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Old 23-08-2013, 14:58
fastest finger
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Following on from the departure of Xbox boss Don Mattrick, it has been revealed that Microsoft CEO Steve Ballmer will be leaving the business as soon as a replacement can be found. (Within 12 months)

Ballmer has been heading up the Xbox division since Mattrick left. It will be interesting to see who they get to fill both of these positions, and what new direction they can take the Xbox brand in.
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Old 23-08-2013, 15:06
Asmo
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Their share price soared upwards wth the news!
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Old 23-08-2013, 15:20
fastest finger
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Their share price soared upwards wth the news!
Not surprising really. Their last few product launches have been a mess. This can only be good news for the company and its customers.
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Old 23-08-2013, 20:42
Asmo
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There appears to be a lot more drama behind the scenes:

A report by BizJournals claims that ValueAct, a $2 billion Microsoft investor with a 1% stake in the company, is seeking to achieve some major changes at Microsoft. Analyst Rick Sherlund claims that big changes are going to take place very soon as other shareholders support the decision to get rid of Steve Ballmer in addition to the investment group ValueAct. According to the report ValueAct are seeking to replace Steve Ballmer because his strategy “inspires little confidence”.

Apparently Microsoft has no choice but to give ValueAct a board seat otherwise they might launch a “public war” on Steve Ballmer and Microsoft that could end with serious turmoil at the company.

“A decision by the board at Microsoft to offer a nomination for a board seat could keep the activist agenda behind closed doors and take longer for shareholders to see potential benefits”

Furthermore it is believed they might target the Xbox division and try and get rid of it altogether. This would allow Microsoft to focus on other products and mainly Windows.


“Xbox is cool, but by our estimates Microsoft has not made money at this”
http://www.eteknix.com/microsoft-inv...xbox-division/

http://www.neogaf.com/forum/showthread.php?t=659801


Some scathing press and investor responses to Ballmer's departure:

http://www.bizjournals.com/seattle/n...risis-the.html
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Old 23-08-2013, 21:11
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Oh Lord, am I still wise to keep my pre-order?!
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Old 23-08-2013, 21:22
Asmo
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Oh Lord, am I still wise to keep my pre-order?!
You might wind up with a collectible edition, if some time soon they all come with a Samsung badge or something.... !
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Old 23-08-2013, 21:34
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Maybe my youth kept me naive but I don't remember 8-bit and 16-bit launches being this tumultuous!
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Old 23-08-2013, 21:40
Asmo
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Ignorance was bliss. We'd probably never have bought any of the old systems if we knew all the bodge jobs and chaos going on behind the scenes.

I think things could come to a head very quickly if investors don't like the XB1's performance.
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Old 23-08-2013, 21:50
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Oh well, a limited edition box which plays a few choice select games, might be worth taking to Hugh Scully in 20 years!
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Old 23-08-2013, 22:07
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The BizJournals article that was cited is here:

http://www.bizjournals.com/seattle/b...-predicts.html

from page 2:

Things could get interesting in the coming weeks. ValueAct must notify Microsoft of a proxy fight by Aug. 30 – next Friday – and there is an analyst meeting at Microsoft on Sept. 19.

ValueAct will likely call on Microsoft to make some big changes. Sherlund – who is likely well-sourced on this – believes ValueAct will suggest Microsoft sell off Xbox to another tech company.

“Xbox is cool,” Sherlund wrote, “but by our estimates Microsoft has not made money at this.”

And for shareholders, that’s an important point. For activist shareholders, it’s a sticking point.
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Old 23-08-2013, 23:14
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With no firm release date yet I am a little tense about this progression
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Old 23-08-2013, 23:35
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Ballmer oversaw the stack ranking management system, which has failed miserably. There is no way on earth you can innovate in a culture where basically everyone is out to get everyone else.
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Old 24-08-2013, 21:19
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This could all go in any direction. Rumour says that Mattrick wanted to spin off Xbox into it's own business for a while (hello Zynga Zbox One??) but Ballmer was insistent on it remaining part of Microsoft and spreading the brand to all parts of its entertainment business (games, music, video etc) If the new CEO continues in that direction, then we could see Xbox take a more prominent, integral role in MS. But if the bean counters and shareholders don't see it as being profitable, they could easily get rid.
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Old 24-08-2013, 21:38
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I thought the Xbox division was in profit already?

Edit

http://www.neowin.net/news/report-mi...on-in-10-years

Yeah it has been since 2008. Granted it has made a loss overall, but I'm sure they expected to lose money the first few years.
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Old 25-08-2013, 00:17
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1% stake? They don't get any say.

The EDD has been profiting for 5+ years now and is very important to Microsoft in other ways than revenue and profit.

This sounds like the same dumb investors that want Nintendo to dumb themselves down and put their games on iOS.
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Old 25-08-2013, 07:47
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This would need to gather a great deal more momentum from a lot more investers before anything could happen, so the idea of waking up one morning with a new company at the helm of Xbox is a distant one, for now.

Besides, MS have spent a lot of time and money integrating the Xbox brand into other areas of their business, Windows Phone and OS windows 8, it's a major part of Microsoft's overall strategy. Just the idea of dropping it seems totally nonsensical, crackpot investors that know more about money than business strategy.

Now if the Xbox One totally flopped, then maybe more investors would come in and force change. But I wouldn't worry to much, they could sell off to Sony!!! Hahaha
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Old 25-08-2013, 13:02
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To be honest the Xbox brand as a gaming platform does not make sense for MSFT to hold on to, hence their aims to diversify into TV and entertainment!

If you look at the three main gaming platform holders, Nintendo and Sony sell way more hardware units than MSFT.
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Old 25-08-2013, 14:02
whoever,hey
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To be honest the Xbox brand as a gaming platform does not make sense for MSFT to hold on to, hence their aims to diversify into TV and entertainment!

If you look at the three main gaming platform holders, Nintendo and Sony sell way more hardware units than MSFT.
What planet are you on? How many wii u have been sold? 10?
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Old 25-08-2013, 14:27
Asmo
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They do more than just the tanking Wii-U though
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Old 25-08-2013, 15:31
Red Arrow
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To be honest the Xbox brand as a gaming platform does not make sense for MSFT to hold on to, hence their aims to diversify into TV and entertainment!

If you look at the three main gaming platform holders, Nintendo and Sony sell way more hardware units than MSFT.
Eh? I thought the PS3 and 360 were pretty even in terms of hardware sales?
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Old 25-08-2013, 20:10
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Eh? I thought the PS3 and 360 were pretty even in terms of hardware sales?
They are.

Could someone tell me what MSFT is?
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Old 25-08-2013, 20:26
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MicroSoFT
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Old 26-08-2013, 00:49
Chparmar
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What planet are you on? How many wii u have been sold? 10?

The Wii U is not doing all that well. But when you count the 3DS, DS, wii, and the wii U combined, Nintendo sell more systems worldwide than anyone else. In fact they do this on most weeks, including most of the weeks this year despite the dismal wii U sales.

Granted MSFT have no handheld systems, but in it has a cumulative effect on running a sucessful gaming hardware platform business.
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Old 27-08-2013, 00:49
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Thanks. What happened to MS?
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Old 27-08-2013, 07:27
gamercraig
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I think MSFT is the abbreviation on the financial markets. Why we use it on here I am not sure!
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