DFC: Microsoft has killed the Xbox One Slim right out of the gate | Games industry news | MCV
I think judgement should be withheld until we see how the XB1 S and Microsoft's first party games perform. If they don't do well, then yes, MS will start seriously considering spinning off the Xbox brand.
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Analyst DFC has issued a damning post-E3 verdict on Microsoft's handling of the Xbox Scorpio reveal.
"The most immediate problem is Microsoft effectively killed the Xbox One Slim right out of the gate," it said in an investor update. "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."
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"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.I agree with some points, but I think it's a bit harsh. The Scorpio is intended for the Xbox enthusiast audience. The average consumer is more price-conscious than power-conscious and won't particularly care about the Scorpio. I do agree with the PC part, though.
"Unfortunately the value of the Xbox brand is in serious flux with much of its advantage tied to the Microsoft Windows 10 operating system."
I think judgement should be withheld until we see how the XB1 S and Microsoft's first party games perform. If they don't do well, then yes, MS will start seriously considering spinning off the Xbox brand.