Article: Game Over - Ballmer Loses - Microsoft is finished?

This topic is locked from further discussion.

Avatar image for SciFiCat
#1 Posted by SciFiCat (1750 posts) -
According to Adam Hartum (Business consultant, author and columnist at Forbes Magazine) who wrote for Innovation Excellence the following article: Link he explains the reasons why Microsoft's days are numbered and nothing the company can do, not even changing its CEO will salvage the company. Some selected quotes: "...it is clear the market movement away from Microsoft products, toward Apple and Android products, has not changed. On Christmas eve, as people turned on their new devices and launched their first tweet, Surface came in dead last a mere 2% compared to the number of people tweeting from iPads (Kindle was second, Android third.)""Microsofts monopoly over personal computing has evaporated. From 95% market domination in 2005 share has fallen to just 20% in 2012 (IDC, Goldman Sachs. Comparing devices, in 2005 there were 55 Windows devices sold for every Apple device; today explosive Apple sales has lowered that multiple to a mere 2!""Microsoft makes more than 75% of its profits from Windows and Office. Less than 25% comes from its vaunted servers and tools. And Microsoft makes nothing from its xBox/Kinect entertainment division, while losing vast sums on-line (negative $350M-$750M/quarter). No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits Microsoft is not sustainable.""The entertainment division will be spun off, sold to someone like Sony or even Barnes and Noble, or dramatically reduced in size. Unable to make a profit it will increasingly be seen as a distraction to the battle for saving Windows and Microsoft leadership has long shown they have no idea how to profitably grow this business unit." Could this be true and Microsoft become a memory of the past in the next 5 years? Could the gaming division of Microsoft survive if it splintered off the parent company?
Avatar image for 1PMrFister
#2 Posted by 1PMrFister (3134 posts) -
"The entertainment division will be spun off, sold to someone like Sony or even Barnes and Noble..." Yes, because a division that specializes in video gaming entertainment will be bought out by either a company that's going through serious financial difficulties of its own or a chain of book stores.
Avatar image for Archangel3371
#3 Posted by Archangel3371 (23332 posts) -
While I can't say for certain either way since I'm not in the financial know of the company I sure hope something like this doesn't happen. I've really enjoyed having Microsoft involved in the gaming scene and for the most part I've really liked some of the things they brought to it.
Avatar image for GodModeEnabled
#4 Posted by GodModeEnabled (15314 posts) -
While I can't say for certain either way since I'm not in the financial know of the company I sure hope something like this doesn't happen. I've really enjoyed having Microsoft involved in the gaming scene and for the most part I've really liked some of the things they brought to it.Archangel3371
Same. I don't want to see anything happen to them. Less competition is a bad thing for gaming, and Microsoft innovated the hobby a lot since they entered the gaming space.
Avatar image for coasterguy65
#5 Posted by coasterguy65 (7133 posts) -

MS isn't going anywhere. Even with all the iPads, and Androids PCs are still a big seller. As much as I don't like Windows 8 it's selling good, and of course Windows 7 is still selling. Surface looks, and works good. Too bad they decided to overprice it like an iPad instead of cutting into Apple's market share, by undercutting the iPad by $100 or so.

Avatar image for kyacat
#6 Posted by kyacat (4265 posts) -
Microsoft is here to stay and I like competition between all three and pc
Avatar image for Vari3ty
#7 Posted by Vari3ty (11111 posts) -

Ballmer has to go. Simple as that. But I don't think it's game over for Microsoft, far from it.

And this guy loses all credibility suggesting that Barnes and Noble would buy Microsoft's Xbox entertainment division.

Avatar image for Jackc8
#8 Posted by Jackc8 (8515 posts) -

When I see words like "horrific" and "the ruin of Microsoft" I know I'm reading a rant rather than an analysis.

Avatar image for Bigboi500
#9 Posted by Bigboi500 (35550 posts) -

Not going to happen. Honestly I'd rather see Sega in the console hardware business instead of Microsoft, but competition is a good thing in this industry.

