Elop to sell off Xbox division and cancel Bing if he becomes Microsoft CEO

[newarkhiphop]

Bloomberg has spoken to three anonymous sources who claim to have knowledge of Stephen Elop's current mindset, and who say he'd consider making some radical moves if he become Microsoft's CEO. Now, bearing in mind there could be some seriously heavy axes being ground here, the details of what Elop might "consider" doing at Microsoft look almost designed to stir a fuss among investors and customers alike. For a start, the former Nokia CEO (and cost-slasher) would apparently contemplate selling off Microsoft's high-profile Xbox division, if he deemed the department to be less than critical to the company's overall strategy. Instead, the story goes, he'd focus the software giant's efforts on products and services related to its Office applications. Somewhat less scandalously, he'd allegedly also contemplate cancelling Bing. Some analysts have previously put forward the idea of dropping Xbox and Bing in order to raise Microsoft's profits in the short term, so these ideas haven't come out of nowhere, but they still seem slightly premature for a man who's only just got himself on the CEO shortlist.

http://www.engadget.com/2013/11/08/rumor-elop-could-sell-off-xbox-and-kill-bing/

 

[Ed MOTHERFUCKING G]

. For a start, the former Nokia CEO (and cost-slasher) would apparently contemplate selling off Microsoft's high-profile Xbox division, if he deemed the department to be less than critical to the company's overall strategy. Instead, the story goes, he'd focus the software giant's efforts on products and services related to its Office applications.

Well end user applications and gaming are a small fraction of microsoft's earnings, and often a loss-leader, so to maximize the net income, yes, that makes sense.


But he would in the process turn microsoft into IBM which would ironic on like 4 levels.

 

[BlvdBrawler]

I can see them selling of XBOX, but Bing I thought was a huge part of their overall strategy for the future.

 

[Raiders]

nikka I need Bing for free games, fukk that nikka

 

[newarkhiphop]

@Hiphoplives4eva

 

[Hawaiian Punch]

We all know his kids have playstations at the crib

 

[newarkhiphop]

I can see them selling of XBOX, but Bing I thought was a huge part of their overall strategy for the future.

Bing is

 

[NSSVO]

No way he's getting rid of Xbox, it's one of the most popular things Microsoft has. Which keeps them in people's minds with the fascade that they are still number 1.

 

[Ed MOTHERFUCKING G]

Btw before anyone challenges the business decision...heres their most recent P&L
Full fiscal 2013

Segment Revenue and Operating Income (Loss) (in millions)

Year Ended June 30 2013 2012 2011

Revenue
Windows Division $ 19,239 $ 18,400 $ 19,061
Server and Tools 20,281 18,534 16,559
Online Services Division 3,201 2,867 2,607
Microsoft Business Division 24,724 24,111 22,607
Entertainment and Devices Division 10,165 9,599 8,915
Unallocated and other 239 212 194
Consolidated $ 77,849 $ 73,723 $ 69,943

Operating Income (Loss)
Windows Division $ 9,504 $ 11,555 $ 12,280
Server and Tools 8,164 7,235 6,105
Online Services Division (1,281) (8,125) (2,657)
Microsoft Business Division 16,194 15,832 14,678
Entertainment and Devices Division 848 380 1,261
Corporate-level activity (6,665) (5,114) (4,506)
Consolidated $ 26,764 $ 21,763 $ 27,161

So, sever alone makes ten times the money of entetainment...and business TWENTY times.

Fiscal Q1 2014:

Spoiler

In millions:

Three Months Ended September 30, 2013 2012
Revenue
Devices and Consumer Licensing $ 4,343 $ 4,678
Devices and Consumer Hardware 1485 1,084
Devices and Consumer Other 1,635 1,400
Commercial Licensing 9,594 8,945
Commercial Other 1,603 1,248
Corporate and Other (131) (1,347)
Total revenue $ 18,529 $ 16,008


Gross Margin
Devices and Consumer Licensing $ 3,925 $ 4,103
Devices and Consumer Hardware 206 448
Devices and Consumer Other 352 362
Commercial Licensing 8,801 8,183
Commercial Other 275 105
Corporate and Other (144) (1,361)

In short, what microsoft does well and always has, is licensing its commercial software, operating systems, etc;

All of their consumer hardware combined (xbox, tablets, etc) is 206MM to 8.8B of commercial LICENSING alone.

