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

New XBox Leaks Probably Serve to Confirm XBox's Collapse (Many More Layoffs)
It's very much consistent with what many other sites have reported lately
 
Noteworthy Claim That IBM is Firing a Lot of Lawyers This Week (RAs in the Legal Department)
A lot of what they do is patent 'trolling' or lawyering up against their own staff (e.g. HR disputes)
Links 10/10/2025: US Judge Bars Attacks by ICE On Journalists and Protesters; “We Took The Freedom of Speech Away” Says the President
Links for the day
Slopwatch: Serial Sloppers, Google News Gifting Slopfarms, and Fake News/Plagiarism About "Linux"
Google itself is a slop pusher these days
Qualcomm, the New Owner of Arduino, Blasted for Its Software Patents Tax on 'Smartphones'
A lot of Qualcomm's patents are on software. We wrote about this in prior years.
XBox Layoffs Rumours, Downtime, and Criticism From XBox Co-Founder
"everyone is ditching the xbox."
Links 10/10/2025: Honoring The Legacy Of Robert Murray-Smith, Many Articles on the Hey Hi (AI) Bubble
Links for the day
Gemini Links 09/10/2025: October Gothic and Reading Middle Earth Role Playing; C and Ada
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, October 09, 2025
IRC logs for Thursday, October 09, 2025
Links 09/10/2025: Farewell to Jane Goodall, California Bans Algorithmic Price-Fixing
Links for the day
Gemini Links 09/10/2025: Lost Wages and a Saga Of Continuing To Use Palm PDAs
Links for the day
Richard Stallman's Talk in Helsinki is Done. Tomorrow Göteborg.
There are scarce details in Finnish about Dr. Stallman's talk
The Slop Song
The train wreck marches on
LLM Slop/Advanced Plagiarism Flooding the Zone With Capital That Does Not Exist
Many publishers out there still participate in this bubble instead of calling it what it is
Links 09/10/2025: Sacked Microsoft Workers Make "Sackbird", IBM Taps CockroachDB for PostgreSQL
Links for the day
"Happy Hacking Day" Richard Stallman Talk This Afternoon (From 14:00 to 16:00) at Haaga-Helia University in Pasila
Richard Stallman in Helsinki, Finland
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, October 08, 2025
IRC logs for Wednesday, October 08, 2025
Links 09/10/2025: Impact of Microsoft Layoffs, More Data Breaches
Links for the day
Gemini Links 09/10/2025: Autumn Blues and C IRC Bot
Links for the day
Slopwatch Appreciated by Real Authors of GNU/Linux Articles
We do try to keep on top of those things
Upgraded R.R.R.R.R.R. Today
The Web of 2025 is full of garbage, not limited to slopfarms
Freedom From Proprietary Prisons
Forking always an option
IBM's Watson Died in 1956, Now Watson Dies Again
IBM is becoming just a reseller of GAFAM and other stuff
Slopwatch: LinuxSecurity, UbuntuPIT, and Google News
We've also just noticed more slop from UbuntuPIT
Microsoft Says That Constant Mass Layoffs Are Success, the Media Isn't Buying This Microsoft Narrative Anymore
If people in the media feel an obligation to repeat whatever lies Microsoft tells, what point will there be to the media?
Links 08/10/2025: "Mali Puts Free Speech on Trial" And Apple Enforces Dictatorship
Links for the day
Links 08/10/2025: ‘Death to Spotify’ and Law to Ban Loud Commercials on Streaming (Dis)Services
Links for the day
Links 08/10/2025: Real Innovation and Nina.chat is Dead
Links for the day
Links 08/10/2025: Y2K38 Bug is a Vulnerability, Chat Control in Europe a Threat
Links for the day
Microsoft Windows is No Longer an Operating System, It's Surveillance Project
Why is this even legal to preload on PCs outside the US?
How and Why Once-Legitimate Sites Turn Into Slopfarms
Many sites will go offline and many social control networks will shut down once they realise or even openly admit they spend money and time gardening a bunch of bots and slop
UbuntuPIT Became a Slopfarm and Gnoppix Tarnishes Its Own Brand With Slop
It fits all the characteristics of mildly-edited (if at all) slop
Slopwatch: Linux Journal and Other Slopfarms
GAFAM needs to go the way of the dodo
Gemini Links 08/10/2025: "Seek Seek Revolution" and Gradient Backgrounds
Links for the day
Qualcomm Arduino Takes Aim at Raspberry Pi
Qualcomm is a Microsoft partner
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, October 07, 2025
IRC logs for Tuesday, October 07, 2025
Stagnation of the Economy and What Free Software Can (or Could) Do For It
If your economic model is based on a pyramid of lies, it won't last very long
Social Control Media is Sinking
it would rightly seem like the era of centralised "social" sites (they're not social, they're about controlling the users) is ending, not overnight but gradually