the patents used for Android which make up for the difference. This is however contrary to news we had heard in the past which said after the 3rd year the 360 became profitable.
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Now that is interesting. Although, thinking of all MS products, it seems as if the Xbox is the only popular product aside from their "Windows" division. And Windows 8 has been a hard sell for folks with desktop systems.

J
 
Almost had me there, though I do agree with the launch of Windows 8 being a pain for most users because I'm still going strong with a Windows 7 Ultimate 64-bit. Just a sign to get better laptops/PCs and not getting impatient quickly over a few modifications with the interface.

Especially when there’s news for Microsoft to have more PC user-friendly games, I highly doubt they’ll want to be absolved from any opportunity in sustaining their authority. You can never be too sure though, things can change in a few years. Even if there were to be a sell-out, they can get it back very easily. Either way, it’s just speculation over something that’s improbable at this point.
 
I'm sure if this occurs, MS will create a company solely responsible for the Xbox. Doubt they will be willing to simply say goodbye to this product.

J
 
So, it turned out to be a rumor after all. I for one was among the many people who thought this was the real deal and they may end up selling XBox. Would definitely have been a stupid decision if it was happening.

Weird that this rumor came out when X1 is coming out. I am pretty sure this would have hurt the console if it had gotten out of hand.
 
SpiralArchitect said:
So, it turned out to be a rumor after all. I for one was among the many people who thought this was the real deal and they may end up selling XBox. Would definitely have been a stupid decision if it was happening.

Weird that this rumor came out when X1 is coming out. I am pretty sure this would have hurt the console if it had gotten out of hand.
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As in the post I started days ago, it's as if the media is intentionally trying to make sure Xbox One fails and PS4 wins.

J
 
That is a weird way of announcing such abstract and blurry news just before release/
I sometimes just don't get Microsoft, really
 
It is questionable at times...

J
 
Those news are quite controversial.
Of coarse, sell it if you can't handle it, but why start if are not capable to finish your plans?
 
lol. Spreading such rumors just before the X1 release - genius marketing strategy
 
The news are extremely provoking. Would even think it was planned if not the official statement
 
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