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Forums - Microsoft - Elop might be bad news for Xbox brand... or is he?

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stabface on 26 February 2014
Goatseye said:
stabface said:
 


Do you see the reasoning for dumping but like everyone else have no conclusive statements yo read from.  

Consider this, msft has a p/e of 13 right now, the higher this number is, the more positive investors are towsrd the stock.  Yet, the p/e is really low among its competitors who have a p/e of around 30.  Now msft has its enterprise side which is growing much faster than yhe consumer side.  Wouldn't it make sense to put resources where they will be used effectively? 

That is a very myopic view.

You never know what consoles will morph into in the future. And MS is a soft developement company.

If you can seriously callinvestors wishes for a company myopic, then have at.  But the idea that they want this is a fact and written in many articles by now



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Goatseye on 26 February 2014
Slimebeast said:
Goatseye said:
Slimebeast said:
 

Remember that Elop said that based on X360's sales, before Xbone even launched.

Xbone right now doesn't look profitable in the long run. Microsoft doesn't want a 50 million console with tiny profit margins, they want a 100 million console with good margins and strong brand image. With Xbone starting so badly (since E3 until today) I believe their analysis right now is that the Xbox brand has much less potential of being profitable than it had one year ago and they're strongly considering selling it off.

The writing is on the wall, let's face it. In Microsoft's hands the Xbone just won't take off, we all know this deep within ourself, while if they sell it while it's still early in the generation it might have purpose to some other company (Amazon, Apple, Samsung).

In the long run I see the XBox brand and console business being killed off entirely though (within three-four years).

X1 is selling at $28 profit margin, while sony at $18.

Plus I'll tell you that it's easier for PS brand to be killed off or sold than Xbox. Xbox is profitable and can self sustain it's division, PS was able to do that just last year and even with that it needs more capital from Sony to compete with MS. Where is that capital gonna come from?

I think the capital factor is overrated. What has it done so far? If anything, it probably made MS think too big and make the Xbone too complicated (a historical miscalculation and PR fiasco by trying to sell a complex digital echo-system to the ignorant masses and prohibiting used games, Kinect being too futuristic and tech that simply isn't mature yet, console-to-TV integration that has no natural market yet, while Sony fought for its survival and made stuff that they know works (powerful core gaming hardware).

Now with hindsight we can say it was very risky, very bold by MS. They tried to innovate, but they failed.

A $28 profit margin doesn't matter if the console doesn't sell and that margin will quickly be eaten up they're forced to make a $100 price cut soon. Plus with so few units sold, XBox gold subs and SW sales won't bring much revenue on the investment they made and expenses they have for the existing and costly Xbox echosystem and business unit.

The main factor though is that the business cultures between MS and Sony are vastly different. We all know that Microsoft can get tired and abandon its console business any time (like they did with so many products in the past, a modern business strategy) while we know that Sony is faithful and won't abandon gaming until it has bled money for years and years (a noble strategy but not always for its own good).


I'll give you time to rephrase your sentence.



Goatseye on 26 February 2014
stabface said:
Goatseye said:

That is a very myopic view.

You never know what consoles will morph into in the future. And MS is a soft developement company.

If you can seriously callinvestors wishes for a company myopic, then have at.  But the idea that they want this is a fact and written in many articles by now

I read that stuff last year and Phil just brushed it aside like Satya did in Jan. It's not a big deal man, relax and don't be worried.



Slimebeast on 26 February 2014
Goatseye said:
Slimebeast said:
Goatseye said:
Slimebeast said:
 

Remember that Elop said that based on X360's sales, before Xbone even launched.

Xbone right now doesn't look profitable in the long run. Microsoft doesn't want a 50 million console with tiny profit margins, they want a 100 million console with good margins and strong brand image. With Xbone starting so badly (since E3 until today) I believe their analysis right now is that the Xbox brand has much less potential of being profitable than it had one year ago and they're strongly considering selling it off.

