| mutantsushi said: So who exactly were those "credible rumor mongers" who just lost a bunch of credibility? |
Xbox Insiders
But jokes aside, The infallible Boomberg!
Really sad to hear this news and sad to see where the gaming industry is headed. I hope Sony don't buy its a huge mistake. Balance is everything for an industry and we need to strike a balance between subscription and traditional content.
Ryuu96 said:
Xbox isn't under the PC division (by PC, I assume you mean Windows?) and haven't been under them for years now, Xbox/Gaming is now in fact, higher in position than the Windows team because Satya put them there. They did used to be under the Windows Division, I'm not sure when they were added but they were removed around the time that Phil was promoted to an EVP of Microsoft. It used to be that Xbox was ran by Don Mattrick but Don Mattricks boss and ultimately the guy who greenlit everything, including their budget, would be Terry Myerson (who is no longer with Microsoft) and was reportedly a source of a lot of issues so Xbox being under PC division is and was actually worse for them. Reason why Xbox has a lot of cash now is because Phil is on Satya's leadership team, Xbox isn't under no division now as a sub-division sharing a budget, Phil is about as high as he can get in Microsoft without actually being CEO and has the backing of Microsoft behind him, which includes their money, cause he clearly gave a good pitch to them. |
So are you saying that MS isn't funneling money from their other businesses into Xbox to prop it up? Do you think the purchase of Bethesda, Obsidian, etc. were all funded entirely by Xbox revenue?
Thank God.
Another day another false rumor then?
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."
Ryuu96 said:
Every division has their own set budgets, Xbox is no longer under the Windows division, there is no direct 'funnelling' of funds from one division to another, Xbox is being supported by Microsoft as a whole now, as evident by them being removed from being under the Windows division and Phil being on Satya's leadership team. Mergers & Acquisitions funds do not come out of a divisions budget, the M&A budget is entirely a separate thing set aside and decided upon by Microsoft, the cost of running the studios falls under Xbox but the cost of acquiring them doesn't, it's literally just money sitting in a bank doing nothing, which they have $130bn of. |
And with a Market Cap of almost $2 Trillion dollars, they have the clout to secure a shit-ton of financing at a whims notice, they probably look better to the banks than some entire countries.
--::{PC Gaming Master Race}::--
Ryuu96 said:
Every division has their own set budgets, Xbox is no longer under the Windows division, there is no direct 'funnelling' of funds from one division to another, Xbox is being supported by Microsoft as a whole now, as evident by them being removed from being under the Windows division and Phil being on Satya's leadership team. Mergers & Acquisitions funds do not come out of a divisions budget, the M&A budget is entirely a separate thing set aside and decided upon by Microsoft, the cost of running the studios falls under Xbox but the cost of acquiring them doesn't, it's literally just money sitting in a bank doing nothing, which they have $130bn of. |
Let me phrase this question in a way that you can't dodge it. If Xbox were it's own company, completely separate from the rest of MS, do you think they would have the funds on their own to make all their recent acquisitions?
Cerebralbore101 said:
Let me phrase this question in a way that you can't dodge it. If Xbox were it's own company, completely separate from the rest of MS, do you think they would have the funds on their own to make all their recent acquisitions? |
lol that's not really a relevant question - MS is Xbox and Xbox is MS.
Ryuu96 said:
It didn't actually come from Bloomberg either, apparently.
Also Square's statement doesn't contradict the original article, they never said that someone had made an offer and that is what Square is commenting on, no official offers have been made (which I don't think Square can lie about so we'll take that as true) but it also doesn't mean the original article wasn't true because that only mentioned folk as being interested. I think I'll just stick an update in the thread instead but in my personal opinion, Square Enix isn't selling, nor do I really want them to, they have no need. |
Actually they kind of can and is what makes biding war silly.
Whatever buyout offer these companies receive comes with NDA and can`t be revealed at all. So if MS, Tencent and Sony all offered around 10B +- 2B at around the same time sure you could think of whoever gives a proposition would win. But you wouldn`t see Sony offered 8B, then MS offered 9B, Tencent 10B with this SE goes to MS and Sony to let them know the offer was 10B so both raise to 12B. NDAs forbid that, and if it occurred and was discovered it would be a very big lawsuit.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."
Ryuu96 said:
Lol, I wasn't dodging it but I was also confused at what exactly you were getting at, I had a sneaking suspicion it was this though. No, they couldn't, at least not Zenimax but maybe they could some of the smaller ones like Obsidian but why does it matter? Every company has a leading money maker and their other divisions would have a tougher time if they were independent. Not to mention, you're wrong, Azure is now Microsoft's biggest money maker, not Windows, here is an outdated graph though which shows in comparison to other companies, Microsoft is pretty diverse in what brings them revenue.
I'm not sure why it matters though...? Youtube didn't used to make a profit (I'm not sure if it still does) so is Google funnelling money from other divisions into Youtube? (No, not directly). Playstation is Sony's biggest segment now, iPhone for Apple, etc. That is how...companies work...Some stuff doesn't make as much profit, some stuff makes no profit at all (Linkedin, Github) but the overall business is healthy and capable of keeping the divisions alive and pushing them further. You're saying it like it's a bad thing which is a bit odd when it applies to every company out there. |
Windows and Cloud computing are all the same to me, but yeah, it is Azure that makes them the most money now. The point is that MS is using money earned from their other businesses to prop up Xbox.
It is a bad thing. Companies use money earned from their other divisions to try to muscle their way into industries where they would normally fail, without a large influx of cash from their previous business. This propping up of a failing division forces smaller, more innovative companies out of the picture, since they can't compete with the loss leader strategy of a massive company.
Let me use an analogy with Apple Pies. Let's say there are three bakers in a town. They are the only bakers, because they bake the best Apple Pies for the lowest prices. Nobody can compete with their prices or the quality of their pies, other than each other. John owns a very lucrative lumber company. John's wife Sally wants to get into the baking business. So he buys her a building, and a gives her money to pay employees. For the first three years Sally doesn't turn a profit. Her pies taste terrible, and her prices are 20% higher than the three original bakers. Sally goes to John and complains. John suddenly gets an idea. He buys the local apple orchard where all four bakers get their apples. He now refuses to sell apples to the three original bakers. This forces them to have inferior apples shipped in from far away, raising their prices, and causing their pies to taste worse. John also gives Sally enough money to be able to sell her pies at a massive loss. The three original bakers have a hard time competing now. Two of them go out of business.
The end result? Now it's a competition between Sally's baking company and one other. The other company still can't get good local apples, so Sally finally gets to turn some profits. But now the townspeople have worse apple pies for higher prices all around. If Sally were to attempt to become a baker on her own she surely would have failed. But now thanks to the money from her husband's business she is able to not only be successful but put two competitors out of business.
You can argue all day that there's no divisions in MS and they are all just one company. People could argue all day that there is no Sally's Bakery, and just one company called John Lumber Holdings LLC. But the point remains. Sally and Xbox really don't have any business being in the industries that they are in. Both would have failed on their own.
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