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Is Microsoft getting out of the Xbox Music and Video business? Nadella suggests they might (Updated)

Readers of this site know that Microsoft's Xbox Music and Video are good services at their core, but many speed bumps keep them from reaching their potential. Whether it is stiff competition from Amazon and Apple or an awkward software experience, the Microsoft teams behind both services have their work cutout for them. Toss in the rebuilding attempts at the Xbox Music app for Windows Phone 8.1, and many consumers are left frustrated.

In yesterday's earnings call, Microsoft CEO Satya Nadella dropped a strong, but subtle, hint that Xbox Music and Video may be on the chopping block.

Quoting from the transcript, Nadella notes in passing:

"With our decision to specifically focus on gaming, we expect to close Xbox entertainment studios and streamline our investments in music and video. We will invest in our core console gaming in Xbox live with a view towards the broader PC and mobile opportunity."

The news of the Xbox entertainment studios shutting down came out last week as it was part of the general 18,000 layoffs from the company. The potential of Xbox entertainment studios was never realized, cut short before it had a chance to rise or fail. One could argue that Microsoft producing their own shows is veering dramatically off course for what is essentially a software company, making this the right – but tough – decision for Nadella.

However, the part where Nadella pronounces that they are streamlining their "investments in music and video" is troubling. As Microsoft watcher Paul Thurrott commented on Twitter on what "streamline" means he observes it "…doesn't mean maintain or expand, for starters."

Nadella seems to be pushing Microsoft back into its primary mission, and for Xbox One that is pure gaming. Microsoft shuttering Xbox entertainment studios is sensible, even if the prospect of a hit show is enticing (see Amazon and Netflix's success with producing their own series). Nevertheless, Xbox Music and Xbox Video, both of which grew out of Zune, seems like a natural extension of media in the living room and even more so for mobile. Nadella appears to be second guessing their investment in those services, calling into question their future. At the very least, Nadella is curtailing that group within the company.

Microsoft is undoubtedly in a tough position here. Companies like Amazon and Apple have already had a lock on streaming and music purchases. Toss in streaming juggernauts Spotify, or Pandora, and the argument for Xbox Music is a tough one to make. Is Microsoft stretching itself too thin just to reinvent the wheel? Better yet, what is the argument for Xbox Music and Video in terms of actual advantages to end-users (versus competing products)? Up until now Microsft has not differentiated themselves enough from their opponents, giving consumers little incentive to move forward.

I know many people have half-heartedly joked that Microsoft should just give up on Xbox Music, especially after the app situation on Windows Phone 8.1. Well, you may just get your wish.


Update 2:30 PM ET - Microsoft's Joe Belfiore has taken to Twitter to assure that his team is still working on the software for Xbox Music and Video:

"Don't worry, no plan to drop Xbox Music/Video-- my team builds these key scenarios for tablets, phones, PCs! And Xbox team does on console...In fact, we have one of our bigger/stronger Xbox Music updates just a couple weeks away…you're gonna like it. Perf, fixes and some features!"

In other words, the software that powers Xbox Music and Video will go on, though questions about Microsoft's commitment to the services still remain for some.

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Reader comments

Is Microsoft getting out of the Xbox Music and Video business? Nadella suggests they might (Updated)

600 Comments

Of course, Nadella could have simply been referring to Nokia's Music service. But I think it would make more sense for Microsoft to let a more interested party run the backend of the music and video apps.

If the service wasn't so expensive, id use it. But they need to just include it in Xbox Live, because nobody wants to pay two expensive Xbox subscriptions...

If only we could add flash like you can on an Android phone, then we could enjoy Amazon Prime content on our phone.

Yeah they can even do the free shipping thing with the Microsoft Store. One subscription for Xbox Live, video, music, Skype and free shipping from the MS Store. I've never understood why they didn't offer service bundles to customers. I think that's the best way to get people try out the MS services that they would otherwise probably go without.

They do then people complain about all the stuff they are paying for but don't want.  I personally love my XBMusic subscription and I also have gold as well.  If I had to use iTunes I'd never listen to music probably. I like one account to maintain all of my purchases and subscriptions and it being on every device I use pretty much.

