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Xbox Spinoff Seen More Likely With Ballmer Exit

After 13 years of declining value, some Microsoft Corp.investors want Steve Ballmer’s replacement to take bolder steps to reverse the slide at the world’s largest software maker. That could mean spinning off the Xbox video-game business.

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bloomberg.com
Abash4650d ago

It would be my dream come true if SEGA took over the Xbox brand and re-entered the console business with it

Baka-akaB4650d ago (Edited 4649d ago )

I dunno why you would dream of that . Sega is quite bad at manageing its consoles .. and can't even currently manage its own ips bare Yakuza and Miku .

I picture them at having even more baffling decisions and issues ... even more so when the competent folks of yore arent even anymore at sega for the most part

user74029314649d ago

sega would be better, I agree.

blackbeld4649d ago

Oh yeah. Sega should re-enter the gaming business.

Back in those days we never heard of fanboys. Since Microsoft introduce that flamewar I suggest they better put on the white flag and exit.

Gamers will be united again like before.

Darrius Cole4649d ago

Errrr....Sega was in the business before Sony and got put out of the console business. If Sega was any better they would have shown it then.

SHORYUKEN4649d ago

Agreed.

Xbox better go exit. Sega should call the new console SEGA RETURNS.

silverbeld4649d ago

Ha, I saw this coming a long time. Xbox better proof themselves with ONE otherwise its exit.

Baka-akaB4649d ago (Edited 4649d ago )

"Back in those days we never heard of fanboys. Since Microsoft introduce that flamewar I suggest they better put on the white flag and exit."

What , put out those nostalgia googles? Sega was even agressive for its era in ads .

The only ingredient missing was the internet to spread the flames of the Nintendo Sega fanboy wars ... then Sony VS Sega .

To this day some even blames the ps2 for the Sega's own mismanagement of the initially successful Dreamcast

JokesOnYou4649d ago

"We have never retreated from any type of internal development at all, we continue to invest worldwide. Microsoft Studios as an organisation is growing globally. Sure, one of the reasons I was hired is to help grow our European business, that’s why I’m here. And I think we demonstrated some really positive strides with that. So I think we’ve got some amazing talent in our organisation that’s gonna be a great thing for our platform."

-Doesn't sound like there are any plans to "spinoff" to me, they are growing.

+ Show (5) more repliesLast reply 4649d ago
OC_MurphysLaw4650d ago

And what if it is spun off....

I think in many ways that could benefit Xbox as they could completely focus on the Xbox Game platform and not worry about other agendas in the company that need the xbox to comply. Perhaps Sony and Nintendo should be doing what they can to keep Xbox part of MS>

torchic4649d ago

why should Sony & Nintendo worry about anything?

your comment was going really well until that awful spin at the end.

Mike134nl4649d ago (Edited 4649d ago )

True would be a big plus. though to be clear I don't think it would end up being sold to another company, but simply the formation of a separate entity/daughter company by the issuing out of new shares.

Simply because it is not really part of their core business and most important because of the low operating margin of the xbox division removing them would mean a higher overall profit margin for Microsoft core businesses.

I really hope this happens as this would xbox at least in theory as they can focus more on gamer demands.

*only see google or apple interested and having enough assets to even think about acquiring xbox devision.

PlayStation_44649d ago

I hope that a company like Samsung purchase M$'s Xbox division, or another Asian company that manufactures quality hardware

hakeem09964649d ago

I know most of you hate MS but for the love of God please use your brains .Out of all MS projects (cellphone,tablet,xbox),The Xbox Division is the only profitable department right now .The 360 was in the green during it's life circle even in the RROD days . why in the world would MS sell the one great success stories they had since WINDOWS ?

PlayStation_44649d ago

M$ have lost around 4 billion dollars on xbox.

and M$ is a lot more than just phones, tablets and xbox you know.

they made a $25b profit for 2012 iirc

dlocsta4649d ago

It is about as likely as the plague making a return. There is no financial incentive to divest, it would remove the uniform ecosystem MS is trying to achieve, and it removes a viable profit center from the company list of assets. Not to mention that a person with a ONE PERCENT interest in the company can speak up all they like but they do not have as much pool as you may believe. Ballmer alone has more stock than that, and that one percent is a company not an individual.

