290°

Does Microsoft Even Need Xbox?

Microsoft Chairman Bill Gates donned a cool leather jacket when he first introduced the Xbox onstage in 2000. More than a decade later, the video game console is still the hippest brand in Microsoft's portfolio. But as the company begins selling its first new Xbox in eight years on Friday, some critics say Microsoft should spin the gaming unit off. They argue that Xbox distracts management from the company's fast-growing cloud computing business and its effort to catch up to rivals in tablet and smartphone sales.

Here are Xbox's pros and cons:

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NatureOfLogic4525d ago

No. Xbox needs MS though. I think Xbox has become mostly unwanted by MS. With Xbox looking to lose a lot of market share next gen, I think it would be best for MS as a whole to part ways with Xbox. Spin off Xbox and concentrate on more profitable sectors. Xbox have done more damage than good for MS.

Godmars2904525d ago

No. Between the failure of the first Xbox to catch on worldwide, shortsightedness in building it, and the 360 recovering from RRoD, no it hasn't. It may have shown profits because of XBL, but those millions don't cover the billions in investments.

Enemy4525d ago

They're making more money off Android than Xbox. Xbox loses them about 2 billion a year.

4525d ago
Gozer4525d ago (Edited 4525d ago )

If Xbox goes under, I will quit gaming. There is no way Ill game on a crappy sony console.

Whether you like Xbox or not, the gaming industry need competition.

4525d ago
Xsilver4525d ago (Edited 4525d ago )

@Gozer
"If Xbox goes under, I will quit gaming. There is no way Ill game on a crappy sony console."

That is the most Fanboy thing I've ever heard :/ I'm a Sony Fan but you really think if the PS died off i would stop doing what i love to do which is gaming Hell No smfh are you even a Gamer are you that delusional.

Jack_Of_All_Blades4525d ago

@Gozer "That's just how Xbox people are" quoting the recent south park console war episodes

BitbyDeath4525d ago

"Xbox has been profitable"

Not according to the investors who want it gone.

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

http://www.eteknix.com/micr...

GoodnessGreatness4525d ago

That's what you think but Microsoft is losing money because of Xbox. Not to mention PS4 will take most of the market share this gen of consoles.

KillrateOmega4525d ago

@Gozer

If you would really quit gaming because the Xbox died off, then you are not a true gamer. Seriously, would you really stop gaming just because you couldn't play on a particular box? Come on...

Also, as someone already mentioned, if MS spun off the Xbox brand, it would still exist. It just wouldn't be owned by MS.

UltimateMaster4525d ago

They also spent 1 billion just to buy 3rd party exclusives. It doesn't cost nearly as much to develop for, yet given the fact that they could profit even more by having more platforms they generally loose money on both side (Microsoft and the 3rd party dev).

Godmars2904525d ago

@UltimateMaster:
There's also studio, 1st party management to consider. Which MS seems to have always been poor at and never shown any sign of improving. They always seem to fall back to throwing money rather than letting talent use their talent.

+ Show (10) more repliesLast reply 4525d ago
allformats4525d ago

Staunch PS fan and all, I want the Xbox brand to survive and it needs Microsoft to survive. That's for sure.

porkChop4525d ago

No it doesn't. Xbox could be better run by many other companies that actually respect the medium.

Megaton4525d ago (Edited 4525d ago )

I want Microsoft out of the industry immediately. Everything has become more anti-consumer and gamers have become so divided and tribal as a result of Microsoft's business model. They've created a whole generation of gamers whose default reaction to consumer abuse is to ask for seconds.

Xbox can stay. Microsoft has to go.

Kryptix4525d ago

The Xbox brand needs to survive for the benefits of having competition but it doesn't need Microsoft at all. That's like if Rocky Balboa had the worst coach on the planet...he has the potential, but doesn't have the person to teach him how to unlock it.

That's the only reason I don't plan to buy the Xbox One in the coming years, it's just Microsoft and how they handle the console. Would rather see a different company in touch with the people of today...like Samsung, they're doing perfect with the Galaxy smartphones.

SJPFTW4525d ago

Too late now to shift to focus to tablet and smartphones. Surface was an epic fail and Apple and Google are too far ahead. Microsoft still makes billions of profit sticking to Windows, Xbox and Office brands. In fact I argue that Microsoft lost focus when it attempted to break into the mobile market. Windows 8 is obvious made with mobile in mind and why so many windows users despised it.

porkChop4525d ago

Xbox as a whole loses $2B every single year for Microsoft. They aren't making any money on it at all, only losing. It's smarter for them to spin off Xbox or sell it.

come_bom4525d ago

Just by curiosity, where did you come with that number ? $2B every single year ?

... and please, a reliable source, not crappie sites or forums that nobody knows.

Regis4525d ago

@come-bom look at endgadget they had an article there and it is a reliable site.

SJPFTW4525d ago

lol your data is wrong. Microsoft has lost $3 billion in 10 years. But Sony has lost more in the time span losing about $5 Billion. How come no one is asking Sony to spin off their playstation division? fan boy logic whoop

http://www.neowin.net/news/...

porkChop4525d ago

@SJPFTW

No. Microsoft loses $2B every year on Xbox, but they hide these losses by grouping it together with their Android patent royalties.

Nujabes_4525d ago

We're still waiting for your sources.

+ Show (2) more repliesLast reply 4525d ago
Half-Mafia4525d ago

MS had a massive market share with Windows Mobile back in 06/07. But they started fresh with Windows Phone 7 and lost the whole market.

christocolus4525d ago (Edited 4525d ago )

@sjpftw

Was about to say the same thing but you kind of beat me to it...all eyes are on ms but people forget that the 360 actually became profitable for ms long before the ps3 became profitable for sony...sonys losses were quite huge in regards the size of the company as a whole..but as for ms they could easily absorb their losses.infact it was just around the first quarter of this year sony announced their first profit in 5 years and it wasnt made from the ps division. Sony is placing big bets on the ps4 to survive(look it up on google).they need the ps4 to be a huge sucess.they actually need the ps more than ms needs the xbx...i personally do not believe the xbx division will be sold off atleast not in the next decade but it will be really interesting to see how wll this plays out.

n4rc4525d ago

Its a bs number...

Xbox has been rolled into a division that includes surface and windows phone.. If the losses are credible, it very well has nothing to do with Xbox rather the other two failing products..

But I doubt even that is accurate.. Both are good devices but struggle to gain market share

fei-hung4525d ago

That's what I thought but I've seen a few articles that paint a very grim picture. Here is one if them:

http://gamerinvestments.com...

n4rc4525d ago

I've seen them too.. But nothing credible..

And these figures were taken from the division Xbox resides in.. not xbox alone..

Xbox could be profitable and surface and windows phone are dragging down the divisions revenue... Its the same as saying they are going to sell off xbox... Its sensationalized bs

Of course any ceo would look at all avenues.. If it made sense to offload it then it would be done.. end of story.. But there has been absolutely no proof of any of these claims

CaptainPunch4525d ago

Why even invest into R&D then, if you're just going to sell off the Xbox division?

BitbyDeath4525d ago

Xbox wouldn't be worth much if their were no Xbox.

SilentXCaspa4525d ago

No, they honestly don't. Microsoft are known to specialize in software, and they make tons of profit in that category alone, and have been for many years. They really havent done well in the hardware department (Zune for example).

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