Except no WP8.1 app for it. Also, would like to see Prime include linked accounts as I use Amazon for business (purchasers) and personal use (video and kindle). I agree though, if Xbox went down this route it around be a lot more enticing. I do however love Xbox Video. I know you pay per film but the films are far more current than Netflix or Amazon (formerly Love Film) and that to me is a key differentiator. Only wish they could include this nervous l marvelous library within a prescription (Xbox Live Gold)

You could say that if that was the only service they were offering. But, as I package, it is pretty good. Also, it probably depends on your music style.

I have Amazon Prime for the shipping and have found that Instant Video has a little different variety than Netflix, so I watch both, even though some would say that Instant Video sucks compared to Netflix. 

From that perspective, I have also been checking out Prime Music the last week or two and already have a 100 song Classic Rock playlist and a 100 song Rock playlist. Sure, they don't have everything I wanted, but it's nice having playlists that I can just turn on in the background when cleaning or whatever and it's included in a service that I'm already paying for.

They should make it like MixRadio!  I use MixRadio because it is free.  I tried Xbox Music, but couldn't justify paying $10 a month for it.  I think the streamlining is about the spinoff of MixRadio.

Bing Rewards will pay for an XBOX Music subscription. 940 credits for a 1-month pass. (950 for non-Gold members)

I agree. Xbox vid, music should all be included in a single Xbox live subscription. Somewhat like amazon. There would be significant value there and a compelling reason to use these services.

Good idea! Maybe just market a unified "Microsoft One" account that gets you Office 365, Xbox Gold, and Xbox Music.

True, seems like gold members get very little. The free games are mostly old. And, so on and so forth...

On XB1 they are pretty new (some are release games like Guacamelee!) so very nice.  And getting 4 games a month isn't horrible.  I mean its only $5/month if you pay full retail I think so It still amazes me that they give games away at all, it's got to be a serious loss unless they can convert some of those to expansion sales...

 

I think this is what they mean by streamline....Xbox Live subscription should get you music and video...... Basically, cut out Netflix, and Pandora/Spotify/Beats

How is it expensive its library is superior to any other service and its available on my Xbox one, my phone, tablet and PC for offline and streaming use for the same price as competitors

Excellent point that he may have meant, and in the short term for sure did include in his statement, divesting Nokia Mix Radio.

It would make more sense to keep the one that doesn't suck hard.

MixRadio is the only decent music app on WP right now. 

 

I would hope that he's speaking figuratively and not literally because I like having the ability to stream music to all my devices. I've tried Nokia Music on my tablet and in order to receive all the features, you have to buy a subscription.

I think it would be better suited for MS if they corralled all the people who worked on the Zune application and the Zune software and have them work with some people who worked on the Nokia Mix application. It would be the best of both worlds. I prefer Xbox Music over Pandora or Spotify and that is just my personal preference, but to kill the division off is ludicrous especially when Apple just spent $3 Billion to gain a foothold in the music streaming business. 

They should form some alliances with more record labels, recording artists and compete head to head with iTunes and Amazon Prime (who is new to the streaming service game BTW). I don't know if GooglePlay has streaming capabilities or not.

I sincerely hope he was just speculating and not meaning to go forward with such a decision.

Google also have a service. I love Xbox Music and Xbox Video. I always rent videos once a week on my Xbox One and pay 9.99 a month for my music pass subscription. Nadella ruined Microsoft

Nadella is the devil. I was saying this guy was gonna ruin Microsoft. It's like he's fighting tooth and nail to live in the past and not move forward with the future. I hope he disappears, seriously.

He's trying to cut off all the branches of MS, thinking that the trunk will grow better.....but really he is just killing it

You don't need to be so harsh. He's "lost my vote" as favorite CEO already, but I wouldn't say he's the devil.

I will admit his vision for MS is looking less like a "Mobile First" Microsoft and more of the Microsoft that would of been had they not made Windows 8 & Windows Phone and rather shifted to releasing products on other platforms (AKA the 'old' Microsoft, only now with Office for iPad). I'm not particularly thrilled about threshold, nor am I a fan of how Silverlight is slowly being put out to pasture. So far everything that's been going on this past year with Microsoft disheartens me...

They'd have to make a business decision and decide if WP is profitable for long term business. Personally, I feel like if WP is/was going to be successful it should have grown a lot more by now. I am personally disappointed in it's low market share and would understand if they looked at that and focused more on their core PC/mobile OS. Although when threshold comes out and the OS's are the same, I think that it will become easier to keep WP alive.

