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[The Information] Nadella considered winding down Gaming (Xbox) business in 2021; chose to pursue an acquisition-based strategy instead
- Thread starter HeisenbergFX4
- Start date
Iced Arcade
Member
Goal to grow the gamepass business...He's literally doing ever step possible to not achieve this lol.
That kind of growth they would have to lock everything up as exclusive, have well organized release windows for studios with marketing and sell hardware at loss BUT they are so disconnected from the ground it's almost comedic.
That kind of growth they would have to lock everything up as exclusive, have well organized release windows for studios with marketing and sell hardware at loss BUT they are so disconnected from the ground it's almost comedic.
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Astray
Member
The only reason you'd consider shuttering a division like that is if it loses money.
Interesting the hedgefund managers are already at the disappointment phase with the ABK deal.
Kotick laughed all the way to the bank, again.
Interesting the hedgefund managers are already at the disappointment phase with the ABK deal.
Kotick laughed all the way to the bank, again.
He took that goal off his KPIs.
Dick Jones
Gold Member
I don't think anyone on this site could be that optimistic.
kaizenkko
Member
It's funny that years have pass, but Microsoft keeps doing the same mistakes their have made ten years ago.
Nadella probably projected this grow fully based in date, but date can't tell you the whole story. Microsoft made this mistake with the Xbox One concept, fully based in Netflix being the most used app on Xbox 360. And now made it again. Gamepass 100m subscribers is totally crazy assumption, even considering the high users spending in the covid era.
And if he have consider to close the entire division, I guess the numbers were worst than everyone ever think.
Nadella probably projected this grow fully based in date, but date can't tell you the whole story. Microsoft made this mistake with the Xbox One concept, fully based in Netflix being the most used app on Xbox 360. And now made it again. Gamepass 100m subscribers is totally crazy assumption, even considering the high users spending in the covid era.
And if he have consider to close the entire division, I guess the numbers were worst than everyone ever think.
ChorizoPicozo
Member
Horseganador
Member
Astray
Member
They were planning to spend tons of $$$ in order to disrupt the entire paradigm of how gaming is bought and sold.
If they didn't have such an ambitious target it's unlikely GP would have been green-lit to begin with
Astray
Member
They are winding down stock worldwide it seems. Almost as if the manufacturing lines have been stopped or at least drastically reduced in capacity.
ChorizoPicozo
Member
their next financial report is going to be very interesting
LectureMaster
Gold Member
Damn, at that point it was just one year into next gen and they were considering concession, that's crazy stuff.
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Puscifer
Member
Modern Warfare 2 was one of the best "fuck you" moves I've seen in business.
Astray
Member
They had a fuckton of hardware subsidies going (meaning they lost a ton of money on each console sold), and Gamepass completely killed the software revenue they had.
Of course I'm going to quote myself here
www.neogaf.com
Xbox as a console brand seems to be really dying lately can Scarlett change that or will it be a short lived project?
There was more hype around Xbox Scorpio than there is around Scarlett , Xbox One X started off with a nice push from Microsoft but it seems like they quickly gave up on it you can get a Xbox One X for $402 right now but no one seems to care that it's $97 off . You can get the Xbox One S A.D for...
jm89
Member
Of course I'm going to quote myself here
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BennyBlanco
aka IMurRIVAL69
It’s wild how much theyve misread the market in the last decade. 360 was their peak and it was a great console. Now they are gonna be another boring publisher sitting on a ton of IP that will never get used.
adamsapple
Or is it just one of Phil's balls in my throat?
Of course I'm going to quote myself here
Xbox as a console brand seems to be really dying lately can Scarlett change that or will it be a short lived project?
There was more hype around Xbox Scorpio than there is around Scarlett , Xbox One X started off with a nice push from Microsoft but it seems like they quickly gave up on it you can get a Xbox One X for $402 right now but no one seems to care that it's $97 off . You can get the Xbox One S A.D for...
O onQ123 has arrived !
dragonyeuw
Member
Wind down the business in 2021 after releasing your (then) next gen console in 2020?
ChorizoPicozo
Member
Bo6 isn't the peak of the deal, not even close, the deal is meant for many things bigger.
