Author Topic: Prospective Microsoft CEO Tipped to Sell Off Xbox Business  (Read 614 times)

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Offline GamerMan316

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Prospective Microsoft CEO Tipped to Sell Off Xbox Business
« on: November 08, 2013, 10:46:50 AM »
Prospective Microsoft CEO Tipped to Sell Off Xbox Business

Former Nokia boss Stephen Elop is being tipped to take over Steve Ballmer’s role as Microsoft CEO, and it’s being suggested that he would consider selling off the Xbox division should he get the job.

That’s according to a Bloomberg report, which cites three sources claiming that Elop would make some rather dramatic changes at the company, should enterprises like Bing and Xbox become non-critical to Microsoft’s goals.

Elop is set to join the company following Microsoft’s $7.2 billion acquisition of the mobile firm in September. It’s not yet known if he will be offered the CEO position, but he’s reportedly one of the front runners.

“He would consider ending Microsoft’s costly effort to take on Google with its Bing search engine, and would also consider selling healthy businesses such as the Xbox game console if he determined they weren’t critical to the company’s strategy,” says the report.

The news comes a day after Nomura analyst Rick Sherlund outlined his belief that Microsoft’s Xbox division is haemorrhaging money.

"If we start with the overall traditional [Entertainment and Devices Division] business that actually loses money before corporate allocations and back out the nearly $2 billion 95 percent gross margin Android phone royalties, we conclude that Xbox platform plus Windows phone and Skype lose about $2.5 billion per year, and we estimate that the Xbox platform may account for roughly $2 billion of this," said Sherlund.

"This is contrary to conventional wisdom, we think investors do not realize how extensive the operating costs are for this business and it is concealed by the hugely profitable Android royalties."


Offline zerosum

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Re: Prospective Microsoft CEO Tipped to Sell Off Xbox Business
« Reply #1 on: November 08, 2013, 03:07:43 PM »
I'm sure there are major nerves then at MS about the Xbox One's launch. Wonder IF this happened, who would be in line for a purchase...?

Offline GamerMan316

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Re: Prospective Microsoft CEO Tipped to Sell Off Xbox Business
« Reply #2 on: November 10, 2013, 06:08:23 AM »
I'm sure there are major nerves then at MS about the Xbox One's launch. Wonder IF this happened, who would be in line for a purchase...?

Apple  ;D


 

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