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

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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45 Comments

1. akki20892

Posts: 3902; Member since: Feb 04, 2013

R u kidding me flop.

3. cc3493

Posts: 158; Member since: Jul 06, 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.

8. joey_sfb

Posts: 6794; Member since: Mar 29, 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.

10. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

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

11. caustictoast

Posts: 31; Member since: Aug 07, 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.

17. dratomic

Posts: 483; Member since: Oct 09, 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.

28. Finalflash

Posts: 4062; Member since: Jul 23, 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.

39. downphoenix

Posts: 3165; Member since: Jun 19, 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.

2. thegandalf

Posts: 22; Member since: Jul 23, 2013

that actually sounds good

18. ihavenoname

Posts: 1693; Member since: Aug 18, 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.

4. MetroPhase

Posts: 12; Member since: Nov 24, 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.

5. jasonwsc

Posts: 2; Member since: Sep 11, 2013

He might sell off Nokia you know.

6. Timmehor

Posts: 599; Member since: Mar 09, 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.

7. xtplnet

Posts: 61; Member since: Mar 03, 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.

12. Shatter

Posts: 2036; Member since: May 29, 2013

Xbox is LOSING Microsoft 2 BILLION dollars per year.

14. elitewolverine

Posts: 5192; Member since: Oct 28, 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.

22. kanagadeepan

Posts: 1206; Member since: Jan 24, 2012

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

9. Pancholo

Posts: 380; Member since: Feb 27, 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.

13. samdsox

Posts: 11; Member since: Sep 19, 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.

15. jellmoo

Posts: 2529; Member since: Oct 31, 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.

25. dratomic

Posts: 483; Member since: Oct 09, 2013

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

43. Reluctant_Human

Posts: 910; Member since: Jun 28, 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.

16. znellu

Posts: 82; Member since: Dec 05, 2012

Non sense.

19. volcano

Posts: 348; Member since: Jan 25, 2013

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

35. Pancholo

Posts: 380; Member since: Feb 27, 2012

LOL. Right in the kisser.

20. deewinc

Posts: 454; Member since: Feb 21, 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

21. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

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

31. tigermcm

Posts: 861; Member since: Sep 02, 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??

33. ArtSim98

Posts: 3535; Member since: Dec 21, 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?

36. meowcenary

Posts: 187; Member since: Apr 13, 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

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