ChorizoPicozo
Member
this was the second time, or maybe even the third time (of MS thinking of killing Xbox).
The time frame between the introduction of Game Pass and the current generation was supposed to be the time when Xbox should have improved their first-party output. (narrator voice: They didn't)
ChorizoPicozo
Member
dragonyeuw
Member
My thing is, by 2021 we hadn't even gotten the first wave of big games yet from all the developers they purchased at the back half of last gen.
I have absolutely no clue what Xbox is doing anywhere.
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ChorizoPicozo
Member
it was a snowball of bad decisions + incompetency.
reinking
Gold Member
I asked Copilot to write me a song and I made an edit or two... 
(all in fun Xbox bros.)
A long, long time ago
I can still remember how that console used to make me smile
And I knew if I had my chance
That I could make those gamers dance
And maybe they'd be happy for a while
But January made me shiver
With every acquisition they'd deliver
Bad news on the doorstep
I couldn't take one more step
I can't remember if I cried
When I read about the billions tied
But something touched me deep inside
The day the Xbox died
So bye-bye, my dear Xbox, goodbye
Drove my Afeela to the levee but the levee was dry
And them gamer boys were drinking whiskey and Prime
Singin' this'll be the day that it died
This'll be the day that it died
Did you write the book of games
And do you have faith in Microsoft's aims
If the console tells you so?
Now do you believe in Forza and Halo?
Can gaming save your mortal soul?
And can you teach me how to stream on the go?
I started singing bye-bye, my dear Xbox, goodbye
Drove my Afeela to the levee but the levee was dry
And them gamer boys were drinking whiskey and Prime
Singin' this'll be the day that it died
This'll be the day that it died
...
(all in fun Xbox bros.)A long, long time ago
I can still remember how that console used to make me smile
And I knew if I had my chance
That I could make those gamers dance
And maybe they'd be happy for a while
But January made me shiver
With every acquisition they'd deliver
Bad news on the doorstep
I couldn't take one more step
I can't remember if I cried
When I read about the billions tied
But something touched me deep inside
The day the Xbox died
So bye-bye, my dear Xbox, goodbye
Drove my Afeela to the levee but the levee was dry
And them gamer boys were drinking whiskey and Prime
Singin' this'll be the day that it died
This'll be the day that it died
Did you write the book of games
And do you have faith in Microsoft's aims
If the console tells you so?
Now do you believe in Forza and Halo?
Can gaming save your mortal soul?
And can you teach me how to stream on the go?
I started singing bye-bye, my dear Xbox, goodbye
Drove my Afeela to the levee but the levee was dry
And them gamer boys were drinking whiskey and Prime
Singin' this'll be the day that it died
This'll be the day that it died
...
ChorizoPicozo
Member
They will try to implement and force A.I. into game development as THE magic solution to all of their problems and royally fuck up (similar to Crackdown3 )
laynelane
Member
Although it's not surprising that he thought he could just transform gamers into subscribers, it was and is unrealistic to think it would reach that number. Gaming is a bit different from Windows, Office, etc., after all. The acquisition strategy - ie. consolidation - to drive more subscriptions to Game Pass hasn't really panned out so far either. As well, although expected, it's disappointing that great games is never the dominant goal behind all these grandiose expansion plans.
Trogdor1123
Gold Member
No one should want this. Sony needs some kind of competition.
That being said, companies constantly review every part of their business.
That being said, companies constantly review every part of their business.
TransTrender
Gold Member
Sooner rather than later the 'XBOX' division will be spun out of the company and saddled with as much garbage as possible to have the largest write-down possible.
From there the pieces will be sold off or shut-down with further write-downs until only portions of Activision and Bethesda are left.
From there the pieces will be sold off or shut-down with further write-downs until only portions of Activision and Bethesda are left.
semiconscious
Member
'this is an xbox'...
Rusty Shackelford
Member
bitbydeath
Gold Member
Winding down just one year after launch is interesting since they were doing far better back then with Covid boosting sales, and PS5 plagued by stock issues.
Basically, they would have to monopolize the entire video game market.
Bankrupting Sony and buying Nintendo, as Phill dreamed.
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