The Xbox brand has been an unforgettable adventure for Microsoft, and also a heavy investment. Millions of dollars have been pumped into the brand since its inception over a decade ago. Some of that has seen return, particularly in the case of Xbox Live subscriptions, but it’s also required an incredible amount of effort for, in many cases, little payoff.
While speaking to Fox News, former Microsoft CEO Bill Gates showed a surprising amount of support for the long-discussed Xbox breaking off from Microsoft. As long as newly instated CEO Sayta Nadella think it’s a good business decision, Gates is “absolutely for it”.
Several key investors have advocated a separation of Xbox from Microsoft, especially during the past year, so it’s not entirely out of the question.
The Xbox brand has recently lost market share with the advent of a new generation of consoles. Its attempt to merge several of its divisions to produce an “all-in-one” device, the Xbox One, hasn’t been received by consumers as well as Microsoft hoped.
While the Xbox One sold well at launch, recent figures have put Microsoft in a position where they need to invest more than ever to remain competitive. They’re at a point where they have to weigh the risk and reward.
With the hiring of Phil Spencer as the new head of Xbox, new opportunity awaits. It might be a good idea for Microsoft to wait a while longer to see how things play out during E3 and holiday 2014.
Ultimately, Microsoft doesn’t need Xbox to be successful, and that’s a scary notion for anyone who loves Xbox as a Microsoft brand.
[Via: Liz Claman of Fox Business]
