For a while now, we’ve been rumours that Microsoft might decouple, or sell off its Xbox business. Many of Microsoft’s Investors, who’re losing money from Microsoft’s Entertainment and Devices division, suggest binning the division. According to Microsoft’s new CEO, Satya Nadella, that’s not happening.
"I have no intent to do anything different with Xbox than we are doing today," Nadella told interviewers Kara Swisher and Walt Mossberg at the Code Conference, reported by The Verge.
Interestingly, Nadella has previously said that Microsoft, under his direction, won’t be a purely "devices and services company. Software, he says is "the most malleable resource," and under his guidance, the company will push mobile and cloud first. And to do that, building hardware is necessary.
"It is the thing that is really going to power all the experiences on all the devices today and tomorrow," Nadella 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."
Last month, former Microsoft boss of everything, Bill Gates said he’d support Nadella if he did make the decision to ace the Xbox. Analyst Goldman Sachs has been suggesting that MS should splinter off the Xbox for half a decade already.
"The Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products’ brand strength, and the business could show unlocked value with forced cost discipline compared to as a piece of Microsoft."
I honestly don’t care what Microsoft does with Xbox; whether they split it off or not. Just as long as they don’t bin it. The competition is necessary for Sony to not become complacent, which would be a losing situation for everyone.
Last Updated: May 28, 2014