Microsoft's CEO Details Plans For The Future

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I guess we are about to find out where Microsoft's new CEO is taking the company. Obviously I can't post the 3,200 word memo here so I'll just post a little bit to get you started:

From: Satya Nadella
To: All Employees
Date: July 10, 2014 at 6:00 a.m. PT
Subject: Starting FY15 - Bold Ambition & Our Core

Team,

As we start FY15, I want to thank you for all of your contributions this past year. I'm proud of what we collectively achieved even as we drove significant changes in our business and organization. It's energizing to feel the momentum and enthusiasm building.
The day I took on my new role I said that our industry does not respect tradition – it only respects innovation. I also said that in order to accelerate our innovation, we must rediscover our soul – our unique core. We must all understand and embrace what only Microsoft can contribute to the world and how we can once again change the world. I consider the job before us to be bolder and more ambitious than anything we have ever done.

We'll use the month of July to have a dialogue about this bold ambition and our core focus. Today I want to synthesize the strategic direction and massive opportunity I've been discussing for the past few months and the fundamental cultural changes required to deliver on it. On July 22, we'll announce our earnings results for the past quarter and I'll say more then on what we are doing in FY15 to focus on our core. Over the course of July, the Senior Leadership Team and I will share more on the engineering and organization changes we believe are needed. Then, at MGX and //oneweek, we'll come together to build on all of this, learn from each other and put our ideas into action.
 
When they mention Xbox, they seem to focus on Mobile and it as a software platform. Microsoft pulling out of the console market and competing with a unified (mobile+desktop+laptop+tablet) game service, to more aggressively compete with Steam is a logical move. Pulling out of the console market is a logical move, with the Wii-U currently outselling them (wait until you see last months NPDs, holy smokes) it would be smart for them to focus on what they are good at.
 
When they mention Xbox, they seem to focus on Mobile and it as a software platform. Microsoft pulling out of the console market and competing with a unified (mobile+desktop+laptop+tablet) game service, to more aggressively compete with Steam is a logical move. Pulling out of the console market is a logical move, with the Wii-U currently outselling them (wait until you see last months NPDs, holy smokes) it would be smart for them to focus on what they are good at.

lol, no.
 
We must all understand and embrace what only Microsoft can contribute to the world and how we can once again change the world.
Translation:

"Obey Microsoft, drink the cool-aid only we offer, and we're changing things because 'change'." :rolleyes:
 
Nothing about PC gaming. Games for Windows. Nothing

What exactly do you think/expect microsoft to do with/for PC Gaming? The primary market has always been third party developers and always will be. All microsoft has to do is provide Directx which they are doing, and updating
 
Well, that sure had a toss-your-cookies level of buzzwords in it. I don't think I've ever seen someone say so little with so many words.
 
What exactly do you think/expect microsoft to do with/for PC Gaming? The primary market has always been third party developers and always will be. All microsoft has to do is provide Directx which they are doing, and updating

What I expect. Drive, lead, improve! not just DirectX
But Windows OS.
Smaller, faster more features. Less expensive.
See Valve's Steam and Steam Machines and Linux gaming as something that can be competition.
Drive gaming so Xbox and Win PC players can play together.
Dosen't have to compete.
A gamer could (an in MS eyes SHOULD) both own and use Xbox and Windows PC for gaming and everything.
 
What I expect. Drive, lead, improve! not just DirectX
But Windows OS.
Smaller, faster more features. Less expensive.
See Valve's Steam and Steam Machines and Linux gaming as something that can be competition.
Drive gaming so Xbox and Win PC players can play together.
Dosen't have to compete.
A gamer could (an in MS eyes SHOULD) both own and use Xbox and Windows PC for gaming and everything.

Because Steam and Steam Machines are going to even put a dent in the PC market? Yeah i dont think so. I dont want a dedicated gaming OS. I want a functional OS that is capable of gaming. Windows 8 = faster, more streamlined, more features over win 7.
 
Translation:

We will desperately continue to try and do the same shit we have always done, but maybe in a slightly different way, and tell ourselves it is awesome and innovative.

They own a lot of cool IP there. The culture as a workplace is broken, so that cool IP will always be steamrollered by what worked last quarter to make money. Why open a window when you can sniff your own farts and tell each other it smells great?

The other problem with their vision is that they fail to see the future of any significant digital experience is that it is nearly ubiquitous. This is anathema to their marketing strategy of the microsoft virus that forces you to convert a MS platform for everything for "convenience."
 
I think people need to piece things together here.

The memo said the focus is going to be a shift to cross platform apps and cloud based services.

