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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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There have been far to many of these xbox is leaving microsoft articles of late. unless something confirmed news about a split comes up, no more of these should be approved.
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WorldGamer4544d ago
NatureOfLogic4544d 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.

Godmars2904544d 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.

Enemy4544d ago

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

4544d ago
Gozer4544d ago (Edited 4544d 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.

4544d ago
Xsilver4544d ago (Edited 4544d 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_Blades4544d ago

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

BitbyDeath4544d 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...

GoodnessGreatness4544d 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.

KillrateOmega4544d 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.

UltimateMaster4544d 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).

Godmars2904544d 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 4544d ago
allformats4544d ago

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

porkChop4544d ago

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

Megaton4544d ago (Edited 4544d 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.

Kryptix4544d 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.

SJPFTW4544d 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.

porkChop4544d 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_bom4544d 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.

Regis4544d ago

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

SJPFTW4544d 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/...

porkChop4544d 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_4544d ago

We're still waiting for your sources.

+ Show (2) more repliesLast reply 4544d ago
Half-Mafia4544d 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.

christocolus4544d ago (Edited 4544d 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.

n4rc4544d 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-hung4544d 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...

n4rc4544d 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

CaptainPunch4544d ago

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

BitbyDeath4544d ago

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

SilentXCaspa4544d 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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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.

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-Foxtrot7d 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.

solideagle6d 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

Relientk776d 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.

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Relientk7711d 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.

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12d ago Replies(15)
Outside_ofthe_Box12d ago (Edited 12d 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+

pwnmaster300012d 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.

darthv7211d 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.

S2Killinit11d 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.

12d ago Replies(4)
CrashMania12d 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.

S2Killinit11d 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.

ocelot0711d 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.

Neonridr12d 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_Box11d ago

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

Neonridr11d ago

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

Who knows.

S2Killinit11d ago (Edited 11d 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.

Pyrofire9512d 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.

darthv7211d ago

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

S2Killinit11d ago (Edited 11d ago )

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

--Onilink--11d 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_Box11d ago (Edited 11d 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.

darthv7211d ago

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

SIdepocket11d ago

Unfortunately, the studios they buy wither under their leadership.

mcstorm11d 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.

DarXyde11d 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.

Tanktopmaster9211d ago (Edited 11d 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 11d ago
maximusprime_12d ago

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

12d ago
BeHunted12d ago

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

12d ago
CrashMania12d ago (Edited 12d 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.

S2Killinit11d ago

Sony PlayStation has deservedly dominated xbox. Facts

Tanktopmaster9211d ago (Edited 11d ago )

Ok tween.

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

11d ago
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shadowT12d ago

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

Fishy Fingers12d 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.

badz14911d 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

ocelot0711d 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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