Stephen Elop is the rumored favorite to be the next CEO of Microsoft. Stephen is already in charge of the Xbox Business of Microsoft, but there was an interesting thought that if he became the CEO he would actually get rid of the Xbox because it was not cost effective but are these rumors true?
Stephen Elop is definitely going to be one of the Candidates for the next CEO of Microsoft, but an interesting thought that has been going around is whether or not he would sell the Xbox business and then focus more on software. Microsoft has dominated the console gaming market for some time now, but is it profitable enough for them? The operating costs of the Xbox division it was calculated to be around 848 million dollars that is a good chunk of change. Now the entire market for there console gaming is worth about 6.3 billion dollars so there is a chance for profit there.
Regarding the new Xbox one console analysts are expecting it to make a profit with in its first year of life, and it would not surprise them if they made it al back by the end of the year. They are expecting Microsoft to sell about 50 million Xbox live subscriptions and when they are going for about 50 dollars each that works out to be 2.5 billion dollars which is enough to cover the operating costs of the Xbox division. Now while this is not as large of a profit as their Microsoft Office software suites but it is still enough for them to keep the business around.
Elop is still going to be considered but closing off the Xbox division would make no sense which is what the Board of Directors at Microsoft needs to make. Elop also made the decision to make Nokia only sell Windows Phones which in many analysts opinions was a bad move by Microsoft. Microsoft needs to decide whether or not Stephen Elop is the kind of CEO they need.