• Trouble Brewing For the Xbox Brand?



                It's no secret the Xbox brand got off to a rocky start. The original Xbox lost over four billion dollars, and the Xbox brand as a whole has lost over 3 billion over the last 10 years. The Xbox 360 managed to turn Xbox into a household name, but still did not erase the losses from the original Xbox and added even more with the "red ring of death" fiasco that resulted in warranties having to be extended to 3 years to cover replacing dead consoles.

                Image Credit: Neowin.net

                The Xbox One also seems to be off to a rocky start. The original vision for the console, an always-online machine that had strict digital rights management requirements, did not sit well with gamers. Microsoft abandoned ship at the last minute. Xbox boss Don Mattrick ended up resigning over the whole mess. Before long, Microsoft CEO Steve Ballmer was also announcing his resignation. Even today, with the console's higher price and outrage over it under-performing on multi-platform titles when compared against Sony's PlayStation 4, the Xbox One still faces an uphill battle despite having abandoned the policies that had angered gamers to begin with.


                Steve Ballmer announced his resignation in August 2013.

                Now there are rumors circulating that the favored pick to replace Steve Ballmer, Stephen Elop, is considering spinning off the Xbox business. Microsoft has denied these rumors are true, however the following tweet from Xbox Community Manager Christa Charter shows that there may be some sort of shake-up going on at Xbox HQ right now.

                Odd to see 10 - 12 year Xbox marketing leaders leaving the company right before Xbone launch.

                It would seem as if there is some sort of big change taking place within the company. What are your thoughts? Share them below in our comments section.
                Comments 8 Comments
                1. Otacon305's Avatar
                  Otacon305 -
                  Good. I hope it fucking tanks. I hate Xbox.
                1. SadPanda's Avatar
                  SadPanda -
                  MS would need a series of xbox failures before spinning or quitting. As much as I dislike MS and their business practices I like the competition and hopefully consumers will vote with their wallets and avoid MS and get a PS4, or a steam box.
                1. frosty's Avatar
                  frosty -
                  From a financial standpoint, they've technically had that series of failures already. Xbox was a total bust. 360 failed to pull Xbox out of the hole and added more losses of its own. Xbox One isn't shaping up to be the savior console either, so if this doesn't go well I can't see investor confidence being very high... especially in light of other markets they're involved in, like smart phone apps, being profitable in the billions when their video game division hasn't earned the company one red cent of profit beyond its losses.
                1. curryking1's Avatar
                  curryking1 -
                  Wasn't really sure about the numbers, whether it was Xbox division, or their "home entertainment BS crap" division, or whatever.

                  Even with losses, an arm of the company can still carry significance. Google proves this since they don't make money on anything but advertising essentially.

                  Not that MS is Google here and is willing to afford anything, but just to say the strategic product placement itself may have an unmeasured value. Kind of like how despite people complaining about the cost of the monarchy in UK, they actually may bring an incredible amount of money into the country to offset their own cost, and even possibly make a hefty profit.

                  There could still hypothetically be those unintelligible, intangible qualities that the company could still argue is beneficial to their brand overall.

                  So I wouldn't be quick to judge on this front, I personally would say I don't know enough (and I really don't care to know more, I'd prefer they either stay a visible but very minor minority in games or just crash and burn, either way for me).

                  So yea really I don't even give a shit haha. It's Microsoft, who the eff cares from a consumer POV. They suck at "products" which is pretty damning.
                1. SadPanda's Avatar
                  SadPanda -
                  Yes. But xbox has been a critical success with consumer mindshare. I think MS is desperate for a halo device like the iPod to get interest for Win8 and windows phone 8. Maybe XBL super fans will pick up more Win8 and win phone 8 devices for the additional XBL stuff?
                1. frosty's Avatar
                  frosty -
                  Yes, Xbox 360 did succeed in turning the word "Xbox" into a household name. I definitely agree there. However, this isn't the first time we've heard rumblings about the Xbox brand being sold off or split up this year. There have been a LOT of shakeups at Microsoft lately and they all seemed to come to a head right as the Xbox One debacle unfolded. Now we're still seeing aftershocks from that event as reports of high level MS employees still running for the hills start to surface. If XO does poorly, and fails to make Microsoft enough money to justify itself, I don't see the brand continuing.

                  If MS were smart, Xbox One would have been what steambox ended up becoming, but for windows games. Complete with custom gaming OS. Valve's still would be better, but Xbox would have beat it with its name alone.
                1. SadPanda's Avatar
                  SadPanda -
                  Quote Originally Posted by frosty View Post
                  Yes, Xbox 360 did succeed in turning the word "Xbox" into a household name. I definitely agree there. However, this isn't the first time we've heard rumblings about the Xbox brand being sold off or split up this year. There have been a LOT of shakeups at Microsoft lately and they all seemed to come to a head right as the Xbox One debacle unfolded. Now we're still seeing aftershocks from that event as reports of high level MS employees still running for the hills start to surface. If XO does poorly, and fails to make Microsoft enough money to justify itself, I don't see the brand continuing.

                  If MS were smart, Xbox One would have been what steambox ended up becoming, but for windows games. Complete with custom gaming OS. Valve's still would be better, but Xbox would have beat it with its name alone.
                  Xbone will sell out, something the WiiU failed to do. I'm sure that alone will be success enough to continue on ... for now.
                1. BahnNZ's Avatar
                  BahnNZ -
                  Quote Originally Posted by Otacon305 View Post
                  Good. I hope it fucking tanks. I hate Xbox.
                  If Microsoft pulled out of the console race tomorrow I wouldn't miss them at all.

                  Nintendo or Sony doing the same would be a disaster. Even though my Wii U is long sold I'd feel both as much, end of an era.

                  XBox... Yeah, no loss.
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