It would tarnish their identity but it is arguably their fuduciary responsibility to CONSIDER getting out of that line of business...

 

[Rekkapryde]

No way he's getting rid of Xbox, it's one of the most popular things Microsoft has. Which keeps them in people's minds with the fascade that they are still number 1.

Uhh, this has been rumored for a minute. The Entertainment division which includes the Xbox brand doesn't make the money MS wants it to make.

They won't pull the plug on the Xbox One, but this may very well be the last Xbox console.



http://www.businessinsider.com/micr...er-year-from-android-patent-royalties-2013-11

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Microsoft is generating $2 billion per year in revenue from Android patent royalties, says Nomura analyst Rick Sherlund in a new note on the company.


He estimates that the Android revenue has a 95% margin, so it's pretty much all profit.

This money, says Sherlund, helps Microsoft hide the fact that its mobile and Xbox groups are burning serious cash.

For the past few years, Microsoft reported the revenue and operating losses of Entertainment and Devices, which was the group that housed Xbox, Windows Phone, and those Android royalty payments.

That group always seemed to be profitable, but Sherlund says it's largely because of the Android money.

Sherlund says that if you back out the Android profits, Microsoft is probably losing $2.5 billion on Skype, Xbox, and Windows Phone. Of that, $2 billion in losses are attributable to the Xbox platform.

Sherlund believes Microsoft needs to spin out Xbox. He sees it as an orphan group at Microsoft that doesn't really fit with anything it's doing.

Investors are blind to Xbox's struggles, says Sherlund, because they are "concealed by the hugely profitable Android royalties."



Read more: http://www.businessinsider.com/micr...ndroid-patent-royalties-2013-11#ixzz2k4KNvCEt

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Just saw your post @Ed MOTHERfukkING G

 

[Why-Fi]

their bread and butter is enterprise solutions anyway. last i checked commercial SQL licenses were over 20k a pop

not sure how much exchange costs but i know every support call is $$$$

 

[Clark Wayne]

Interesting. I read on Neogaf the other day that the Xbox division is costing Microsoft $2 billion in losses. So

 

[satam55]

I can see them selling of XBOX, but Bing I thought was a huge part of their overall strategy for the future.

They are losing BIG MONEY every year on Bing. They should fukking concede.

 

[NSSVO]

Uhh, this has been rumored for a minute. The Entertainment division which includes the Xbox brand doesn't make the money MS wants it to make.

They won't pull the plug on the Xbox One, but this may very well be the last Xbox console.



http://www.businessinsider.com/micr...er-year-from-android-patent-royalties-2013-11

-------------------------------

Microsoft is generating $2 billion per year in revenue from Android patent royalties, says Nomura analyst Rick Sherlund in a new note on the company.


He estimates that the Android revenue has a 95% margin, so it's pretty much all profit.

This money, says Sherlund, helps Microsoft hide the fact that its mobile and Xbox groups are burning serious cash.

For the past few years, Microsoft reported the revenue and operating losses of Entertainment and Devices, which was the group that housed Xbox, Windows Phone, and those Android royalty payments.

That group always seemed to be profitable, but Sherlund says it's largely because of the Android money.

Sherlund says that if you back out the Android profits, Microsoft is probably losing $2.5 billion on Skype, Xbox, and Windows Phone. Of that, $2 billion in losses are attributable to the Xbox platform.

Sherlund believes Microsoft needs to spin out Xbox. He sees it as an orphan group at Microsoft that doesn't really fit with anything it's doing.

Investors are blind to Xbox's struggles, says Sherlund, because they are "concealed by the hugely profitable Android royalties."



Read more: http://www.businessinsider.com/micr...ndroid-patent-royalties-2013-11#ixzz2k4KNvCEt

===========================================================

Just saw your post @Ed MOTHERfukkING G

Didn't know that shyt nikka

 

[newarkhiphop]

Interesting. I read on Neogaf the other day that the Xbox division is costing Microsoft $2 billion in losses. So