+ Show (2) more repliesLast reply 4649d ago
SliceOfTruth8884650d ago

Anyone who thinks this will happen must bleed Sony

staticdash224650d ago

Are all of you xbox fans this ignorant?

jimbobwahey4650d ago

Yeah, really. This would benefit Xbox gamers and the Xbox division as well, SliceOfTruth888 really is one horribly insecure Xbox fanboy if he sees this and starts crying about Sony.

IcicleTrepan4649d ago

heh.. yeah it would really benefit the xbox to be cut off from Microsoft R&D.. dolts.

LoveOfTheGame4649d ago

It may help by focusing on games more entirely, but wouldn't a separation from MS take away Xbox's best features, i.e. Xbox Live and Azure's servers?

AceBlazer134650d ago

Guess some of the share holders must bleed sony.

Joe9134649d ago (Edited 4649d ago )

You must bleed Microsoft I knew this was going to be news once they said he was leaving. Shareholders and other MS execs been begging him to get rid of the xbox division and bing since bing do not make money and like the article says xbox makes money but on their low end. So how is it so hard to believe I'm not dogging on MS but if Ballmer was not CEO MS would have gotten rid of xbox after the original. I'm calling it now I think Google will buy the xbox brand that would be weird lol.

IcicleTrepan4649d ago (Edited 4649d ago )

As far as I recall, there was ONE shareholder with a total of 1% of the vote wanting this. Do you have links to stories of more?

By the way, Bill Gates owns about 40% (worth 14 billion) and is the majority stockholder. He can veto anything so stop. Ballmer has more than 1%. I don't know the exact percentage but he owns 333.3 MILLION shares worth 10 billion. I would peg him at 35% of the shares in the company.

So basically, nothing gets done unless these guys agree to it even if they don't work there.

Baka-akaB4649d ago (Edited 4649d ago )

Er no , Bill Gates has been selling part of his share regularly .

When Bill Gates left his day-to-day role at Microsoft, he owned just over a billion shares of the company, about 9.6% of shares.

Last i heard he was at 6.4% .

The other biggest shareholders are in the 5% ballpark

hakeem09964649d ago

I sgree that xbox makes money but on their low end what about the playstation who was in the red 80% of it's life circle .Don't you think Sony has a better reason to sell the playstation division compare to MS ?
The XBOX was profitable and the PS3 and the vita wasn't who needs the money more ?

Darrius Cole4649d ago

Actually, it's more like they must not understand gaming or the gaming market.

The Xbox has had a major mess-up every time. The first Xbox was a plain failure. The 360 got bailed out by the combination of Microsoft's deep pockets and of Sony pricing the PS3 a full $200 higher than the Xbox was at that time. The Xbox One jr. is facing a myriad of problems and looks to be on the route to follow the Xbox 1 sr.

If the Xbox division were to be spun-off (especially if they do it without Xbox Live which is a different division now) it would either magically become a more competent company or it would promptly go out of business. As the article points out, gaming is a tough business the road is littered with carcasses.

I personally think Microsoft needs the Xbox if they are ever going to compete with Android & iOS tablets.

+ Show (1) more replyLast reply 4649d ago
scott1824650d ago

As much as i love the playstation. Microsoft would be crazy to leave the game business, it will only get better for them I think.

staticdash224650d ago

They're not leaving man lol. Spinning off the brand is an idea from the investors, because they believe the xbox division might be strong enough to stand on its own. There are complications to that but it aligns with their goal of transforming the company into a services hub.

Darrius Cole4649d ago

More like they are tired of make these huge investments to keep the company operational.

However, I think the Xbox is the only place where Microsoft has a foothold in a growing market. Assuming, of course, that they don't squander the foothold with ridiculous Xbox One policies.

FLYINGDOG4649d ago

To much hate at Xbox.. Most close doors.. Or made it manufacture by others company's ala CDI from de past

n4rc4650d ago

Didn't they have like 12 billion in revenue last quarter?

Hell... I'd love to have a slide like that.. Lol

dcj05244649d ago

The losses were greater thsn the revenue.

n4rc4649d ago

Not even remotely close.. They turned a massive profit last year.. Financial statements are public record ad they are publicially traded

Swiggins4650d ago

If they Spin the Xbox...would it fly?

I mean an X is just like a helicopter rotor....

