Bill Gates: If new MS CEO Nadella wants to spin off Xbox biz, "I'm absolutely fo

#91chubbychaserPosted 5/5/2014 4:47:27 PM
http://i1.ytimg.com/vi/jLPRgtQP0Ic/hqdefault.jpg
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#92LEGEND_725Posted 5/5/2014 4:58:46 PM
ParappaTheHATER posted...
slyman19 posted...
ParappaTheHATER posted...
bob15x posted...
ParappaTheHATER posted...
The beginning of the end, just as planned


so you agree that Sony spinning off tv division and selling its pc division means beginning of the end of sony too?


I didn't say it's the end of Microsoft , of course they will remain, just like sony , but Xbox won't, and neither will Vaio


Do you kiss your mother with all that crap coming out of your mouth?


Actually my mother died 5 months ago from cancer, thanks a lot. But if she was here yeah, I would kiss her, I miss her more than anything


I cry everytime.
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#93ExempliGratiaPosted 5/5/2014 5:18:51 PM
Laylow12 posted...
BigBossMakaveli posted...
https://twitter.com/LizClaman/statuses/463329156147601408

No idea when Bill said this..but i'm guessing in a recent interview with FOX business


It's beginning. I knew that inventory drawdown was the code words for preparing to sell off.

.


Trololo
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#94mike468Posted 5/5/2014 8:04:23 PM
MilesTeg420 posted...
Good. Get MS out of this industry. Let Amazon take over Xbox. Great customer service and willing to put out a loss leader.


Another troll who doesn't comprehend anything the article is stating....typical.
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#95TheGam3925Posted 5/5/2014 8:10:06 PM
MilesTeg420 posted...
Good. Get MS out of this industry. Let Amazon take over Xbox. Great customer service and willing to put out a loss leader.


This, Amazon actually has great prices.
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#96mike468Posted 5/5/2014 8:20:41 PM(edited)
ILikesCheese posted...
bob15x posted...
did she realize that you were not that bright and think spin off means sell off?


A "spin-off" is still a divestiture that garners ZERO backing from the parent company. An Xbox without Microsoft's money means no AAA games, no advertising, no R and D...hey, basically a Ouya.

:D


While technically true. It would mean the XBO division is financially separate of MS's other divisions, but it doesn't mean it would cut all ties to MS. There would still be shared resources, such as Azure. The xbox division would simply be funding and reporting their own finances separate of MS.

God only knows MS has used it's Xbox division to hide other divisions' losses.

Here is the kicker though to everyone thinking MS spinning off the Xbox division would result in getting them out of the game industry, spinning of the XBox division would actually make Xbox more valuable:

http://www.investopedia.com/terms/s/spinoff.asp

"The spun-off companies are expected to be worth more as independent entities than as parts of a larger business."
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#97Apex-PlayerPosted 5/5/2014 8:35:24 PM(edited)
Honestly some of these guys really put the big blinders on.

Xbox couldn't support itself. It just couldn't. Thinking it would be successful spun off into its own entity just isn't logical. They don't have the kind of money in just that division to continue manufacturing xboxones, let alone pay developers for games, pay for marketing etc.

What was the last profit they claimed for the division, 720mil? Lets go with 750mil.
So budget of 750mil.
They'll chop 360, can't afford that.
Produce 1 million more xboxones at 470 cost each. Alright so about 470mil down.
280mil left, how do you split that between marketing and developing games?
50mil for Halo, 50mil for gears, 50mil for Forza? What about other games, so now you're chopping budgets to 30mil?
Now you still need advertisements etc.
Not possible, just not possible on the profits of xbox alone.
If it gets spun off to its own thing, it's finished period.

Only if another company buys it will it stay around if MS decides to cut that cord.
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#98chubbychaserPosted 5/6/2014 12:03:57 AM
Apex-Player posted...
Honestly some of these guys really put the big blinders on.

Xbox couldn't support itself. It just couldn't. Thinking it would be successful spun off into its own entity just isn't logical. They don't have the kind of money in just that division to continue manufacturing xboxones, let alone pay developers for games, pay for marketing etc.

