» Sat Aug 24, 2013 1:49 pm So I just read some really bad news on the internet today it's not bad news to me because I don't own any Xboxes or consoles for that matter of fact I am a PC gamer only and have been for 14+-15+ years.
This will be sad news to people who own Xboxes and Xbox Live subscriptions.
A report by BizJournals claims that ValueAct, a $2 billion Microsoft investor with a 1% stake in the company, is seeking to achieve some major changes at Microsoft. anolyst Rick Sherlund claims that big changes are going to take place very soon as other shareholders support the decision to get rid of Steve Ballmer in addition to the investment group ValueAct. According to the report ValueAct are seeking to replace Steve Ballmer because his strategy “inspires little confidence”.
Apparently Microsoft has no choice but to give ValueAct a board seat otherwise they might launch a “public war” on Steve Ballmer and Microsoft that could end with serious turmoil at the company.
“A decision by the board at Microsoft to offer a nomination for a board seat could keep the activist agenda behind closed doors and take longer for shareholders to see potential benefits”
Furthermore it is believed they might target the Xbox division and try and get rid of it altogether. This would allow Microsoft to focus on other products and mainly Windows.
“Xbox is cool, but by our estimates Microsoft has not made money at this”
http://www.eteknix.com/microsoft-investor-wants-to-fire-ballmer-and-sell-xbox-division/
NOTE: If you own 1% of of a company the company does not have to take you seriously but here it is described even though that the investoer owns 1% in Microsoft the board has to take them seriously. But there might be more shareholders backing this up from what I heard.
1% = 2 Billion
51% = 102 Billion
Microsoft closed today at $34.75 per share, so 1% is around a $3,000,000,000 investment.
1% in a company like MSFT is actually quite a lot. They could be top 10 or top 20 biggest holders.
Oh and I also buy and sell shares I have only 10 shares in Microsoft.
Questions and Answers.
Q: uh-oh...
A: Not uh oh. The Xbox division is still net negative as a whole (I think) and there's a reason for the distinct shift in focus for the division as of late.
Q: But they're making money of this
A: Of course Microsoft is making money, but by the investor's estimates the company's venture into the console arena has, all things considered, not been profitable -- revenue means little if it's not enough to cover prior investments.
Q Aren't they making money off of Xbox?
A: Because the original Xbox cost them billions of dollars. They lost billions on the first one and RROD. Not as much as they've invested, thus far.
A: After four years, Microsoft’s Home and Entertainment Group reported a total loss of $4 billion. That number included some other money-losing ventures too. But the vast majority of it was due to Xbox and the loss that the company was taking on every machine that it made. Insiders believed that Microsoft lost $3.7 billion on the original Xbox by 2005
http://venturebeat.com/2011/11/15/the-making-of-the-xbox-part-2/
RULES: NO FLAME WARS SAYING XBOX svckS, SONY'S PLAYSTATION IS BETTER ETC LET EVERYONE ENJOY THE CONSOLE OF THEIR CHOOSING.
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