Bonum Certa Men Certa

Former Microsoft Manager Knows That Xbox 360 is Failing, Ballmer Admits It

Titanic in jar



Summary: The naked Xbox emperor becomes less able to hide his nakedness and vulnerability; chief staff flees, Microsoft expresses pessimism, and money is still a problem

MICROSOFT is sometimes gloating about Xbox 360, not letting reality get in the way. The matter of fact is that Microsoft lost billions of dollars selling and repairing failed units and the selling of physical media (games) from companies that just target Xbox and help sell more units of it (i.e. good for Microsoft) suffer from counterfeiting [1, 2, 3, 4]. This is an area where game partners of Microsoft are hurt more than Microsoft itself. If anything, fake games add to the appeal of Xbox 360 while hurting the bottom line of some game studios.



"Xbox Boss Quits Microsoft Games Divisions," reminds us this new article. Almost every Xbox boss has already left in recent years. We gave some examples and giving a complete list would take a longer time.

Here is another item from last week's news: "PS3 to outsell 360 globally in 2010 - analyst"

If a new analyst report turns out the be on the money, Sony will sell roughly 3.5 million more PS3s this year than Microsoft will Xbox consoles, which mark a turn of tides in the current-gen battle.


Another news item: "PS3 Increases Global Marketshare to 31 Percent"

The PlayStation 3 has jumped from an 18 percent market since last year at the same time, to a 31 percent share. Microsoft better watch out.


Ouch. There are other articles which speak about Sony's edge over Microsoft and Michael Pachter, a respected analyst in this area, has tough words:

i. Pachter: Microsoft Wants to Own the Internet

ii. Pachter: No browser for 360 as Microsoft wants to “own internet”

Speaking on the latest version of GameTrailers show Pach Attack, Wedbush Morgan analyst Michael Pachter has explained why he feels Xbox 360 will never have a browser. It’s all down to ownership, apparently.

In response to a question on the subject, Pachter said:

“The 360 doesn’t have a browser, and never will, because Microsoft’s vision when they made the original Xbox was to own the internet. The way you own the internet is to make sure all traffic that passes through your box is controlled by you.”

Pachter opined that adding social media content to Live is acceptable to Microsoft because it still doesn’t allow open browsing.

“Microsoft [said], ‘You are not getting out of this box unless we control your access.’ So when you replicate Facebook, Twitter, Nextflix on the 360 it’s not the same. You aren’t actually going to those sites; you are going to a Microsoft-controlled site where they know exactly what you are touching.


Analysts may be biased, right? Well, how about this new article?

Former Microsoft Exec Says Natal Will Fail



In an interview with Retro Gamer, Scot Bayless, a former studio manager at Microsoft, said that he believes Project Natal will fail.

Bayless experienced the failure of the 32X peripheral for the Genesis when he was a Senior Producer at Sega and told Retro Gamer that he believes Natal could see a similar fate.

"When I met with Microsoft in 2008 to look at Natal I asked: 'When will you integrate this into the 360?' Their response was: 'We're probably going to wait and see on that.' To which I said: 'Then you're going to fail.'"

Bayless believes that Natal will fail because it will split consumers between those who have the peripheral and those who don't and will act as a disincentive to developers. "Plays like this always fragment and the disincentive to developers is powerful; when I'm spending tens of millions on a game, the last thing I want to do is lose 90 per cent of my market."


People are already complaining about the expected price of Natal [1, 2, 3, 4], possibly showing that scepticism was worthwhile. Why did the leadership of Xbox leave just months before Natal even had its début? Are they not excited? Were they overwhelmed by impatience? The matter of fact is that Natal merely replicates what other consoles already have and it costs almost as much as a Wii console. It makes no sense. Natal will change nothing and the name is terrible too. What was Microsoft thinking? Rumours that it's renaming Natal are afoot [1, 2]. Even Ballmer is unhappy.

It seems that Microsoft CEO Steve Ballmer is dissatisfied with the dreary performance shown by the company’s non-core business. This was evidenced when the company axed two of its top consumer product executives in games and mobile.


Over a year ago Ballmer called the Xbox business "funny" because he admitted that they hadn't figured out a way to actually make money from it. How come a lot of the mainstream press misses this simple factoid? Dabbling one's toes in many ponds does not guarantee more success; it's about profitability. It is possible that Microsoft will quit the consoles business within years as it carries on shrinking.

Recent Techrights' Posts

XBox is Practically 'Dead Man Walking' at This Point
writings on the wall
SLAPP Censorship - Part 128 Out of 200: Making Laws Work for Britain, Not Oversensitive Americans Looking for 'Revenge' by Lawfare
The SLAPPs are intended to protect corporations (employers like Microsoft)
 
