The higher up you are in your career, the more pressure you’ll find waiting for you. And when it comes to Microsoft, new CEO Satya Nadella is going to find a ton of that waiting for him as the company once again gets down to the business of making even more money than ever. Except the Xbox Division might not be around to see all that cash flow back to the home of Windows.
According to the Washington Post,”Two influential Microsoft shareholders” want to convince Nadella to help shed the company of divisions seen as unnecessary, such as Surface, Bing and Xbox.
This comes after Windows profits have seen a drop, from the $12.3 billion to $9.5 billion over the last year. These investors are seeking to get Microsoft focused on providing operating software to businesses, instead of branching out in various other sectors.
The Surface tablet has pretty much been a disaster for Microsoft, sucking up too much time and cash and costing the company over $900 million so far in unsold tablets. But shedding Xbox? That’d be one hell of a move to make, as the brand is such a key part of Microsoft now.
It’s a division that brings it closer to consumers, and for better or worse, can make it some decent profits when managed correctly. Surface and Bing I can understand, but Xbox? Never. Former CEOs Steve Ballmer and Bill Gates are still with Microsoft, with Ballmer acting as an advisor to Nadella.
And seeing how Ballmer helped Microsoft become a more diverse company, I doubt that he’d advise in favour of selling off the Xbox division. Then again, profits!
Last Updated: February 11, 2014
TiMsTeR1033
February 11, 2014 at 10:11
Damn, if they sold off Xbox what would become of all those Xbones in the stores collecting dust.. would someone else buy Xbox and take it to new heights? or would it simply crumble and become another gamecube. On the bright side it would allow Nintendo to get some ground as would only then be Nintendo and Sony and obviously Sony would win the console war which isnt really a good thing as no real competition which means prices increase.. I really hope this doesnt happen.
Alien Emperor Trevor
February 11, 2014 at 10:11
These shareholders want MS to sell the Xbox division RIGHT after the release of the new console? Wow, that’s… kinda stupid… for MS, but great for them. Hooray for short-term cash-ins that don’t benefit the company you invested in.
What’s a Bing, precious?
TiMsTeR1033
February 11, 2014 at 10:12
Bing is a piece of shit.
Eric
February 11, 2014 at 10:25
Maybe… but you can switch safe search off 😉
Rikus
February 11, 2014 at 10:46
Actually, I’ve heard that Bing is the best search engine for those particular searches
ToshZA
February 11, 2014 at 11:57
Well we know why you use it then.
Honestly I thought bing was some kind of youtube wannabe. Not a search engine O_o
TiMsTeR1033
February 11, 2014 at 11:04
can turn safe search off in google too you know.
Eric
February 11, 2014 at 13:34
Not completely off anymore, no.
RinceThis2014
February 11, 2014 at 10:42
Agreed 🙂
Willem Swanepoel
February 11, 2014 at 10:44
BING = Because Its Not Google
😉
Captain GUZ
February 11, 2014 at 11:04
Its a code name for the hit in a bong?
Hammersteyn
February 11, 2014 at 10:14
Bing Means Disease In Chinese
GalacticLordCaptainAwesomeness
February 11, 2014 at 10:18
Come on Man, it’s not that bad.
I love the Desktop App, as well as the pretty pictures everyday.
Boontjie
February 11, 2014 at 10:21
Header should be adjusted abit John Wilker Booth face should be adjusted to be Indian
Hammersteyn
February 11, 2014 at 10:22
So that’s why they called it Xbox One, as in the last One ever 😛
SheHulkNigri
February 11, 2014 at 10:23
Xbox One Step Closer to Getting Canned
Umar Reborn
February 11, 2014 at 10:29
Damn…What’s happening to Xbox
Hammersteyn
February 11, 2014 at 10:30
Not as much cash is rolling in as they hoped, probably?
Umar Reborn
February 11, 2014 at 10:40
Who would’ve thought
CypherGate
February 11, 2014 at 11:02
Then they should have stepped up there game with all there resources. They had more than 7 years to develop a seriously great piece of hardware.
TiMsTeR1033
February 11, 2014 at 11:07
Ms was being run by Steve Ballbag and he isnt the best Ceo Ms ever had, If Bill gates was still Ceo Xbones would have been a much better console.
