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If Elop takes over Microsoft, he might sell off Xbox and bring Office to iOS and Android

Posted: , by Michael H.

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If Elop takes over Microsoft, he might sell off Xbox and bring Office to iOS and Android
The general thinking is that Stephen Elop is one of the leading contenders to take over as Microsoft's CEO once Steve Ballmer steps down; and, once the Nokia acquisition is finalized, Elop will certainly be the number one candidate within the company. But, a new report is saying that Elop could be willing to make some drastic changes if he gets the CEO spot including supporting iOS and Android more.

A new report from Bloomberg says that Elop would want to focus Microsoft on its core competencies if he gets the CEO chair. That would mean putting more effort into Office, and bringing the software to a wide range of platforms including iOS and Android. It would also mean an increased focus on Windows itself, and that would mean jettisoning newer products like Xbox and Bing. 

Bing would obviously be the first on the list, because it has been a costly endeavor to take on Google, and it hasn't offered much value to Microsoft. The idea that Elop could sell of Xbox is one that seems much less likely. Xbox has been extremely successful for Microsoft, and the Xbox One really has the potential to pull together the "3 screens and a cloud" vision that Steve Ballmer had. It was one of the better ideas that Ballmer had, and one that other companies are also working towards. Apple has the iPhone, iPad, Mac line, Apple TV, and iCloud; Google has Android running on devices from phones to TVs and is the king of the cloud; and, even Canonical is working towards putting Ubuntu on multiple screens and combining it with Ubuntu One cloud services. 

It would be very strange to see Microsoft ditch one of the most successful brands it has in its stable, but Nomura Holdings analyst Rick Sherlund said the sale of Bing and Xbox could lift fiscal 2015 earnings by 40%. So, there are reasons why the move might make sense. 

source: Bloomberg

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posted on 08 Nov 2013, 20:40 10

1. akki20892 (Posts: 3901; Member since: 04 Feb 2013)

R u kidding me flop.

posted on 08 Nov 2013, 20:59 8

3. cc3493 (Posts: 158; Member since: 06 Jul 2013)

I like everything, especially the expansion of office but the xbox thing is stupid. WHY WOULD YOU SELL OFF XBOX? Its never made losses only profit! Selling bing kinda makes sense, the fact that almost everyone uses google to search.

posted on 08 Nov 2013, 21:14 11

8. joey_sfb (Posts: 5733; Member since: 29 Mar 2012)

Selling Xbox would boost company profit which would then result a much bigger bonus for Elop.

By now everyone should know where Elop'$ loyalty lies.

posted on 08 Nov 2013, 21:35

10. Napalm_3nema (Posts: 2183; Member since: 14 Jun 2013)

There are no Xbox losses because of Android patent subsidies. That entire division is in the red to the tune of $2.5bn.

posted on 08 Nov 2013, 21:45 3

11. caustictoast (Posts: 31; Member since: 07 Aug 2012)

The xbox loses lots of money. Estimates from those at neogaf peg that at 2 billion. It's division is bouyed by Android royalties. R&D on the controllers for the Xbox one are rumored to run about 100 million. One hundred million for a controller. Think about what that could mean for the cost of making One itself and the studios they have to fund to make games which haven't been outputting much as they've pretty much all delayed games onto the One so the 360 has been relatively dry.

posted on 09 Nov 2013, 00:25 2

17. dratomic (Posts: 483; Member since: 09 Oct 2013)

microsoft would be lucky if he just plans to sell xbox. i think he would be like "lets sell the whole microsoft company to some buyer" r.i.p. microhard.

posted on 09 Nov 2013, 07:45

28. Finalflash (Posts: 3073; Member since: 23 Jul 2013)

He isn't wrong in that since the Xbox division has lost about 5 billion since its inception at MS. But the problem is, years of pushing into the market, and now he is going to chop it off. That is stupid and likely a very Elop way of thinking. He should use the games and entertainment value of the Xbox and somehow bring synergy with them to the tablet and phone space. Maybe allow Xbox play through your WP devices like the remote desktop available already. That would start a cohesive ecosystem going like Apple has with their whole macbooks and home entertainment. Get rid of Bing for sure because that gets them nothing but bad press from bad results.