Social Dialogue at the European Patent Office (EPO) is Dead, the Strikes and Work Stoppage-Like Actions Carry on
What next for the EPO?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 05, 2026
IRC logs for Sunday, July 05, 2026
Links 05/07/2026: Shadows of the Upper Peninsula and 2026 Old Computer Challenge
Links for the day
Not Everything Should be Electric
technology has become detrimental to society
Gemini Links 05/07/2026: Eye of the Beholder and Baldur’s Gate 3 and Alhena 5.6.5
Links for the day
GNU/Linux Market Share is Already High
GNU/Linux has fast become and is still becoming mainstream in recent years
The 9-Step IBM Algorithm: Gaming Wall Street While Shedding Off Staff and Bribing the Mainstream Media to Play Along
Any time IBM preaches manners (e.g. CoC) to the community remember that IBM works closely with and flatters the dictator
They Could Never Kill the Ideas of Richard Stallman (RMS), But They Are Still Trying
Killing an idea is harder than killing a person and killing a person is illegal
Only Germany Objected to Salary Adjustment (Reduction) Procedure of "Team Campinos"
"flash report on the Administrative Council of 30 June and 1 July 2026"
A "Never Slop" Policy in Quibble
"every change in the repository must be made by a human"
Series on GNU/Linux in Japan
This series can last a week or longer
75% of All the Patents Last Year Were Software
The corporate media has more or less ceased to discuss this matter
At Microsoft "the Morale of Developers is at an All-time Low"
Numerous reports today say that after at least 5 studios got marked for shutdown (mothballing) by Microsoft there are rumours about Obsidian as well
Links 05/07/2026: Data Breaches, Heat Waves, and Weinstein Rape Conviction Upheld
Links for the day
Confidentiality at Risk With Slop 'Coding'
People who continue to cheer for slop aren't just misguided fanbis and fangurls
False Narratives of Slop "Efficiency" as Debt Climbs
false stories about slop
July 8 as "D-Day" for Microsoft, Mass Layoffs Planned
Microsoft's grip on the market has slipped for a long time
GNU/Linux Leaps to 6% in Thailand
Can we expect 10% by year's end?
EC Looking for Input on Digital Networks Act Until Next Month
New initiative
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, July 04, 2026
IRC logs for Saturday, July 04, 2026
Gemini Links 05/07/2026: Ragebaited and Removing Lines in Emacs
Links for the day
Links 05/07/2026: "Tesla Slams Into Crowded Cafe" and "ChatGPT [Turned] Into a Sociopath"
Links for the day
BRICS and Windows: All-Time Lows
Expect many more Microsoft layoffs in years to come
Do No Evil, Do Not DDoS
Sites that attract DDoS attacks because of their message are sites that are difficult to debunk or debate
France is Winning the Race Against Windows
France instructs, then orders, government agencies to adopt GNU/Linux
Not 2.5% and Not 2.5 Billion Dollars for "Hey Hi"; 2 Waves of Microsoft Layoffs Rumoured This Month, July 8th, Then July 22nd (Just Before 'Results')
People there join unions, knowing they will be terminated silently or otherwise
Microsoft Double Trouble With Slop
What does Microsoft even sell at this point?
Based on US Government Sites, GNU/Linux Has Reached About 8% "Market Share" in Desktops/Laptops
Culled to exclude mobile platforms, GNU/Linux would likely be above 8%
TheLayoff.com is Deleting Comments About IBM Offshoring
Meanwhile, rage-baiting Internet trolls and sometimes trolls who paste in LLM slop are immune from censorship
American Independence Needs Independent Media
The American regime's hostility towards media is an international problem
Techrights Was Always a Community Platform
Techrights is about whistleblowers
Phenomenal Growth for GNU/Linux in Afghanistan
This is impressive because for many years it was registered at near 0%
Daniel Pocock Pursuing Complaint in the United States Against Software in the Public Interest (SPI) et al
It seems like the only people who don't support him are those whom he criticises
Gemini Links 04/07/2026: Busy Squirrel, Independence Day Celebrations, PalmOS Programming
Links for the day
Canonical/Ubuntu is Breaking CP (cp) to Help Microsoft Turn Coreutils Into Proprietary Software for Windows
What we could do reliably in the 1970s (before GNU) we cannot do in 2026?
Brett Wilson LLP is Downsizing, Apparently Closing Down the Oversized and Overpriced Office
Address changed 13 hours ago
Free Software Has No Kings or CEOs
The kingdom is a cross-border phenomenon, so national flags and other such symbolism overlook the core problem [...] Free Software can help lead us out of the current imbalances
The United States Lost Freedom of Speech
independence refers to a condition, not an activity
IBM Replacing the People Who Built IBM With Cheaper and Younger Staff, According to IBM Insiders
This is a very common sentiment in IBM
For USA 250 Microsoft is Messing With Our Minds (2.50%) to Distract From Mass Layoffs
The slopfarms contribute to this noise
"Defective by Design" Turns 20
DBD is still as relevant as ever (probably more relevant than ever before)
A Bicycle for the Feeble Mind, or How Computers Got Worse for Productivity (Intentionally)
Many of us still adopt and champion the "workstation" mentality
Links 04/07/2026: Microsoft Tax Haven (Evasion) Tactics, Tobacco Bans, and More
Links for the day
Links 04/07/2026: 2026 Old Computer Challenge and Trying Gopher
Links for the day
SLAPP Censorship - Part 127 Out of 200: Lawsuits by Americans Filed in the UK a Burden on British Taxpayers, No Way to Recover the Funds When Americans Lose Their Cases
Are Garrett and Graveley 'pulling a 4Chan'?
Links 04/07/2026: USMCA (Covering Software Patents) Might Not be Renewed, Slop Bros Try to Pay Weird Al to Endorse Their Scheme
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, July 03, 2026
IRC logs for Friday, July 03, 2026