Microsoft Ditching Content Business But Doubling Down on MSN

Started by 7H3, Sep 08, 2014, 02:10 PM

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7H3

http://blogs.wsj.com/cmo/2014/09/08/microsoft-ditching-content-business-but-doubling-down-on-msn/
Quote
Microsoft MSFT +1.82% is largely getting out of the business of managing standalone digital media brands, as the company plans to pull back or end several online content partnerships.

But that doesn't mean Microsoft is pulling back on its Web portal MSN. Rather, despite years of rumors that Microsoft would either sell, merge or shut down the portal, the company is doubling down on MSN, giving the site a major makeover, the company said. That entails incorporating bigger photography, premium content, and more social media and shopping tools.


I wonder what this means for their gaming business as well...
"It's hip to be square." - Eurogamer<br />"Shut up its art!" -Legend

darkknightkryta


http://blogs.wsj.com/cmo/2014/09/08/microsoft-ditching-content-business-but-doubling-down-on-msn/
I wonder what this means for their gaming business as well...


I'm sure the higher ups are going to be watching this holiday season intently.  I think the holidays will determine the brand's fate going forward.

7H3


I'm sure the higher ups are going to be watching this holiday season intently.  I think the holidays will determine the brand's fate going forward.

hopefully that destiny bump and cod bump will help ensure investment in new IP's, otherwise they may focus more on exclusivity deals
"It's hip to be square." - Eurogamer<br />"Shut up its art!" -Legend

Mmm_fish_tacos

This doesn't sound good.

Raven


hopefully that destiny bump and cod bump will help ensure investment in new IP's, otherwise they may focus more on exclusivity deals


Considering how new IP's created by a Microsoft studio seem to go, I think they're better off just going on exclusivity deals period. I'm pretty sure every big IP Microsoft has was created prior to the studio being owned by them with the exception of Forza. All others either failed or didn't last that long.

darkknightkryta


hopefully that destiny bump and cod bump will help ensure investment in new IP's, otherwise they may focus more on exclusivity deals


That's the thing, I'm not sure the higher ups are gonna let MS just burn through cash like that.  The PS4 is way to strong right now and I'm sure third parties are going to demand a king's ransom to put titles exclusively on the One.  Plus with the Tomb Raider deal turning into a PR nightmare, I don't think any third party is gonna give MS an inch for anything.


I also don't think Destiny is gonna do much for Microsoft, Call of Duty may be the same.

kitler53


That's the thing, I'm not sure the higher ups are gonna let MS just burn through cash like that.  The PS4 is way to strong right now and I'm sure third parties are going to demand a king's ransom to put titles exclusively on the One.  Plus with the Tomb Raider deal turning into a PR nightmare, I don't think any third party is gonna give MS an inch for anything.


I also don't think Destiny is gonna do much for Microsoft, Call of Duty may be the same.


not to mention that while xbox 360 was eventually profitable the xbox brand accumulated like 6 billion in losses before any profit was turned.  i think the cumulative sum of the xbox brand is still pretty negative.  no way will MS allow xbox to burn billions more in cash after this cluster-fudge of a launch.   xbox is probably in a tough position because they probably aren't profitable right now and the less profitable they are the less likely ms will give them the cash they need to keep the "titanic" afloat.


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darkknightkryta


not to mention that while xbox 360 was eventually profitable the xbox brand accumulated like 6 billion in losses before any profit was turned.  i think the cumulative sum of the xbox brand is still pretty negative.  no way will MS allow xbox to burn billions more in cash after this cluster-fudge of a launch.   xbox is probably in a tough position because they probably aren't profitable right now and the less profitable they are the less likely ms will give them the cash they need to keep the "titanic" afloat.

That's what I was getting at.  I'm sure MS spent over a billion dollars on the Xbox One even before it launched. They didn't even begin to cover any of the losses they accumulated, with the 360.  God only knows how much more money they're currently burning through this year alone.

BananaKing

isnt MSN the service dead? what are they talking about, the website? what does MSN entail now days?

7H3


isnt MSN the service dead? what are they talking about, the website? what does MSN entail now days?

MSN is not dead, they are revamping the service to be more metro according to the article. Shifting focuses from IP's to services I suppose... so it really has mostly to do with MSN and very little to do with the xbox brand, but we are conjecturing what the implications could be business wide especially as it relates to gaming interests
"It's hip to be square." - Eurogamer<br />"Shut up its art!" -Legend

darkknightkryta


isnt MSN the service dead? what are they talking about, the website? what does MSN entail now days?


Yes the messenger client is dead.  They're revamping the portal.  While at the same time backing out of other online areas.  I'm guessing the NBC stuff.