Will Microsoft Sell Off Its Entertainment Division?
An anonymous reader writes "Forbes analyst Adam Hartung has predicted that Microsoft will sell off its entertainment division, which includes Xbox, in the coming years. He even goes so far as to list Sony or Barnes & Noble as potential buyers. Lets forget how crazy this sounds for a moment and focus on the reasons why Hartung believes such a sale will happen. It basically comes down to Windows 8, and how poorly it is selling. Combine that with falling sales of PCs, the Surface RT tablet not doing so great, the era of more than one PC in the home disappearing, and Microsoft has a big problem. The problem not only stems from the PC market not growing, but because Microsoft relies so heavily on Windows and Office for revenue. With that in mind, Hartung believes Steve Ballmer will do anything and everything to save Windows, including ditching entertainment and therefore Xbox."
I cannot believe this is getting posted here. I know Slashdot hates Microsoft but this is the equivalent of me saying that Apple will sell off the iPad because the iPhone didn't sell as well as they wanted it to. Or something like that.
Either that, or they will release Xbox 8 as an "upgrade".
Sigh.
This is the dumbest thing I've heard on this site yet.
Last i read
The online part is the money loser along with mobile
And why would Sony buy it? They already have a console
I've not understood MS's strategy around gaming for years now. Don't get me wrong, I owned an original Xbox and liked it, I own a 360 now and like it a lot - but I've never understood why MS would choose to move into the console market.
I'd have thought that there's much more of an incentive for them to make Windows work as a gaming platform. After all, what's one of the biggest reasons that people shy away from switching OSes? The games. Running modern commercial games consistently and in a relatively hassle-free manner is - and has for quite a long time - been one of the things you can do on Windows that you just can't do on other OSes.
So they launch the original Xbox which is basically - at launch at least - the console that runs games you'd otherwise have expected to be focussed on the PC (Halo and Knights of the Old Republic were both from genres that the PC utterly dominated at the time). Then the 360 comes along and - for quite a long time - if the only reason you stick with Windows is gaming... then why not just buy a 360?
And then as we get to the late-cycle point where PC gaming really starts to outstrip what the consoles can do (even on a bargain-bucket PC), they go and foul it all up with Windows 8.
It's like MS is determined to take one of its biggest advantages in the OS market and hammer it into oblivion.
They make periodic efforts to "get serious" about the PC as a gaming platform, but these tend to be inconsistent, badly thought through and horribly unsuccessful. Games for Windows Live, anybody? With Valve looking at the PC gaming market in a distinctly predatory manner, MS should be seriously worried.
And while it's not such a major matter, they've also made some really odd choices with their internally developed games. First they shut down the Flight Simulator series - a brand with immense loyalty from its enthusiast following - abandoning the market to competitors. Then they try to come back with Flight - a free-to-play-pay-to-actually-do-anything monstrosity that discards the series's historic strengths.
Selling off their entertainment division? At the point where they're finally making a profit from console gaming? It would fit...
If that's the case then Uncle Fester is completely around the bend. They have one division that is a leading player in a rapidly developing market, and that is Xbox in a market where entertainment is starting to be delivered by IP network and the cable companies are starting to cave or become irrelevant. Just at this moment Fester decides to sell. Holy Jebus Gates, fire that idiot.
If Windows is in trouble because of market shrinkage (and that's most certainly the case at the consumer level, not really at the business level), then how does decreasing Microsoft's diversification (which is what I always assumed the XBox division was all about) help things? Sure, it might make some quick cash, but then Redmond is still stuck with the same problems.
I think Microsoft has got an uphill climb with Surface, but while it may not be winnable in traditional Redmond terms (90% for MS, 10% for everyone else), I don't see why in the medium term it couldn't at least grab some modest market share. Beyond that, we already know they're preparing a version of Office for the iPhone, so Microsoft always has a few cards like porting major software packages to competing environments, up its sleeve.
