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8/24/2013 1:29:19 AM
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Also, this idiot can't do anything with 1% of share holding.
That would be like a McDonald's franchise owner in my home town trying to get rid of chicken nuggets because they don't sell or something.
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1% is [i]huge[/i]. Is the guy making major decisions with that? No. But 1% buys you a lot of influence. It buys you a lot of influence with other shareholders. 1% gives you the ability to grill Microsoft's decision makers. You own 1% of a company worth billions upon billions and you have a voice.
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[url]http://blogs.seattletimes.com/microsoftpri0/2013/07/22/who-are-microsofts-largest-shareholders/[/url] I actually looked it up. ValueAct only owns .4% of shares, not 1% and is the 31st largest shareholder. So they wouldn't even be in the board meetings for Microsoft. Again, like I said. This person can't do anything. And anybody that believes so is stupid.
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I was under the impression they owned 1%. But you're right that they can't do anything. Nothing directly at least. Indirectly if you have a growing number of investors with this opinion influenced by like minded shareholders then you have trouble. Nothing will happen in the immediate future, of course. But if the Xbox One turns out to be just another flop added to the growing list of Microsoft branded consumer devices coupled with major restructuring and a new direction under a new CEO then the Xbox division could be in trouble.
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But not a number of investors want this. Only this one person or group of people that own that .4%. So they still cannot do anything
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Editado por Vgnut: 8/25/2013 3:31:05 AMThe idea of spinning off/selling/stopping the Xbox isn't new. This idea pops up from time to time. Has since 2001. Remember the first Xbox was a disaster for Microsoft. From a commercial view it was a flop. It took the 360 two or so years to start making money back. They also lost billions on the RROD fiasco. Now once again Microsoft is facing the possibility of another flop. Many within the company, many investors, many analysts have called on Microsoft to abandon the consumer electronic business and put those resources into software development which is their bread and butter.
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Exactly, it isn't new, and hasn't happened yet. Just showing that this article is a bunch of crap, and holds no merit. If they couldn't do it then, when they did have a big fiasco, why would they do it now? Answer is, they wouldn't.
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When the Xbox first launched it was an infant brand. It was okay to take a loss building Xbox into a mature global brand. Xbox is a mature global brand so that excuse doesn't work. They haven't been able to break into the Japanese market, they struggle with continental Europe. Meanwhile Sony and Nintendo can and have prosper in every market. Microsoft will be at a crossroads with the Xbox One. If it flops, which is a possibility they face, Microsoft will have to reevaluate how worthwhile the console business is to them.
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They don't even face a possibility to flop, that is the thing. Where do you people get these ideas? Because the internet says they hate the X1? News flash, the internet hates on anything they don't agree with. Pre-Order sales are enough to show that the X1 won't flop. And before you say that the PS4 has more pre-orders (which yes it does). Take out Japan's pre-orders, and i bet you'll see that the pre-orders are the same (relatively). To think that the X1 will flop is insane. That's like saying Apple would've flopped after they first got started because Microsoft was so well established and cheaper.
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You are being incredibly delusional if you think they aren't facing a possibility of the Xbox One struggling to sell. The reality versus what you're perceiving makes this a difficult discussion. You would not be seeing as many policy reversals as we've seen with the Xbox One if Microsoft thought they weren't in genuine danger. Realistically the Xbox brand has enough goodwill that Microsoft will back the Xbox One to see how it does but that it will be their final foray into the console business. There is an expectation that given the cost they had to pay to get to this point that the Xbox should be paying huge dividends now and that just isn't looking like it's going to be the case.
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So your going to ignore the pre order sales of the X1? Your going to ignore all those facts as to why it won't have a huge struggle to sale? The Xbox will always have a struggle to sale, because PS has been around longer and it always sells more (because of Japan). But to say that it will flop and cause them to shut down the console division is stupid. They would have done it by now after the 360 if they wanted to. PS always has more sales more pre orders, so that shouldn't be an argument as to why the Xbox will flop. That always happens, people seem to forget that.
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I'm saying there is a very real risk of the Xbox One ending up as a flop. Look at what you're saying: Xbox will always struggle to sell. Why would Microsoft keep putting money behind a product that struggles even when it's supposed to be a mature global brand at this point? When the decision to go ahead with the Xbox One was made the 360 was doing great. That choice was a no brainer. If they're going back to an era of struggling (yet again) then Microsoft will have to question their role in the console business because it clearly isn't working out. If that means spinning the brand off into its own thing, selling it (to who I have no clue), or closing the console business and just being a third party publisher I don't know. What I'm saying is these are all possibilities Microsoft has a chance of facing.
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[quote] I'm saying there is a very real risk of the Xbox One ending up as a flop. Look at what you're saying: Xbox will always struggle to sell. Why would Microsoft keep putting money behind a product that struggles even when it's supposed to be a mature global brand at this point? [/quote] So should apple stop selling phones because it will never outsell android phones? See how that logic is flawed. One company always has to outsell the other. Ford's will always outsell Tundras in america. Androids will always outsell apple. Sony will always outsell Microsoft. One company always has to be on the losing end. But they are not struggle selling by any means, PS just always sells more. Just because you are getting outsold, doesn't mean you should stop creating a product.
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Say I spend eight hour selling lemonade. And let's say I make $20 profit that day. Does it make sense for me to do this? No because I can go get a job at say $10/hour and make $80 a day. That's the situation many see Microsoft in with the Xbox. You have to think about the [i]opportunity cost[/i]. This investor and those that share his belief think that the money going into Xbox would be better spent elsewhere. They believe there is more profit elsewhere for Microsoft then there is making video game consoles.
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That's completely different situation. Microsoft has enough money to expand into whatever market they want. They do no have to get rid if Xbox to do this. And again, Apple will always get outsold by android, should apple stop and create something else? If they cannot lead the market in smartphones and computers? No. Same with Microsoft, just because a company is getting beat, doesn't mean that it should stop making it. That's stupid business
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No company has an infinite amount of resources. It's not about expanding into any market. It's about taking the resources they have and putting them where they can achieve efficiency. Apple makes insane profit from selling the iPhone. The profits from the Xbox aren't near the same amount. If they were this thread wouldn't exist. For Apple to put the resources they do into iPhone into something else would mean less profit for them. Those resources are going into the best possible thing for Apple. What this investor is saying, and those like him, are saying the resources being put into Xbox would be better put elsewhere. It's not a hard concept to grasp nor should it be controversial.
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Shouldn't be controversial? Getting rid of a part of a company, where this divisions makes millions/billions of dollars isn't controversial?
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Editado por Vgnut: 8/25/2013 7:37:59 PMThe concept that a firm has a finite amount of resources and achieves efficiency by allocating those resources to where they can make the most possible profit is a concept that shouldn't be controversial. As you've suggested earlier Microsoft can't "just enter any market" because that wouldn't make sense. There would be a cost to that. Realistically, even with a new CEO coming in, the Xbox One will run a full life. Depending on the vision the CEO has for Microsoft, what the board wants years from now, (maybe they move to an IBM like entity?) and the dividends the Xbox One pays will determine Microsoft's long term future in the console business. If the Xbox is added to the list of lacklustre Microsoft branded consumer devices they may just give up that fight and focus on other battlefronts. Like I said though this would be long term and nothing will, if ever, happen for years.
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Maybe you would understand if you could read. However its obvious you can't so I'm not gonna waste my breathe
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[quote]I'm not gonna waste my [u]breathe[/u][/quote]*Breath