posted on 09 Nov 2013, 19:33

39. downphoenix (Posts: 3165; Member since: 19 Jun 2010)

actually the Xbox division has enjoyed losses up until about 2008. It never made any profit during the original Xbox, and about the 1st 3 years of the 360 were losses, including about a $1 billion writeoff just to cover repairs and replacements due to the early RROD stuff. The division had lost almost $5b during the original XBOX days alone. 360 has fared better and is profitable now, but it lost about another $4b before it started profiting.

posted on 08 Nov 2013, 20:56 4

2. thegandalf (Posts: 22; Member since: 23 Jul 2013)

that actually sounds good

posted on 09 Nov 2013, 00:27 1

18. ihavenoname (Posts: 1693; Member since: 18 Aug 2013)

Yeah, and while I'd love to see it happen, it's very unlikely. Office is one of the few pros of having Windows Phone, besides Nokia brand. Opinion from Lumia owner.

posted on 08 Nov 2013, 21:08

4. MetroPhase (Posts: 12; Member since: 24 Nov 2012)

If this rumor is true, sounds like elop is looking for the fastest route off the final candidate list.

*Frankly, I assumed the new CEO would look for a method of merging the XBOX, Windows RT, and WP marketplaces.

posted on 08 Nov 2013, 21:09

5. jasonwsc (Posts: 2; Member since: 11 Sep 2013)

He might sell off Nokia you know.

posted on 08 Nov 2013, 21:10 5

6. Timmehor (Posts: 599; Member since: 09 Mar 2013)

It is it just me, or do you think this is just some anti-Elop propaganda coming out from inside Microsoft, to deter the board/employees, even consumers from him as the next CEO? That's what I am feeling, because this sought of strategy is far-fetched and would not pass through the Microsoft board.

posted on 08 Nov 2013, 21:14 1

7. xtplnet (Posts: 55; Member since: 03 Mar 2012)

If Elop become Microsoft CEO then we might See the Microsoft getting sold off down the line !!
and selling off XBOX unit is most stupid Idea ever. XBOX kinect concepts can integate with Windows 8 and provide the better human interface to interact with computers.

posted on 08 Nov 2013, 22:09 2

12. Shatter (Posts: 2036; Member since: 29 May 2013)

Xbox is LOSING Microsoft 2 BILLION dollars per year.

posted on 08 Nov 2013, 22:21 2

14. elitewolverine (Posts: 5179; Member since: 28 Oct 2013)

quarterly reports? Or do you just go off news bites?

You do know how much R&D was put into the xbox right?

The xbox has never lost 2billion a year. The android budget is there yes. But so is everything under the sun. Unless you show the clear ink of xbox solely without any other numbers, your information is false.

posted on 09 Nov 2013, 03:00

22. kanagadeepan (Posts: 922; Member since: 24 Jan 2012)

Yes, he will sell it to others, like he did to Nokia and get a BIG FAT bonus for the same shamelessly...

posted on 08 Nov 2013, 21:21

9. Pancholo (Posts: 380; Member since: 27 Feb 2012)

I hate analysts; they say the darndest things. Xbox = $$$

Shows you how much they hate Eflop. He'll cause a boycott if crap like this really happens.

posted on 08 Nov 2013, 22:13

13. samdsox (Posts: 11; Member since: 19 Sep 2012)

Firstly you have to remember, this is just one report by an analyst. This is not set in stone. We don't even know for sure if Elop is taking over. Secondly, when you look at the charts, microsoft profit margins are shrinking by the day.Drastic changes HAVE to be made, if they don't want to be in some trouble a 5-10 years from now. And to be honest xbox is not helping that much. By getting rid of it, yes they are losing some income, but they are also getting rid of the massive overhead which is the r and d cost, software updates/patch costs, machining costs etc. In the gaming industry the consoles aren't the real money makers, its the games, accessories, and game items/ingame spending.