Nevermind, this joke went nowhere

Show all comments (59)
60°

Final Fantasy X 25th Anniversary Website Launches With New Nomura Artwork and Merchandise

Square Enix launches Final Fantasy X 25th anniversary site, revealing new Nomura art, books, music releases, and merchandise.

Read Full Story >>
twistedvoxel.com
-Foxtrot24d ago

Look I know VIII has its issues and all that but how on earth can the do big anniversary events with new artwork and merchandise for VII, IX and X yet VIII got sweet f*** all.

They could have given it something during its 25th anniversary yet all it got was a single Happy Anniversary post on their social media.

solideagle24d ago

they should know that we are OG fans of VIII as it sold truckload as well. not as much as VII or X. I personally didn't like IX but X and VI are my personal fav.

Shadow Hearts 2 covenant is another game I love. I hope one day someone can make remake, I would be delighted

Relientk7723d ago

Final Fantasy VIII is great and you are always the first to defend it in the comments

40°

Star Wars: Bounty Hunter Let Jango Fett Loose

LucasArts gave Jango Fett his own game in 2002, and it pulled Star Wars into a much dirtier, rougher, and more interesting corner of the galaxy.

Read Full Story >>
swtorstrategies.com
Relientk7728d ago

I remember playing this back in the day on PS2. What a sick game!

270°

We Are Xbox

Dear team,

Xbox has always been different.

We started with a simple idea. Games should bring people together through shared experiences. That led to the first Xbox in 2001, Xbox Live in 2002, and new ways to connect, from friends lists and achievements to parties and play across devices. Today, Xbox reaches over 500 million players around the world, with some of the most important franchises in entertainment.

Read Full Story >>
news.xbox.com
29d ago Replies(15)
Outside_ofthe_Box29d ago (Edited 29d ago )

If they go back to exclusive games it at least shows that they are finally getting it. They would be turning down immediate money for something that will potentially workout in the long term.

Only issue is they've already opened Pandora's box. A lot of their base has moved to PC or jumped to PS. So will be a long road to get back on track.

We have been saying this from day one exclusives are a must if you are going to be selling hardware look at Nintendo and Sony before Jim Ryan. That's the proven formula. You had some that were deluded and blinded by loyalty accepting that multiplat was the future and that MS was merely getting ahead of where the industry was headed, but at least they can finally see the light and agree with what everyone has been saying for a decade+

pwnmaster300029d ago

True, blame it on the rabid fanboys. MS can do no wrong and spinner this multiplatform move. While the actual fans moved on.

I feel like with the new Xbox coming they are hoping to bring back those old fans and then if it goes well. Bring back exclusives.

If the new console is performing like series x and one. Naw they staying multiplatform.

darthv7229d ago

Actual fans dont move on... they can add to their hobby while waiting for the next new release. If you believe what you typed then I guess PS fans moved on too.... you know, since its been a Sahara for 1st party games this gen.

S2Killinit28d ago

The fans didn’t tell them to go multilat. MS was forced to after the 82 billion they spent to destroy gaming. Then, while xbox fans cheered, MS realized they can’t justify the price tag by selling through xbox only, so they went multiplat and in the process began to downplay console gaming.

29d ago Replies(4)
CrashMania29d ago

I think it's too late, xbox sales were diving even before ABK, they got even worse since then even long before the full multiplatform push. I'd be surprised if they even went back to timed exclusivity at this point, Helix is basically a PC and is going to be expensive, they already struggle to sell cheaper xbox consoles, it will be low volume and they'll have a very small 'console' base to sell to, which has already been conditioned to just play via gamepass anyway.

S2Killinit28d ago

They will do what they always do, they will promise the world at the beginning of next GEN and then failed to deliver all generation long. But there will always be some gamers who will buy into their promises.

ocelot0728d ago

Absolutely agree, Do people genuinely believe Microsoft are now going to go. Hang on how's about we go back to 2020. Then GP was stagnating, Games sold where awful because of GP. Outsold by Playstation by a landslide.

They have sold 5m of Forza I believe on PS5. Spite it being a old game. I think Starfield is going to sell well in the end. Halo is deffinetly going to sell well as is Fable and Forza Horizon 6.

I think at best (for Xbox fans). Single player titles like Clockwork will have a timed exclusivity. Multiplayer centric games like Forza, E Day will release day and date on all platforms.