The writing is on the wall, let's face it. In Microsoft's hands the Xbone just won't take off, we all know this deep within ourself, while if they sell it while it's still early in the generation it might have purpose to some other company (Amazon, Apple, Samsung).

In the long run I see the XBox brand and console business being killed off entirely though (within three-four years).

X1 is selling at $28 profit margin, while sony at $18.

Plus I'll tell you that it's easier for PS brand to be killed off or sold than Xbox. Xbox is profitable and can self sustain it's division, PS was able to do that just last year and even with that it needs more capital from Sony to compete with MS. Where is that capital gonna come from?

I think the capital factor is overrated. What has it done so far? If anything, it probably made MS think too big and make the Xbone too complicated (a historical miscalculation and PR fiasco by trying to sell a complex digital echo-system to the ignorant masses and prohibiting used games, Kinect being too futuristic and tech that simply isn't mature yet, console-to-TV integration that has no natural market yet, while Sony fought for its survival and made stuff that they know works (powerful core gaming hardware).

Now with hindsight we can say it was very risky, very bold by MS. They tried to innovate, but they failed.

A $28 profit margin doesn't matter if the console doesn't sell and that margin will quickly be eaten up they're forced to make a $100 price cut soon. Plus with so few units sold, XBox gold subs and SW sales won't bring much revenue on the investment they made and expenses they have for the existing and costly Xbox echosystem and business unit.

The main factor though is that the business cultures between MS and Sony are vastly different. We all know that Microsoft can get tired and abandon its console business any time (like they did with so many products in the past, a modern business strategy) while we know that Sony is faithful and won't abandon gaming until it has bled money for years and years (a noble strategy but not always for its own good).


I'll give you time to rephrase your sentence.


What do u mean?

Isn't the PSP a perfect example of Sony's stubborness and stamina when it comes to gaming? It never sold much but they still kept making it, even developing a new one (VITA) when everyone said that the only company who could succeed with handhelds is Nintendo.



Goatseye on 26 February 2014
Slimebeast said:
Goatseye said:
Slimebeast said:

I think the capital factor is overrated. What has it done so far? If anything, it probably made MS think too big and make the Xbone too complicated (a historical miscalculation and PR fiasco by trying to sell a complex digital echo-system to the ignorant masses and prohibiting used games, Kinect being too futuristic and tech that simply isn't mature yet, console-to-TV integration that has no natural market yet, while Sony fought for its survival and made stuff that they know works (powerful core gaming hardware).

Now with hindsight we can say it was very risky, very bold by MS. They tried to innovate, but they failed.

A $28 profit margin doesn't matter if the console doesn't sell and that margin will quickly be eaten up they're forced to make a $100 price cut soon. Plus with so few units sold, XBox gold subs and SW sales won't bring much revenue on the investment they made and expenses they have for the existing and costly Xbox echosystem and business unit.

The main factor though is that the business cultures between MS and Sony are vastly different. We all know that Microsoft can get tired and abandon its console business any time (like they did with so many products in the past, a modern business strategy) while we know that Sony is faithful and won't abandon gaming until it has bled money for years and years (a noble strategy but not always for its own good).


I'll give you time to rephrase your sentence.


What do u mean?

Isn't the PSP a perfect example of Sony's stubborness and stamina when it comes to gaming? It never sold much but they still kept making it, even developing a new one (VITA) when everyone said that the only company who could succeed with handhelds is Nintendo.

So by saying years and years, you meant 1 year and 5 months for PSP GO.

Xbox OG was hemorrageing(?) money out of MS's rear. They stuck around with it for 5 damn years.



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Slimebeast on 26 February 2014
Goatseye said:
Slimebeast said:
Goatseye said:
Slimebeast said:

I think the capital factor is overrated. What has it done so far? If anything, it probably made MS think too big and make the Xbone too complicated (a historical miscalculation and PR fiasco by trying to sell a complex digital echo-system to the ignorant masses and prohibiting used games, Kinect being too futuristic and tech that simply isn't mature yet, console-to-TV integration that has no natural market yet, while Sony fought for its survival and made stuff that they know works (powerful core gaming hardware).

