Xbox One Speculation: Will Microsoft sell off the Xbox brand?

[jstep]

It makes plenty of sense for Microsoft to drop Xbox.
It's just not a core piece of what Microsoft does. Its not developing killer games for Windows Phone. It could help in the living room, but that's a ways away. And Microsoft would likely retain a stake in an Xbox company, so it could enjoy the upside.
The Xbox doesn't make money for Microsoft. Entertainment and Devices posted a $110 million loss last quarter. For fiscal 2013, its operating income was less than a billion. Microsoft's overall operating income was $26.7 billion.

This is a pretty interesting read. I couldn't imagine Microsoft selling the Xbox brand, but with that kind of a loss in the Entertainment and Devices division, well, I can see how it may make fiscal sense for that to be a possibility, BUT, it's the end of the consoles life cycle, i.e. console sales are down, as well as the launch of a new console, which comes, I'm sure, with tons of R&D expenditures,

Sony's Q1 2013 earnings show a $149 loss, pretty much for the same reasons as stated above. This info can be found on page two of their Earnings Report.

What are your thoughts? Do you think Microsoft would really sell the Xbox brand?

via Business Insider

 

[SiNAR 212]

This is a pretty interesting read. I couldn't imagine Microsoft selling the Xbox brand, but with that kind of a loss in the Entertainment and Devices division, well, I can see how it may make fiscal sense for that to be a possibility, BUT, it's the end of the consoles life cycle, i.e. console sales are down, as well as the launch of a new console, which comes, I'm sure, with tons of R&D expenditures,

Sony's Q1 2013 earnings show a $149 loss, pretty much for the same reasons as stated above. This info can be found on page two of their Earnings Report.

What are your thoughts? Do you think Microsoft would really sell the Xbox brand?

via Business Insider

Well as of now, no. I cant see them selling it off atleast for another next gen or so. Even if its taking a lose its a pride thing i think and selling it off would just make them look like "oh well, we are done, bye bye" But that is me. Plus I hope they dont, they created the brand lol

 

[StingerNLG]

This is also a bit of misinformation coming from Business Insider. The Xbox line has still made Microsoft money, and they are still up $848 million over the last year. Just because they took a loss this quarter, as Xbox 360 sales are winding down and Xbox One development and such has ramped up isn't indicative of the need to sell off the Xbox brand.

How much of that $110 million is R&D costs, spending for conferences (E3, etc and prepping the XB1 for launch? Just off the top of my head.

 

[SiNAR 212]

This is also a bit of misinformation coming from Business Insider. The Xbox line has still made Microsoft money, and they are still up $848 million over the last year. Just because they took a loss this quarter, as Xbox 360 sales are winding down and Xbox One development and such has ramped up isn't indicative of the need to sell off the Xbox brand.

How much of that $110 million is R&D costs, spending for conferences (E3, etc and prepping the XB1 for launch? Just off the top of my head.

Ok I was starting to think, no way they are losing money lol.

 

[Sugarhill]

First, I don't even know of a viable buyer and they spent ten years with the 360, or at least it feels like it, I just don't see how they could possibly be losing any money at this point. All of the hardware losses had to be recouped by now. Nor, do I think they would be doing this much if selling it was even an option. The same for Sony. Actually, no I could see Sony selling, they really didn't do much to push their next gen to the next gen, so they may be happy sitting pat and waiting for a buyer.

 

[dyzposableherox]

This is also a bit of misinformation coming from Business Insider. The Xbox line has still made Microsoft money, and they are still up $848 million over the last year. Just because they took a loss this quarter, as Xbox 360 sales are winding down and Xbox One development and such has ramped up isn't indicative of the need to sell off the Xbox brand.

How much of that $110 million is R&D costs, spending for conferences (E3, etc and prepping the XB1 for launch? Just off the top of my head.

Probably $110 million in R and D alone.

 

[BlackBox]

I seriously doubt they'd drop it. If anything, they may spin it off into it's own entity, yet still owned by the main company.
I know in the past they've done just that on products before..Zune anyone?

This is actually a good money maker for them, and with the new in-roads they've made for this new gen of hardware...it's only going to make them more and more money.
If they sold it off....it'd have to be at least 2 generations away. But then again, this is all my opinion, and MS can literally do whatever they like. But those are my two cents and I'm sticking to it.

 

[SiNAR 212]

I seriously doubt they'd drop it. If anything, they may spin it off into it's own entity, yet still owned by the main company.
I know in the past they've done just that on products before..Zune anyone?

This is actually a good money maker for them, and with the new in-roads they've made for this new gen of hardware...it's only going to make them more and more money.
If they sold it off....it'd have to be at least 2 generations away. But then again, this is all my opinion, and MS can literally do whatever they like. But those are my two cents and I'm sticking to it.

I can see this happening for some reason IF anything.

 

[bifftape]

If there's ever been a company that has enough capital to keep unprofitable ventures afloat, it's Microsoft. The new rotation of consoles will garner them a lot of money upon release anyways.

As someone else mentioned earlier, I can see it being split into its own corporate entity, but there is no way they sell off the whole shebang to the highest bidder.

 

[wowtgp]

I hope they don't do that. I for one can't see them doing that as they have gotten a fair market share in gaming. They are not going to give it. Why would they when it's making them millions every year. It makes no sense unless Xbox One fails.

 

[incredibleone]

I don't know what corporation would buy the xbox brand. There's only a handful of companies with enough money to buy such a brand. I seriously doubt that this will happen. I really hope that it does not because I have a feeling we'd suffer a reduction in the quality of games that we're accustomed to as well as the reliability of the hardware. If there is talk of them selling it, we should voice our opinions.

 

[cliverederson]

This is interesting, I actually thought Xbox was one of their profitable areas, although I had heard they always sell consoles at a loss, but supposedly that's kind of standard practice for the industry. I also read recently that Microsoft is going to take a 90 million dollar loss or something crazy like that due to the unpopularity of the Surface. So where does Microsoft make money still at this point, selling Windows? Windows 8 doesn't seem to be that popular, and I don't know anyone with a Windows Phone... What does Microsoft have left that's profitable at this point, seriously?