Close
Are you sure? Are you sure you want to report this comment? I understand, report it. Cancel

Nadella: No change to Xbox business

Nadella: No change to Xbox business

Wed 28 May 2014 7:39am GMT / 3:39am EDT / 12:39am PDT
Hardware

Microsoft CEO has a reassuring message for Xbox gamers

Microsoft's CEO Satya Nadella has chosen the Code Conference in California as his chance to reassure the public that he's not planning to sell the company's gaming business.

"I have no intent to do anything different with Xbox than we are doing today," he said, as reported by The Verge.

When Nadella was appointed there were suggestions that there was shareholder pressure to sell off the gaming division of the business, with company founder Bill Gates even stating he would support such a move. Now it seems Xbox can rest easy, at least for now.

Nadella later spoke about the company's attitude to hardware versus software.

"It is the thing that is really going to power all the experiences on all the devices today and tomorrow," he said.

"In order to be in the hunt for those experiences, and get it right, you do need to from time to time build devices, so you don't leave anything to chance."

3 Comments

Andrew Ihegbu
Studying Bsc Commercial Music

449 158 0.4
Xbox is perhaps the most forward looking portion of MS's business that is doing even half decently. It's bread and butter (Office, Server and OS) are all there really because they are standards and it would be incredibly painful for the public to switch or leave, but in turn that makes it much harder for MS to change without breaking off that. Look at the backlash over the Ribbon Interface back in 2007, Metro in Win8 and so forth, most of the industry doesn't want them to change but that eventually means they will stagnate as the rest of the world carries on it's march of progress.

Xbox is pretty much the only product MS has that can keep up with the times admirably. Zune failed, WinPhone is still a drop in an ocean of smartphones and Surface technically only survived because people like the idea of a (normal x86) Win 8 tablet with strong aesthetics. Until they find a way to make that price compete with an iPad, they will stay a drop in that pond too.

Posted:3 months ago

#1

Anastasios Hatzis
Community Manager

14 32 2.3
What does Nadella tell shareholders when asked about the strategic value the XBox business contributes to the important Microsoft cash-cows in return for burning a good share of the company profits? Do enterprise customers buy more Windows, more Office, more SharePoint, more Exchange, more Azure? These are the customers and products that earn the profits for Microsoft and their shareholders.

There are already good reasons to be skeptical about the strategic proposition of the other products in the devices division (Nokia, Windows Phone, Surface,...). Consumer business is rather insignificant and financially even harmful for Microsoft. Probably the only reason for no worse situation is the fact that the division accounts for royalties from Android vendors, which they could earn even without having their own products. And it is rather likely that Microsoft will need to burn a lot more cash this entire gen in an attempt to keep XBox One and the eco-system relevant.

I can't help, but this doesn't compute.

Posted:3 months ago

#2

Adam Campbell
Associate Producer

1,166 949 0.8
I'm glad to see Nadella has put to bed any speculation on this.

Even if Xbox hasn't burnt though a lot of cash, it really took the console industry by storm and even with Xbox One, they look set to do even better this generation and provide huge competition to Sony and Nintendo whilst providing a great extension to the Microsoft ecosystem.

Posted:3 months ago

#3

Login or register to post

Take part in the GamesIndustry community

Register now