Or all games will release on all platforms day and date. But maybe Xbox and Windows Store copies will have exclusive bonuses. Or may even get timed exclusive dlc like Fallout and Elder Scrolls and COD use to do.

I think they will treat Xbox players like the premium customers or at least act the way. But will serve just the Playstation and Switch 2 customers as well.

Neonridr29d ago

I don't see them removing PC from the equation. Considering MS has a heavy enough investment in the PC market, it would be foolish to abandon them. I could see them taking away games from PlayStation or ensuring they are timed exclusives at the very least. Say what you will but if Call of Duty ends up becoming a timed exclusive to Xbox machines, that would hurt PlayStation, don't pretend like those games don't sell millions.

Outside_ofthe_Box29d ago

They would lose out on a lot of CoD sales tho. Doesn't PS make up most of the sales?

Neonridr28d ago

@Outside - possibly, but it might push people to want Xbox hardware so they can play with their buddies day one.

Who knows.

S2Killinit28d ago (Edited 28d ago )

it would but remember doing that can splinter the COD fan base and in the process damage the call of duty brand which is probably the only franchise in that $82 billion purchase that in anyway gets even close to delivering what Microsoft thought they bought. If Microsoft fudges around too much with the COD franchise, you might even see a competitor franchise show up on the scene and that would be a catastrophe after the huge debt that Microsoft put itself into with the ABK purchase.

But Its almost guaranteed that Microsoft will want to do something drastic at the beginning of the next generation as they always do. We will see.

Pyrofire9529d ago

Their lifeline of solely the Xbox consoles is dry. Good-Great games on a 1st party scale can't be made at a loss so willingly - sent to the Xbox to only sell limited copies.
They invested billions scooping up studios and need to start making returns.
Sucks that nearly every company is publicly traded and have to be so shareholder biased but that's how it is.
Their words are strong but it'll take time to see what their actions accomplish. Lowering the cost of Game Pass and taking CoD off of it was a good clear start.

darthv7229d ago

More like, allot of their base just played game pass. So now they need to encourage them to start buying again.

S2Killinit28d ago (Edited 28d ago )

A lot of their base left for greener (bluer?) pastures.

--Onilink--29d ago

What exactly is the long term goal with exclusives though?

Because for the most part, the hardware side of things has never been the most profitable, even sometimes being subsidized for a period before breaking even. And that’s before the hardware component nightmare we currently live in.

The whole point of exclusives was to get more people to buy your console in order to have a bigger install base, which meant even bigger software sales.

But if their ports to PS5 are selling (for the most part it seems) quite well, then other than negating the cut Sony takes there, unless you are REALLY increasing your software sales on your own console, it probably doesn’t make that much of a difference?

Honestly I don’t even understand Sony’s decision to scale back on it for PC unless they weren’t even recouping the port expenses. They released ports when the hardware sales never really dropped, and now that all consoles will undoubtedly take a noticeable drop in sales due to the ridiculous prices, that’s when they decide they don’t want to sell to a larger install base to more easily recoup dev costs… it’s just weird

Outside_ofthe_Box29d ago (Edited 29d ago )

I agree. I mean once they went multiplat, in theory there should be no going back especially when you have games that have sold really well on other platforms.

Microsoft are the ones that announced that they are reevaluating. So I'm just guessing on what their end goal is. Right now Xbox as a hardware is not a must buy for anyone but fans of the brand because their games can be played elsewhere. Going exclusive would solve this, but you lose out on a ton of money instantly which has always been what the company does not want to do so not really sure what their "reevaluating exclusives" means unless they are pulling a Phil Spencer and are just saying what people want to hear and will continue to do what they are currently doing.

darthv7228d ago

Their ports to PS5 are selling because Sony's output has been so dry... the fans are thirsty, and MS is the oasis.

SIdepocket29d ago

Unfortunately, the studios they buy wither under their leadership.

mcstorm28d ago

Microsoft still has a name with Xbox the issue is the casual games are not looking at the console because its not the same console their friends have. Look at that poll on how many users upgraded from xbox 365 to one and then the X. Part of Microsoft's downfall was thinking that the Wii was the market they had to be in when really it was the core market. If you get the core gamers you then get the market to. As I posted a few minuets ago on another post Microsoft putting exclusives on PS this gen could bold well if they hit next gen with all our games are staying exclusive from this new gen. They will then get gamers wanting Halo, Forza Gears but this is also where Microsoft fell over with the xbox one and X in terms of they did not have may quality 1st party games affter they fell into the Gears, Forza and Halo cycle. If they can get some old IPs back to bring back the old core gamers as well as fresh ips to bring in new gamers things could improve next gen. But as I said in my last post its all if buts and maybes at the moment. No one knows if the next home consoles will be to expensive that people move to pc as we are now seeing or look at the stem deck as a cheepier alternitive.

