Forbes Analyst Calls Game Over For Microsoft

grigjd3

New member
Mar 4, 2011
541
0
0
Seems a bit sensationalist when discussing a company whose revenues are up on almost every year over year measure throughout it's history. Oh, and before someone jumps in to give a baseless accusation about what is or isn't, maybe you should check out the financial reports: http://www.microsoft.com/investor/AnnualReports/default.aspx

Oh wait. Actual data. Damn.

I'm not the fondest of some of the things MS does, but Microsoft is an incredibly large company with it's hands in a lot of pockets. It's always fun for someone to pick one of their less popular product lines and bash it, however, they've massively diversified their revenue streams since the old windows 98 days. Now they are into digital distribution, licencing patents, providing code development environments, gaming, general entertainment and database software (just to name a few things). Most people are likely ignorant enough to think Office is the only MS software on their macbook pros. Anyone who looks at a company so large and tries to determine it's fate by such a narrow view is being disingenuous (or just stupid, take your pick).
 

crepesack

New member
May 20, 2008
1,189
0
0
Formica Archonis said:
<img src="http://s91291220.onlinehome.us/formica/windows9thumb.jpg" align=right>A bit doom and gloom, this analyst is.

That said, there ARE problems in Redmond.

http://www.businessinsider.com/steve-ballmers-nightmare-how-microsofts-business-really-could-collapse-2011-11
http://www.businessinsider.com/steve-ballmers-nightmare-is-coming-true-2012-11?op=1

But really, you got Ballmer running things. I'm not really shocked.

Me? I'm waiting for Windows &#9320;: Strongest Edition.
With blue, pink and black versions of windows 9.
 

ash12181987

New member
Nov 9, 2010
66
0
0
40% of people still use XP. Why am I not the least bit surprised. Hell, I just upgraded to 7, and I only did that, because it came with my computer. If I have to wipe the harddrive, back to XP for me.
 

Mr.Mattress

Level 2 Lumberjack
Jul 17, 2009
3,645
0
0
GonzoGamer said:
What I'm left wondering is who would be a good corp to buy the Xbox brand? B&N could have something to add with a retail showing that's still surprisingly strong and have shown adaptability to the market. Disney would probably love to sink their teeth into something like that but they would likely bland it up and add even more advertising.
What about one of the big publishers like EA or Activision? Do either of them have a "war chest" for something like that.
All I know is Nintendo would re-buy Rareware. I don't know why anyone would want to continue the Xbox brand if Microsoft dropped out of consoles. Did anyone pick up Sega's Dreamcast? No. I don't think it would make sense for someone to keep making Xbox's if it's not Microsoft.

OT: Gosh, I thought Sony was the only one in major trouble (With Nintendo in a little bit of trouble and Microsoft impervious from it). Guess they're in a little trouble that could verge onto major trouble in the near future...

Also, my laptop uses Windows 7 while my family's desktop uses Vista, so maybe Microsoft should slow down on Operating system development?
 

Denamic

New member
Aug 19, 2009
3,804
0
0
Microsoft hasn't really done anything great since the 360. Everything's been new versions of old stuff. Even the things that has been good, like the Windows phone (it's actually pretty fantastic) has met bleak sales.
 

GonzoGamer

New member
Apr 9, 2008
7,063
0
0
Mr.Mattress said:
GonzoGamer said:
What I'm left wondering is who would be a good corp to buy the Xbox brand? B&N could have something to add with a retail showing that's still surprisingly strong and have shown adaptability to the market. Disney would probably love to sink their teeth into something like that but they would likely bland it up and add even more advertising.
What about one of the big publishers like EA or Activision? Do either of them have a "war chest" for something like that.
All I know is Nintendo would re-buy Rareware. I don't know why anyone would want to continue the Xbox brand if Microsoft dropped out of consoles. Did anyone pick up Sega's Dreamcast? No. I don't think it would make sense for someone to keep making Xbox's if it's not Microsoft.

OT: Gosh, I thought Sony was the only one in major trouble (With Nintendo in a little bit of trouble and Microsoft impervious from it). Guess they're in a little trouble that could verge onto major trouble in the near future...

