Bill Gates was recently asked on a FOX program regarding Xbox, and while everyone clung onto his statement about a spinoff, it misrepresented what he had to say about Microsoft’s gaming business.

Actually, Gates said he would support Nadella if the new CEO decided to spin it off. Microsoft, it turns out, has a plan in place for PC and Windows gaming

Here are excerpts I’ve picked out from that segment of the program, which you can watch here:

RE: Satya Nadella

  • Satya truly free to lead Microsoft
  • He has already had a great start, and uses more of Gates’ time then previous leadership did
  • Satya is reexamining Microsoft and making a lot of changes
  • Gates is excited to have young blood, new thinking

RE: Xbox

  • Microsoft is taking PC gaming & Xbox gaming and bringing them closer together
  • Gates touts the power of chips in these gaming platforms
  • Gates is not making any decisions. It’s up to them, AKA, the new leadership
  • Microsoft has an overall gaming strategy
  • Gates would ‘absolutely’ support a spinoff, if Satella decided to do it

Now, to place it in even more context, here’s Gates’ following comments, regarding Surface. This is interesting, not only because Surface is arguably a gaming platform, but also because Gates ultimately talks about how Microsoft looks at their hardware businesses:

  • Microsoft had to take a writeoff on the Surface
  • They made different versions in different volumes, and learned the higher end version is more popular
  • Microsoft’s hardware business is never going to have pure profitablity, AKA they think it will never make money on its own
  • Investors need to get an understanding of where the cogs are going, in terms of hardware and datacenters (Bing), and they have to watch it more closely than when MS was software only

Interesting stuff, right? Gates has outlined a line of thought to justify making Xbox even if it never sells well. Still, this does not ensure  Team Xbox a secure  spot in the company, so could a spinoff ever be in the works? Who knows? We will let you know if news on that end ever comes to light.

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