posted on 08 Nov 2013, 23:17 1

15. jellmoo (Posts: 1580; Member since: 31 Oct 2011)

This strikes me as incredibly unlikely. The CEO still has to answer to the board, and the board answers to the shareholders. There isn't anything to be gained by selling the more successful branch of their consumer market, and keeping the ones that struggle to be profitable. Implementing such a plan would almost certainly not be approved.

posted on 09 Nov 2013, 04:49

25. dratomic (Posts: 483; Member since: 09 Oct 2013)

he sure knows how to convince the board. like he did to nokias shareholders

posted on 11 Nov 2013, 00:04

43. Reluctant_Human (Posts: 886; Member since: 28 Jun 2012)

Selling off X-Box = huge payout for board members and stock holders in the short term and death of the company in the long term. A quick payout is a quick way to convince people.

posted on 08 Nov 2013, 23:55 1

16. znellu (Posts: 74; Member since: 05 Dec 2012)

Non sense.

posted on 09 Nov 2013, 00:33 2

19. volcano (Posts: 348; Member since: 25 Jan 2013)

Frank Shaw, spokesman for Microsoft, commented about the rumor: “We appreciate Bloomberg’s foray into fiction and look forward to future episodes"

posted on 09 Nov 2013, 15:04

35. Pancholo (Posts: 380; Member since: 27 Feb 2012)

LOL. Right in the kisser.

posted on 09 Nov 2013, 02:35 1

20. deewinc (Posts: 272; Member since: 21 Feb 2013)

CEOs nowadays earn more for making companies collapse and selling them off. I won't be surprised if Elop sells off everything at Microsoft to earn more and hop on to another company. This guy is smart in making quick cash :D

posted on 09 Nov 2013, 02:43 1

21. ArtSim98 (Posts: 3535; Member since: 21 Dec 2012)

Yhey should get rid of Xbox. It sucks. Not even close to Playstation and Nintendo.

posted on 09 Nov 2013, 10:19

31. tigermcm (Posts: 855; Member since: 02 Sep 2009)

you're being sarcastic right? Nintendo??? the same company that said the iPad was really hurting their Wii sales and the same company that said their WiiU sales were depressing??? the same company that thinks its WiiU is able to compete with the PS4 and Xbox One??

posted on 09 Nov 2013, 11:19

33. ArtSim98 (Posts: 3535; Member since: 21 Dec 2012)

No. I'm dead serious here. Wii U can easily compete with the PS4 and Xbone. Xbox generally sucks. PS4 is more powerful than it and has more better exclusives. Wii U has very different gameplay and again a better collection of exclusives. Xbone is just simply needless, because if you want good exclusives and/or different gameplay mechanics buy PS4 or Wii U. If you want outstanding power get a PC. So why buy a Xbone? Maybe to watch TV?

posted on 09 Nov 2013, 17:16

36. meowcenary (Posts: 187; Member since: 13 Apr 2012)

You do know that the Wii U are worlds apart from the ps4 and xbox 3. The Wii U can't even compete against both consoles, and the only thing nintendo has going for it is the 3ds and rehash of their old IP's.

The xbox 3 is a game machine first and a social/streaming media center. To continue this fanboy notion of xbox 3 being a media streamer is idiotic. Give someone a voice and they squander it with idiotic comments like you ArtSim98

posted on 10 Nov 2013, 02:40

41. ArtSim98 (Posts: 3535; Member since: 21 Dec 2012)

But why would you buy an Xbox one? Of course if you're very rich you can buy all the three consoles and a gaming rig, but if you're just an ordinary guy there's no point getting Xbox one. No games, not as powerful as ps4, not even close to the power of a 2 years old gaming pc, nothing new/innovative stuff=useless.

posted on 09 Nov 2013, 03:25 2

23. TwentyWendy (banned) (Posts: 65; Member since: 12 Aug 2013)

Not sure he's making right decision or not, but xBox is definitely a failure, Nintendo forever :3

posted on 09 Nov 2013, 17:23 1

37. meowcenary (Posts: 187; Member since: 13 Apr 2012)

