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

Garland on 16 July 2014
HylianSwordsman said:
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.

If anything, Playstation (as well as gaming in general) is also a core of Sony more so than gaming & the Xbox brand is a core of Microsoft. As a matter of fact, Playstation is one of Sony's important divisions that they have, as well as movies, etc.



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jnemesh on 17 July 2014

Agreed.  Playstation might not have been the "core" of Sony when it was created, but it most definitely is one of it's most important (and most profitable) divisions right now!



nitekrawler1285 on 17 July 2014

LMAO. Only 2 months. So much faster than I would have guessed. I knew they would be distancing themselves after so many high profile blunders in consecutive quarters.

http://gamrconnect.vgchartz.com/thread.php?id=183073&page=1



Burek on 17 July 2014

Insider reports indicate that games will be OK, but it seems that XBox Original TV programming is getting axed:
http://www.vg247.com/2014/07/17/xbox-original-tv-programming-xbox-one-xbox-360/

So, the last traces of Mattrick are being deleted...



DogRemag on 17 July 2014

MS is confused period.Another reason why I never suported the Xbox brand.I would rather buy a WiiU.



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DogRemag on 17 July 2014
HylianSwordsman said:
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.


Don't compare them to Sony.Sony actually took gaming seriously and still do.MS has never put gaming first for the Xbox.That's their biggest problem.They treated gaming like their other mediumd and failed.



DogRemag on 17 July 2014
Garland said:
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

It never works when you are not kissing.MS's backside.



Machiavellian on 17 July 2014
jnemesh said:

Agreed.  Playstation might not have been the "core" of Sony when it was created, but it most definitely is one of it's most important (and most profitable) divisions right now!

Actually, the most profitable division at Sony is their Financial division which sells insurance.  The Financial division accounts for 63 percent of Sony total operating profit. The second division is their film and music arm.  The PS4 is making money now but the PS3 pretty much killed the division as a revenue maker.  Up to this point the Eletronic hardware business has lost Sony over 8.5 billion and that also includes the PS division as well.



Dr.Henry_Killinger on 26 July 2014
Machiavellian said:
Dr.Henry_Killinger said:
Machiavellian said:
loy310 said:
Game media is just selective with his comments. But in reality the whole context of what he is say is entirely different than what's being feed to us.

Ahhh, somebody who actually read the whole damn memo instead of the selective pieces that some no named website decided to take out to support there blog hits.  Really seems like there are a lot of sheep in this world.  Always willing to be fed information but never taking the time to actually research that info before making or forming an opinion.  I guess its too much work and people love being led.

The context doesn't matter.

To say they are distancing it from the core, rather then saying they are focusing on thier core and simply omitting the mention of Xbox, he's harming the brand. As a gamer, this is anything but comforting. As an investor, it only furthers the case to drop it. 

As far as games are concerned, Xbox out prioritizes Microsoft.

It's funny many of those who claim PlayStation would be fine without Sony (not saying it was you but instead making a general claim), are now defending Microsoft at the cost of Xbox. So much for consistency.

Anytime anyone tells me context doesn't matter I have to raise an eyebrow.  Its a clear sign that you are selectively taken what you want to hear and dismissing the rest.

@BOLDED:  Not buying it.  A business unit does not have to be a core function of a corporation to get support.  The Xbox division will never be a core division of MS because they are not a consumer hardware company.  Consoles do not sell on the same level as mobile phones, Office, OS or their cloud platform.  Consoles does not sell on the same level as their server software or development software either.  Are you telling me you rather have the CEO blow sunshine up your butt or tell it plain and simple.  "Xbox not core but its still integral to our business".  Thats basically what he said.  The Xbox division connects a lot of stuff they are trying to do and it also have benefits within their core units.

That's is fine but that's not really relevant, I'm criticiting his PR. 

@2ndBolded:  I am 100% sure you would never find such statements from me even during all the doom and gloom during the PS3 era.  This is how I look at the Xbox division in MS business stragety.  It allow them to sell just about all their services to consumers.  From music, TV and Movies purchase as well as rentals, games either retail or indie.  Its a platform for development which means you sell your tools like Visual Studio.  Its a place to leverage your cloud platform Azure.  Giving developers and publishers access to free dedicated servers is a way for them to get those same people to use Azure for their business.

Parenthesis.

When it all comes down to it, people are getting silly over the term core business unit as if that means MS will suddenly drop the Xbox.  Was Skype, Visual Studio, SQL Server etc considered as core.  All of these units work together within a large corporation like MS but they do not have to be core business units to get funding and support.  There are certain areas you need to lead and others you need to innovate and others you need to have a present in.

Pay attention to what I'm saying here, it doesn't matter if Xbox is core, what I'm criticiting is the structure of his memo. Which has been publized and thus is now PR. Therefore: The bolded should have been omitted. Simply not mentioning, Xbox in second paragraph, would've mean the same thing but not downplay the Xbox brand's importance to MS.

`“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.”

"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.”

Furthermore, as a Gamer, The only part of MS that I'm concerned with is Xbox and how MS affects Xbox. This is not a move that favors Xbox. MS could asplode, yesterday, and as a gamer I wouldn't care as long as Xbox wasn't affected. As a Window's user however, I'd flip.



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

Machiavellian on 29 July 2014
Dr.Henry_Killinger said:

Pay attention to what I'm saying here, it doesn't matter if Xbox is core, what I'm criticiting is the structure of his memo. Which has been publized and thus is now PR. Therefore: The bolded should have been omitted. Simply not mentioning, Xbox in second paragraph, would've mean the same thing but not downplay the Xbox brand's importance to MS.

`“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.”

"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.”

Furthermore, as a Gamer, The only part of MS that I'm concerned with is Xbox and how MS affects Xbox. This is not a move that favors Xbox. MS could asplode, yesterday, and as a gamer I wouldn't care as long as Xbox wasn't affected. As a Window's user however, I'd flip.

 One thing I have found out is that many people can read something and all come to a different opinion.  No matter what you think about the structure of words, its the direction thats important.  The line you bolded is pretty much spot on how any division that is not a company primary means of making a profit is seen within a company.  Basically what you want is for the CEO to surgar coat the obvious.  The words should not be omitted because they are not directed at YOU the gamer.  Its not like you all woke up yesterday and figured out that MS is this huge company with many different divisions and interest which are more important to the company as a whole.  Yes, the bolded line is ment for investors.  Its ment to let them know that MS as a company understands where their bread and butter is at.

With that said, what gamers should be looking at is how much investment MS is willing to put into the Xbox division.  So far they are willing to invest more money than Sony, Nintendo or any publisher.  MS is still hiring jobs for their first party teams.  MS is still hiring people for their platform development which spells to me support.  I look at actions more than words because some of those words might not be directed at you or mean what you think it does.  So far MS actions say that Xbox division is important.  Until MS stop putting money into the division, then it would be a time to be concerned.