Close
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Menu
Search
  • Latest News
  • Cybersecurity
  • Big Data and Analytics
  • Cloud
  • Mobile
  • Networking
  • Storage
  • Applications
  • IT Management
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cloud
    • Cloud
    • PC Hardware

    10 Reasons Satya Nadella Can’t Sell the Microsoft Xbox Division

    By
    Don Reisinger
    -
    March 10, 2014
    Share
    Facebook
    Twitter
    Linkedin

      PrevNext

      110 Reasons Satya Nadella Can’t Sell the Microsoft Xbox Division

      10 Reasons Satya Nadella Can't Sell the Microsoft Xbox Division

      by Don Reisinger

      2It’s Too Valuable to Sell

      It's Too Valuable to Sell

      It’s hard to put an exact figure on the value of the Xbox brand, but considering it generates billions of dollars a year for Microsoft, it’s safe to say that any company that would want to acquire the division would need to shell out a significant sum of money. For Microsoft, such a sale might be profitable, but it would be awfully hard for the company to actually find suitable buyers, given how much the division would fetch on the open market.

      3It’s the Link to the Living Room

      It's the Link to the Living Room

      The living room is becoming a hot battleground for major companies. Google has moved there with Chromecast, Apple has its Apple TV and several other companies, like Roku, are offering hardware to bring entertainment to televisions. Microsoft is already there with the Xbox 360 and Xbox One, and its platform is arguably the best in the business. Why give that up?

      4Game Industry Sales Will Jump

      Game Industry Sales Will Jump

      According to research firm NPD, which tracks most closely the game industry, sales across the space will jump considerably in the coming years as consumers invest in new consoles, like the Xbox One, and software sales again pick up. Now is not the time to be ditching the industry—especially when, in Microsoft’s case, it’s offering one of the most popular consoles right now.

      5Who Wants a Loss-Leading Console?

      Who Wants a Loss-Leading Console?

      One of the issues for Microsoft is how it’s going to sell its console to another company. Granted, sales are strong, but it’s believed that Microsoft is losing money on every unit it sells. So, while the console’s revenue might be strong, it’s hard to believe that too many companies would want to acquire a device that has a sagging bottom line. Eventually, that will change. But for now, Xbox One development costs are too high to justify acquiring the company.

      6Nadella Does Care About Hardware

      Nadella Does Care About Hardware

      Although Satya Nadella didn’t specifically cite the Xbox One as an important component in his company’s plans going forward, he did say that hardware will be a key focus of his. Since the Xbox is arguably Microsoft’s most successful hardware product to date, why would Nadella sell off the division? It doesn’t add up.

      7What About Recent Franchise Buys?

      What About Recent Franchise Buys?

      Microsoft recently acquired the rights to the “Gears of War” game franchise. The company also owns “Halo” and has been trying hard to build out its first-party offerings. It doesn’t make much sense to pay so much for a popular franchise like “Gears of War” if the next move would be to sell the entire division. Microsoft, at least from the outside, seems poised to continue building out its game library.

      8Microsoft Would Abandon Its Consumer Push

      Microsoft Would Abandon Its Consumer Push

      Microsoft seems increasingly concerned that the consumer market is leaving it behind. Customers are buying up Apple and Samsung devices and leaving Microsoft’s products on store shelves. So, Microsoft has responded by saying that it wants to attract more consumers to its products. What better way to do that than to offer a product, in the Xbox, that is designed specifically for consumers and integrates fully with the company’s other services, including OneDrive? It seems like the Xbox is the perfect way to keep customers coming back to its many services.

      9The Competitive Market Seems Optimistic

      The Competitive Market Seems Optimistic

      Competition is always an issue in the games industry, but things are actually looking up for Microsoft. While Sony’s PlayStation 4 is the top-selling hardware on the market, Nintendo’s Wii U is all but dead, leaving Microsoft with only one main competitor. Better yet, Sony’s strength is in Asia, where Microsoft has spent little time promoting its brand. In the Western world, Xbox might be poised for outright success over the long term.

      10Xbox Live Is a Major Asset

      Xbox Live Is a Major Asset

      It’s hard to overstate just how important Xbox Live is to Microsoft. The service is in one sense an online-gaming platform, but in another, a gateway to the company’s many other services. Microsoft’s Xbox Live provides access to digital content—the great frontier in home entertainment—and integrates with the company’s services on the PC and in the cloud. Xbox Live is too important to be let go.

      11Only Competitors Could Afford Xbox

      Only Competitors Could Afford Xbox

      Here is perhaps the biggest roadblock standing in Microsoft’s way: The only companies that might be able to dole out the billions to it would take to acquire the Xbox division are Microsoft’s competitors—Google, Sony and Apple. Sure, a surprise company might come along and try to buy Xbox, but that seems unlikely. It’s hard to see Microsoft wanting to sell its Xbox division to Google, Apple or Sony.

      PrevNext

      MOST POPULAR ARTICLES

      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Cloud

      Why Data Security Will Face Even Harsher...

      Chris Preimesberger - December 1, 2020 0
      Who would know more about details of the hacking process than an actual former career hacker? And who wants to understand all they can...
      Read more
      Cybersecurity

      How Veritas Is Shining a Light Into...

      eWEEK EDITORS - September 25, 2020 0
      Protecting data has always been one of the most important tasks in all of IT, yet as more companies become data companies at the...
      Read more
      Big Data and Analytics

      How NVIDIA A100 Station Brings Data Center...

      Zeus Kerravala - November 18, 2020 0
      There’s little debate that graphics processor unit manufacturer NVIDIA is the de facto standard when it comes to providing silicon to power machine learning...
      Read more
      Apple

      Why iPhone 12 Pro Makes Sense for...

      Wayne Rash - November 26, 2020 0
      If you’ve been watching the Apple commercials for the past three weeks, you already know what the company thinks will happen if you buy...
      Read more
      eWeek


      Contact Us | About | Sitemap

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Property of TechnologyAdvice.
      Terms of Service | Privacy Notice | Advertise | California - Do Not Sell My Information

      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×