Consider the rumors that MS is going to make Windows Threshold absolutely a free upgrade for Win 7SP1 and Win 8.1 users, and the developments talked about here.

What we're looking at is potentially Windows OS becoming free, going with an App based store being its money-maker. And Office and other traditional MS productivity offerings going the way of the app, and being able to be cross-platformed with your other MS devices.

Like say you have a Windows tablet, phone, and Threshold. You buy MS Word App on your phone. You then have access to that same app on your PC and Tablet without paying a further dime.

That's a for instance that Nadella is talking about.

Not a lot on gaming, granted. But an interesting departure for MS nonetheless.
 
Windows 8 = faster, more streamlined, more features over win 7.

But not rapidly adopted, which does pose some problems for a company that traditionally earned money through software sales, and a company that needs to constantly one-up the previous quarter revenues to keep investors happy.

It does make sense for them to rethink their core business considering how the market has evolved.
 
What we're looking at is potentially Windows OS becoming free, going with an App based store being its money-maker.

Probably true, and it does give some credence to Valve's "hedging strategy", regardless of whether it'll be successful or not.

We are moving to at least a convergence of experience, if not necessarily of platforms. There can't be a separation between mobile and desktop, etc. This is what Google and to much extent Apple also have been working on for awhile now, and MS is a bit behind.
 
Because Steam and Steam Machines are going to even put a dent in the PC market? Yeah i dont think so. I dont want a dedicated gaming OS. I want a functional OS that is capable of gaming. Windows 8 = faster, more streamlined, more features over win 7.

I do not want a dedicated gaming OS either.
But I want Microsoft to take us PC Gamers more serious, there are a lot of us.
And why separate Xbox and Win PC ?
If they can push for games on Xbox why not on Win PC ?
There are a lot of more users with Windows than Xboxes.
If they worked more together. That would drive sales in more Xboxes and perhaps Win licences.
 
I do not want a dedicated gaming OS either.
But I want Microsoft to take us PC Gamers more serious, there are a lot of us.
And why separate Xbox and Win PC ?
If they can push for games on Xbox why not on Win PC ?
There are a lot of more users with Windows than Xboxes.
If they worked more together. That would drive sales in more Xboxes and perhaps Win licences.

There arent however more PC gamers than Xbox Gamers. They have a similar architecture now, which means maybe it will move in that direction where first party studios develop for both.
 
Our Worldview
Pushing how The Cloud® is changing the world and how all processing and applications will run on it. In other words, we're moving to a state where we can finally control everything and our consumers don't own or control any of our products and services.


Our Core
A lot of marketing speak about how Microsoft will provide life experiences and improve productivity through The Cloud® on a global scale. In other words, we want to control what is produced by the global economy to effectively take over the world. The blurb on Xbox sounds like it was forced, and whoever authored the memo had a hard time fitting the mobile message to the Xbox brand.


Our Culture
We're forcing a change to what you have been hired to do here at Microsoft for years. If you don't like it after our brainwashing sessions, you're free to turn in your resignations as there are plenty of eager college graduates waiting to fall in line with our new world order.
 
We are moving to at least a convergence of experience, if not necessarily of platforms. There can't be a separation between mobile and desktop, etc. This is what Google and to much extent Apple also have been working on for awhile now, and MS is a bit behind.

At the cost of making the desktop experience absolutely horrible.

The mobile experience for most "apps" is total dogshit. Especially google ones. They have an amazing amount of power in the data they have, but the tools (at least the consumer ones) are terrible.
 
There arent however more PC gamers than Xbox Gamers. They have a similar architecture now, which means maybe it will move in that direction where first party studios develop for both.

Why has there to be a fight between xbox and pc ?
Microsoft is the only company that has a powerful console and world dominating OS.
Why not make these work together?
The symbiosis would amazing.
The xbox helps to sell the new windows and win sells more boxes.
 
At the cost of making the desktop experience absolutely horrible.

The mobile experience for most "apps" is total dogshit. Especially google ones. They have an amazing amount of power in the data they have, but the tools (at least the consumer ones) are terrible.

I suspect that people who use computers for productive / creative things are going to be in a world of hurt with the path the whole industry is moving, which is to cater to the average person who hates computers.

Hopefully it'll just be a temporary thing and somebody else will fill the gap with appropriate tools for productivity.
 
I suspect that people who use computers for productive / creative things are going to be in a world of hurt with the path the whole industry is moving, which is to cater to the average person who hates computers.

Hopefully it'll just be a temporary thing and somebody else will fill the gap with appropriate tools for productivity.

God, this reminds me of Hard core MMO players being pissy about an MMO not catering more to the hard core, and instead trying to cater more to the casual fans, even though the casuals are the one who bring in the most money, and where the greatest opportunity for growth is...
 