Also, my laptop uses Windows 7 while my family's desktop uses Vista, so maybe Microsoft should slow down on Operating system development?
At that point the Dreamcast didn't have tons of subscribers paying a monthly fee; there were only a few individual games that charged for online and they didn't have nearly as many Gold members as XBL.
I can see some company saying "here's a bunch of people who pay a monthly fee to have advertisements spit at them; I think we can work with that."
 

Mr.Mattress

Level 2 Lumberjack
Jul 17, 2009
3,645
0
0
GonzoGamer said:
At that point the Dreamcast didn't have tons of subscribers paying a monthly fee; there were only a few individual games that charged for online and they didn't have nearly as many Gold members as XBL.
I can see some company saying "here's a bunch of people who pay a monthly fee to have advertisements spit at them; I think we can work with that."
While that is true, I think either Microsoft would simply continue making money off of those Gold accounts while quietly discontinuing the Xbox, or another company would simply try to replicate XBL with their own system. I don't see Microsoft selling the Xbox brand to another company, and I don't see any company buying the Xbox Brand.
 

BreakfastMan

Scandinavian Jawbreaker
Jul 22, 2010
4,367
0
0
BWAHAHAHAHAHAHAHahahahaha... No. Just no. Microsoft does make more than just Windows and Xbox. Surprising, I know, but they do. And in those areas, they have a significant market share. They might jettison the Xbox division (doubtful, but it could happen), but they are sure as hell not going under any time soon.
 

Zeckt

New member
Nov 10, 2010
1,085
0
0
Honestly ever since they started ignoring pc gaming by transitioning windows into an apple like market that they will have complete dominion over and STILL charging for live holding multi player hostage I could care less about whatever happens to the company.

All I can say is good riddance I guess? But they are not going away anytime soon, which is unfortunate. Why be loyal to a company that screws you?
 

EHKOS

Madness to my Methods
Feb 28, 2010
4,815
0
0
Fappy said:
40% of Microsoft users still use XP? Does that exclude businesses or something?
No, I usually peer over the counter of stores whenever I can, and I almost always see the XP screensaver. It makes sense, why upgrade your floor equipment when it's not necessary.

OT: I'm pretty sure this isn't, and won't be, true. And while I hate the 360, I would certainly hope Windows doesn't go down the drain.
 

Entitled

New member
Aug 27, 2012
1,254
0
0
The real question is, what will happen once one of the consoles actually fail?

In the past few years, we have gotten too used to the idea of three companies equally dividing the parket among themselves, but this was a rather unique situation, there was almost always either a single dominant system, and/or a clusterfuck of tiny attempts from minor corporations.

Sony and Microsoft are both struggling in their non-gaming divisions, while sinking billions of dollars into early-generation gaming, to be bought back by late-generation dominance.

But what would happen if one of them would end up with an unsellable next-gen system? Would they stil continue risking to sink billions into it, in the current market, when they would know that there is little hope of ever reaching even 20% market share?
 

medv4380

The Crazy One
Feb 26, 2010
672
4
23
Chatboy 91 said:
I'm calling bullshit man person. The words spewing out of your mouth are INSANE!

People have been calling the death of Microsoft for years now. But, with their huge market share in the computer market, combined with the sales they've gotten on a console that's been going strong for 7 years now, I think it's safe to say they're fine for now.
Why do MS fanboys always choose to ignore the market analysis. Business analysts have not been calling the death of MS for years. Any analyst would have told you 10 years ago that MS could afford to make huge mistakes and still come out on top because Office and Windows can subsidize any mistake they make.

Lets go over a few facts.

"Market Share" in the case of Windows is meaningless. In gaming Market Share has meaning because each system is sold at a loss to establish the market share, and each game sold at a profit (if you're smart). The same holds for Apple because the Market Share they have establishes a revenue stream to sell more product through their App Store. For Windows Market Share establishes a revenue stream of its own and an avenue to sell more MS Office. That accounts for 75% of their Profit. Market Share isn't establishing a way to get additional revenue beyond those two products.