I don't buy this. Not yet. Maybe in five years when Microsoft is in some sort of severe structural decline, then maybe they start selling off divisions, but while the situation is hardly in their favor right now, it's hardly desperation mode at Redmond.
The world's burning. Moped Jesus spotted on I50. Details at 11.
I'm just a lowly user, but I predict that the next big move that MS makes is to get rid of Steve Ballmer. And the second big move that MS is going to make is release Windows 8 Pro Classic -- which will simply be Windows 8 without Metro bolted on! They have no choice if they want to keep their business customers happy!
Article not's there anymore. Not surre how long it's been gone, but it's cute to see how many comments there are in spite of this.
The best thing about a boolean is even if you are wrong, you are only off by a bit.
They should be ditching Balmer, not the Entertainment Division. Behind almost every failure is a failing management team.
... I don't give a damn. Instead of selling Windows 7 and 8 at reasonable prices, you're turning Windows 8 into 200$, after some time in the 30-40$ (source. You'll die, slowly, because of being greedy and short-sighted. In my opinion.
The article has inexplicably vanished. Here's the text from the Google cache while it lasts:
Microsoft needed a great Christmas season. After years of product stagnation, and a big market shift toward mobile devices from PCs, Microsoft’s future relied on the company seeing customers demonstrate they were ready to jump in heavily for Windows8 products – including the new Surface tablet.
But that did not happen.
With the data now coming it, it is clear the market movement away from Microsoft products, toward Apple and Android products, has not changed. On Christmas eve, as people turned on their new devices and launched their first tweet, Surface came in dead last – a mere 2% compared to the number of people tweeting from iPads (Kindle was second, Android third.) Looking at more traditional units shipped information, UBS analysts reported Surface sales were 5% of iPads shipped. And usability reviews continue to run highly negative for Surface and Win8.
PC sales declining
This inability to make a big splash, and mount a serious attack on Apple/Android domination, is horrific for Microsoft primarily because we now know that traditional PC sales are well into decline. Despite the big Win8 launch and promotion, holiday PC sales declined over 3% compared to 2011 as journalists reported customers found “no compelling reason to upgrade.” Ouch!
Looking deeper, for the 4th quarter PC sales declined by almost 5% according to Gartner research, and by almost 6.5% according to IDC. Both groups no longer expect a rebound in PC shipments, as they believe homes will no longer have more than 1 PC due to the mobile device penetration – the market where Surface and Win8 phones have failed to make any significant impact or move beyond a tiny market share. Users increasingly see the complexity of shifting to Win8 as not worth the effort; and if a switch is to be made consumer and businesses now favor iOS and Android.
Microsoft’s monopoly over personal computing has evaporated
From 95% market domination in 2005 share has fallen to just 20% in 2012 (IDC, Goldman Sachs.) Comparing devices, in 2005 there were 55 Windows de
To make more money, we're going to sell of the division that currently brings in the most profit? Microsoft is far from being in the kind of bind where they need to start selling of parts of the company. Microsoft's "weak" Windows 8 sales were predicted. Maybe not quite as weak as they have been, but Microsoft didn't "bet big" on Windows 8. They knew the wildly revamped interface would be a huge gamble, and they expected negative reaction. But they are safe, because the large sales of Windows 7 in the enterprise world cushioned the harder than anticipated blow of Windows 8. But with so many businesses so heavily invested in Windows 7, Windows 8 was the PERFECT time to release an OS that had more "market research" potential than "sales" potential.
Microsoft is more likely to sell off the Windows Os side and keep the entertainment division. XBOX exists because they knew that the future of Windows depends on it being in your living room. They are supposed to be using the xbox to sell Windows in the same way Apple uses the iPad and iPhone OS to sell Macs.
With that said, Microsoft is doing a terrible job at this, but the strategy depends on tying entertainment to OS so selling it off would be illogical.
Forbes has vanished the article. Here's a copy on the author's blog.
http://rocknerd.co.uk
Will Will!