These are just words.

Microsoft cannot ever change what it is .....

All you have to do is look to the Xbox One, Windows 8, Windows Phone, etc etc.

They are a last place company. They do very well at chasing the market and maintaining the last place position they are well known for.

It's sad really. They Xbox could have been something special, instead, it's under powered. Windows 8 could have been something really special for Desktop users, instead, it's a hot mess and just only recently, a week or two ago finally outsold Vista .... laughable. I won't even get into the Windows phone. Go to any mall and sit there for an hour, you won't see one Windows phone walk past you out of 1000 people on a busy Saturday.

I take announcements like this, especially from Microsoft and put very little value into what I'm reading.
 
Whatever, big broad statements to fire up the work base.

I just hope they continue on the same enterprise path they have been on since server 2012. I don't really care about windows and office as much as long as they function properly within the ent.
 
I think people need to piece things together here.

The memo said the focus is going to be a shift to cross platform apps and cloud based services.

Consider the rumors that MS is going to make Windows Threshold absolutely a free upgrade for Win 7SP1 and Win 8.1 users, and the developments talked about here.

What we're looking at is potentially Windows OS becoming free, going with an App based store being its money-maker. And Office and other traditional MS productivity offerings going the way of the app, and being able to be cross-platformed with your other MS devices.

Like say you have a Windows tablet, phone, and Threshold. You buy MS Word App on your phone. You then have access to that same app on your PC and Tablet without paying a further dime.

That's a for instance that Nadella is talking about.

Not a lot on gaming, granted. But an interesting departure for MS nonetheless.

I can't see this working. For one, phone apps are entirely basic compared to their desktop brothers, so that is why they usually cost less. I can see it being if you bought Office 2013 on the PC, you get the phone version for free. But not the other way around, otherwise the phone app is expensive.

There has been some discussions that Windows may be offered in a 365 style (think Office), where you pay a monthly fee and get all the updates in perpetuity (including the next OS, etc). Similar to how Adobe has done. Those that want it the traditional way can do so, they'd just have to buy each version. We'd likely see the death of the service pack, since they've also discussed going to a yearly cycle. This would allow them to offer "value" to the subscribers to keep them subscribed.
 
These are just words.

Microsoft cannot ever change what it is .....

All you have to do is look to the Xbox One, Windows 8, Windows Phone, etc etc.

They are a last place company. They do very well at chasing the market and maintaining the last place position they are well known for.

It's sad really. They Xbox could have been something special, instead, it's under powered. Windows 8 could have been something really special for Desktop users, instead, it's a hot mess and just only recently, a week or two ago finally outsold Vista .... laughable. I won't even get into the Windows phone. Go to any mall and sit there for an hour, you won't see one Windows phone walk past you out of 1000 people on a busy Saturday.

I take announcements like this, especially from Microsoft and put very little value into what I'm reading.

Maybe as an end consumer. They are doing really cool shit on the back end. Challenging VMWare, Citrix etc. It is only good for us when the other 800lb Gorilla vies for attention.

Besides, I really miss my windows phone. 8.1 was such an awesome jump from 8, but we switched to TMob to save a bunch of $$$ and I ended up on a Nexus 5 because they didn't have any pure view lumias. Android=Meh.
 
I can't see this working. For one, phone apps are entirely basic compared to their desktop brothers, so that is why they usually cost less. I can see it being if you bought Office 2013 on the PC, you get the phone version for free. But not the other way around, otherwise the phone app is expensive.

There has been some discussions that Windows may be offered in a 365 style (think Office), where you pay a monthly fee and get all the updates in perpetuity (including the next OS, etc). Similar to how Adobe has done. Those that want it the traditional way can do so, they'd just have to buy each version. We'd likely see the death of the service pack, since they've also discussed going to a yearly cycle. This would allow them to offer "value" to the subscribers to keep them subscribed.

Many orgs pretty much do this anyway with software assurance now. It is very freeing to be able to jump up or down versions as needed depending on the task.
 
God, this reminds me of Hard core MMO players being pissy about an MMO not catering more to the hard core, and instead trying to cater more to the casual fans, even though the casuals are the one who bring in the most money, and where the greatest opportunity for growth is...

Sure, the market is what the market is. That doesn't mean it's going to be easy to do certain kinds of work on Chrome OS.
 
I liked this quote:

We are moving from a world where computing power was scarce to a place where it now is almost limitless, and where the true scarce commodity is increasingly human attention.
 
I suspect that people who use computers for productive / creative things are going to be in a world of hurt with the path the whole industry is moving, which is to cater to the average person who hates computers.