CypherGate
February 11, 2014 at 11:10
Thats also true. I just think waiting this long to have something thats ok, but not great is such a waste of time. Will have to see how the X1 does in the next year or two. Sony on the other hand. No worries on there side!
Grant Hancock
February 11, 2014 at 10:30
Shutting Xbox down would be bit stupid !? … but distancing it from Microsoft might not necessarily be bad idea. I would imagine that MS might want to float Xbox as a standalone company (that it owns the majority of) … this would reduce (to a small degree) the negative effects of any problems in Xbox affecting Microsoft stock. … also might have some positive spin-offs for Xbox. Let Microsoft focus on making great software, and Xbox on making great tech.
Don’t see this happening though… pretty sure will all stay together.
CypherGate
February 11, 2014 at 11:07
It would give Nintendo a chance ^_^ if Xbox died lol
b1nd3r512
February 11, 2014 at 10:31
money talks and the xbox might walk >.< might be a good thing if xbox is bought out by a decent company, Im a fan of xbox but having the chain of microsoft removed might actually do it good and allow for new ideas to come forth.
HvR
February 11, 2014 at 10:32
They should chrome plate all the remaining Xbox One stock and sell it to Apple.
Rikus
February 11, 2014 at 10:44
You are thinking of aluminum 🙂
TiMsTeR1033
February 11, 2014 at 11:03
indeed chrome would cost far too much if I am thinking correctly.
ElimiNathan
February 11, 2014 at 10:34
Think about it, Xbox One gets canned, everyone gets a PS4 and the PS4 gets all the games. Everyone is happy 😛
Hammersteyn
February 11, 2014 at 10:34
It would make decent room for the Steambox and help Nintendo sales
ElimiNathan
February 11, 2014 at 10:35
I’m almost convinced it NEEDS to be canned now 😛
Her Highness the Hipster
February 11, 2014 at 10:34
Okay, shutting down Bing makes sense… but Xbox?! c’mon! then who will give us vibrating triggers?
Rags
February 11, 2014 at 10:37
Half of the world population.
Umar Reborn
February 11, 2014 at 10:46
Adultworld
RinceThis2014
February 11, 2014 at 10:48
Damn you @umarbastra:disqus That was MINE!
Umar Reborn
February 11, 2014 at 10:50
Can’t touch this!….da na na na da da – da da
TiMsTeR1033
February 11, 2014 at 11:01
You forgot to add “Getting jiggy wit dis”
Umar Reborn
February 11, 2014 at 11:01
Will Smith??lol
TiMsTeR1033
February 11, 2014 at 11:01
yip!
Gr8_Balls_o_Fire
February 11, 2014 at 13:05
Na na naa na nA na… Na na naa na na neh!
Admiral Chief in Vegas
February 11, 2014 at 20:20
Trust you to get excited about dem triggers!
Christiaan Joubert
February 11, 2014 at 10:41
Realistically speaking, ms always has made its millions of companies and businesses… So cutting those products is frankly the most profitable and will likely give them a more professional image
TiMsTeR1033
February 11, 2014 at 11:06
Very true what you said there, if you think about it. If Ms canned the Xbox they would appear more professional and to be honest the amount of money they have whats a couple of million between friends.
B4d R0b0t
February 11, 2014 at 10:41
Microsoft have never been able to pull in huge profits from the xbox team. This discussion has been floating around the hallowed halls for a few years. The issues also lies with AZURE and how Microsoft thought or hoped that game developers would use AZURE to create games and then scale them out as the player base grew using the AZURE cloud. In reality the product just costs too much to use and most developers know the simple math that 18 months on AZURE costs more than buying the same technology. Add to that the lack of worldwide distribution of AZURE clusters and you get a very expensive platform to makes and host games and communities on coupled with a very expensive platform (xbox) to licence games and game updated on.
Laby
February 11, 2014 at 10:52
I think someone does not like Xbox at all, or is a Sony employee working undercover for M$
JustAnotherGamer
February 11, 2014 at 10:57
Can’t say I’ll miss Microsoft as a hardware maker. But Sony needs competition so whoever takes up the reigns as number 2 better bring their A game, and keep Sony on the straight and narrow.