He's just trimming the fat, the ugly smelly fat.

Xbox as a whole would be next if XBone hadn't just release.

Xbox was a money dump for like 12 years. Only in the last year or so has the Xbox division even been profitable. So why would they kill off something they have invested over a decade in, when it finally starts netting them money?

XBox video is and has always been in some dire need of a subscription service, just like Netflix and Amazon Prime. XBox Music has always suffered from lack of exposure, promotion and any advertising dollars. The service is built, the backend is built, the the TV channels should go under Xbox Video and Microsoft needs to better partner with labels to make sure new releases also include the XBox Music brand right next to iTunes. It's like they have no idea how to use the infrastructure and branding that they've created. They are their own worst enemy.

Streamlining doesn't sound bad. The services suck now and why try to be a radio service or music selling service when wet have so many of those already? Good for Nadella but I hope streamlining at least means we can use these base apps for watching and listening our music/videos without hitches once and for all... Does anyone really need a music pass? It would be nice if they at least let us make our own cloud home servers and play music from manual libraries...

Yeah the backtracking on the Xbox One to make it "Just another console" was frustrating and annoying.  Now the backtracking on integration and the core power of Windows Phone makes it "Just another phone".   I bought a Windows Phone originally for Zune... and then they released this steaming turd of a Music app for Windows Phone 8. 

I'm seriously almost out of reasons to bother with Microsoft's products. 

Im with you on that... but think for a second. Satya is referring to the SERVICE of what is essentially Xbox Music & Video. If they chop that off we STILL have the software apps (duhh we need apps to play music and video on our phones lol)

So maybe the app itself can be as feature rich as Zune was :) sure we don't get the streaming service but it sounds like many of us just want a bad ass app that can tie into ANY service we choose.

The hubs are one part of why I fell in love with WP7. They all made sense. Now they're all slowly dying and WP is slowly becoming like it's competitors one little bit at a time. Kinda sad honestly.

I agree. Slowly they are moving to the app section. Photo hub is changed, skydrive, slowly one by one.

Right. But yet, I loved the old hubs obviously (ignoring the playlist creation hassle). New Xbox Music app has improved but not that stable yet. Personally speaking, I was a fan of all the hubs that were in 8.0. Basically the photos hub. But now, it looks more like Android. I wish the old hubs were back *_*

About the Photo Hub, I totally agree. They removed the paronama view from both Photo Hub and the Store, which distinguishes themselves from other platforms, and make the new hub cold black... Honestly, I think Microsoft has stopped making Windows Phone different after 8.0...

You're right. The photo hub panorama was awesome. The new black background SUCKS!! It's like a rev1 app. Why does Microsoft keep shooting themselves in the foot?

No they are not shooting themselves in the foot... THEY ARE SHOOTING THEMSELVES IN THEIR F****** OWN FACES!

Exactly, Panoramic view was the reason I loved the old Photos hub. I wish I could use it somehow (without losing 8.1)... Just as I can use the old Music Hub using "Music Hub Tile" app

I can not figure out why they continue to jerk everyone around with these lame UI changes. They are not subtle changes either and they always result in a feature being taken away, not added. No wonder we're in the mess we are. Who is approving these changes?

Umm... I don't remember it correctly but I remember an explanation from MSFT as to why they changed the Photos hub. They told most of the clicks users made in their period of research, were all gone for "Camera Roll". So they reorganized the Camera Roll photos position such that you can see them at a glance after opening the app. But what was wrong with the UI is another question. They thought a background image under the photos tiles might look messy, so rather made it black (I think so). But I guess, they could do better. They could just make the background image a little darker (with black opacity effect, same as you find on lockscreen wallpaper!). In that case, there won't be any problem if the color of photos match with those of the background image.

Yeah I read that too, at least I knew why they do that. Layouts changes are okay, even quite useful, but WHY THE F*** ON EARTH COULDN'T THEY EVEN LEAVE A SINGLE OPTION FOR US?? Increasing in system's requirements? LOL! These Hubs are what disappoint me the most in my first time I put my hands on 8.1.

Perhaps someday (Windows Phone 8.2 or so) they will simply disable Transparent Start Screen just because it looks distracting? ;)

You are right, Gautam, that's what THEY thought, but that's total bullsh*t.