Anecdote: my work currently has XP, Office 2007 and Lotus Notes. We're looking at replacing Office and Notes with Google Apps ... and XP with Linux or Chromebook-style thin clients unless you can come up with a good reason you need a general-purpose PC. Google Apps is pretty much the hot favourite with lots of people saying "hell yes!"; the second part is just being mooted, but it's being seriously mooted. It'll be interesting. (I can already do all my work in Xubuntu.)
http://rocknerd.co.uk
Betteridge's law of headlines
The best part is that Forbes (apparently) pulled the article because (apparently) it was just too much wild speculation.
#naabhaprzrag, #sverubfr-000, #agi-fcbafberq, negvpyr[pynff*=' negvpyr-ary-'] { qvfcynl: abar !vzcbegnag; }
Pardon the pun, but it looks like MS is going to carry WinOS & MSO to the grave.
Why on earth would they sell that off? Makes absolutely no sense. This type of reporting is totally and utterly a pile of crap. Must be a slow news day and this guy has an article quota to keep.
"Thanks to the remote control I have the attention span of a gerbil."
Makes no sense
did you forget to take your meds?
Also, "Lets not forget".
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
The Xbox is basically a specialized, stripped-down Windows gaming computer, in terms of both software and hardware. The games use DirectX, just like regular Windows, and make it trivial for developers to port their games to desktop. In other words, the Xbox ecosystem makes the Windows platform stronger, not weaker.
Although people are venting, it should be of note that both MS and Google are in a war. And that war is bleeding casualties
Microsoft is killing MSN Live and Messenger. Google has killed off services and solutions. Windows 8 is part of a huge MS screw up where they are trying to align devices. This isn't a fit for their windows, so windows has had to go through the disaster that is called 8.
Phones, Xbox, PC and Tablet all with the same dire 'Modern *Cough Metro *cough* UI - and they killed zune which could have used the same. Their store is a disaster, as are the applications - and the development platform where you write once and deploy across devices is pure fantasy land.
Xbox depending one how much fiddling you do on the accounting side has lost MS billions. Its now at the end of the current machine design lifespan. And the high street market in the UK where they used to sell into is a disaster area. They are currently basically giving away 8 for peanuts, and only doing so has generated sales. They give away office in surface, because its so utterly broken and can't operate with add ins and stuff people need that they would not get away with charging for it.
At some point, and I think it will be soon unless there is something not visible, something will crack. Either the numbers or the money will turn into the red, and this stuff will go through the ringer. MS in recent times made ok money, but 7 started losing sales, and 8 has tipped into a slide. On the other side, while they are still shifting office, the theory of driving office on top of modern UI may well end up like a Win 8 disaster in the office area.
At which point certain plans or divisons will end up under scrutiny. I'm not expecting divions that lose billions to survive with that background.
MS is a very scewed up company right now. Its old divisions are being decimated and wrecked, and new ones are a mess. Includin the 'everything cloud' and azure.
To put this in a context. Here is a prime example. You can't add surface to AD.
How that actually passed board level or adult level checks its hard to know. A windows machine that is aimed at business users, has office installed (albeit laughably broken) and cannot be added to AD.
The bottom line is actually some of this shit has die, be sold off. Because frankly they are wrecking everything, stupidy, in badly thought out efforts to unify unconnected systems and devices, into an eco system no customer asked for, or wanted. Or will want.
We`re all equal
No.
I cannot believe this is getting posted here. I know Slashdot hates Microsoft but this is the equivalent of me saying that Apple will sell off the iPad because the iPhone didn't sell as well as they wanted it to. Or something like that.
No, I see distinct differences between your comparison. I wasn't able to read the article before it was pulled but let me address your bad analogy. While you're right that this "analyst" needs to pull his head out of his anal cyst, your comparison is quite laughable and let me tell you why. Traditionally Microsoft's software has been a cash cow. You want the latest Office? You want the latest Windows? Pay up. Everyone. For each computer. Now. And while that's faltered before, Windows 8 has been subjected to a lot of bad PR (both warranted and unwarranted) as well as actually having poor sales.
