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Forums - Microsoft - Bill Gates would Support spin-off if Nadella wanted to

theprof00 on 05 May 2014

"But Gates said he didn’t foresee either Bing, the company’s search engine division, or Xbox, its gaming division, as potential stand-alone companies because they are part of Microsoft’s long-term strategy."
Bing, the company’s search engine division, or Xbox, its gaming division
Microsoft’s long-term strategy

Bing Xbox long-term strategy
define long-term



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Nem on 05 May 2014

In business terms, nowadays, long term can be about 3 years. Always take these things with a grain of salt.



binary solo on 05 May 2014

Xbox needs the financial support and stability of a larger corporation to survive. If it went wholly stand alone it would fare no better than Sega in its final years in the hardware business. If it was a wholly owned subsidiary then MS as the shareholder could still provide financial backing but the business would soon be exposed if it wasn't able to be profitable. It seems MS strategy is to be in the hardware game across product classes it sees as strategically important, so the essential question is whether consoles are still strategically important. The argument in favour of consoles being strategically important is not as strong as it was in the 6th gen and for about the first half of the 7th gen.



“The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.” - Bertrand Russell

"When the power of love overcomes the love of power, the world will know peace."

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Barenziah on 05 May 2014
Dr.Henry_Killinger said:
Barenziah said:

i know people always say it was anti consumer and a bad idea but i still think being microsoft they could have just taken the hit ,the fanboys would still buy MS which must be good for 30m.maybe we might go online only faster than we think in certain markets

The fans would get it but they would REALLY have to be dedicated. I doubt Xbox would have survived the backlash though. And I don't think people saying anything matter much to them because it was preorders that made them realize how bad the fallout would be. Sure they would have the early adopters, but Xbox would become a paraiah. And it would be a chain reaction, that they are already struggling to hold at bay, even with the 180s.

obviously i am wrong but why did the powers at microsoft originally think it would work

If you had been getting away with making people pay for online services like youtube and netflix for 12+ years, it wouldn't be hard to think that you could get away with it. I've said on countless occassions that this was the first time that MS was not allowed to get away with it. If you look at the backlash at Sony for the PSN outage Vs the red rings of death, its blantantly obvious that MS is undoubtedly not held up to the same scrutiny as Sony or Nintendo.

 

well it seemed like a strange strategy as they must have known they were going to lose market share to PS4 with an online only console in the US/UK and then renege on their plan immediately,

anyway next time out we will be all subscription only to pay for all the cloud/sky service and be online only in my opinion,whether PC/console



  

I smell like the dark forest of Dwemereth in the morning mist                                                   fanboy til i'm bankrupt

thismeintiel on 05 May 2014

Would be pretty funny if they did, seeing as many MS fans seem so preoccupied with Sony's financial situation.

Of course, if they spun it out, the Xbox strategy would have to change dramatically without MS's deep pockets. Which means no more moneyhatting 3rd party games and/or DLC. They would also not be able to cut price so dramatically, something they need to do to stay competitive this gen.

Personally, I think if the Xbox division was spun out, it wouldn't last very long. Sure they have Live money coming in, as well as 360 money, but that is going to dwindle in the coming years as people move onto to next gen. And if sales of the One continue like they are, then they won't be getting much money there, either.



 

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Barenziah on 05 May 2014
binary solo said:
Xbox needs the financial support and stability of a larger corporation to survive. If it went wholly stand alone it would fare no better than Sega in its final years in the hardware business. If it was a wholly owned subsidiary then MS as the shareholder could still provide financial backing but the business would soon be exposed if it wasn't able to be profitable. It seems MS strategy is to be in the hardware game across product classes it sees as strategically important, so the essential question is whether consoles are still strategically important. The argument in favour of consoles being strategically important is not as strong as it was in the 6th gen and for about the first half of the 7th gen.


i can't see what microsoft need with consoles for the big picture,

phones/tablets & smart tv's seem a better option for their casual OS market



  

I smell like the dark forest of Dwemereth in the morning mist                                                   fanboy til i'm bankrupt

Dr.Henry_Killinger on 05 May 2014
Barenziah said:
Dr.Henry_Killinger said:
Barenziah said:

i know people always say it was anti consumer and a bad idea but i still think being microsoft they could have just taken the hit ,the fanboys would still buy MS which must be good for 30m.maybe we might go online only faster than we think in certain markets

The fans would get it but they would REALLY have to be dedicated. I doubt Xbox would have survived the backlash though. And I don't think people saying anything matter much to them because it was preorders that made them realize how bad the fallout would be. Sure they would have the early adopters, but Xbox would become a paraiah. And it would be a chain reaction, that they are already struggling to hold at bay, even with the 180s.

obviously i am wrong but why did the powers at microsoft originally think it would work

If you had been getting away with making people pay for online services like youtube and netflix for 12+ years, it wouldn't be hard to think that you could get away with it. I've said on countless occassions that this was the first time that MS was not allowed to get away with it. If you look at the backlash at Sony for the PSN outage Vs the red rings of death, its blantantly obvious that MS is undoubtedly not held up to the same scrutiny as Sony or Nintendo.

 

well it seemed like a strange strategy as they must have known they were going to lose market share to PS4 with an online only console in the US/UK and then renege on their plan immediately,

anyway next time out we will be all subscription only to pay for all the cloud/sky service and be online only in my opinion,whether PC/console

When developing the X1 there was no way they could've known what the PS4 was going to be, even Sony couldn't predict its success. So I'm sure they predict the losses would be minimal, and their brand could make up for it.



In this day and age, with the Internet, ignorance is a choice! And they're still choosing Ignorance! - Dr. Filthy Frank

starcraft on 05 May 2014
bubblegamer said:
It's logical that they would want to replace or get rid of a product that's not succeding in achieving it's goal or making profits.

Yes it is.

Though I don't understand how this relates to the very profitable Xbox Division?



starcraft - Playing Games = FUN, Talking about Games = SERIOUS