What was the last profit they claimed for the division, 720mil? Lets go with 750mil.
So budget of 750mil.
They'll chop 360, can't afford that.
Produce 1 million more xboxones at 470 cost each. Alright so about 470mil down.
280mil left, how do you split that between marketing and developing games?
50mil for Halo, 50mil for gears, 50mil for Forza? What about other games, so now you're chopping budgets to 30mil?
Now you still need advertisements etc.
Not possible, just not possible on the profits of xbox alone.
If it gets spun off to its own thing, it's finished period.

Only if another company buys it will it stay around if MS decides to cut that cord.


that is why investor hate xbone. they want it out.
money for titanfail alone, i.e exclusive, ads, etc alone is mind boggling. and it fail.
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#99Shinobi120Posted 5/6/2014 12:42:14 AM
slyman19 posted...
That's not saying much, especially when you consider that the PS3 likely wiped out all profits from the PS and PS2


And yet the PS brand has never been in the red, unlike Microsoft with the Xbox brand. And the PS division is still in the black.
#100SoulTrapperPosted 5/6/2014 12:43:25 AM
slyman19 posted...

1) Not by much. A lot of devs have said that difficulty will disappear.

2)They did it with the horrendously hard to develop for PS3. Why not something that's very easy in comparison?

3) The Xbox one isn't going to stop selling. When Halo and Gears comes out, the One will pick up more steam.

4) You don't know what a fact is, do you? That report was speculation, nothing more.

5) It's possibly made more profit the last two quarters than the PlayStation has. PS is doomed, right?

6) Microsoft had such a big profit margin on the hardware, they could very likely still be making a profit at that price.

7) They have no clue what it cost to make an Xbox One. Microsoft could have paid far less than what they guessed.

8) It's extremely close to making an overall profit, if it hasn't already.

9) That's not saying much, especially when you consider that the PS3 likely wiped out all profits from the PS and PS2

10) You don't know that for sure. Hell, they even said they aren't making anything on the hardware


1) Really? Got some articles?

Also, you might want to read into what exactly is causing the difference (it's the size of the eSRAM). And that won't magically become bigger.

I've got it all written out in this older topic, if you could actually disprove it, you'd be the first:

http://www.gamefaqs.com/boards/691088-xbox-one/69064045/781796918

2) Keep in mind that this is IF xbox would spin off from Microsoft.

It's not exact science, but my estimate is that these new gen games cost a lot more than the 360/ps3 ones.
This means they need higher sales numbers as well, to remain profitable. EA has already said it was looking at charging $70/game and once EA starts doing it, others will follow.

The fact is that getting 1080p on the xbox one is really hard, as proven above, and that most likely won't change.

The devs will need to put in more work and money to get the xbox games running, but their profits on those games will be much smaller, since there are less people with an xbox one.

Now the xbox division does not have Microsofts big cash bag to back it up anymore, so most exclusives will be gone.

Why would people stick with the xbox one if it doesn't have those exclusives and if it doesn't have the best multiplatform games?

Which means even less sales and even less incentive for devs to keep spending more time and money making games for a smaller audience and without Microsofts money bags to keep them interested.

3) No one said it will stop selling, but the same thing was said about Titanfall. Tons of people believed the xbox would pick up steam when that game came out. Didn't happen, despite all the hype.

4) Yet it was never denied by Microsoft. The guy who made that claim is a Nomura analyst, he's not going to risk his career by making stuff up.

5) What's the point of bringing up the playstation here? Got anything to back that claim up?
Don't resort to deflecting and making stuff up, it makes you look desperate.

6) Except they didn't and nothing indicates they have a profit margin on the hardware at all at this point.
If you could show me one analysis that says otherwise, you've got a point, else stop making stuff up.

7) They've got a pretty good idea of what the parts cost and even if it isn't 100% accurate, how far would they be off? It's not going to be a $50 difference.
On top of that, are the two free games with each console.

There is simply no way MS is making a profit on xbox one sales right now.

8) Got anything to prove that or do I just need to take your expert opinion on it?

9) It didn't:
https://imgur.com/xzK91cI

10) Marketing