Now, let's look at their entertainment division. With the initial Xbox release, that division was a sinkhole of money. Like, literally a burn pile for billions of dollars. But Microsoft was patient because they had other stupid insane routes of income with which to fill the tire fire that was the Xbox. Even when they launched the second incarnation -- they fared much better but still they took a loss on the console assuming publishing royalties would pay and later on they did. Now, you know, after the bomb of the Zune has run its course and now that Wii U is out Microsoft could be looking at their entertainment division as a potential sale. Why? Because in the past it has been a very risky venture for them and recently profits and revenues of that division have been dropping faster each quarter. Basically I see their sales stagnating until they release another console to drum up more money -- and even then they'll probably take the strategy of letting later publishing sales subsidize the initial unit to compete with Nintendo and Sony.
So, now that their cash cows are looking pretty thin will they be in a position to take another gamble in the console market? Will it be painful like Xbox one or will it be great like Xbox 360? And I'm not in this area of management but I imagine they are looking at their revenues and if committing to the next console is a make or break move for Microsoft as a whole (which would be totally f*cking insane if they are looking that bad) then maybe they'd try to sell it to someone else with huge cash reserves. I don't know why Sony would buy and I don't see B&N having a ton of cash after their brick and mortar stores are a fond pastime.
So, to wrap it up, no this is nothing like Apple selling off the iPad because the iPhone didn't sell as well as they wanted it to. I don't think the iPad ever lost them money and the market still looks good for tablets.
My work here is dung.
The operating system - and, for that matter, Office - is becoming less and less important as more companies transition to web-based services for the bulk of their work and find that they don't need anything like as sophisticated as Office for the odd spreadsheet or bit of word-processing.
Sure, it's not happening anything like as quickly as a lot of us predicted five or ten years ago. But it's happening.
In such a climate - particularly when you're still a profitable company with a lot of cash in the bank - I would think it makes more sense to diversify than it does to concentrate on the two things that have historically made you lots of money but might not continue to do so for very long.
The obvious company to buy the XBox line would be Hon Hai Precision Industries, the parent of Foxconn. They already make the XBox. Hon Hai's CEO wants to develop a global brand of their own. It would just mean Hon Hai taking over a slightly larger portion of the supply and marketing chain for something they already make.
1- build a very mature OS/Office/Entreprise business with slow growth
2- build a faster growth Entertainment business with, at last, OK results
3- sell 2-
4- watch 1- stagnate
5- ???
6- Profits !
MS have a monopoly rent on entreprise OS and software. The only thing they can do is use that rent while it lasts to try and become relevant in the mobile space. Even being an also-ran would be better than the non-entity they are right now. I think their best chance is to pull an Apple, integrate hardware and software, either by buying Nokia outright or keeping them straightjacketed by whatever exclusive deal and right of first refusal they have on takeovers.
The article is wrong in that MS can do *nothing* about Wintel PCs falling out of favor, so *nothing* about Windows on desktops/laptops sales. It's pointless to invest more in Windows. Actually, I'm pretty sure MS could stop doing anything but security updates for desktop/laptop Windows over the next few years, and that would not impact sales. It might even turn out better then pulling another Win8 on users.
MS can try and get more Windows phones and tablets out. They missed their opportunity to preempt competitors like they did in the PC market though, and will never get it back. Android and iOS are good enough and big enough that whatever MS comes up will at best get to par, and OEMs are not dumb enough to let MS once again get all the profits and devalue the hardware business.
I think it's already too late to achieve much success in the general market though, and that the best MS can hope is to milk the market of companies who insist on Windows Everywhere, and can't/won't handle iOS nor Android. Apart from Office, there's *zero* reasons to buy a Windows phone nor tablet these days. RT tablets are inferior to iOS/Android on all scores; and x86 tablets are so expensive you can get an x86 laptop *and* an ARM tablet for the same price.
