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

el_oh_el

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This is interesting. The Xbox brand helps ms stay visible in my eyes. Also, if ms folded the division, console gaming would suck cause Sony does not need a monopoly at all
 

Rekkapryde

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

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...

But they don't hear you though. Their server and tools division revenue has been increasing every year along with office, but Windows is going down.

the server and tools division (where Azure lies) is what the new leadership wants to ramp up.

MS_2010_2013_oibydivision_USD.png
 

Rekkapryde

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Bing is definitely going to get the :camby:

Unfortunately, and yes I'm serious, XBox is too and I don't want that to happen. Sony needs competition. But then again, it can open the door for a Google or Apple Console.
 
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But they don't hear you though. Their server and tools division revenue has been increasing every year along with office, but Windows is going down.

the server and tools division (where Azure lies) is what the new leadership wants to ramp up.

MS_2010_2013_oibydivision_USD.png
Yup...and i posted just q1 2014.... Fye 2013 is very telling...business made 20x what entertainment did...

Xbox is a novelty to microsoft.
 

MeachTheMonster

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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

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

:beli:

Sony still loosing money on PS3 should they conced
 

Liquid

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Bing is definitely going to get the :camby:

Unfortunately, and yes I'm serious, XBox is too and I don't want that to happen. Sony needs competition. But then again, it can open the door for a Google or Apple Console.
The console gaming business is probably on its way out man...I hate to bring it up to you guys.
 

Rekkapryde

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"Unanimous sources say he might think about it IF he becomes CEO"

Thread title

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


:beli:

Read the articles and look at the data, this isn't new shyt. The board at MS doesn't really care for Xbox like that. They want to invest more in their cloud strategy, windows and office licenses, and services.

Bing, sharepoint, office 365, xbox, and all that other shyt doesn't bring in the revenue they want. Before Ballmer announced his retirement there were grumblings that the board members with lots of shares and influence wanted him to get rid of the divisions that aren't making money.
 

Rekkapryde

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Dont turn this thread into that...this has nothing to do with sony

they are upset man. let em vent.

unlike MS, Sony does have more of a vested interest in their Playstation brand so they can't afford for it to fail unlike MS who can cancel Xbox and still make a shytload of money. The fact the Android patent revenue is keeping that division afloat is crazy.
 

NSSVO

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Bing is definitely going to get the :camby:

Unfortunately, and yes I'm serious, XBox is too and I don't want that to happen. Sony needs competition. But then again, it can open the door for a Google or Apple Console.

:lupe: An Android gaming system. Shaped like an Android :lupe:
 
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