As if it was only about to come as fast as possible to what you aim for.

 

Sometimes it is about to ENJOY the way to it.

 

Another similarily absurde statement would be: We managed you don't have to undress the person you adore, you dont't have to do much to come immediately to an orga*m. Now, it's one click less!

 

WE ENJOYED THE PANORAMA VIEW OF OUR FAVOURITE PICTURES AND WE DON'T GIVE A SH*T FOR ONE CLICK LESS!

I think they should keep them separate but integrate them back into the OS. They made standalone apps for more regular updates but these bug fixes wouldn't exist if they had kept them built-in. One update per GDR would be sufficient to add features.

lol... umm worst case scenario they drop the SERVICE NOT THE APP.  If their devices don't have a native music/video player no one will buy their devices.

The service what I'm talking about I started buy all my movies from Xbox video since there cheaper than blurays and I own win 8 ,3 Lumia phones ,Xbox 360 & one

I'd have to agree here. I use Xbox music and Xbox video because it can be used for everything.
They need to lock people in to an eco system properly. People don't leave Apple even if they're bored of it because all of their content is there. I use both services frequently across my surface, phones and Xbox One. All this restructuring makes me doubtful that I made the right choice to move back to MS two years ago...

Completely agree with HalfBlackCanadian! I use xbox music across all my windows devices including my xbox one and WinPhone. The services themselves aren't the problem, its the visibility and apps pushing the services that needs work. Seems to be a step back if they do cut back on them. I wouldn't be impressed!

If they drop the service what will happen with the bought movies and the licences? I have bought a few myself.

My problem is the Xbox music app... It stinks! They should have worked on making the app itself play music really well then added the streaming part. It is missing things a good music player needs...

That's the problem though for those who stream only and don't own. Of they drop Xbox Music unlike unlimited streaming, what are my choices across all my Windows devices. It will make be seriously reconsider my eco system...

This is the only reason I'm an Xbox Music subscriber, its the only option that will work on my WP, PC and Xbox One.  If they want to kill the service it doesn't bother me, just allow other options on Xbox One first!  I much prefer Rhapsody to Xbox Music on WP and PC - if a Rhapsody app is ever allowed for Xbox One I'll be ditching Xbox Music before Microsoft has a chance to kick me out anyways.

I have 5000+ songs through my Xbox Music Pass. Paying a little a month is a great deal for me. I download roughly 3 albums a month with it. If Xbox Music shuts down I will have to resort to the more expensive Beats Music or Spotify, or I will just illegally remove the DRM protection from all my music and pirate everything like I used to. Actually I would probably be so pissed off I would switch to a lagdroid.

This. I have Xbox Music synced across phone, computer, and XBox One. What are the options for streaming music on XBox One, much less syncing? I don't know, because just how well Xbox music works, I've never had to look for alternatives and I don't want to. They take that away, and that would be a major hole in their ecosystem.

That being said, the wp8.1 music app has a Long Way to go before it's really back to good. It's almost ok. But please, fix it don't toss it!

Check out WiMP, pretty decent, I think. Not affiliated, just a customer.
They have apps on all major platforms, including Windows Store. I run in on my desktop using ModernMix. Quite nice.

That is EXACTLY how I feel. Everything I liked about Windows phone is being stripped away in front of my eyes... And they wonder why market share isn't increasing!
Now my only difficult division will be Android or iPhone

Agreed. I think I'm going to have to go with Android, unless iOS gets some major updates to the start screen. I can't stand the grid of icons.

i swapped my 1520 for a moto x, sad but msft is ruining what i liked about wp, and google is improving a lot. oh well sad msft

Totally with you. Ever since installing WP8.1 I've been counting the days until I can switch to iOS or Android. It's actually quite refreshing, knowing I can choose the best phone/platform and not be restricted by my previous ecosystem choice, because they've killed it for me.

I will likely leave MS entirely as they are making me lose confidence in their products. I hate Android and I'm not a fan of iOS or OSX but I don't see iTunes shutting down any time soon. They seem like they want to go the old IBM route of just becoming an enterprise company just as IBM is teaming up with Apple to get some of the consumer pie.
It really sucks if that is the case because I have been a loyal and enthusiastic MS consumer for 19 years and this could be the last disappointment I can handle from them.

