Microsoft’s Stephen Elop is said to be considering spinning off Xbox if he becomes the companies’ CEO. Considering Elop is said to be a strong contender, this raises the possibility that Microsoft really could ditch Xbox and leave the console gaming business.
Let’s be clear: none of this is set in stone or 100 % certain, so please do not dismiss this as taken out of proportion or rabid speculation. Our source here is Bloomberg, who is looking at this from a business perspective. They are investigating Elop and his chances at becoming CEO.
Bloomberg explains the financial world sees Xbox as a successful business, but Microsoft may consider selling it as it is not in line with the company’s key strengths. This also follows statements from Rick Sherlund and Paul Ghaffari, both analysts with very close ties to and have insider knowledge of the company. Rick Sherlund, currently head analyst at Nomura Securities, has been tracking down Microsoft’s financials for 20 years, and Ghaffari is financial manager for Microsoft co-founder Paul Allen. Both are thinking of what’s good for the company, even if it may not be good for Microsoft.
We won’t go into too many details on Elop here, but he sees services like Office as Microsoft’s greatest strengths, and unlike Sony’s Kaz Hirai, he really lacks the ties to gaming to be invested in Xbox. Elop also has a history of trimming operations in Nokia, so this is certainly not above him.
For the moment, analysts still think a spinoff of Xbox is highly unlikely, especially as Xbox One has been designed as a key part of the company’s “One Microsoft” ecosystem. This has not stopped many analysts from suggesting they do so, and it could happen even without Elop if Microsoft’s own stockholders force the company’s hand.
If it ever comes to pass, it would shrink the industry as a whole and provide less opportunities to developers, so regardless of your thoughts on Xbox One, believe me, this is not something you want to see happen. Microsoft has a year to decide on their CEO. If you’re an Xbox fan, I recommend you stay vigilant and keep yourself informed on the company’s financial news.