It also means that they are a very diverse company. When too much is tied up into only 2 product investors start circling like vultures when any hit of weakness is seen anticipating a disaster that they can make money off of shorting the stock.

The Windows and Office Revenue stream is now tightening up. Here is how it breaks down. Windows XP currently represents 39% of the market. What that should have meant is that when it came time to upgrade to Windows Vista people should have switched. Instead people hated Vista and it only has 5% of the Market. People waited and those who were forced to upgrade went for Win7 and that represents 45% of the market. However, the 39% of users still sitting on XP are refusing to upgrade to 7. This is a loss of revenue for MS, and a big one. Win 8 only represents 2% of the market and is looking like it will be another Vista. MS cant afford this. They've been taking Huge losses on XBox and other things for YEARS, and don't know how to function without Windows and Office Revenue.

They have a console that's been nothing but 7 strait years of LOSSES.

Basically, their subsidizing of losing positions like XBox, among others, has created a tightening noose. If they don't start trimming some of the fat and making a profit off of the XBox then they will die.

----
EDIT
For those can't find the article on Forbes anymore here is the writers site [http://www.thephoenixprinciple.com/blog/2013/01/sell-microsoft-now-game-over-ballmer-loses.html]
 

Adam Jensen_v1legacy

I never asked for this
Sep 8, 2011
6,651
0
0
gigastar said:
And the PC Gaming Master Race shall laugh incessantly as they watch Microsoft pay the price for alienating them.
This, in a way.

If Microsoft had any clue, they would focus on making PC better. They need to market the shit out of PC instead of trying to come up with their own version of iPad. People are sheep and they are for some reason loyal to Apple. They need to switch that loyalty around and remind people why Microsoft is awesome and why they should choose MS instead of Apple. Yet it seems Microsoft is doing the exact opposite. They are not marketing the PC. Instead they created an OS that makes people ask themselves "why don't I just gen an iPad". They need to stick to their guns and innovate on what they already have.

Also, PC won't die if Microsoft falls. It will just make room for Linux.
 

RicoADF

Welcome back Commander
Jun 2, 2009
3,147
0
0
Bhaalspawn said:
Yikes. If microsoft were to go under, that'd be the end of PC Gaming... and the PC altogether.

Hey Microsoft... don't die. Please?
Your joking right.......?
Linux would take over, heck its already making headways thanks to Win8
 

Strazdas

Robots will replace your job
May 28, 2011
8,407
0
0
Fappy said:
40% of Microsoft users still use XP? Does that exclude businesses or something?
well, actually, i am writting this from XP, at work. At home i would love to use XP, but am forced to use Win7, because they dont make drivers for XP anymore.

The only way this is right in my opinion is due to win 8 flop. Then again mircorsoft was loosing share to apple lately by a big margin. and i woudl rather have microsoft than apple. but i guess with things liek steam and google working on making their own OS (based on linux) microsoft is really in danger if it tries to push win 8 like it did with Vista.

You know, this guy may not be in the wrong. and whiel microsoft may not implode, the "Sell shares now" is right as the price will fall down.

Bhaalspawn said:
Explain to me how Linux has made any advantage over Windows, aside from the biggest whiner in the industry deciding to run to it the moment he was faced with actual competition?

Actually don't explain it to me. I don't really care.
too bad, youll get a PM anyway.
Formula1 Use Linux. They used to use Microsoft servers, and thier analysis took weeks. They tried linux servers and turns out it was shortened to days. So they stuck with it and now all teams pretty much use Linux, because they find it far superior. And thats an AAA class sports out there, pretty much top of the racing. Linux may not be good for the casual gamer that wants to just plug and play. i personally hate linux. but for corporate work and technical side linux is superior.

Entitled said:
The real question is, what will happen once one of the consoles actually fail?
What should have happened 10+ years ago. PC gaming would flourish, single playform makes it much cheaper and easier to develop games to due to no need of porting. Due to diverse nature of PC and ability to connect pretty much any device to it gaming would be able to easily experiment. DUe to concurency of preroducts people would be forced to inovate and create good products instead of shelving same thing out every year simply because there is no real competitor.
progress would happen. the same progress that stopped years ago.