I am jumping ship to amazon. They have everything in one roof plus I am a prime member. Nadella is killing everything. I don't know how he plans to survive

If I jump, I will likely also go to Amazon.  Their music tends to be the cheapest and I already use Kindle for my books.  The Fire phone looks interesting... The Fire tablet needs more oompf, but It might get there soon....

He doesn't plan to survive. The model is one seen many times.  Cut everything that is not a major profit line, regardless of potential; boost short term numbers; layoff more than is healthy; make short sellers happy; and then try to figure out what happened after you replace the CEO in a couple years when the company is dead in the water with collapsing marketshare. 

Totally agree, XBox Music (maligned as it maybe) and Video are the only reason I need my XBox anymore, I haven't bought a game since Halo 4. Drop those two surfaces and the value prop of the total MS ecosystem drops like a rock, it's why I wanted a Surface instead of an iPad or Android tablet. No native music and video and there will be nothing keeping me from bolting for iOS.

Xbox music and video is one of the main reasons I chose WP. Now I have xbox music pass with loads of tracks as well as purchased tv, videos etc.
So what now? Access to all of these will stop?
So not happy if this occurs. SERIOUSLY!

Also, going WP influenced and made it easy to move from Android and get a Surface. It was the ONE package that bought me here. No one package then going somewhere else becomes easier, SERIOUSLY!

Has anybody been listening to Nadella? He's interested in partnerships with other companies. All Balmer did by trying to copy every innovative service was alienate such arrangements.

As far as Xbox Music is concerned, if it is cancelled, then a few things might happen.

1. You start over with a different Music subscription service from scratch.

2. You start over downloading all those songs from Napster/Limewire/Kazaa/eDonkey/uTorrent/Rapidshare/etc/etc/etc

3. Microsoft hands off Xbox Music subscriptions to a third party like Rdio/Spotify/Amazon Music/Sony Music with your library intact in exchange for purchase of Azure bandwidth, Server licenses, SQL licensing, etc.

IMO, option 3 looks like the ideal & is probably what is being actively sought after. So fret naught.

Or 4, find another provider of phones, tablets and services that are not at risk of being cancelled, sold off or closed!

You just hit telcos, hardware manufacturers, software suppliers, and content providers in one sentence;;;;;;;;;;;;; applause;;;;;;;;;;;;; 

This is about MS. I bought a WP and then a Surface to take advantage of the ecosystem. I also got Office365, because of the ecosystem. I subscribe to Xbox music, because of the ecosystem. I moved from Android because MS was a better ecosystem.

Now start closing down parts of the ecosystem and people will look elsewhere, as many comments here support. So the short term gain of closing down Xbox music would lose to overall loses across the ecosystem.

Looks like MS are concentrating on enterprise. With Apple currently teaming up with IBM for the enterprise market, Google, Blackberry and Amazon contending too, as well as many others, it seems futile to alienate the consumer market.

Seems the Nokia/Blackberry lessons have not been learnt here!

Right. Apple is partnering with IBM. But who is MS partnering with on the consumer side? Their biggest push consumer-wise for over a decade has always been the television. So what has that produced?

Media Center? Unenforced cable-card legislation? Comcast TV app on Xbox 360? ATT Uverse receiver app on XBox 360?

Windows Embedded will be taking a hit as many of the telcos have moved away from Windows Embedded IP TV to inhouse solutions. Comcast has the X1/X2. Dish partnered with Slingbox for the Hopper, Sony for the PS3, and Apple for tablets. There's still no Windows app from Dish.

The big hope for MS on this front would be for the ATT/DirecTV merger to go through and then being able to ink the deal to provide the OS for their next generation of set-top boxes perhaps through IoThings initiative.

That's the thing about the "ecosystem", its so fucking large. It is impractical for one company to attack it on every front. Nadella is scaling back planned penetration on other fronts before they're too heavily invested. I imagine he would scrap WP if....

O wait. WP has been scrapped.

Soon there will just be Windows. It will soon encompass the full gamut of devices

He's making the right decisions with the right people surrounding him. After all, it is a team effort

Woah, that's too US centric for me. What about the rest of the world, like the majority of the planet. Unless MS is going USA only, now there's a way to streamline!