DarXyde28d ago

"Only issue is they've already opened Pandora's box."

That's very optimistic. It's not the only issue, far from it. There is a serious rupture between Microsoft generally and the public caused by their weird Game Pass price fluctuations, taking down physical game space in stores, and being the first to go nuts on hardware price hikes that they themselves played a big part in.

They're also charging beyond a premium for Helix which is just vile at a time when the economy is in shambles.

The company itself is really not doing itself any favors with the approach they're taking Windows. Even France is looking to ditch Windows in favor of Linux.

But the most offensive thing is this AI push. They're doubling, tripling, and quadrupling down on the very technology they're using to replace a considerable proportion of their workforce... And the slap in the face is how they bake copilot into everything when nobody likes it—they couldn't even make Bing stick, so why on earth are they trying so hard? You know it's bad when people would rather use ChatGPT than Copilot which is killing their OS. But aside from their snatching up of farmland to build data centers (and reduce the agriculture capacity of whichever country allows them to build them), they made an AI-generated gamer gurl that loves AI the head of Xbox.

Even if we grant them the full benefit of the doubt, it hardly matters what Xbox wants to do if Nadella says no, and that includes exclusive games. Microsoft's relationship with Xbox is the opposite of Sony's relationship with PlayStation—Microsoft pulls the reins of Xbox, but Sony damn near went under for the PS3.

Tanktopmaster9228d ago (Edited 28d ago )

“If they go back to exclusive games it at least shows that they are finally getting it.”

Great strategy, especially after Forza selling 5 million on PlayStation and sea of thieves selling at least another million (2 million) for example. In March 2026, Xbox consoles sales ratio vs PS was 10:1.

In addition to that, with Gamepass, which unequivocally cuts out chunks of sales (Cannibalizing revenue from 1st month sales especially).

I’m sure going exclusive again after releasing everything on Ps5 is going to work out great for business.

+ Show (8) more repliesLast reply 28d ago
maximusprime_29d ago

Despite all of that, it's clear that Microsoft's Xbox division is broken beyond repair.

29d ago
BeHunted29d ago

PlayStation is currently draining money on flop after flop. It's Sony that needs to re-evaluate their strategy

29d ago
CrashMania29d ago (Edited 29d ago )

Wonder how much money was lost on perfect dark, hellbalde 2, 300 million lost revenue
by putting cod on gamepass. The recent Jason schrier news that Xbox has cancelled dozens of projects, spent 70 billion just to see Xbox sales further collapse and gamepass see little growth.

The fact is this has been PlayStation's most profitable generation and they are making loads of money and selling plenty of consoles and games. While MS won't give you any sales figures or profit numbers for Xbox, says it all really.

S2Killinit28d ago

Sony PlayStation has deservedly dominated xbox. Facts

Tanktopmaster9228d ago (Edited 28d ago )

Ok tween.

Xbox series SX got outsold 10:1 last month. lol.

28d ago
+ Show (3) more repliesLast reply 28d ago
shadowT29d ago

"Our presence on PC isn’t strong enough."

Fishy Fingers29d ago

It isnt. But I dont think they mean in 'games', rather, footprint.

They own the OS but as far as gaming is concerned, Steam dominate. I imagine the VAST majority of people who use the Xbox app/launcher are PC gamepass subs. No ones buying their 3rd party PC games through Xbox PC.

badz14929d ago

and many gamers prefer SteamOS for gaming over Windows too. If only Valve would be more uncompromising to the anti-cheat makers that locked out non-windows players, more pc gamers would have moved onto SteamOS by now and not looking back to Windows. overall, Win11 is a terrible, bloated, unoptimized OS which is not what many people want

ocelot0728d ago

Agreed and I think that's where they are going to focus on more. I think cheaper games on Windows/Xbox store (MS IP) compared to Steam and Epic and maybe even compared to PSN store as well.

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