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

Microsoft Demands That Staff Keeps Silent About the Mass Layoffs
Way to cause anger and ensure whistleblowers will go to the media
ITwire Became Slop and Spam
The site still exists, but it's not what it used to be
W3C Died 20 Years Ago, Now We Live in a Post-W3C Era. Linux Foundation is 'Slop Bros', Now Linux is Becoming Unfree.
Torvalds is on the same side as Epsteingate
Linux Kernel to Hide the Slop to Avoid Backlash, Suggestion Made by Former Microsoft Employee While Another Former Microsoft Employee is Worst Slopper/Culprit in Linux
Did Torvalds listen to slop antagonists?
Microsoft Shutdowns in Africa, Mass Layoffs Also Reported This Week
further shutdowns
 
IBM's Anderon is Like Theranos, But Will Anybody at IBM or Anderon Be Imprisoned for This Billion-Dollar Scam?
Will anyone ever be held accountable for it?
Microsoft XBox Won't Survive, Microsoft's CEO for This Perishing Business Turns to Slop
What the founder or father of XBox said about Asha Sharma earlier this year turns out to be accurate
Links 14/10/2026: So-called 'AI' Giants Go Bankrupt, "Military Will Hack the Election"
Links for the day
Indoor Season
we have more planned in order to improve navigation, accessibility, and workflows
Microsoft Has Had Mass Layoffs in Azure Every Year Since 2020 and the Bleeding Continues Because It Misreports Earnings There
This is a bad week for Microsoft
Microsoft's International Mass Layoffs (Asia, Europe, Africa), Now Vietnam
A crisis that Microsoft is unable to hide
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, October 13, 2026
IRC logs for Tuesday, October 13, 2026
Gemini Links 14/10/2026: Ceiling Fan, Fascism, Democracy, and Slop Being a Huge Bubble
Links for the day
Reports of Stress and Layoffs at Microsoft, Some People Laid Off Under the Guise of "Ban" (Gift From the Administration) and Many Sacked in India
"pip and gvsa" layoffs in India
We're Way Past the Point Where Companies Announce or Declare Mass Layoffs
Layoffs are becoming hidden
Solicitors Regulation Authority (SRA) Besieged by Blind Justice UK, Politicians Increasingly Involved
"Today we have written to Members of both Houses of Parliament"
Vance Has Helped Microsoft Implement Secret, Silent Layoffs
Nothing excites Microsoft more than means by which to discard many employees without an obligation to tell shareholders about it
To The Register MS, Microsoft is the Only Brand That's at the Main Menu!
Consider that the Editor of The Register MS is a longtime faithful Microsofter
Microsoft's Collapse Will Continue, It's Drowning in Debt Now
Expect many more mass layoffs
Legal Self-Sufficiency
The more impact our work has, the more legal bullying will come our way
Plans for Winter in Manchester and London
From many perspectives, we're satisfied with the certainty and robustness of UK hosting, it's just that we're not yet robust/resistant enough to DDoS attacks
Customer Support Experience in 2026
Because the customer is never right
Links 13/10/2026: More Plagiarism Lawsuit Over Slop and AirAsia Needs State Help
Links for the day
Intercontinental Brigading - Part II - An Outline of This Series
What's to come
Gemini Links 13/10/2026: Dopamine Nation, Planner and Fatigue, and Moderators
Links for the day
Links 13/10/2026: Norway Fines Microsoft and Cops Can Creep on Airbnb
Links for the day
When Computers "Expire" Because Certificates Expire
People who promote Restricted Boot are liars. They lie for a living.
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 12, 2026
IRC logs for Monday, October 12, 2026
Gemini Links 13/10/2026: Modern Science, Joplin, Luddites, and Lots More
Links for the day
Mass Layoffs at Microsoft Again (October 2026), So-Called 'AI' Units Impacted Because Slop ('AI') Has No Real Future
So much for the future of Microsoft being "hey hi" (AI)
European Readers, Please Contact Representatives (in One's Nation) Attending the Administrative Council Meeting
Normalising cocaine in in Europe's largest institutions (the people running these) is a slippery slope
Network Plumbing
We hope it'll help speed things up
For Half a Year the European Patent Office (EPO), Europe's Second-Largest Institution, Has Had Water Problems in the Toilets
And it's not being fixed
Intercontinental Brigading - Part I - The Failed Attempt to 'Swat' Our Series About the Attacks and Crimes Committed Against Us
This coincided with threats to our lives
Links 12/10/2026: Strike on Riyadh and GOP Pays Voters ("Surprise $90 Social Security Payments")
Links for the day
Microsoft's XBox CEO Spoke of a "Return to Growth" Last Week, But XBox Sales Lowest in XBox History (Quarter of a Century)
Microsoft's XBox is dying. It's a countdown to nothingness.
Links 12/10/2026: Shopify (Slop Booster) Has Security Issues, "Russia’s Yandex Says Data Center in Vladimir Shut Down After Drone Attack"
Links for the day
"My Hands Are Shaking While Writing" About IBM's Mass Layoffs at Red Hat (Bluewashing)
Shame, shame, shame on the corporate media for not covering Red Hat's layoffs this year
Taking a Look at the Last Articles of Bob Cringely at Forbes, They Were All About IBM and Its Collapse
It's all about IBM
Microsoft Windows Causes Problems (and Delays) to LibreOffice and The Document Foundation
Nothing would please Microsoft more than Windows curtailing the development of LibreOffice and adoption of ODF
So Far This Year Microsoft Windows Lost a Lot of Ground in China, GNU/Linux Gaining at Its Expense
GNU/Linux will soon exceed 10%
Lessons of Margaret Hamilton (Software Engineer)
Stop abetting men who attack women in the sciences
RIP, Bob Cringely
He was too young to leave us, his articles were still brilliant and his mind as lucid as ever
What is "Computer Science"? It is What Broligarchs Reject.
Nowadays some people call themselves informal terms or made-up titles (with terms like "AI" or "big data" or "data" tossed into the mix)
Linus Torvalds Has a Conflict of Interest Regarding Slop
Linus Torvalds is paid by the slop pushers
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 11, 2026
IRC logs for Sunday, October 11, 2026
Africa Sees GNU/Linux Exceeding 5% "Market Share"
It wasn't always like this. It used to be measured at 1 or 2 percent.
Brigading Against Women - Part XXVII - Americans and Public Executions
"People who work for Facebook / Xitter / Bytedance's Tiktok / Microsoft / Oracle / IBM / Apple / Uber / Lyft / Wolt / DoorDash / AirBnB / Bolt / and so on are doing some world-class projection when they have the audacity to call others Bad People(tm)"