Avatar image for Black_Knight_00
#10 Posted by Black_Knight_00 (21013 posts) -
How can they be under in the online department if they earn some $50.000.000 a year in xbox live subscriptions alone?
Avatar image for lloveLamp
#11 Posted by lloveLamp (2891 posts) -
i just dont want microsoft to ruin sony. if they have to collapse for sony to survive then so be it. but those numbers are pretty bad for microsoft i must admit
Avatar image for ReddestSkies
#12 Posted by ReddestSkies (4087 posts) -

Their entertainment division is turning a (small) profit of 365 millions for 2012 (and 1.3 billion in 2011). While that's not exactly huge, at least it's positive. It's very doubtful that they would sell it, as they're using it for integration purposes (Microsoft on your computer, on your phone, in your living room, in your bathroom, etc.)

The online service division lost 8 billion last year (and lost 2 billion in both 2011 and 2010). That definitely is a source of concern. That division has very little to do with Xbox Live, btw. Its main products and services areBing, MSN, adCenter, and Atlas online tools for advertisers. Basically, Microsoft can't compete with Google, and probably will never be able to.

Avatar image for IndianaPwns39
#13 Posted by IndianaPwns39 (5037 posts) -

Microsoft is the fourth most profitable corporation in America so...

No.

Avatar image for SulIy
#14 Posted by SulIy (113 posts) -
Sounds like wishful thinking on the part of a hater, rather than an objective and factual analysis.
Avatar image for Byshop
#15 Posted by Byshop (18440 posts) -

According to Adam Hartum (Business consultant, author and columnist at Forbes Magazine) who wrote for Innovation Excellence the following article: Link he explains the reasons why Microsoft's days are numbered and nothing the company can do, not even changing its CEO will salvage the company. Some selected quotes: "...it is clear the market movement away from Microsoft products, toward Apple and Android products, has not changed. On Christmas eve, as people turned on their new devices and launched their first tweet, Surface came in dead last a mere 2% compared to the number of people tweeting from iPads (Kindle was second, Android third.)""Microsofts monopoly over personal computing has evaporated. From 95% market domination in 2005 share has fallen to just 20% in 2012 (IDC, Goldman Sachs. Comparing devices, in 2005 there were 55 Windows devices sold for every Apple device; today explosive Apple sales has lowered that multiple to a mere 2!""Microsoft makes more than 75% of its profits from Windows and Office. Less than 25% comes from its vaunted servers and tools. And Microsoft makes nothing from its xBox/Kinect entertainment division, while losing vast sums on-line (negative $350M-$750M/quarter). No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits Microsoft is not sustainable.""The entertainment division will be spun off, sold to someone like Sony or even Barnes and Noble, or dramatically reduced in size. Unable to make a profit it will increasingly be seen as a distraction to the battle for saving Windows and Microsoft leadership has long shown they have no idea how to profitably grow this business unit." Could this be true and Microsoft become a memory of the past in the next 5 years? Could the gaming division of Microsoft survive if it splintered off the parent company?SciFiCat

Currently work or have personally worked for several of the companies/divisions mentioned in this article. I'd take much of this with a grain of salt.

-Byshop

Avatar image for jsmoke03
#16 Posted by jsmoke03 (13696 posts) -

maybe they can push microsoft office for the next xbox.....

Avatar image for capaho
#17 Posted by capaho (1253 posts) -

Apple stock has been dropping like a rock over the past week or so due to poorer than expected sales of iOS devices, even though they still dominate the market. Microsoft also provides much better service for business computing needs than does Apple. No one with any degree of credibility would proclaim the end of time for Microsoft. They may be losing their grip on market dominance but that's far from being near the end of their existence.

Avatar image for OneInchMan99
#18 Posted by OneInchMan99 (1248 posts) -

According to Adam Hartum (Business consultant, author and columnist at Forbes Magazine) who wrote for Innovation Excellence the following article: Link he explains the reasons why Microsoft's days are numbered and nothing the company can do, not even changing its CEO will salvage the company. Some selected quotes: "...it is clear the market movement away from Microsoft products, toward Apple and Android products, has not changed. On Christmas eve, as people turned on their new devices and launched their first tweet, Surface came in dead last a mere 2% compared to the number of people tweeting from iPads (Kindle was second, Android third.)""Microsofts monopoly over personal computing has evaporated. From 95% market domination in 2005 share has fallen to just 20% in 2012 (IDC, Goldman Sachs. Comparing devices, in 2005 there were 55 Windows devices sold for every Apple device; today explosive Apple sales has lowered that multiple to a mere 2!""Microsoft makes more than 75% of its profits from Windows and Office. Less than 25% comes from its vaunted servers and tools. And Microsoft makes nothing from its xBox/Kinect entertainment division, while losing vast sums on-line (negative $350M-$750M/quarter). No matter how much anyone likes the non-Windows Microsoft products, without the historical Windows/Office sales and profits Microsoft is not sustainable.""The entertainment division will be spun off, sold to someone like Sony or even Barnes and Noble, or dramatically reduced in size. Unable to make a profit it will increasingly be seen as a distraction to the battle for saving Windows and Microsoft leadership has long shown they have no idea how to profitably grow this business unit." Could this be true and Microsoft become a memory of the past in the next 5 years? Could the gaming division of Microsoft survive if it splintered off the parent company?SciFiCat
GOOD RIDDENCE!

