Xbox Division Might not be as Important for Microsoft Shareholders as we Think

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Xbox Division Might not be as Important for Microsoft Shareholders as we Think

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Ever since Satya Nadella has been announced to be the chief executive at Microsoft, talks about the future of Xbox have fueled up again. Recently, we reported that couple of influential Microsoft shareholders wanted to sell the Xbox division all together. Let us see where exactly does the Xbox stand in the eyes of the company’s investors.

It is being said that Microsoft’s management is worried about two areas among their products: the sales of their Operating Systems and their gaming console – both are declining in their market share. As far as the Xbox Division is concerned, there are at least a couple of reasons why it might not be that important for the major investors.

Firstly, although Xbox has been a success in the recent years, it is not that successful now. Xbox 360 was probably the first successful product of Microsoft in the hardware market but the company still lost billions every year due to it. The Xbox One has fared much better but there is word that it will still book $1 billion loss each year.

Secondly, it is expected of the Xbox Division to be Microsoft’s spearhead in the hardware industry; but the console is losing its own war with rival PlayStation 4. Now that other Microsoft products are in the hardware market too i.e. tablets and smartphones, Xbox One might not just be the product to lead the company in the hardware race.

As far as we can see, the future of Microsoft’s Xbox Division depends heavily on how their next generation console trades in the coming months and hopefully years. If the product fails to capture the market that it has lost to PlayStation, major Microsoft Shareholders might just stop caring about it once and for all.