Microsoft Investors Want An End To Xbox

Newly-appointed Microsoft CEO Satya Nadella is already facing pressure from some investors to get rid of the Xbox sector of the company. This claim comes from The Washington Post which cites two unnamed influential Microsoft shareholders who want the company to head in the direction of selling business software while getting rid of any unnecessary product lines.

Microsoft Investors Want An End To XboxAlong will selling off the Xbox, the shareholders would also like to see Microsoft get rid of Bing and Surface, both of which have failed to attain significant market shares in their respective industries.

With more than two years of falling profits in the Windows sector of Microsoft, it is obvious that changes need to be made, but selling off Xbox does not seem likely.

There are numerous forces within the Microsoft board and among its shareholders that would like to see the company turn towards business customers. If Satya Nadella takes Microsoft in that direction, it would mean that the tech company would move completely away from what ex-CEO Steve Ballmer has built.

A shift towards the enterprise is plausible given that Nadella was previously the head of the enterprise division of Microsoft but getting rid of an immensely popular consumer product like the Xbox seems a bit extreme.

Now that Nadella is in charge and is being pressured to take Microsoft in a radically new direction, an interesting dynamic has been created. If Nadella somehow chooses to support a complete withdrawal from consumer products, he would be in direct opposition to both Steve Ballmer and Bill Gates.

With many reports suggesting that Satya Nadella is not exactly a strong leader and definitely not one to oppose the previous CEO and the company’s founder, it is hard to imagine a radical shift occurring at Microsoft.

Even though Xbox is probably safe with Microsoft, it will be interesting to see how Nadella deals with the opposition that is present from some members of the company and from a number of large shareholders.

Summary: A new report suggests that Microsoft CEO Satya Nadella is under pressure from shareholders to get rid of the Xbox division of the company.

(Image Credit: gigaom)

  1. I actually agree with this, well, I wouldn’t necessarily sell off xbox though, but MS needs to focus and continue to dominate what they’re good at – software for the workplace.

  2. I’m pretty sure most people’s first interaction w/ Microsoft is at home, not business. While business is important I think the consumer sector is just as important. The success that Apple has had is largely due to consumer products, not business. Essentially, this is the breakup and sell off of Microsoft that has been expected. Buh-Bye MS!

  3. Part of the consumers works for the business side , it would be wise to keep them happy so that you can make more money.

  4. Microsoft has forked it up long enough. There should be one OS to rule them all. I have need of Enterprise level networking in my home. When I log onto another MS computer I should see my desktop, my installed programs and my files through skydrive. I should be able to take my computer’s identity with me.
    They should develop only one OS for business and consumers and Xbox that can turn on and off the features that are needed. One price, one version, one world operating system.

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