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Microsoft preparing for device and service-led restructure – rumour

Monday, 3rd June 2013 15:28 GMT By Dave Cook

Microsoft is believed to be preparing for a major restructure that will see it shift focus to devices and services.

Wall Street Journal site AllThingsD reports that sources close to the matter have stated that Microsoft CEO Steve Ballmer is currently working on the strategy, and that the shift will see it re-emerge as a “devices and services company”.

The move was said to have been touched upon lightly in Ballmer’s annual shareholder letter published in October, and while the firm details are still to be finalised, the source claims that several executives are due to see their roles expanded, including one Don Mattrick.

Ballmer’s note said, “This is a significant shift, both in what we do and how we see ourselves — as a devices and services company. It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses.”

Tech blogger Paul Thurrott – who has recently and correctly predicted several key features and traits of Xbox One – believes these rumours to be true.

It is currently unclear where Windows fits into this supposed new strategy, but the focus on services and devices certainly fits into Xbox One’s TV features, SmartGlass integration, Microsoft’s investment into its TV department and rumours of a cheaper Xbox One model geared towards entertainment.

What do you make of the above? Let us know below.

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15 Comments

  1. ps3fanboy

    there we have it in plain writing, the fall of microsoft. it was nice knowing you ballmer just watch your head. so you dont hit it on your way out… of business and into the gutter.

    #1 2 years ago
  2. Samoan Spider

    @1 Sorry, I know it seems like we’re stalking the same comment threads today, but in this case the news is because MS are targeting Apple and need to shift their focus in order to do so. I think this has been on the cards for quite a while. Especially when you look at the shift to cheaper incremental OS updates with Windows and with the XBOne’s direction as an all-in-one Apple TV killer.

    #2 2 years ago
  3. NocturnalB

    I figured as much. Microsoft has been giving off the feeling of a company in a “mid-life crisis” for quite awhile now, doesn’t know what it wants to be. And that is exactly why all of their software and hardware has suffered.

    Edit:@2
    That makes sense and to me personally it’s a shame. Because as crazy as it sounds i don’t see Apple being the powerhouse it is now in 10 years time. They’re products are steadily falling further out of date, and Microsoft is chasing that? I don’t know why.

    #3 2 years ago
  4. salarta

    Well, Microsoft is screwed.

    They’ve been screwing up their operating system pretty bad, and now we know why: they’ve sacrificed their strengths of software in a bid to try, and fail, to beat Apple and Sony at their own game. After all, it’s obvious Windows 8 was made as an attempt to copy Apple’s sales model, as well as an attempt to push the sale of their own devices. I guess it was simply inevitable that Microsoft would kill themselves and ultimately get bought out by Apple, I just didn’t expect that day to come this soon, while Bill Gates is still alive.

    #4 2 years ago
  5. ps3fanboy

    @2 i don’t mind if you read the same as i do and i don’t mind a discussion on the same subject either. but one of the fact is why apple have the foothold in what they do. is their understanding of quality and product design, with both these mixed into one with easy operations for the customers. it works very well for them…

    this is something microsoft have never understood or never ever accomplished. you can just look at all their earlier disastrous fiascoes, it stretches many many years back. to think that microsoft will now just change because they jump the bandwagon of apple is an understatement of big proportions.

    instead of focus on something microsoft is good at now they are gonna do everything even more mediocre. and worse slowly make them even more irrelevant as a product. so this is a start of the end of microsoft in the making.

    #5 2 years ago
  6. Moonwalker1982

    Wow at these comments. If they bring us great games at E3 and for many years to come, they can do all they want. I really don’t mind. Just like all the tv and apps stuff.

    #6 2 years ago
  7. Samoan Spider

    @5 I like you when you debate things. And I agree with you. In it’s current indecisive and stubborn form, MS are not in a good position to take on Apple. I have no doubt they have the finances but I don’t think they have the corporate willpower just yet.
    Maybe this change signifies the long top-down rethink they need in order to make it work. Maybe it’s a stupid idea. Time will tell.
    It’s not the first time MS and Apple have gone toe-to-toe so it’ll be interesting. However, I think it’s bigger than that. They are fighting so many battles on so many fronts. Win-Phone going against iOS and Android, Xbox against the Playstation, Windows against OSX and Linux, Office against OpenOffice, IE against Chrome, Zune against iTunes and Google play and the list goes on. They are MASSIVE and changing all these fronts into something large yet cohesive could be a good thing.
    I don’t believe it’s their downfall though. I think that’s wishful thinking on your part. I’m no expert though, just a curious fellow who’s watched these giants play games for a lot of years.
    What I would say is that every company makes mistakes, but you call MS out on making disastrous decisions yet they are worth BILLIONS and that means they can afford to take a few risks yet have been doing a lot right over the years. Hell the whole XBox division was a risk to start with.

    #7 2 years ago
  8. backup

    they made xbox and left it with kinect and now there are making another device

    #8 2 years ago
  9. The_Red

    Ms really REALLY, REAAAAAAAALLLLLYY wants to be Apple. Sadly, neither Apple or MS are worth a damn.

    #9 2 years ago
  10. mistermogul

    MS need to get rid of Ballmer imo. He is a fool…

    @9 – Correction, today they are worth about $416 billion and $293 billion respectively ;)

    #10 2 years ago
  11. The_Red

    @10
    Dang it!
    I’d say… (Bloody hell, what can I say? Oh yes) I think those numbers are about $416 billion and $293 billion too much for either company respectively… As in, to hell with them and their horrible business and consumer related practices.

    #11 2 years ago
  12. mistermogul

    @11 – lol, I wondered if that’s what you were meant to say!

    #12 2 years ago
  13. DSB

    Because the Zune and the Surface did so well. This is gonna cripple them at best.

    @3 Spot on.

    #13 2 years ago
  14. manamana

    Debacle imminent.

    #14 2 years ago
  15. TrickyAudio

    Find it abit ironic that the company who championed cheap software over expensive hardware are going down this route.

    Works for Apple because they are Apple. Will it work for Microsoft….?

    #15 2 years ago

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