Guest
February 11, 2014 at 10:59
It’s looking like more and more of a good idea every day to focus on PS4 instead of Xbox…
Werner Morris
February 11, 2014 at 11:00
It’s looking more and more like a good idea to avoid buying an Xbox One…
TiMsTeR1033
February 11, 2014 at 11:01
repeating yourself – here have some coffee
Werner Morris
February 11, 2014 at 11:11
I think too much coffee is the reason 😛
TiMsTeR1033
February 11, 2014 at 11:17
try a redbull instead then lol
CypherGate
February 11, 2014 at 11:01
How has it come to this? I mean the Xbox One has become one big disaster. I was so looking forward to buying an X1, but damn… There more negatives than positives.
FoxOneZA
February 11, 2014 at 11:02
We’ve heard this before when the Xbox 360 was launched. It’s the same right wing shareholders blabbing their traps again looking for profits.
Elsewhere, Sony is scraping to turn in a meaningful profit, nothing close to a billion.
Devourer of Small Bunnies
February 11, 2014 at 11:03
Interesting times. We all know sony aint doing that well either. The king is dead. Long live the king.
b1nd3r
February 11, 2014 at 12:12
Really king is dead? thought most buildings in the world still have computers in them….. 😛
Devourer of Small Bunnies
February 11, 2014 at 12:46
Wait what?
Rags
February 11, 2014 at 11:06
Maybe they are scared of the big V. As we may not see another traditional console generation in 8 years time. 😛
Alien Emperor Trevor
February 11, 2014 at 11:22
You know, it took me a moment to realise what you really meant by “the big V.”
“Why are they scared of a vagina? Oh….”
TiMsTeR1033
February 11, 2014 at 11:14
Xbone feeling the burn
JustAnotherGamer
February 11, 2014 at 11:39
Jim Sterling for president http://www.escapistmagazine.com/videos/view/jimquisition/8773-Free-To-Wait
Corrie Botha
February 11, 2014 at 14:10
As long as they keep on making those controllers I’m happy , really dig that Titanfall controller only wish it would work with pc, as well as their exclusives would be great , Rockstar wouldn’t then have an excuse of delaying the PC version anymore.
Reaver
February 11, 2014 at 14:44
This site is getting way to cluttered with banners and moving parts and shit…
Gavin Mannion
February 11, 2014 at 15:55
It’s only for today… will be gone tomorrow
TwinStripeUK
February 11, 2014 at 15:02
Absolute nonsense headline – nobody in Microsoft wants to sell off Xbox, only TWO of the many shareholders.
Nadella absolutely believes in the ‘One Microsoft’ ideal, just as John Thompson (the new Chairman) does. That’s why the board chose him over Elop (who would basically just sell every bit of the company off to make a quick buck and retire.
You should be far more worried about the bean counters selling off your favourite console if you’re a Nintendo or Sony owner at the moment…
The New GooTube make your comm
February 11, 2014 at 15:52
I would said that might be a good idea, since the Xbox divison is not a cash cow of M$. They make profit from the software much more … TONS MORE. Just look at google, a software titan that trying to involved in Hardware by buying Motorola … and look at them now, They’re losing $10 billions over this deal. Just like my father once said ” It’s easier for Hardware makers into software industries than software into hardware”. Apple and samsung is the fine example 😛 ( althought I hate them both XD ). Oh and Nokia will eventually get the same fate like Motorola too imo 🙁
DAS
February 11, 2014 at 20:11
So, i should not get an xbox one with my tax refund like i planned because it is on its way out…nice announcement to lose sales microsoft! Byeee!
Vince
February 12, 2014 at 07:54
Most investors only care about next quarters earnings not the long term success of the company. Selling out these other divisions are dumb especially when other companies are out buying other companies to diversify. Xbox is ahead of the competition in owning the living room when Apple is still figuring that out. With 80 billion in cash, microsoft could just buy Netflix and combine that with its live service. Windows Phone doesn’t need to be #1, it can lead in the corporate environment and continue to gain market share from there, besides Microsoft is making huge cash from Android patents. What they need to kill is the marketing department airing the most dumb commercials,also kill the scroogled campaign. Bing is great, I don’t see why people don’t like getting paid just to use it. I was able to buy HIDs for my car and free movie tickets for my kids. The google results are almost the same. I bought MSFT at $27 last year when all the rants are about Windows 8 is. Its at $37 now. Of course I’m not a huge institutional investor but I still bet on the long term success of Microsoft but not by selling off divisions for short term gains.
OliverRC
February 12, 2014 at 08:31
Kill off Internet Explorer instead