Satya Nadella: We're not selling off Bing and Xbox

Satya Nadella, Microsoft’s CEO, came out yesterday and said he doesn’t want to sell off either Xbox or Bing.

Nadella was talking to Walt Mossberg and Kara Swisher at the Code Conference yesterday when he was asked whether such plans were being discussed. Despite strong lobbying from some of Microsoft’s investors, the new CEO said both divisions would be staying as part of Microsoft.

“I have no intent to do anything different with Xbox than we are doing today” Nadella said on stage. This definitely comes as a relief for many of us Xbox fans who’ve been anxious about the platform’s future.

Nadella went on to add that Bing is a central part of Microsoft’s new “Cloud first” strategy. Many of the company’s web based products such as certain features of Azure came out work done on Bing.

The search engine is also deeply integrated into consumer facing features such as Cortana. Natural speech interaction with Cortana as well as the newly announced Skype Translate feature is also dependent on all of Bing’s data. Not to mention the recently unveiled Windows with Bing that offers OEMs reduced pricing on Windows licensing. With all of these projects relying on the search engine it’s clear Bing isn’t going anywhere either.

Satya Nadella took over at Microsoft four months ago and the company’s priorities have been changing. Focusing on a “cloud first, mobile first” strategy, Nadella’s new long term vision for Microsoft is slowly coming into focus.

Source: Re/Code | Image via Microsoft

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Uh ohhh... if a MS exec has made a commitment on Xbox one, we know they will be selling it in around 6 months...

A public company should put in first, second and third position the shareholders. So, if Bing or Xbox (or any other division) is burning money of the company, or more specifically, is spoiling shareholders money then, they (shareholders) are in their right to ask for measures.

Anyways, what MS is doing, is deviating the problem,Xbox and Bing are bringing money. MS should cuts Surface division.

Remember, it is not about if a product is good or bad, it is about how much money it brings (or spend).

Edited by Brony, May 28 2014, 12:34pm :

Brony said,
A public company should put in first, second and third position the shareholders. So, if Bing or Xbox (or any other division) is burning money of the company, or more specifically, is spoiling shareholders money then, they (shareholders) are in their right to ask for measures.

Anyways, what MS is doing, is deviating the problem,Xbox and Bing are bringing money. MS should cuts Surface division.

Remember, it is not about if a product is good or bad, it is about how much money it brings (or spend).

with that mentality you can say that they would be doomed. The fact is that you invest in products and as they mature the product becomes profitable. This happened with several divisions within Microsoft and now they are multi billion dollars money making divisions.

But not only that, doing away with Bing and X Box is trying to win short term but t hey will surely lose long term. They need these products to be competitive and keep their competitors on tip toes. Their competitors are attacking other areas of their business and Microsoft with Bing is attacking the areas of the competitor. With Xbox is more of establishing themselves in an area that will become very profitable and competitive as technology evolve. Microsoft wants to be part of the house of the future, Xbox is a way to getting there and by having an establish brand in the market this makes is so much easier to be the winner in that market.

Shareholders don't invest in the company products, but the company itself. The company is profitable so they have the right to disagree and potentially dethrone the CEO but at the moment they have no solid ground for such action.

Brony said,
A public company should put in first, second and third position the shareholders. So, if Bing or Xbox (or any other division) is burning money of the company, or more specifically, is spoiling shareholders money then, they (shareholders) are in their right to ask for measures.

Anyways, what MS is doing, is deviating the problem,Xbox and Bing are bringing money. MS should cuts Surface division.

Remember, it is not about if a product is good or bad, it is about how much money it brings (or spend).

. Xbox burned money for years, the 1st gen never turned a profit. Thankfully you're not in charge.

Enron said,
Waiting for them to roll out Xbox One for Business.

Edit documents efficiently using the 32 function controller with lotus keyboard!

Enron said,
Waiting for them to roll out Xbox One for Business.

Xbox: Go to Word, Xbox Select folders, Xbox Select folder 3, Xbox Select: item 23.

Investors see Microsoft's strong position in the Business sector and want to cut out consumer products to eliminate risk. Having said that the Xbox sells and Windows consumer market share is dominating. In other words, investors are scared of the competition instead of raising the stakes.

Buy 1 stock - become investor - ask them to sell off everything that you don't like no matter how it actually is.

While I'm sure those "investors" weren't some 1 stock ones I was just showing how it works. I'm actually surprised that Nadella even responded to this dudu.

alwaysonacoffebreak said,
Buy 1 stock - become investor - ask them to sell off everything that you don't like no matter how it actually is.

While I'm sure those "investors" weren't some 1 stock ones I was just showing how it works. I'm actually surprised that Nadella even responded to this dudu.


OR pressure company into spinning of the unit you DO like so that you can gain a greater foothold in a profit leader... That is surely the argument for spinning off XBox, and is similar to the ridiculous argument to sell off Red Lobster for instance...

All these investors think about is how can they have more of the profit maker, nothing more, and certainly not things that lead to that profit leaders ability to do so such as other leveraged products and divisions, greater economy of scale, etc...

mastercoms said,
This has been said time and time again, yet, rumors still manage to come out.

Because people don't understand the self serving reasons some investors would want to see these units spun off...

Trust me, it is not to benefit the consumer OR Microsoft...

Given the further commitment and integration Microsoft places on these units should be enough to squash these rumors, but for some bizarre reason, the community doesn't let it go... LOL