End of Xbox Division?

A report by BizJournals claims that ValueAct, a $2 billion Microsoft investor with a 1% stake in the company, is seeking to achieve some major changes at Microsoft. Analyst Rick Sherlund claims that big changes are going to take place very soon as other shareholders support the decision to get rid of Steve Ballmer in addition to the investment group ValueAct. According to the report ValueAct are seeking to replace Steve Ballmer because his strategy “inspires little confidence”.

Apparently Microsoft has no choice but to give ValueAct a board seat otherwise they might launch a “public war” on Steve Ballmer and Microsoft that could end with serious turmoil at the company.

“A decision by the board at Microsoft to offer a nomination for a board seat could keep the activist agenda behind closed doors and take longer for shareholders to see potential benefits”

Furthermore it is believed they might target the Xbox division and try and get rid of it altogether. This would allow Microsoft to focus on other products  and mainly Windows.

“Xbox is cool, but by our estimates Microsoft has not made money at this”

Ravenprose said:

This video still makes me laugh.

LOL

Foolz said:

I'd be sad to see Xbox go. Their hardware has always put me off (though apart from leads my original Xbox has done pretty well over the years) but the industry is always more interesting when there are at least three companies making consoles. Two gets way too back and forth and boring.

I don't really care either way. I'd be sad to see Nintendo go just because I think its good to have at least one pure gaming company in the mix...whether Nintendo or SEGA. Having one less console saves me money though. Give me Halo and Gears and Fable on the PC. Sell Rareware to somebody else.

I always thought of the 32 bit era as just being between two consoles, as SEGA was so far out of it that they really didn't matter. It was Sony and Nintendo, and I was fine with that.  In fact I think Nintendo is a better company for gamers when they only have to contend with one giant corporation instead of two. They both had their niche, and you knew everything you wanted was on one or the other.

Foolz said:

I'd be sad to see Xbox go. Their hardware has always put me off (though apart from leads my original Xbox has done pretty well over the years) but the industry is always more interesting when there are at least three companies making consoles. Two gets way too back and forth and boring.

I agree the industry has been better off 3 players in the marketplace. And Microsoft has been good for the industry (X-Box Live, the marketplace, mandatory harddrive). But if I were a Microsoft investor I'd probably have to ask the same questions. You've got a product line that's been a huge focus for over a decade, but not making money and given the state of the industry isn't likely to do much better than it is now... I'd need convincing as to why you need to keep it going. Having a "cool product" doesn't pay my stock dividends.

Though I'm also a little confused. I thought the Xbox division had been in the black for the past couple years.

BTW....Metal Gear Rising is a blast. Can't believe how much I am liking it. Even though its a total action game, it totally fits in perfectly with the Metal Gear universe. Best game I have played from Platinum Games.

edgecrusher said:

None of those things are really a big deal anymore though. Everyone is doing the same thing, basically. I'd argue that over the past few years Microsoft has done a lot less to improve things, and a lot more to nickle & dime the shit out of everyone and just generally lead things down a bad path for the consumer.

They're not a big deal anymore, but they did it first and they helped push the direction of the industry. My point is they've been good for the industry (even if I'd never actually touch one of their consoles) and I think they can continue to be good for it. I'd argue between all of the stuff I've mentioned and the acheivement systems they've done more for gaming in the past decade that Sony has.

robio said:

Though I'm also a little confused. I thought the Xbox division had been in the black for the past couple years.

It has, but that division has lost billions, so it would take many years of profit to break even. They also spent 100 million to slightly redesign their almost-perfect 360 controller. So now I have to wonder how much they have spent designing the entire Xbone console? One billion? Two billion? Just crazy.

Ravenprose said:

It has, but that division has lost billions, so it would take many years of profit to break even. They also spent 100 million to slightly redesign their almost-perfect 360 controller. So now I have to wonder how much they have spent designing the entire Xbone console? One billion? Two billion? Just crazy.

2 billion just to come up with a system comparable to a decent current PC? That IS crazy!

I still like the Xbox 1 controllers more than 360. 360 had better back/start button placement and better black/white bumper placement....but the Xbox 1 controllers were WAAAY more durable, had better analog sticks, and a better D-pad. Triggers and face buttons were exactly the same or close to it.

Dvader said:

Edge hold me.