The Entertainment division is actually one of the few recent MS success stories, had has a lot of similarities to the Mobile market: consumer not entreprise, ecosystem, media-oriented... Getting rid of it makes no sense.
The Cloud - because you don't care if your apps and data are up in the air.
I think Microsoft should sell off 100% of Microsoft, preferably to some Linux house which will have the common sense to bury Windows* OSs deep in the ground, never to be heard from again.
https://app.box.com/WitthoftResume Code: https://github.com/cellocgw
Don't reward Trolls like this guy.
He is clearly posting outrageous nonsense for page hits, and the /. just gave it to him (I did not follow the link, but many will).
Is he like Microsoft Bob 2.0?
Don't complain about syntax, grammar, or spelling. There is no.hell like input on android.
Who on earth is Microsoft Will ?
Microsoft has lost the popular consumer, most likely for good.
It has not lost the business user, and probably never will.
You might find that Microsoft completely spins off Windows OS,
and focuses on products for all OSes, and getting them to
interoperate well. It is business products that make Microsoft IMHO.
you have to sell off the good performers, because the rest of the operation is discounted to pennies on the dollar if you pull in a shylock banker on the sly to value it. so the slide gets steeper.
if this is supposed to be a new economy, how come they still want my old fashioned money?
"With that in mind, Hartung believes Steve Ballmer will do anything and everything to save Windows, including ditching entertainment and therefore Xbox."
Twisted logic.
If Windows/Office are on decline, why sell the only growing, and potentially profitable, business branch they have?
All hope abandon ye who enter here.
uh, wait... http://games.slashdot.org/story/13/01/21/130215/atari-files-for-bankruptcy
if this is supposed to be a new economy, how come they still want my old fashioned money?
Microsoft will continue to produce products in the horror genre. So we can look forward to Windows sequels for the foreseeable future.
Have gnu, will travel.
"Forbes analyst Adam Hartung makes wild prediction to drive up add revenue"
The idea of Microsoft selling off their gaming division in an effort to salvage their core products makes sense. Their gaming division does not have any real synergies with the core products, and with consoles entering into the transition phase to the next generation, the next few years are going to require a lot of money, talent and oversight. If they can command a good multiple on the earnings, it would be better to sell now while they can command a premium before having to make that investment. They can then take those resources and investment them into salvaging their core Windows and Office products. This assumes of course that salvaging Windows and Office is possible...
This doesn't even pass the sniff test. Microsoft has spent literally billions of dollars (estimates from $5-$10) more than they have made on their entertainment division - by design. They did that as a long term strategic investment for the sole purpose of staying entrenched in peoples living rooms and lives. A computer for every desk and an xbox for every living room. They aren't about to walk away from that now that they are starting to get to the point they envisioned a decade ago.
This is a long term strategic vision, and frankly one that is better laid thought out and executed than what they have done with their operating systems during the same time frame. Ballmer is a bloody idiot in many ways, but he isn't /that/ much of an idiot. Frankly someone should put their games division in charge of the OS division, as they have better vision and long term execution.
http://www.thephoenixprinciple.com/blog/2013/01/sell-microsoft-now-game-over-ballmer-loses.html
Forbes has pulled it.
Microsoft makes more than 75% of its profits from Windows and Office. Less than 25% comes from its vaunted servers and tools. And Microsoft makes nothing from its xBox/Kinect entertainment division, while losing vast sums in its on-line division (negative $350M-$750M/quarter). No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits Microsoft is not sustainable.
To be quite honest he makes a good case.
Good leaders run toward problems, bad leaders hide from them.
As others have noted their "gaming strategy" has been schizophrenic and scattered because of contrary goals working against each other instead of concert (promoting consoles erodes PC, promoting mobile erodes consoles, etc). So to answer your question: It does make sense if they decide they want to bank everything on Win Phone 8 and Surface where a future XBox is a distraction or partially erode that goal.
