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Forums - Microsoft Discussion - Deep cuts at Xbox Europe as Nadella swings axe

This was posted yesterday.



    

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Burek said:
EspadaGrim said:
Burek said:
Wow, Nadella is really laying it onto XBox. See what happens when you're deemed non-core... I guess they themselves don't have much hope in Tier 2 countries...


Except that none of these layoffs impact The Games Studios at all or affect game development the Entertainment studio wans't neccessary at all and wouldn't help Xbox he basically killed Mattricks legacy and vision.

Yes, I realize that. But I also realize that Mattrick's vision was the only vision for XBox. 

And sure, games are "still" untouched, but this move signals a clear admission of defeat outside of Americas. They are scaling down their marketing presence across EMEA to focus on salvaging what can be done at home.

Actually you do not know if they are scaling down their marketing because of these cuts. The cuts could easily be done because there is no need to have so much local staff in Europe.  When you are a global company like MS, there are plenty of occasions where you have a lot of people doing the same job.  Its better to consolidate those position in one area and only have local people needed to implement what is needed within the region.



BillyBong said:
Machiavellian said:

The fact that Skype, Windows Phone, Bing, Surface,  and a host of other stuff are within the same Entertainment/Devices unit, there is no way for anyone to know if the xbox division is losing money.  Just the fact that XBL is a revenue maker alone and the 360 is also very profitable, where exactly is MS losing money from the Xbox division.  The X1 hardware is also profitable or pretty close as was shone by many different breakdowns of the hardware.  

One of the main reasons why some investors want MS to spin off the Xbox division is not that its losing money but instead it makes money.  They want MS to only concentrate on their core and Spin off the Xbox division for a brief revenue gain and increase in the stock price. There are plenty of graphs out there that suggest that the Xbox is the only division that makes money within the EDD group.

Also in your link you forget to mention that Sherlund is an opinion piece not fact.  Sherlund does not know the make up of profit and losses between all the business units that make up  Entertainment and Devices than anyone else outside of MS.  

Again, why don't you spin this off in its own separate thread where it can really be discussed.  This is my last reply on the subject here.


like i said.. don't need more doom and gloom MS threads..

also.. sources?  everything i've seen up to this point paints a different picture from what you are saying..

Spin it to another thread and we can discuss.  One link is not enough since there are others that goe a different route.



BillyBong said:
walsufnir said:
How many threads about the same topic will rise?


as long as new articles about the impact/extension of these cuts keep popping up? 

 

edit.. don't also want to derail the thread, but just read an interesting article about MS possibly losing it's billion dollar android safety net.  apparently the patents MS claims to have over android are weak.. allowing android device manufacturers to reconsider their licensening agreements with MS.

"it was revealed that only 21% of Microsoft’s patents was classified as commercial while 79% was classified as non-commercial. This implies that only a fifth of these patents was relevant, as non-commercial patents have little chance of being licensed and lack market relevance. Also, there are at least 11,000 expired patents from the Android innovation space and another 14,000 from the abandoned Android innovation space. It is believed that companies can now find free alternatives to the Microsoft licensing package.companies which have patents

Moving on to the 127 patent agreement Microsoft holds, even more surprising results were unearthed. At least 40 of Microsoft’s Android patents were proceeded by patents from other companies, which were not mentioned by Microsoft. This finding casts a shadow of doubt over the remaining patents as well. Companies such as Dell Inc. (NASDAQ:DELL), Sony Corp (ADR) (NYSE:SNE) and Panasonic Corporation (ADR) (OTCMKTS:PCRFY) had previously signed licensing agreements with Microsoft.

According to previous estimations Microsoft’s licensing fee revenues could soar to as much as US$8.8 billion by 2017. That now seems unlikely as the next few years will see several legal and business challenges to Microsoft’s Android patent portfolio. There are enough evidences suggesting that several companies, including the largest payer Samsung, are all set to oppose Microsoft’s licensing deals both legally and commercially."

http://www.dazeinfo.com/2014/07/17/microsoft-corporation-msft-android-patent-earnings-challenges-china/#ixzz37oN2EBAC

just seems like a domino effect taking place with MS..


What?  How is microsoft supposed to pad their numbers now and hide the losses of the Xbox division without the extortion money from Android????



I would get banned if i say what i'm thinking but 18,000 jobs!



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say it in 6 months or so...then it won't be flamebait, it will be fact. :)



Machiavellian said:

Spin it to another thread and we can discuss.  One link is not enough since there are others that goe a different route.


will possibly do when I have the time for it.  Too many articles to link for both arguments..



Man.. I hate it when your girl has to leave my place to come back to you..

Burek said:
EspadaGrim said:
Burek said:
Wow, Nadella is really laying it onto XBox. See what happens when you're deemed non-core... I guess they themselves don't have much hope in Tier 2 countries...


Except that none of these layoffs impact The Games Studios at all or affect game development the Entertainment studio wans't neccessary at all and wouldn't help Xbox he basically killed Mattricks legacy and vision.

Yes, I realize that. But I also realize that Mattrick's vision was the only vision for XBox. 

And sure, games are "still" untouched, but this move signals a clear admission of defeat outside of Americas. They are scaling down their marketing presence across EMEA to focus on salvaging what can be done at home.

If i'm Nadella i would fire these marketer too,waste money for helping nothing



D-Joe said:

If i'm Nadella i would fire these marketer too,waste money for helping nothing


Especially if they can just contract a 3rd party to do that job for them anyway instead of having more unessecary employees on payroll.