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Xbox is detracting from Microsoft’s business focus, says co-founder’s business partner

Wednesday, 13th November 2013 12:01 GMT By Dave Cook

Microsoft co-founder Paul Allen has said he is both “intrigued and interested” by incoming changes at the company, amid its search for a new CEO. His investment partner has revealed that Allen feels Xbox and Bing detract from the core business, following rumours that former Nokia boss Stephen Elop is prepared to trim some fat.

It follows word that – if brought in as Steve Ballmer’s replacement as CEO – Elop would be prepared to cut the Xbox brand free if it either becomes unsuccessful or mis-aligned with the company’s focus.

Speaking with the Financial Times, Allen’s investment partner Paul Ghaffari, said that Allen shared Elop’s rumoured view. It has been suggested that Elop would want to focus on Microsoft’s core products, such as Office on non-Microsoft devices and other integral parts of the company.

Ghaffari told the paper, “The search business and even Xbox, which has been a very successful product, are detracting from that. We would want them to focus on their best competencies. My view is there are some parts of that operation they should probably spin out, get rid of, to focus on the enterprise and focus on the cloud.”

Can you see Microsoft doing this? It is at all feasible? Let us know what you think below.

Via MCV.

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15 Comments

  1. melonbuster1

    Just plain stupid

    #1 12 months ago
  2. Legendaryboss

    But MS is focusing on teh cloud with Xbox One Forza 5? Titanfall? Which isn’t MS but still.

    What other teh cloud benefits are there?

    #2 12 months ago
  3. The_Red

    Of course, MS needs to focus on making new crappy METRO Windows editions, ruining good old features, turning Office into a subscription based service and release Zune, Surface and stuff like that.

    #3 12 months ago
  4. Keivz

    I could see it happening, but gradually rather than abruptly. This is more of a question for the Pach, though.

    #4 12 months ago
  5. TrickyAudio

    @3 Tbf, its only when they started to dabble in Xbox and other stuff like that, their stuff started to become crappy. Windows 98, 2000 and XP were pretty good – if you’re a PC person, anyway.

    Maybe they do need a re-focus. PC, Mobile, Cloud. Its all they really need.

    #5 12 months ago
  6. TheKeyPit

    @3 Please tell me what’s so wrong about the surface I’m using right now?
    Zune has been pure nonesense, that’s right and Office…
    Windows 8: I still have to found a single person that doesn’t like it after using it for some time.

    #6 12 months ago
  7. game_on

    Microsoft makes loads of cash on Windows and Office products, so why they stepped into a business that most of the time only costs money (consoles are often sold at a loss) in the first place is a mystery to me. So I can totally understand that they want to get rid of the Xbox product line. Would be a shame for me though, I owned an Xbox, own an Xbox 360 and will buy an Xbox One next year. I hoped I would never have to get used to those awful Sony controllers…

    #7 12 months ago
  8. Cobra951

    It seems highly unlikely to me. But if it does happen, without Microsoft’s financial oomph, the brand will suffer, and perhaps die.

    #8 12 months ago
  9. game_on

    @2
    Cloud computing originally was invented for business purposes and is much older than teh cloud used for games.

    #9 12 months ago
  10. Nephilimator

    Yup will cancel it after xbone fails.

    #10 12 months ago
  11. acecslider

    they always crash there own party.there surface is a massive fail & zune is also.the only thing microsoft will ever be know for is software.

    i dont understand why they have such a problem with xbox. it is separate from everything else.

    #11 12 months ago
  12. salarta

    As much as I don’t like Microsoft trying to get into video games and consoles (because I don’t think the business side would ultimately damage both no matter what the development teams think), even I have to admit that cutting down or getting rid of XBox is a stupid idea from the perspective of keeping Microsoft going. XBox is the company’s most publicly visible and discussed offering, and I say that because their core product of Windows is something that these days people either use without knowing or caring it’s Windows, or care because they’re really deep into tech and computers. Getting rid of XBox or something like it would essentially kill off a major form of company visibility and positive public perception, and would hurt any efforts that aren’t about keeping Windows dominant.

    Edit: By the way, this kind of talk is one of the things that proves Microsoft’s old XBox One plan of requiring 24-hour check-in to play even physical discs was a terrible idea. We have people in the company willing to abandon XBox if it’s not making enough money, which means cutting support if they throw out XBox, which would have meant that all those $60 discs amounted to nothing but worthless plastic if Microsoft shut down the servers.

    #12 12 months ago
  13. archaven

    Is Bing even successful?

    “Ghaffari told the paper, “The search business and even Xbox, which has been a very successful product…”

    I’m not sure if 1/10 people i know know talks about Bing. Also the xbox has been losing $2B annually. If anything i find Microsoft stupid. They have been dominant in the PC market for a decade and then they abandon it.

    Now Valve has triumph with the PC segment they now announce focusing on developing Core games for the PC? What a U-Turn.

    #13 12 months ago
  14. MrWaffles

    Who takes Elop seriously anymore? He drove Nokia into the ground at record speed, sold the company for pennies and now wants to do the same for the Xbox division?

    Fuck Elop.

    #14 12 months ago
  15. businesspartner807

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    #15 11 months ago

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