I agree, I bought into WP7 because of the Zune music player. I love music, I download three to four albums a week usually. If the service were to disapear I would have to re-evaluate my stance with windows phone. I mean dont get me wrong I love my 1520 but for me the core service has been the music for me. There are other phones out there with great displays and amazing cameras that will give me acces to the internet and get my email. I'm not sure if continuing to feel like a beta tester for MS would be worth it without the music service. More time than not I am waiting in anticipation for services other phones have brought to the market.

Same here. As long as we get very little support on WP from other services, what are we supposed to do?

Dont worry this story seems to be click bait as nadella also talked about "streamlining" the operating systems which doesn't mean they are going away. "We will streamline the next version of Windows from three operating systems into one single converged operating system for screens of all sizes," Nadella told press and analysts listening to the call.

The fact the CEO does not know the company has more than three Windows OS platforms is reason enough to worry. Windows, Windows Phone, Windows RT, Windows Embedded, Windows Server are the short list of OSs.  What you should also note is that streamlining the "three" does not mean all platforms will be supported. Barring internal power play, streamlining always means the same thing and it does not mean anything good. 

Me too, all the way back to the OG Xbox in 2001 and it's ability to rip music from CDs and build custom soundtracks in games that supported the feature. It's a shame. That said, and as much as I love Xbox Video, and purchase a lot of content there, it's a non-streaming service in a streaming world so I can see what the problem is.

I would say Microsoft's biggest customer problem is that they have a history of generating ideas with great potential. Drifting from the vision along the way, and then cancelling them. It could be true, or it could be lies. But this is unfortunately the price they are paying for their past actions.

I say cut a deal with Amazon to be the prime provider of music and video (and allow all Xbox Music and Video purchases transfer over to Amazon) and cut the departments. But only after a six month transition period to allow people to get used to the new set up.

This is about the only way I could support this. Of course, it would have to mean that Amazon would give top tier streaming and apps to Windows and WP. So far their support of the Windows platforms had been pathetic. No music and video support, and their kindle app is hopelessly out of date.

But how about the integration into the OS as well as purchases and Windows OS integration..... If Microsoft had some your of togetherness this could be avoided I don't understand how they can be so disorganized to have once been so successful (not to say they still aren't but they aren't the leader they once were) and still be stuck a large company.... This is ask just organizational things.... It's not like we are asking for the dopest most crackest service just keep updating and and feature as well as adored boost. Cutting services like this just causes panic and distrust in the Microsoft as a whole

I could handle that. They have to have something lined up to take their place if they're going to drop their own services, or they are just telling people to bail on their own platforms.

Yes, I buy all my music from Amazon and would be more willing to buy video there as well. But they need a transition plan for those that bought into the XBOX music/video, and we need a DAMN AMAZON app!

Well, that would be included in the deal. Microsoft transfers all those customers and accounts over to Amazon and Amazon gets their apps preinstalled on every Windows and Windows Phone device as the default media players.  In return, Microsoft gets a small percentage of every purchase made within those apps.

I like that suggestion. I buy all my music from Amazon anyway. I've been using Amazon Music since its inception, which was before I used Windows Phone. I never bought anything from Zune (never owned a Zune) or Xbox Music (never owned an Xbox). Amazon was my choice since I didn't like iTunes, but I use Amazon for most of my shopping in general.

I got that vibe too.  Like he didn't say it's being chopped, but 'streamlined'.... sounds more like get your butt back to work or else. lol

Streamline at the very least sounds like cutting back, curtailing and not investing further resources into it. He is clearly referring to Xbox One and the idea of them being a media entity. His decisions are pushing back against that, focusing on gaming, not entertainment.

I do not think he mans they're quitting video/music anytime soon, but rather it is taking a back seat. Considering they are far behind in that market, that is definitely not a good thing if you like using their services.

Long term though it does call into question their commitment to Xbox Music and Video, after all, he didn't say "we're doubling down!" and going all in to take on the competition, he inferred the opposite.

This is disappointing. For the amount of money I've put into xbox music (two years worth), if they are cancelling their service, they better have a proper way to transfer over to another service or give some compensation. Also sitting here waiting while they tinker and pull and break and fix xbox music, which used to be excellent, to now being subpar, if bearable, seems like a waste of time now if they are just going to pull the plug on it.

Oh Daniel did he infer they are cutting back on their operating systems too? "We will streamline the next version of Windows from three operating systems into one single converged operating system for screens of all sizes," Nadella told press and analysts listening to the call.

