Stephen Elop taking over Xbox Division at MS

Discussion in 'Xbox One' started by kav, Feb 25, 2014.

  1. kav

    kav
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    Not sure how to take this. This is a guy who, while in the running for CEO of MS, did not speak kindly of Xbox and intimated he'd get rid of it. The fact that they've now put him in charge of their Devices and Studios business (which includes Surface and first party game development as well as Xbox hardware) makes me wonder if they've got him in specifically to get that division into a position where it can be put up for sale.

    Microsoft gives former Nokia boss Stephen Elop full control of games and hardware | The Verge
     
  2. iwb100

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    I think it is slightly misleading. He isn't heading up Xbox he is heading up devices and studios.

    It is not a role where he will be able to sell anything off either. He will report to the new CEO. And the comments about him wanting to sell off Xbox were made by someone "close to him" ie an unnamed source.

    MS have already described Xbox being sold off rumours as "fantasy land" or words to that effect.
     
  3. amardilo

    amardilo
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    I think this could be OK as I think it's now more beneficial to that the division stays.

    It was reported that if Elop became CEO he was thinking about selling the Xbox division, however now he is overseeing and has to report to the current CEO who may want to keep it. I doubt he Elop would want to sell it now as if he did he would be in charge of a smaller division inside MS (devices are huge but the Xbox division is a big chunk).

    Also if MS were to sell it, Elop would lose a division that a lot of people say is doing well (some say it is still not made it's money back from the time it started but it is earning good money year over year and has seen big growth), I think he would want as many positives in his division as possible.

    The only problem I can see is if he doesn't think much of the division and uses more of his budget, focus and resources on other divisions.

    But I hope he thinks good software sells devices and the Xbox division does make some good software.

    Also MS made a big deal about the cloud when launching the Xbox. The new MS CEO was high up in the cloud business and should realise if they can make good use of the cloud it could provide a good showcase of the technology and drive more people adopting Azure (MS' commercial cloud platform) and drive better sales (i.e. if you can show that under massive load Titanfall ran smoothly and spun up servers quickly other businesses could see that as a positive).

    Anyway I hope with the integration of Nokia's devices business we see some great future development.
     
    Last edited: Feb 25, 2014
  4. kav

    kav
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    I think you need to take a look at this guy's track record. The last three organisations he has been CEO of, one went bankrupt under his charge and two he restructured and sold off. Organisation heads have different specialisms, some are hired to keep things ticking over, some to revolutionise a business, and some to trim the fat and make their areas as attractive as possible to outside bidders. Elop's modus operandi clearly fits the latter category. I'm by no means saying his only objective is to get rid of Xbox/Surface, but there is an obvious pattern in his history that indicates it will be a possibility he is likely to bear in mind.

    Also I wouldn't pay any attention to words the CEO or any senior people say in public, of course they're going to say the things they think will appease people. Instead watch the company's behaviour. I'll be following the changes this guy makes with interest. If he wants to instil confidence in his staff, top of his list ought to be investment in first party studios.
     
  5. Det

    Det
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    We need to consult a magic 8 ball on the implications of his arrival.
     
  6. kav

    kav
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    Oh and one other thing, I don't give any credit to the view that some people express of "why would he look to sell off something he's just been made the head of?". People thinking that way are thinking about these roles like they would a regular job - none of us average joes would write ourselves out of a job because we'd be screwed for money. However a person like Elop will move from place to place for short periods, making short sharp changes with enormous repercussions, secure in the knowledge that his contract probably includes some kind of golden parachute payment at the end of it.

    I worked for ScottishPower at the time they were taken over by Iberdrola. A year before that deal was done, they got rid of their old "keep things ticking over" CEO, and introduced a new CEO with a track record of improving share price and making companies ripe for sale. We found out later that he was guaranteed a very very juicy 8-figure bonus if he made the organisation attractive enough to get a bidder within 12 months. He did it in 9 months, then left and moved on to the next company. It's what these guys do.

    I'm not saying I have any way of knowing what will happen, just sharing the impressions I get from this guy being made head of that area.
     
  7. iwb100

    iwb100
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    But I think there is a difference to the role he has now and being CEO. He isn't responsible for the strategic direction of MS as a whole...

    I also think reading into what someone does elsewhere, is sometimes misleading. I had a reputation for a certain type of role that was relatively short term. It didn't mean that was what I wanted to do or even what I was necessarily good at. We haven't a clue what is going on in the background at MS or at any of the places Elop has been.

    I suspect this job is as a result of a deal made when he was at Nokia, I'm not sure I'd read much into it at the moment.
     
  8. zt1903

    zt1903
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    Overall I'm not convinced that this is good news at all. MS certainly dodged a bullet with Elop missing out as CEO but the flipside is that it could be a difficult time ahead for devices and studios.

    As for what it means for Xbox, I'm not convinced that it's on the chopping block any time soon. Gates has come back into a bigger role in the Company and he's an Xbox supporter. Nadella's view isn't clear but track record shows he's very much an "enterprise" man, would he go against Gates on something that probably isn't anywhere near his top priorities?
     
  9. Tetlee

    Tetlee
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    I can't stand Elop. The man that killed Symbian and MeeGo with a single so called leaked comment, and brought Nokia's market share so low that Microsoft were able to buy them out at relative pennies. His "burning platform" comments when Nokia were nowhere near ready to shift all their loyal customers to another OS was just insane marketing(well, unless the plan was to plummet the share price).

