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

Assyrian612 said:
Sell the Xbox division to someone who belongs in the game industry.. Sell it to Sega!

Japanese and American company cultures tend to be different and are not very compatible. Amazon would be a better and more stable place. There were also rumors of amazon trying to buy a major console last year.



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VanceIX said:

http://www.forbes.com/sites/erikkain/2014/07/15/xbox-not-a-core-part-of-microsofts-business-ceo-says/

“I want us to be comfortable to be proud of Xbox, to give it the air cover of Microsoft, but at the same time not confuse it with our core.”

A little disappointing to hear that line, but seeing as the the Xbox division isn't nearly as profitable as the other businesses that Microsoft has, it's hard to blame them. He does praise the Xbox as more of a side division, but says that the company's core is defined with the cloud and mobile world first.

"At our core, Microsoft is the productivity and platform company for the mobile-first and cloud-first world. We will reinvent productivity to empower every person and every organization on the planet to do more and achieve more.”


This is why, after 30 years, I am a Nintendo fan first. They only DO games. That's what they ARE.



etking said:
Assyrian612 said:
Sell the Xbox division to someone who belongs in the game industry.. Sell it to Sega!

Japanese and American company cultures tend to be different and are not very compatible. Amazon would be a better and more stable place. There were also rumors of amazon trying to buy a major console last year.

Well if that were the case than why are Nintendo and Sony so successful? Also amazon has zero experience in the video game market, Sega is a legend and would instanly bring in excitement due to a catalog of classic titles at their disposal.



 

pokoko said:
Whoa. Now that's interesting. Executives at his level rarely make statements without reason. Seems like he wants to distance "Microsoft" from "Xbox" a bit. Probably a bit worried that the problems with the Xbox One might influence perception of the company as a whole.


Seriously? Microsoft as a whole has major issues. The xbox brand was one of the few positive things they had going on up until they screwed it up last year. But still xbox isn't goin to tarnish microsofts image, they already have a terrible image and they have better market share in that business than they do in the cell phone or tablet business.

What he is really referring to is the fact that xbox is not their main business and that should go without saying. People have tunnel vision on this site, they forget that MS is a huge company and xbox has always been nothing more than a side project.



wilco said:
pokoko said:
Whoa. Now that's interesting. Executives at his level rarely make statements without reason. Seems like he wants to distance "Microsoft" from "Xbox" a bit. Probably a bit worried that the problems with the Xbox One might influence perception of the company as a whole.


Seriously? Microsoft as a whole has major issues. The xbox brand was one of the few positive things they had going on up until they screwed it up last year. But still xbox isn't goin to tarnish microsofts image, they already have a terrible image and they have better market share in that business than they do in the cell phone or tablet business.

What he is really referring to is the fact that xbox is not their main business and that should go without saying. People have tunnel vision on this site, they forget that MS is a huge company and xbox has always been nothing more than a side project.

Uh, yeah, seriously, since cell phones and tablets are also side projects.  The core of Microsoft is their OS and Enterprise solutions.  "Major issues" is stretching it a lot for a company that earns billions in profit every quarter.  Microsoft as a whole is doing quite well, it's only these direct consumer products that are performing below par, but they're really only beachhead products, anyway.

My statement was refering to the possibility that Nadella was sending a message to investors and Enterprise clients in order to assure them that video-games consoles aren't going to drag the more important parts of the company down.  The ironic thing here is that you're the one who seems to have forgotten how big Microsoft is, and it's even more amusing that the second part of your post is basically agreeing with mine.



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Late into the conversation but after reading all the post in the first few pages and then reading the article, I think everyone is making it bigger deal than it actually is. Even the article acknowledges that Xbox is important for the company despite the comment which was taken way out of context.



I'm inclined to believe that if we have another PS2/XB type gap this generation or even if the PS4 sells 100M and XB1 pushes 35M-40M we may not see an XB2. I think with MS they are in a position where they have some obvious areas that work for them as a corp. and the XB division is beginning to seem more and more like that pet project that is just making them look bad.



So they want to be proud of it but not associated with it? That doesn't even make any fucking sense.

PR at it's finest. -.-



Geez people. This isn't news! Microsoft was always more than a gaming company. Gaming was never its core. Microsoft used to be synonymous with Windows, and Windows was synonymous with "PC operating system", and quite honestly, I miss those days, back when Windows was so ridiculously good compared to everything else on the market, that nothing else was worth a second thought. It's not an insult to Xbox to say that it isn't Microsoft's core. It's an insult to Microsoft to say that Xbox is Microsoft's core. They're not saying they aren't associated with it, they're just saying that Microsoft is a fucking ENORMOUS company and that Xbox doesn't even BEGIN to cover what Microsoft is about.

Gaming is the core of Nintendo. Gaming is NOT the core of Sony, and NOT the core of Microsoft. However, gaming IS the core of Xbox, and IS the core of Playstation. All companies are trying to do with statements like this is to get consumers to understand that the company is bigger than gaming, and it's the gaming brand that is about gaming, not the company as a whole. Nintendo is the company that has to justify expansions into markets like wellness and health with "we're still a gaming company at our core", while Sony and Microsoft have no such need, and shouldn't be criticized for trying to distinguish their gaming brands from their company as a whole.



jnemesh said:
I don't know if you guys read the same letter I did...but here is what I saw:

" As a large company, I think it's critical to define the core, but it's important to make smart choices on other businesses in which we can have fundamental impact and success. " - What success has the XBox One had, other than a strong launch? Sales this year are anything but "successful"...the same goes for the entire HISTORY of Xbox...they have NEVER been profitable. Now, some here will claim that they HAVE been profitable lately...but THAT is due to them lumping in the extortion money they are getting from Android into their CE division. Xbox by itself has been a money pit for 15 years now.

"The single biggest digital life category, measured in both time and money spent, in a mobile-first world is gaming." - "mobile first" doesn't sound much like the current Xbox does it?

"Xbox is one of the most-revered consumer brands, with a growing online community and service, and a raving fan base." - So the BRAND is important. I see nothing here that says they are committed to the current Xbox CONSOLE.

My takeaway from all of this is that the Xbox BRAND will survive, and be used to promote MOBILE gaming. The console itself? It will probably survive, in it's current form, for a while longer...and it might not. I would bet, though, that MS keeps it alive a while longer. LONG TERM, however, I can see Microsoft leaving the gaming industry completely, as it has never done for the company what they thought it would, and the "threat" from Sony was quickly eclipsed by the threats from Apple and Android.

Think of it this way...again, LONG TERM, it is FAR more important for MS to be successful with Windows Phone and Surface, along with Office and Windows, than it is for them to pour MILLIONS MORE into Xbox, which still shows no signs of being profitable on it's own.

Careful now, logic doesn't work around here. LOL