Although Microsoft can claim "we win!" the console generation, it cost heavily and might have been a Pyrrhic victory. If the high execs believe the future is all mobile phones and tablets then Microsoft has a much bigger in to "the living room" than it ever did with consoles. Consoles in this view become an expensive anchor that are fraught with more risk than selling another phone.
Of course this thinking only makes sense if you are an exec who really really really really really believes that Win Phone 8 and Surface are really really really really all of that. If the higher ups at Microsoft believe that then it would be a small step to see how selling off that expensive business "makes sense" for as a boost to the company instead of a disaster.
It's making money and have you ever known Microsoft to sell off anything of theirs? (Excluding MSNBC, it wasn't wholey owned)
And how about analysts predicting that it should sell off Bing?
For those who seek perfection there can be no rest on this side of the grave.
It's the handle of a bailing pump on a sinking wooden ship.
* Carthago Delenda Est *
Well, as I understand it, the 360 did well in the 'longer haul' of this generation. While the clear winner was the Wii, it has effectively been dead for a couple of years, with the 360 making leads over the PS3 in Europe and I believe, the US?
So... if Microsoft see the 720 as being 'potentially a success' on its own two legs, what would MS do? Given recent history, they'd find a way of jamming Metro into it, somehow. I can see the 720 as being some Windows RT inspired device, aimed at being to your living room what your WP8 is when you're mobile, your Windows Surface device when you're semi-mobile, and your Windows 8 desktop when you're at a desk.
The fact that WP8, Surface and Windows 8 are clearly failing (miserably, in the case of WP8 and Surface) is unlikely to deter MS - Ballmer has been one of the most stubborn CEO's in recent history. His strategy to keep doing the wrong thing, no matter what sales, user feedback, OEM feedback might say is quite remarkable. Zune will succeed! Oh. Well, WP7 will succeed! Oh... er... XNA is doing well in the indie market, let's scrap it! .Net's entrenched in business and enterprise, let's suggest it's second class now! Let's buy Skype and just screw it in to everything we do! Let's do the Surface hardware on our own, our OEM partners will be fully supportive!
I seriously believe a Magic 8 Ball running Microsoft would do a better job, as decisions made entirely by random would have a better chance of sometimes being successful.
If Ballmer continues on this route, either MS will win massively in the long run (by being such an incredible visionary that he blind-sided the entire technology market, and all his ideas thus far have been part of some master plan), or (seemingly more likely) he will run them into the ground, until there's nothing left but a software company looking for a buy out.
And I'm fairly pro-Microsoft. For /., I'd actually be a fan boi.
You can't play real first person shooters on consoles
Halo and COD are far more "real" to more people that play on consoles than any computer based FPS has even been (yes I know COD also works on the PC).
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Will Sony buy him?
Personally I love playing FPS games on a console. While I may not be as accurate as on a PC I find it much more relaxing to play.
I've played my share of FPS games on PC's. From Doom, Quake, America's Army and countless others.
It just comes down to personal preference. The only games I have found that really work better on a PC are RTS games. However, after playing C&C on the xbox, once you got the shortcuts memorized it wasn't too bad at all.
"Thanks to the remote control I have the attention span of a gerbil."
It's a weird kind of it's kind of will grammar.
Get free satoshi (Bitcoin) and Dogecoins
if the only reason you stick with Windows is gaming... then why not just buy a 360?
Xbox Live Indie Games, based on the XNA platform, gives amateurs a route to market for their games. One advantage is that it lets someone new to video game development build up a portfolio of amateur games that demonstrate his skill in order to get hired into the industry. The problem is that XBLIG isn't available in all countries due to censorship laws, and to be able to experience games from promising amateurs from those countries or in those countries, you need a PC.
Not to mention that many PC games are now coming with support out of the box for an Xbox controller
Are they coming out with support for just one Xbox 360 controller, or two to four Xbox 360 controllers? Sometimes I have friends over who want to join a game but didn't bring their own gaming laptops.