Good job writing this click bait article

....do you not know what streaminlne means in this context?  Seriously, it takes all of a minute to look it up if you don't. It means eliminate generally by the close of the next fiscal year.

I can only laugh. Microsoft has been so focused on supporting competing platforms they forgot to develop their own and now are in a tough position? Who didnt see that coming (obviously apart from the geniues at Microsoft)?

Yeah, I am not liking Satya. Closing Xbox Entertainment Studios before even seeing if it was profitable and thus alienating consumers, employees, and advertisers was dumb. Not expanding Music and Video support is even stupider. This guy is myopic. Some non-profitable things are profitable in other ways.

I'm mixed on it. I too would have liked to have seen what they could have done, but clearly he is getting MS to focus on just their core services, and not spread themselves too thin. Jack of all trades, master of none kind of thing.

I feel like consumers are being pushed out of the Windows ecosystem entirely to focus solely on business customers. I don't think this is a strong strategy. Personally I would rather use either Apple or Google ecosystem which is 80% consumer, 20% business, than a MS ecosystem which is 90% business, 10% consumer focused. You can't give consumers this little effort and expect them to stay loyal to the Windows platform or MS services. I use OneDrive to house my Xbox Music and Video downloads. If they stop investing in music and video then why shouldn't I cancel my OneDrive subscription and go over to Apple and Google's storage solutions which will be better integrated with their always improving entertainment services?

 

Also there is an element of trust permanently lost here. If they abandon their entertainment subscribers and consumers by phasing out support I would be hesitant to ever trust using any Microsoft services ever again. If you mistreat your customers and have this little respect for them I don't want to do business with you at all. Not handing my credit card over to their app store if this is the way they treated their music/video customers.

The fact is he sees his job as being to boost the present tense stock price and nothing more. The activist board contingent got their way and he is taking the company apart piece by piece so that the profitability today is boosted completely at the expense of any vision or long term potential success. It would be nice if Bill Gates would look up from his charitable efforts, which are very noble, and pay attention to what this crowd and their mouthpiece are doing to his legacy.

Nad-zilla is at it again, when all he needs to do i have the xbox music team reinstate the zune software as xbox music.

He didnt' say he's getting rid of Music and Video all together... but it sounds like the 'music and video experience' will be 'streamlined' into something better separate from Xbox.   Who knows, maybe he'll bring back the Zune team :D.

Just with little bit of modification as per playlist you talk about; rest the music of 8 was so much better than this.

and go back to the infamous song duplicating over and over buig? no thanks, I'd rather use a less feature packed music player than a buggy one.
 

That bug was removed! If not then it worked better when have a soft reset. Simple. All was well then, I didn't see any problem further.

Bug exists even in 8.1 with the music hub. It's an issue with how WP updates music, if you don't delete music within the music hub, it doesn't delete the meta file (it uses the meta files to populate the list) then it duplicates when you add it back

Honestly. As a huge Microsoft supporter, I would be ok with this. I tried to use Xbox music even when it was working well, but I switched to Pandora and never looked back.

Didn't care at all for the whole Xbox Entertainment nonsense either. At least not shows they produce or whatever, but rather they host.

Ever used Xbox Music on Windows 8? Waayyy better than Pandora, you get 10 free hours a month of streaming what ever you want, I just wish they would of added that feature on WP 8.1

Unless it is making a dramatic loss shouldn't they be keeping these divisions in the hope that they turn good one day. The sooner they build these kind of services and libraries the easier. Look what happens when you join the game late with Windows Phone. The problem wasn't that it was inferior it was just really late. With Xbox Music, Video and Studio they were finally on the forefront.

This gives us what options on windows phone then (I don't use Spotify or similar services - some music I buy outright)?  We don't have an app for Amazon music/video!!!!

A little time, money and some brainpower towards Xbox Music/Video would go a long way...

Exactly this! Why would one get a windows phone? You have also no google music available. This would be a really bad move by MS. Just put a lil effort in it and it can be improved a lot.
Also what the fuck is Xbox one about then when all this is removed?? Then it's just a lesser gaming machine than the ps4. LOL

I didn't buy a Xbox One because of pure gaming. I bought one as an entertainment portal. I actually agree with their original vision and will be highly disappointed if they change positions after an expensive personal investment.