    I know there are mixed views on this, but the fact he left Microsoft to become CEO of Nokia, got straight to killing Symbian overnight and shifting focus entirely to Windows Phone despite Nokias own fledgling OS MeeGo just finally coming to fruition after years of work. Insisting WP was the future despite it being far more niche than Symbian and less of a natural progression that MeeGo, he let the share price plummet. Them when his work was done and Microsoft were finally able to snap up Nokia for a price unthinkable just a couple of years earlier, he moves back to Microsoft.

    Yeah, really respectable guy Elop and as smug as they come(oh, and in interviews, every sentence must begin with a "so....". God that irritates).
     
  10. Det

    Det
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    So doesn't Obama begin every sentence like that in interviews?
     
  11. Tetlee

    Tetlee
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    I guess it's an American thing, seems a trend that's spreading and it bloomin' annoys me for some reason, I just don't see the need of it always being there all of the sudden :rolleyes:

    Anyway, not really relevant but turning into one of my pet hates:facepalm:
     
  12. Det

    Det
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    Innit
     
  13. turk3y

    turk3y
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    really what is there to buy tho? The name is something but its not all that much given the potential buys have brands as big if not bigger than "Xbox".

    The hardware is outsourced or mostly was, PS4 even more so, so its not like you need all that much in house if your willing to pay AMD / Intel mega bucks and thats what both Sony and Microsoft did to different extents.

    Xbox is hardwired into Azure, Cloud gets a bad rep as a buzzword but you can bet you ass Live is like an Azure entrenched item with all its ops and monitoring services we dont get to see, I think they even refer to it as their own operational cloud, it will not be easily extracted so anyone that wants it either keeps Microsoft hosting it or rewrites large portions of it.

    So at that stage what do you actually get for your money and what money does Microsoft get for giving up the living room?

    Xbox Music / Video services will go so no money from them either, no juice live subscriptions each year.

    lets face it Xbox this generation is sold at a profit (hardware) and the research that went in looks like a lot was already ongoing internally or was also of direct interest to other groups. The end result is they are shipping subscription tojan horses into folks living rooms, thats a pretty sweet business model.
     
  14. Zzebedee

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    If this guy did sell off Xbox would it be a bad thing, Amazon have already been rumoured as gearing up for something like having a console so what if Xbox was sold to them?

    I think that would work really well if they follow their Kindle business model. Digital books are always going on sale so why not digital games? They are big players in the digital streaming movies arena, especially in America where it's been part of Prime for ages and starting this week Lovefilm is included in Prime over here.
    Wouldn't it be great if download and play of older games was included in an Amazon Prime membership?

    Not saying this is what I think is going to happen, just what I think would happen and that it would be a good thing
     
  15. Tokoloshe Man

    Tokoloshe Man
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    I'm glad I didn't come into to this thread wanting to read about Stephen Elop.
     
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  16. addyb

    addyb
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    Another thread. Another pointless ps4 vs xbox one debate.
     
  17. RottenFox

    RottenFox
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    Not any more...:thumbsup:

    Keep it on topic please, no more nonsensical bickering regarding Microsoft vs Sony, or Xbox vs PS4.
     
  18. Boozehound

    Boozehound
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    Hmm, I was having a perfectly civil conversation with Det about the merits of Live over PSN (and vice versa) which pretty much organically grew out if this topic but hey ho. Conversation's over rated anyway.
     
  19. RottenFox

    RottenFox
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    No, you weren't, and no it didn't, and it was completely off topic to the threads original topic, so no need for it to be a Microsoft vs Sony thread..
     
  20. Boozehound

    Boozehound
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    I disagree completely but fair enough, I'm not going to argue with a mod who wouldn't listen anyway.
     
  21. addyb

    addyb
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    This thread is about Elop taking over MS and not psn vs live so maybe that's the reason eh?
     
  22. kav

    kav
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    I don't think any thread in this place ever stays completely on topic, so kind of surprised to see my thread cut in half. I thought the conversation - though it may have strayed from the OP - was perfectly civil and people were responding reasonably to one another.

    Anyway, not going to make a big thing of it, but hopefully it's not going to become a standard thing, otherwise threads will be getting slashed left right and centre because the posts within aren't specifically discussing the topic.

    Anyway, on topic...this guy might become the next @KazHiraiCEO: Fake Stephen Elop (fakeselop) on Twitter :D
     
  23. Rorifett

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    We should introduce more generic thread titles to avoid over eager slashing :) said Stephen Elop one time
     
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  24. Det

    Det
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    Seriously.
     
  25. CAS FAN

    CAS FAN
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    Why not just have a general chat thread like in the PC forum? That way all stuff not related to a specific topic (like most of the Xbox v PS, Live v PSN type debates) can just happen there. This would leave other threads perfectly on topic and if they stray, mods could move the inevitable Xbox v PS debates that spring up to that thread, where they could continue.

    I'm not saying that the discussion in this thread wasn't civil etc. as it was, but folk wanting to read about specific topics, generally don't want to click on a thread about one thing and end up reading something completely different. I wouldn't want to sit down to watch a rugby league match and instead be served up with synchronised swimming, same thing goes here.
     
  26. Rorifett

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    OT but I get your point
     
  27. Zzebedee

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    Good points there from CAS.
     
  28. Det

    Det
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    Cas, I was trying to read about Stephen Elop... sigh...
     
  29. nstokes

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  30. Det

    Det
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    No offense but that's just useless PR fluff.

    They can still sell it.

    They didn't say they won't be selling. Cuz if that option is still on the table then people would stop buying and then when it came time to sell then investors could buy cheap.

    Not buying it.
     

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