The Xbox hasn’t exactly been the most profitable business venture that Microsoft has ever undertaken. In fact, getting into the hardware game has cost Microsoft billions of dollars over the last decade or so. It’s left many Microsoft investors wondering why they keep at it. While the answer is obviously that it gives Microsoft an open door to the living room, there’s also been a lot of speculation as to whether it’s actually worth it, or not. This speculation has even gone so far as to suggest that Microsoft sell, or spin-off the Xbox brand.
Gates approves but doesn’t forsee an Xbox spin-off
Today, according to Fox News, Bill Gates have given his blessing to spinning off the Xbox brand, if newly appointed CEO Satya Nadella thinks it’s the best move. Liz Claman, an anchor on FOX Business quoted Gates via Twitter, “If MSFT CEO Nadella wants 2 spin off Xbox biz I’m absolutely for it.”
A spin-off of the Xbox brand wouldn’t necessarily be a bad thing for Microsoft, or the brand. Spinning off the Xbox business would effectively allow Microsoft to streamline their businesses within the massive company, and many times the business that is being spun-off are more valuable as independent companies than as part of a larger corporate ecosystem.
While Gates may give his approval of a spin-off, it’s unlikely. The other side of this quote that isn’t in the headline, Gates also said he doesn’t forsee either Bing or Xbox being spun-off as they are part of Microsoft’s long term strategy.