This is why I love the business of video games. Check out this little story.
What it says is a major investor revealing that Microsoft is cooking their books regarding the Xbox Franchise. Microsoft has been using Android patent profits to mask the 2.5 billion dollars in their entertainment division of which 2 billion belongs to the Xbox Franchise. The investor against states that Microsoft should spin off the Xbox Franchise. Spin-it-off means letting someone else handle it so it can die. Think of how Nintendo ‘spinned off’ Nintendo Power where it languished until it was completely killed. The Xbox console line will soon be joining the graveyard of deceased console lines such as the Sega consoles. The ‘spin off’ is another way of telling the Xbox Franchise to go ‘third party’.
The hardcore are having a cow over this. They are in complete denial. “The investor must be lying!” “I am a better financial analyst than he! I post on a Gaming Message Forum!” Usually, these money guys don’t go around making public statements like that. I doubt he would say something like that unless he could back it up.
“If true, this would indicate a huge level of mismanagement!”
Well, the head of the Xbox Division was fired. The CEO of Microsoft, Ballmer, was fired. Investors are growling and trying to change the company. All the indications are there to point to ‘huge level of mismanagement’.
“But how could the Xbox be so unprofitable! Everyone buys it!”
Everyone does NOT buy it. Xbox 360 came third place in Generation 7. No one buys the Xbox outside of America (and maybe UK). It costs a ton of money to launch consoles in many territories especially when no one buys it (such as Japan). But a local console would have so much stigma against it that major game companies and gamers wouldn’t take it seriously.
While the hardcore gamers are rubbing their eyes in shock and bewilderment over having swallowed the kool-aid of lies for so long, let me point out that Microsoft’s actions are common to what is going on today in some larger businesses and financial institutions. Note that Europe just lowered interest rates in a surprise move. Why did they do this? They are scared to death of deflation. Do you really believe we are in a ‘period of recovery’ as economic news gets worse and worse? Did you really believe you could keep your healthcare?
I think there is something else motivating the investors to wanting to ditch the Xbox Franchise outside of losses. They don’t seem too concerned about the losses of Surface or losses of other products. Why is that? In the story, the investor specifically states the Xbox Franchise as something that ‘doesn’t belong in Microsoft’. It’s not because it is ‘entertainment’ or even ‘video games’.
It’s the hardcore stigma.
Yes, friends, it is the hardcore stink that makes investors want to destroy the Xbox Franchise. Microsoft has always been a computer company, a stuffy software company that makes ‘business programs’ for productivity. The hardcore have no home in Microsoft Land. These are the signs that the roadmap is being put in place to kick the hardcore gamers out and remove their filth and stink from the halls of Microsoft.
“Why you so mean? Calling us filth and stink!”
This is how they think. This is how general society thinks of the hardcore gamers. I just can’t stop laughing at how these hardcore gamers thought they were triumphant with the ‘Xbox Division being profitable, oh so profitable’ and that they would have ‘hardcore games delivered to them forever’. Now that ‘triumph’ has been turned upside down.
You thought Sega leaving the console business made gamers cry? Microsoft leaving the console business will be MUCH worse. The reason why is because of ‘Hardcore Gamer Culture’ (similar to other addiction ‘cultures’ like the ‘drug culture’). Hardcore do not react well when society rejects them.