Microsoft Will Exit The Game Business By The Time Project Xbox Scorpio Releases: Analyst

Microsoft's plans for gaming are always a bit in discussion when it comes to launch new consoles on the market. Not so many years have passed since rumors about it selling the Xbox business to Amazon were around, and those got officially debunked, but it seems there's still someone who thinks the platform holder is willing to exit the games' space.

Xbox Scorpio

According to analyst DFC, it seems like the real question here is not if Microsoft is leaving the gaming business, but when. The statement is: the platform holder is having a hard time in providing value to its business after the Xbox One commercial flop, so decisions to introduce the Windows OS into it and Project Scorpio so early in regards of its final release have to be read under that perspective.

"The most immediate problem is Microsoft effectively killed the Xbox One Slim right out of the gate. If there were many Xbox 360, Wii U and even PlayStation 4 consumers interested in an Xbox One this holiday season they have now been told to wait until Scorpio arrives in 2017. Microsoft can only hope that the buzz around Project Scorpio goes away soon but with the cat out of the bag that is unlikely.

There are all kinds of other problems with Microsoft's mixed messaging. The pricing on the original Xbox One is great, and the Slim is wonderful, but all the important new games will be on PC, so why invest in a console? Just upgrade your PC. And if you do want a console why buy now when Scorpio will be here later. All of this is a net dampener on new hardware sales now and really opens the door wide open for Sony and even Nintendo for the NX.

The biggest issue is whether Microsoft will even have a game division by the time Project Scorpio launched," it added. "It is no small irony that the E3 events went on at the EXACT same time as Microsoft CEO Satya Nadella was announcing the $26 billion acquisition of LinkedIn.

The overall question now seems to be not if Microsoft will exit the game business, but when and how. Of course, that leads to many other questions such as how is exiting the game business handled? Is Xbox spun off? Does Microsoft find a buyer? Or does the company just shut Xbox down? DFC feels the latter option will most likely not occur but it is clear something must be done.

Unfortunately the value of the Xbox brand is in serious flux with much of its advantage tied to the Microsoft Windows 10 operating system."

It's surely an interesting and fascinating hypothesis, a sort of conspiracy theory we could read some true into… but not everything. One could easily say all this stuff Microsoft is doing is yes being done in order to provide the Xbox business more value, but not with the idea of selling it in mind.

We'll see if Project Scorpio can make things better and clearer for Microsoft, or will only make the situation worse in the competition with Sony's PS4 and Neo.

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