Microsoft CEO Nadella: don't confuse Xbox with company's "core"

[Arkaign]

Doom and business adaptation are two very different things. Xbox failing to make the desired dominant success expected of XB1 doesn't mean the entire brand is doomed, but also doesn't mean the status quo will survive infinitely either. The purpose of Satya doing all this redefining talk and exposition is to put a narrative to their intentions and core assets. In all likelihood to keep Xbox going will mean significant changes from the old paradigm of 'console-only', transitioning to PC/tablet/mobile/SaaS/GaaS.

The r&d on xb1 is a sunk cost, so they're not going to do some insane thing like announce a replacement or pull the plug in 2015, but with increased investor input dominated by bearish outlook on the sector, a gradual drawing down in the traditional SOP is highly probable.

As noted ad nauseum, home consoles long ago were feared as a potential threat to Microsoft in the home, displacing family PCs. That is LONG since discredited by legitimate and deadly threats in the way of phone/tablet along with a resurgence of apple computers amongst high discretionary income target consumers.

Given the new and infinitely more threatening competition in the spectre of Apple/Google, look for Xbox to be reapplied in areas that attempt to compete/interfere with Apple/Google. Bringing quality gaming tech/ips to their tablet, mobile and streaming areas would fulfill that ideal, along with a strengthening of their windows product. DX12 is a fundamental component that can deliver far more on PC than on console anyway. With igps beginning to have very credible performance, average PCs can begin to truly deliver high quality gaming with new efficient hardware usage and the upcoming crop of units.

Look for a new Xbox branded Steam competitor when dx12 is out, the odds are very decent, and it would deliver a giant market with no new hardware BOM. Bonus being the strengthening of Win9 vs osx/iOS/Android/Chrome.