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

Some people like to start their morning with fresh coffee, others like a dose of haterade to feel better.
Xbox ain't going anywhere for the discontentment of most on VGC.



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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.



Iow, look at the design of xb1, the clues are loud and clear, the idea was to drop a device you would use instead of picking up your tablet or phone in the living room. Web browsing, music, apps, etc. Only problem is it looks like it will never have the widespread adoption they desired, and with the new mobile first ethos they need new ideas beyond the static console design to fulfill the desired purpose and success in mobile.

Go to the App store for MS products vs android/iOS, the competition has 1000x more software available, and that translates to HUGE revenue gaps between Microsoft's mobile products and those of the competition.



ironmanDX said:
LudicrousSpeed said:
Wow, I know this is VGC but the flood of doomsday nonsense is still a little surprising. Especially given that the email he sent only days ago regarding Xbox is easily viewable by anyone.

A little context would help most of you out. Microsoft is a huge company worth many times more than Sony and Nintendo combined. Not being part of the "core business" does not mean it's irrelevant or something. They have the manpower and money to still be a major contender in the market.

This. They recently hired a next generation xbox super dude, remember? Hope this classifies as internet "proof!"

Are they reading too much into it or not reading enough? 

I'm just linking a story guys, I'm NOT trying to overblow this. Like I said, Xbox is just a small part of Microsoft, but it's not good for the Xbox department overall when these comments come right when Microsoft in planning thousands of lay-offs. This is a videogame site, if the Microsoft CEO makes comments about the Xbox, of course it's going to be reported.



                                                                                                               You're Gonna Carry That Weight.

Xbox One - PS4 - Wii U - PC

ironmanDX said:
LudicrousSpeed said:
Wow, I know this is VGC but the flood of doomsday nonsense is still a little surprising. Especially given that the email he sent only days ago regarding Xbox is easily viewable by anyone.

A little context would help most of you out. Microsoft is a huge company worth many times more than Sony and Nintendo combined. Not being part of the "core business" does not mean it's irrelevant or something. They have the manpower and money to still be a major contender in the market.

This. They recently hired a next generation xbox super dude, remember? Hope this classifies as internet "proof!"

 

Are they reading too much into it or not reading enough? 

No no no, apparently in VGC logic:

reports you might maybe potentially by chance fire some EU Xbox marketing people = DOOOOOOOOOOOOOOOOOOOOOOOOM

actual job listings for various Xbox divisions and hiring guru for next Xbox hardware = irrelevant LOL why would that matter??//?



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spemanig said:
czecherychestnut said:
spemanig said:
Garland said:

This. The Xbox brand is much less important to Microsoft than with the Playstation brand being more important to Sony. Or with Nintendo's consoles & handhelds being important to Nintendo.

 


...Sony is a computer hardware company. Playstation is in the same position as Xbox. It's not part or Sony's core business either.


Eh...no. Sony is a consumer electronics and media company. making the Playstation (consumer electronics) and gaming (media) very core to their business. 

MS is morphing into a services company, something with increasingly distances Xbox from MS's core focus. 


No it isn't. The only people who believe that are gamers who don't know better

Yes it is, sir. It's one of Sony's most greatest projects out there globally.



This confirms that Xbox is just a side product which could be sold or discontinued any time. Time to buy a PS4.

- Moderated, Carl



I thought we were gamers not MS interns, to say I don't give a crap about MS as a company would be dishonest Windows 7 is the best OS on the market (imo) and Office 2013 is the best office suite of all time (fact), but as a gamer, I don't give a ratass about MS unless its Xbox, and they are shitting on Xbox right now, so I'm mad at them.
The same goes for Sony.



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

Nadella is a great CEO, Microsoft need to compete with Google and Facebook, and he probably is the best man you can get to drive Microsoft into the future.



Burek said:
kowenicki said:
I'm staggered (who am i kidding) at the way some of you are reading all of this. I am even more amazed some of you see is as some sort of doom announcement for MS.

Doom all you want... meanwhile MS spend $7bn on nokia devices and will post another huge profit for the year.... They have increased profits pretty much year on year for a while now with no sign of that letting up .

As for his references to Xbox... it is very clear he seen synergy, development opportunities that cross divisions and opportunities for it to add to the brand of MS. For what they spend on Xbox as a proportion of their income and other expenditure. its likely a bargain.

I actually see all of these statements as a nod to shareholders. He is reassuring them that he understands their core and that he is focussed on it but that Xbox can be a good and very useful addition to that core.

I haven't seen a single post ever since i've been a member here, and before while just reading the posts, that has made a doom announcement for Microsoft. That would be rather silly.

Doom announcements for XBox, however, are not silly at all, and are mostly based on facts, figures, and statements from both internal and external sources.

Sure, perhaps nothing will come out of it, but there is a certain probability that it could happen. And that's what people on this forums are debating - chances, outlooks, probabilities, successes and failures of past. present and future.

@BOLDED: What internal doom announcements have you heard because I am pretty up on this stuff and there have been none.  If you could provide some links to these facts please do so.  As for external, where have you actually seen something meaningful.  

Are you talking about those investors people keep bringing up.  The same investors who have absolutly no vote on the direction MS goes.  You know, the same investors who only do slash and burn type of deals to get the most out of their investment.  The same type of investors that are asking Sony to spin off the PS division which isn't going to happen either.  Everytime i see people bring up these so called investors I just cringed because I know people have not done one ounce of research and thus is reguratating what somebody else has said on the net.

The chance that MS is going to spin off the Xbox division is just about the same as Sony spinning off the PS division and Nintendo turning into sega.