Should Microsoft sell off the Xbox brand? X1 responsible for 400 Million Loss

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2 years ago#1
Since Microsoft made the decision to cut the Kinect from the Xbox One you may have heard reports that sales of the console have more than doubled, but this is just a clever marketing spin to paint the Xbox One in a more favorable light.

Despite the Xbox Oneís price drop the PS4 outpaced it by 36% in June. Microsoft is trying its hardest to hide the fact that sales for 2014 have been so poor, that theyíve been selling from their surplus inventory and have barely had to manufacture new consoles.

Last quarter, Microsoft reported 2 million total console sales. This included 1.2 million Xbox Ones and 800,000 Xbox 360s. This quarter Microsoft announced a grand total of 1.1 million console sales and if we take those numbers and assume the 360 is still selling similarly then we arrive at only 300,000 Xbox Ones sold for the quarter ending in May. Just as a comparison, that puts the Xbox One on par with Nintendoís notoriously poor seller, the Wii U, for their May quarter.

How is it possible for Microsoft to sell nearly 197,000 Xbox Ones in the U.S. in June if it has shipped 300,000 worldwide for the entire quarter? Itís because Microsoft has been sitting on too many consoles and itís now selling out of its backlogged stockpile.

The new CEO of Microsoft, Satya Nadella, wrote a 3,100 word memo on the future of the company in which he only spent one paragraph talking about the Xbox brand. This has led many to speculate that Nadella isnít committed to it and that talks of spinning the Xbox brand off of the main company could begin anew.

Since the original Xboxís release Microsoft has always planned to use the machine to take over consumerís living rooms. They saw the Xbox as the one stop home entertainment box that would play video games, movies, music and television. The recent cancellation of the Xbox TV service is but the latest reversal of nearly every decision theyíve made about the Xbox One since before it was released.

A lack of a defined vision for the Xbox One has clearly hurt its sales numbers. This isnít the only place Microsoft appears to be floundering, the company now only accounts for 1% of the combined PC and tablet market. To make matters worse Microsoft recently announced that 18,000 employees will be laid off over the course of the year.

With so many things dragging it down does it make sense for Microsoft to cut their losses and sell off the Xbox brand? After all they donít just make video games and perhaps the sale of such a popular brand would give them the capital they need to reinvigorate the company.

Keep in mind that Microsoft has just announced that after being on the market for a little over eight months, the Xbox One has lost the company $400m.
2 years ago#2
Don't take the bait.
Greatest Shows of All Time.
Avatar: The Last Airbender, SWAT Kats, Sailor Moon, Tetsuwan Atom 2K3, Transformers, Spiderfriends
2 years ago#3
They created the mess with the announcement of the X1. Had they not have those backward ass features it had plus stronger hardware, they'd be in good shape.

And MS selling the Xbox brand? That's a Sony fanboy's wet dream right there.
2 years ago#4
TheArcade posted...
Don't take the bait.

I'm not biting but other people will
2 years ago#5
Nom nom nom.
2 years ago#6
So the PS3 didn't almost cause Sony to bankrupt? /topic

I understand you want a healthy conversation being a lone-wolf and all, but you should probably come up with an original conversation.
GT: xFrostxPhoenix | PSN: xFrostxPhoenix
GSU Comp Sci C/O 2015 | XB1;360;PS4;N64;SNES
2 years ago#7
TheArcade posted...
Don't take the bait.

Tasty tasty bait.
2 years ago#8
I took the bait and got off the line, boom baby.
2 years ago#9
Warsuh posted...
I took the bait and got off the line, boom baby.

2 years ago#10
I've always wondered. Do people write these in Word and then copy/paste them here?
"It's like people using the internet have never heard of the internet." - SadHillShowdown Gamefaqs member
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