TwentyWendy nintendo failed and despite their on trick pony the Wii. Nintendo did not generate anything that was worth mentioning. The Wii U continues the trend of lack luster titles, short of reshashing their old Ip's. I like the Big N, however the starting with the Wii and the Wii U, they are on the skids. I had more fun with the PS3 and Xbox 360 and many of my experience memorable. I am looking forward to the PS4 and Xbox 3. What do you have to look forward to? Continue to speak out of your Foxtrot Alpha.

posted on 09 Nov 2013, 04:39

24. marchels14 (unregistered)

He is an idiot, almost droned Nokia.

posted on 09 Nov 2013, 04:57 1

27. livyatan (Posts: 867; Member since: 19 Jun 2013)

Wake up.
His mission was to lower the price of Nokia so M$ can go for the takeover.
And boy did he succeeded

posted on 09 Nov 2013, 04:53

26. livyatan (Posts: 867; Member since: 19 Jun 2013)

Wow, this makes me realize just how far sighted, albeit ruthless, this guy is.

I've read that Xbox is actually generating huge losses for Microsoft, and that two billions of profit generated from Android is what's keeping the Xbox and windows phone divisions running.

And with Android likely to become by far the most widespread operating system ever with up to 4 BILLION users, Microsofts best chance really is to focus on its most certain revenue generating source - licensing fees from Android.
The office should reinforce the adoption of Android across every area, although I don't really see it as a big deal for the private users.

A seriously capable, cheap office suite pro for Android is out for years..hell, even the free Android office from Kingsoft is good enough for 99 percent of the cases!

posted on 09 Nov 2013, 08:42

29. Antonyjoseph (Posts: 217; Member since: 06 Apr 2013)

Eventually Flop will sell off Microsoft to Google & pocket a fat bonus.

posted on 09 Nov 2013, 09:31

30. GrmanR (Posts: 41; Member since: 09 Apr 2013)

Elop said he would sell PARTS of Xbox, not the whole thing, so chill. You should really change that.
Also I wish t he universal search on Windows 8.1 included Google search, so I can't wait for them to get rid of Bing!

posted on 09 Nov 2013, 11:09

32. lyndon420 (Posts: 4358; Member since: 11 Jul 2012)

I'm hoping Elop will run microsoft into the ground...just like he did to Nokia. Nokia was a good company though...sad to see them go.

posted on 09 Nov 2013, 12:43 1

34. Altair (Posts: 367; Member since: 02 Feb 2012)

Why don't people get it, that no CEO can make such things alone. He needs support from stockholders etc.

posted on 09 Nov 2013, 17:34 1

38. meowcenary (Posts: 187; Member since: 13 Apr 2012)

I guess there are not many investors on this forum......

posted on 09 Nov 2013, 20:14

40. sonisoe (Posts: 410; Member since: 06 May 2009)

if i were msft ceo, i'd shut down windows phone

posted on 10 Nov 2013, 04:31

42. taikucing (unregistered)

If I were MS CEO, I'd sell Elop

posted on 11 Nov 2013, 06:50

44. jose.vu (Posts: 16; Member since: 28 Mar 2013)

I bet he doesn't like playing games :D

posted on 11 Nov 2013, 07:45

45. 7thspaceman (Posts: 1544; Member since: 14 Feb 2011)

Microsoft is now a "Devices & Services Company. The XBOX is a profitable Device Microsoft makes that is integrated into the Microsoft store to help Microsoft get a foot hold into peoples living rooms and help Microsoft Get money from the sales of Music, Video and
Games through the "XBOX Brand". Microsoft would be Nuts to give that up what the hell would Mr. Elop replace it with? A high executive at Microsoft has already said that IOS will get a Version of MS Office so that is not new news. Ballmer is for this right now. MS held back on doing this to give their MS RT tablets an Edge in Business production capability..

posted on 17 Nov 2013, 09:13

46. networkdood (Posts: 6330; Member since: 31 Mar 2010)

Well, I called this merger..lol, no Microsoft acquisition from Day 1. Microsoft gutted Nokia, purposely...good luck.

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