A $500 gaming rig for the computer desk and a $500 gaming rig for the living room are still a lot more expensive than a $500 gaming rig for the computer desk and a $200 console for the living room.
Sue me.
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
So, as the PC market is shrinking, they sell their only successful non PC device to others?
Would you say the split of Viacom into two companies is another good example? Both CBS and Viacom are still controlled by National Amusements, but all the slower-growing lines of business have been consolidated into one entity (CBS).
Also, "Lets not forget".
Correcting grammar in the comments section of a message board, may be one of most pathetic things imaginable.
FTFY
If I was a shareholder I'd be rather pissed off if they tried selling off the one division that seems to be making any progress. If they want to break up, then at least do the world a favor and just spin them off as a separate company entirely. Perhaps than, entertainment can move away from having to rely on other pieces of the MS ecosystem. Might even increase sales of XBox more if they weren't tied to MS so tightly any longer.
But selling them to Sony? Way to kill two platforms with one stone, might as well just burn the shareholders cash.
Maybe Microsoft should sell its entertainment division to Mattel. You know, the company that published B17 Ballmer for its Intellivision console way back in the second generation. It'd be a good fit with the "Fisher-Price" look of Windows XP and Windows 8.
Windows 8 is selling VERY well.
New PCs with Windows 8 are what isn't selling well... because, you know... it works great on existing PCs.
That's a Lenovo, HP and Dell problem, not a Microsoft problem.
Perhaps a distant cousin of Microsoft Bob?
We're looking at replacing Office and Notes with Google Apps ... and XP with Linux or Chromebook-style thin clients unless you can come up with a good reason you need a general-purpose PC.
In software development, there are still cases where an essential tool isn't ported to Linux and doesn't work well on Wine.
I can already do all my work in Xubuntu.
I can do almost all my work in Xubuntu 12.04 LTS except for a few things:
Gotchas like these are why a lot of enterprises stay on Windows: it's a known quantity that everything is expected to support.
Microsoft is the only one with a game console.
How is an iPad mini AirPlayed onto an Apple TV not just as much a game console as a Wii U?
After all, the games division is successful, innovative, profitable and they are forced to actually *listen* to their customers, not a cabal of pampered C++ programmers or former C++ programmers who are now middle management trying to protect their turf. Heck, they don't even change from one incompatible "no upgrade" platform every five years or so in order to screw their developers and customers, and their developer's customers in one deft move. Keep them? That's just crazy talk! Now let's all go and try and use our new Windows 8 machines, eh?
Please do not read this sig. Thank you.
They would spin off the Entertainment Division into a separate company to existing shareholders, but the risk would be that the exodus of MSFT stockholders after that. XBox is a huge brand that has lots of value that is looking up, not down. It may be a job saving tactic for Ballmer, but I doubt it would work.
Really?
DITCH METRO!
Chas - The one, the only.
THANK GOD!!!
... of Microsoft going bankrupt soon. ( I believe it was on New Year's Eve ).
Religous speak to God. Insane are spoken to by God. When all shut up, one can finally hear Shostakovich in peace
Guess what the single most pathetic thing imaginable is...
Will Microsoft Will Sell Off Its Entertainment Division?
C'mooooooon, ffs.
systemd is Roko's Basilisk.
What TFA proposes doesn't even make sense. Microsoft has diversified into entertainment BECAUSE Windows and Office peaked long ago, and the server market isn't going to offer much of a growth curve for Microsoft thanks to Linux having matured. Even back in the '90s when Linux still struggled with hardware support, it was already showing signs of dominating the server market and even showed promise as a supercomputing platform. Honestly, I'm surprised it has been so successful given the monolithic nature of the kernel compared to some of the BSDs, but even for all of its shortcomings (which are largely idealistic vs. practical) it has proven to be so flexible, so reliable, extensible, and even secure compared to Windows that the negative aspects are practically immaterial
Given Linux's continued dominance and growth in the server sector, and now on smartphones and tablets, Microsoft needs to find ways to continue to deliver returns to investors. Xbox becoming more of an HTPC + video game console + streaming + video conferencing convergence device can continue to keep Microsoft a household name, and keep people coming back to Microsoft.