Avatar image for S0lidSnake
#19 Posted by S0lidSnake (29001 posts) -

And Microsoft makes nothing from its xBox/Kinect entertainment division, SciFiCat

LOL! What a terrible article. Then again it's forbes.

Xbox has been profitable since 2009. Kinect has been profitable since day 1. The reason why their entertainment division doesnt make any money is beacuse they merged their Xbox division to the other entertainment division (Zune and other disasters) to offset the losses from those misendevours. Maybe if this f*cking guy had done his research on what exactly that entertainment division does, he wouldn't have made the assinine suggestion that Xbox brand would one day be sold to Sony.

MS has its problems at the moment, but the Xbox brand is their one true success. Anyone saying otherwise is out of their mind.

Avatar image for S0lidSnake
#20 Posted by S0lidSnake (29001 posts) -

How can they be under in the online department if they earn some $50.000.000 a year in xbox live subscriptions alone?Black_Knight_00

You mean $50 million? I thought the figure was around $500 million every year, but that included everything on XBL.

Avatar image for Rattlesnake_8
#21 Posted by Rattlesnake_8 (18452 posts) -
lol MS is here to stay. Just because their brand new tablet didn't sell as many units as the already well known apple ipods doesn't change anything. MS sells their OS with every PC.. every single new PC bought gives them profit. Yes lots of people have iphones, but most people have computers and laptops too. A LOL at a book store chain buying MS's entertainment sector.
Avatar image for Shame-usBlackley
#22 Posted by Shame-usBlackley (18266 posts) -

[QUOTE="SciFiCat"]And Microsoft makes nothing from its xBox/Kinect entertainment division, S0lidSnake

LOL! What a terrible article. Then again it's forbes.

Xbox has been profitable since 2009. Kinect has been profitable since day 1. The reason why their entertainment division doesnt make any money is beacuse they merged their Xbox division to the other entertainment division (Zune and other disasters) to offset the losses from those misendevours. Maybe if this f*cking guy had done his research on what exactly that entertainment division does, he wouldn't have made the assinine suggestion that Xbox brand would one day be sold to Sony.

MS has its problems at the moment, but the Xbox brand is their one true success. Anyone saying otherwise is out of their mind.

While I agree that the system has been a success, most of that success has come from decisions made PRIOR to Kinect, which is why each year since its introduction, Microsoft has sold fewer systems than the year prior, with last year being 30% less than the year before.

As for Kinect being profitable, well, it's obvious the tech sucks and doesn't work half the time, so I'd be surprised if the R&D costs were all that high. I mean, at the end of the day all they did was make an Eyetoy, which a couple of grad students could have reverse engineered. They spent a bunch of money marketing it to the mouth breathers I'm sure, and it worked although at the end of the day, their sales still went down (even despite bullshlt protestations and wishful thinking from them saying they were "accelerating") when most systems at this point in their lives see increases.

Avatar image for Black_Knight_00
#23 Posted by Black_Knight_00 (21013 posts) -

[QUOTE="Black_Knight_00"]How can they be under in the online department if they earn some $50.000.000 a year in xbox live subscriptions alone?S0lidSnake

You mean $50 million? I thought the figure was around $500 million every year, but that included everything on XBL.

I'm sure it is, but even considering gold subscriptions alone they should at the very least break even with upkeep costs. That's not even counting that f*ck ton of ads and the sales of DD games.

That "they make nothing out of XBL" statement sounds completely pulled out of a giant ass.

Avatar image for Black_Knight_00
#24 Posted by Black_Knight_00 (21013 posts) -
Sorry about the bump, but this was too funny and on the spot to pass on: Xbox Live Arcade has doubled its revenue in 2012 Forbes is a can of fail. How can these people be paid to write completely inaccurate facts?