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July 18, 2007 9:48 AM

Xbox: Moore or Less



Late yesterday, Microsoft announced that Peter Moore, who heads up Xbox and Windows for Games, will leave the company. Now, why is that?

Moore had been one of Microsoft's rising stars. Xbox 360 is a big hit for the company, and the Xbox division's unorthodox approach—at least by Microsoft standards—shows the way for the company's other business groups to follow.

Moore is a huge loss for Microsoft, but potentially an outside gain as well. Moore is headed to Electronic Arts, where it wouldn't hurt Microsoft to have a former employee as an insider.

Some irony: Don Mattrick, a former EA president, will assume Moore's role.

Console Lifetime Sales

Some bloggers have suggested that Microsoft is forcing out Moore. I don't see how. The speculation derives from the recent Xbox 360 console debacle, for which Microsoft took a $1 billion-plus charge. Timing is coincidental, methinks. Moore got an offer he couldn't refuse.

Also, the departure terms appear to be quite friendly. Mattrick assumes his role at the end of July, while Moore will remain with Microsoft through August to help with the transition.

"Peter will certainly be missed," Robbie Bach, president of Microsoft's Entertainment and Devices division, said in a statement.

Bach's statement strongly contrasts with Microsoft's curt June 2006 statement announcing the departure of executive Martin Taylor, who was forced out. Moore leaves of his own accord and in good standing. Now, Microsoft will have two allies in wooing EA for good Xbox games: A former EA executive at Microsoft and former Microsoft executive at EA. If Moore's departure is a cloud, the EA connection is the silver lining.

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Comments (5)

Ed T :

"[the resignation of] Moore is a huge loss for Microsoft"

LOL! - Xbox is a huge and ongoing loss for Microsoft shareholders. Five years and $5+ billion dollars later, this turkey product still hasn't turned a dime for shareholders. Ballmer, Bach, and Moore spin happy-talk tales about profitability, but it just keeps slipping further into the future.

Moore is no loss. I say good riddance, one down and two to go.

Paul :

"Xbox 360 is a big hit for the company, and the Xbox division's unorthodox approach—at least by Microsoft standards—shows the way for the company's other business groups to follow."

Are you friggin kidding? Xbox has lost nearly $6B and is still unprofitable. If you think that's a big hit or a model for other business groups to follow, then clearly you need some remedial business training.

chips b malroy :

The Xbox360 has been a real problem for MS, and a lot of people who own one, So far from a profit standpoint the Xbox is a failure, with more red ink to come.

"[the resignation of] Moore is a huge loss for Microsoft" Not really any loss at all for MS. But the one billion they are spending on the so called extended warrenty for the ring of death is a loss. Which brings us to the real problem of the Xbox and MS. When MS had problems with the Xbox360, they went into a defensive mode, (deny and problems) and to some extent, they are still in that mode. This is still a problem, until MS does a recall on all the defective Xbox360 products out there, and replaces both the badly designed "ring of death" overheating problmes, but also the disk scatching drives as well. The new replacement Xbox360's need to be good machines without design problems. MS is not doing this. And because of this, it will cost more down the road when the EU comes after them.

"Xbox 360 is a big hit for the company, and the Xbox division's unorthodox approach—at least by Microsoft standards—shows the way for the company's other business groups to follow." Actually, the Xbox360 is a big hit for MS, and is the one thing that evenualy they might turn a profit on in the long run. But not in the short future with all the current problems, and a management at MS who still will not own up to its current problems.

And now the witchhunt, who cost MS all this money fixing Xbox360, and who did not fix the bad design? Was it Peter Moore? Doubt it, or his departure would have been harder. Be he hard to go, too many questions now at this point. The bad decisions when the problem became clear, were further up the feed chain. How far up the ladder, is anyone guess, but clearly far enough so that nothing will be done about it.
As far as the Xbox360 division as an example of what the rest of MS should try to be, I think they already are doing that to a limited amount. The Zune is a real market brick. Vista is perhaps the worse OS that MS has ever released. If anything, the thinking at MS need to change, and if or when it does, consumers will be better off as well.

chips b malroy :

And article By John C. Dvorak, on the XBox360 that may just be part of a bigger strategy of MS making its own line of PC's.

http://www.marketwatch.com/news/story/microsoft-roll-out-pc-soon/story.aspx?guid=%7B189A57BB%2DD76B%2D4C81%2DA822%2DE728F1EB1C40%7D&dist=TNMostRead

Dvorak is a know MS admirer of sorts, so he seems to get it wrong a lot. Still, MS does have the money to go into a hardware line of PC's should it decide to. Although, if they design PC's like they designed the XBox360, who would want to buy one?

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