Now with hindsight we can say it was very risky, very bold by MS. They tried to innovate, but they failed.

A $28 profit margin doesn't matter if the console doesn't sell and that margin will quickly be eaten up they're forced to make a $100 price cut soon. Plus with so few units sold, XBox gold subs and SW sales won't bring much revenue on the investment they made and expenses they have for the existing and costly Xbox echosystem and business unit.

The main factor though is that the business cultures between MS and Sony are vastly different. We all know that Microsoft can get tired and abandon its console business any time (like they did with so many products in the past, a modern business strategy) while we know that Sony is faithful and won't abandon gaming until it has bled money for years and years (a noble strategy but not always for its own good).


I'll give you time to rephrase your sentence.


What do u mean?

Isn't the PSP a perfect example of Sony's stubborness and stamina when it comes to gaming? It never sold much but they still kept making it, even developing a new one (VITA) when everyone said that the only company who could succeed with handhelds is Nintendo.

So by saying years and years, you meant 1 year and 5 months for PSP GO.

Xbox OG was hemorrageing(?) money out of MS's rear. They stuck around with it for 5 damn years.

Well, I fought the PSP GO was essentially just another version of PSP. Did it have a different set of games?

Also it's common knowledge that MS killed off Xbox 1 prematurley to give its second console a betta chance.



Goatseye on 26 February 2014
Slimebeast said:
Goatseye said:

So by saying years and years, you meant 1 year and 5 months for PSP GO.

Xbox OG was hemorrageing(?) money out of MS's rear. They stuck around with it for 5 damn years.

Well, I fought the PSP GO was essentially just another version of PSP. Did it have a different set of games?

Also it's common knowledge that MS killed off Xbox 1 prematurley to give its second console a betta chance.

It was impossible for it to co-exist with 360. Too damn expensive!!

PSP GO is a version of WiiU, let's put it that way.



etking on 26 February 2014

His statement was clear, he wanted to sell the Xbox business and in my opinion this is the only reason why he got the job. Microsoft may be turning away from consumer products and Amazon is looking for video game companies to buy. We will probably get some game changing announcements soon.



thx1139 on 26 February 2014
stabface said:
thx1139 said:
If you have used or even played around with any of the Lumia phones or the Lumia 2520 Tablet then you would know that Nokia designed beautiful hardware. So tell me why having Elop and likely his hardware design team from Nokia running the hardware group at Microsoft is anything but a good thing?


It's certainly a good thing for Microsoft, I mean you are fielding a very capable former ceo.  However, many investors are wanting microsoft to ditch the xbox and bing as well, bc the enterprise side of the company is making more money.  So Elop might have been put in yhis role to provide support for ditching the xbox since he already said that he would do so, given the chance.  So, he might help sell it to Amazon or Ninty.

The proper words to use are.  "However, SOME investors are wanting microsoft to ditch the xbox and bing as well....."  which is all based on one opinion piece that has been regurgitated by multiple content aggregators.



Its libraries that sell systems not a single game.

thx1139 on 26 February 2014
etking said:
His statement was clear, he wanted to sell the Xbox business and in my opinion this is the only reason why he got the job. Microsoft may be turning away from consumer products and Amazon is looking for video game companies to buy. We will probably get some game changing announcements soon.


His statement was never clear. He never made a statement. There were rumors that he would consider selling off Xbox and Bing.  RUMORS.  Then you know what even if he did think that was a good idea that idea did not get him the CEO job. That job went to someone else. Someone believe to be much more favorable about Xbox One and Bing.  So what does that tell you?  So Elop who ran Nokia which was well known for making awesome hardware now runs the hardware part of MS business.  Makes perfect sense. Let those designers from Nokia design the next version of the Xbox One for next year (We all know a smaller version will come).



Its libraries that sell systems not a single game.