Hopefully it'll just be a temporary thing and somebody else will fill the gap with appropriate tools for productivity.

I wouldn't worry too much. Microsoft is unknowingly kicking themselves out of all markets they are currently in, with some of their bone headed moves. For Production/Creative things we can always use a Linux Distro (using MiNT and Ubunutu myself), for a simple OS, ChromeOS is a fantastic basic online and office work, and SteamOS is great for games. Ubuntu with Steam installed has been great for me. Only 126 of my games are natively compatible on Linux, but it's a start.

Ultimately, we the customer, control Microsoft. They pull bone-headed moves we act, and they either fix it fast or be doomed to failure. The question is when will they fix it. The XBOne is currently being outsold by the Wii-U and is getting ROFL-Stomped by the PS4 in sales. That was all due to the US the Customer reacting to bad policies, and them taking WAAAY to long to react.

Reading the article again, I do indeed notice they don't talk about the XBOne specifically, but refer to Xbox as a service compatible with phones. Don't be surprised when the XBone is discontinued and Xbox becomes a service (much like Steam) for delivering games compatible across Windows 8, Windows 9 and Windows Phone.
 
I wouldn't worry too much. Microsoft is unknowingly kicking themselves out of all markets they are currently in, with some of their bone headed moves.

This is laughable. I think some of you MS only exists to sell you consumer devices, when really, MS mostly only dabbles in consumer markets. Most of MS focus is in the business world, Server, Office, Exchange, SQL, Lync, Hyper-V etc... none of these products are going away or are being 'kicked out of the market', in fact they are continually gaining ground on their competitors.
 
Yawn. Fuck cloud first. Every movie, novel, or epic tale of humanity coming together blissfully mindless under the control of one entity always ends is total destruction because the human-zombies wake up and realize they've been duped.

Hoping to see the disintegration of teh Google's and teh Azure's in my life time.
 
There arent however more PC gamers than Xbox Gamers. They have a similar architecture now, which means maybe it will move in that direction where first party studios develop for both.
Source? Xbox live has about 46 million subscribers, Steam has about 75 million. 27 million people play league of legends every day, god knows how many for Minecraft. My understand is there are a LOT more PC gamers than Xbox ones. I could be wrong, but I would need to see some numbers explaining how this is measured.
 
Why do CEO's have to sound so vacuous in an attempt to show that they are inspirational leaders?
 
Why do CEO's have to sound so vacuous in an attempt to show that they are inspirational leaders?
They may be attempting to sound inspirational, but if I were an employee of Microsoft reading this memo I would feel like I was being patronized...
 
Source? Xbox live has about 46 million subscribers, Steam has about 75 million. 27 million people play league of legends every day, god knows how many for Minecraft. My understand is there are a LOT more PC gamers than Xbox ones. I could be wrong, but I would need to see some numbers explaining how this is measured.

xbox live is not a metric you can use. Not every xbox owner has a xbox live account, same cant really be said for steam/pc gamers as its the largest distribution software out there. Xbox 360 sold 75+ million consoles, or course some of those will be duplicates to the same owner but still
 
"Over the course of July, the Senior Leadership Team and I will share more on the engineering and organization changes we believe are needed."


Minus 12 000 people :)
 
What exactly do you think/expect microsoft to do with/for PC Gaming? The primary market has always been third party developers and always will be. All microsoft has to do is provide Directx which they are doing, and updating

Here are a couple ideas which require very little work and will do great.

Make the entire xbox one interface available to any windows 8.1 computer and Kinect functions and make the Kinect hardware open so it can be integrated into laptops, monitors anything.

Make the wireless protocol that is used for xbox controllers free and make the hardware for it free to license so others can build the hardware directly into PCs of any type.

Basically its simple you already have the code and capabilities make every last feature that is available to xbox one also available to windows 8.1 and future versions.

This takes very little work and would be a huge boost to PC gamers who want to use their laptops, HTPCs or any other device hooked up to a TV.

Then announce a future direction where the Kinect platform will see a large push to not only make it work well at a distance in a living room but also work great close up in a sitting at a desk or holding a tablet situation.
 
xbox live is not a metric you can use. Not every xbox owner has a xbox live account, same cant really be said for steam/pc gamers as its the largest distribution software out there. Xbox 360 sold 75+ million consoles, or course some of those will be duplicates to the same owner but still

Look at the numbers he posted 75 million is almost as many as Xbox 360s that were ever sold. That is steam alone. Doesn't count any people who may be in the battlenet, origin, or other camps that do not use steam.
 
How many Steam accounts are a single game to either sell or after some kiddie got VAC banned?
 
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