Same here. It's the reason I got the 360 (Netflix). Gaming was a bonus. Nadella seems to be reversing that, which I'm not sure is the wrong decision, as I think I'm in the minority.

Very few people are willing to pay a premium to use a gaming console as "entertainment" portal.  Sony has taken the lead in this generation of hardware thanks to their focus on games.  The majority of folks who just want Netflix will settle for a $100 box.

And imo that has been Microsofts folly when it comes to music and video services.  By all acounts, their services have been top notch.  Heck, remember then the Music pass on Zune would let you stream as much as you wanted AND you could keep up to 10 songs a month DRM free?  Why was that not successfull?  Because the Zune hardware was just too expensive by the time it landed.  The majority of music lovers werecompletely satisfied with their iPod/iTunes setup.

That's not true.  Zune's were comparable to iPods as far as cost, if not they were cheaper.  The problem was iPods had apps and games.  Zunes were very limited.

The thing you're forgetting is that game console prices drop significantly over time. When it is $500 there are very few customers who would buy an Xbox for Netflix and entertainment services. When the Xbox One in $199 in a few years it is a different story. Many people would look at a $199 Xbox next to a $99 Apple TV and choose the Xbox because they get both all the entertainment services and a great game system. At this point few people are choosing between Apple/Roku and Xbox One, but that will change as the system matures and gets more affordable.

 

It's fair to say they shouldn't have focused on the casual consumer at launch when the system is $500, but it is dumb to ignore these customers for the lifetime of the system when it does enter into their price range.  

 

Also I don't think Microsoft ever really shortchanged Xbox One consumers on games. There's all this talk that Sony stayed focused on games, but in truth Sony spent more time at E3 this year and last year talking about non-gaming applications of PS4 than any other company. Also PS4's lineup of exclusive games released so far is much weaker than the Xbox One. Xbox One has the much stronger game library right now. Microsoft came out at launch with a very strong exclusive game library for Xbox One despite all the BS claims they forgot about gamers.

Xbox one won't go for $200 until the xbox 2 is out (or whatever they will call it)

 

What they need to do is make a competitor to AppleTV now, give it the entertainment features of xbox one and they have a pretty good chance at succeding.

Every customer counts, every paying subscriber is of equal value. When you start alienating people and making them feel unwelcome in your ecosystem you are doing something wrong. You were paying $60 for access to Netflix on Xbox, your $60 was not worth any less than any hardcore gamers. They should do everything to make you feel welcome, not like an outsider or an oddball in the Xbox community. They won't win anyone new over into the Xbox game community by letting casual game consumers feel this way.

Exactly why do you guys not keep your music natively on your device? Streaming? Expensive and reliant on data connection... Why?

Too much music, will fill up my 920.  I'm on Wi-Fi at work where I listen to it, or at home I have Wi-Fi so I don't worry about a data connection too much, so why fill up space on my device when I can stream my collection (or part of) for free?

Video is even worse of an issue.

I keep "My music" (Ripped from CD's I bought) on all my devices with one exception, and that is the Xbox One, seems I bought a really wonderful device (I really love it) that can't actually cope with the one thing that is in my opinion, the heart of any family entertainment system and that is local music, got to admit I am struggeling with this.

 

 

Bob

I've been on Xbox Music 2-3 years and recently sold all my physical movies to move my collection digital via Xbox Video.  I only own 6 movies on it right now, but the lack of commitment is making me very hesitant to continue to invest in these services.

I love being able to have money in my Microsoft account and reference that for purchases on Xbox Video, Xbox One, Windows Phone, but that advantage is starting to disappear.

The Windows Phone eco-system doesn't have access to Amazon Video.  If Xbox Video goes away what options are there?

That's exactly my sentiments these kinds of moves only cause panic and deep distrust from their most loyal consumers and once you lose those your done!!

I agree 1520% with you. They really did a disservice to WP7 users by not allowing WP8 to run on the hardware. I was very disappointed to hear that my 1 year old Lumia 900 wouldnt run the latest and greatest version of the OS. I kept with it till I got my 1520 but I can only wonder how many people were turned off by this lack of support.

The kind of did the same with the Kinect 2 which I think is a great periferal (sp?) but needs some tweaking. It really didnt help by cutting it out of the bundle for the Xbox One.

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