I honestly don't see Windows phones going anywhere - Microsoft had a GOLDEN opportunity when PocketPC morphed into Windows Mobile and phones were offered on that platform: the browsers worked well (for mobile browsers of the time), the devices were much faster than the competition that existed, they offered FAR more functionality than Blackberry, were expandable (CF, SD and even PC card slots) and were enterprise-friendly to boot. Microsoft REALLY dropped the ball on that and did nothing with the platform, and did little to foster third-party developer support. Initially it was really good - for PocketPC at one point Compaq was making their devices flash upgradable (and also offered a Linux distro for iPaq devices BTW), and Microsoft took note and required that new PocketPCs be flash upgradable. It was good, for one release, then Microsoft let the platform languish for about 5 to 7 years, by which point iPod became more than an MP3/AAC player, to a basic PDA, to a smartphone built on a full-blown BSD platform.
Apple took the smartphone market that Microsoft really created (with the PocketPC phones) and should have dominated, but relinquished to Apple. Now with Windows Phone, and forcing the phone interface on the desktop, Microsoft is nothing more than a "me-too" player, having abandoned all of the features which made Windows Mobile so enterprise-friendly in the beginning, and at the same time by forcing that same UI on the desktop, made the Windows PC totally impractical for actual work.
Microsoft needs to reexamine where they want to be in the marketplace, but abandoning Xbox is the wrong way to go about it. KEEPING Xbox as a center for home entertainment, but focusing Windows and Windows Phone to be enterprise-friendly is the way to ensure that they do not lose out to Linux and Apple, because but Linux and OS X are very usable, very capable, and now more user friendly than Windows 8.
Xbox isn't their problem - Windows 8 and Windows Phone are the source of Microsoft's current ills.
Xbox is an asset which if marketed correctly as more of a full-fledged entertainment device (Hulu + Netflix + Amazon Prime + Vudu client, telephony/video chat, etc) rather than just a game console, can end up being THE dominant set top box, possibly displacing even cable TV if they team up with video providers to offer a basic streaming service in addition to the services I already mentioned. Microsoft could easily make Comcast, Cox, Time Warner, etc. irrelevant as programming providers.
The Christian Right is Neither (Christian nor right). See: Matthew 23, Matthew 25, Ezekiel 16:48-50
You can still find page 1 of the article in Google cache. Thanks to ~darkeye, who submitted that.
This is the same author who wrote "Sell Research in Motion. Now." That in April, 2011 as it began its precipitous dive from $53 to $6.50. His views are controversial, but he has a better track record than many official analysts.
Help stamp out iliturcy.
Will likely be run over by shareholders befoer that...
The idiotard should have been fired 5 years ago. That would be the dumbest thing Microsoft could do.
"I can imagine it, therefore I must write an article about it."
I'll remind you that this is teh interwebs, and using actual references instead of TYPING IN ALL CAPS or hand-waving(!!!!!!) to back up one's point is not only unconventional but rude.
Please refrain from your outbursts in the future. KThxBuy.
Yeah, right.
If I want multiplayer I'll play online.
So what do you do for "us time" with your SO?
ah shit , I claim the AC post in the name of Nossie.
And I guess I can no longer say I've never posted anon on /. balls.
PS3 has always been a better seller in Europe than Xbox 360.
"We have an A-Bomb...what more do you want, mermaids?" --I.I. Rabi, speaking in defense of Robert Oppenheimer
The ship is sinking! Throw off anything that makes money! Yeah, that makes sense
Let's not worry at all about office environments and server software, licenses (and upgrades), not to mention all of the Microsoft certified equipment and peripherals -- no, I don't think they'll be hurting for money so bad that they'll drop one of the biggest cash cows they have left. The Xbox is safe, no doubt.