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Ex-Microsoftie Robbie Bach: I wouldn't have made Zune MP3 players, we were just 'chasing Apple'
It took some time after Robbie Bach left Microsoft for the Zune device line to wind to a close, but that hasn't stopped the former music (and gaming) executive from suggesting that it should have been ramped down much, much sooner. While discussing the best way to get a startup company humming at a Northwest Entrepreneur Network event, Bach mentioned his view that Microsoft should never have started down the MP3 player path to start with and should have instead gone service-only. The Zune was a too-little-too-late reaction to the iPod, according to him, and the option to squirt your songs apparently wasn't enough of a lure: "We just weren't brave enough, honestly, and we ended up chasing Apple with a product that actually wasn't a bad product, but it was still a chasing product, and there wasn't a reason for somebody to say, oh, I have to go out and get that thing." We've had some affection for the Zune in the past, but there's no denying that it faced an uphill battle from the start. Sales leveled off almost immediately, and the damage was primarily to smaller competitors like Creative and SanDisk that couldn't throw their weight around the way Microsoft did.
CNET details the death of Microsoft's Courier and Bill Gates' 'allergic reaction'
For those that follow the twists and turns of the technology news business, the Microsoft Courier has practically become the stuff of legend. First leaked on Gizmodo in the fall of 2009, the device was never even officially confirmed by Microsoft until it axed the project in April of last year. And while we wound up learning quite a bit about the dual-screen tablet despite that lack of official information, we never really got the full story of its rise and fall within the company. Now CNET's Jay Greene has published an extensive look at the device's short history, which he says was "pieced together through interviews with 18 current and former Microsoft executives, as well as contractors and partners who worked on the project." The story, as you might expect, is fascinating -- read on for some of the details.
Microsoft names three new division presidents following recent departures
As you may have noticed, Microsoft has seen a few pretty significant executive shakeups as of late, with Robbie Bach and J Allard announcing their departures back in May, and Steven Elop leaving just last month to take the top job at Nokia. Now Microsoft has officially filled in some of those gaps, naming Kurt DelBene as president of its Microsoft Office Division, and Andy Lees and Don Mattrick as presidents of its Mobile Communications Business and Interactive Entertainment Business, respectively -- Windows Phone and Xbox, in other words. All three divisions are actually new (at least in name), but DelBene is effectively succeeding Elop, who led Microsoft's Business Division, while Mattrick and Lees are more or less splitting up Robbie Bach's former duties as head of the now dissolved Entertainment and Devices division. Head on past the break for the complete press release.
Entelligence: Market caps and dunce caps
Entelligence is a column by technology strategist and author Michael Gartenberg, a man whose desire for a delicious cup of coffee and a quality New York bagel is dwarfed only by his passion for tech. In these articles, he'll explore where our industry is and where it's going -- on both micro and macro levels -- with the unique wit and insight only he can provide. The buzzword of last week was "market cap." To those unfamiliar, market cap is the total value of outstanding shares of a company, and on May 26th at around 3PM Eastern, Apple's market value reached $225.1 billion, surpassing Microsoft's $222.3 billion. Apple isn't the largest technology company around, but it's become the most valuable, and it's valuation is second only to Exxon in the US. Later that same week, Microsoft announced that Robbie Bach and J Allard, the head of its Entertainment and Devices group and the division's CTO, were both leaving the company. There's been speculation that these two events were somehow intertwined, but I don't think that's the case. In addition, as good as Robbie and J are, there's more to the E & D team than two people -- as grandpa used to say, the cemeteries are full of people who couldn't be replaced. Historically, Microsoft has always been two companies, the parts that made lots of money (Windows, Office, Server) and the parts that don't make money yet but might someday soon. E & D is the latest incarnation of the latter. Let's take a closer look.
Robbie Bach: Project Natal a 'midlife kicker' for Xbox 360, 'absolutely confident' Courier innovations will appear elsewhere
Now that the proverbial cat's out of the bag, Tech Flash has caught up with Robbie Bach about his impending retirement from Microsoft. In a far-reach interview, the former President of Entertainment & Devices Division says he made his ultimate decision just last Thursday, and that while he and also-gone J Allard "had been talking [Allard's] situation for awhile," the conversation never went both ways and the timing of the departures is "pure coincidence... serendipity." Bach further claims that it was his choice and was not asked to leave, and as for pundits who might've thought he was in line for one day taking the reins from CEO Steve Ballmer, Bach downplays that possibility and says he never had interest and such discussions never took place. But enough business talk, what about some of the projects Bach oversaw? There were a couple choice quotes we noted from the report. First up is Natal, a motion-sensing project that he views as a "midlife kicker for the [Xbox] 360." For those watching a calendar, that would give the console an approximately nine-year perceived lifespan on the corporate side -- from November 2005 to 2014. Of course, we could be reading too much into that, but we could certainly believe it. On the subject of Courier, Microsoft's now-cancelled internal tablet project, Bach is "absolutely confident... a bunch of that innovation will show up in Microsoft products." It's a stronger wording that what we originally read, and given just how excited we were watching that leaked video, we can only hope his prophecy is foretold. Do yourself a favor and take 15 minutes to read through the interview -- hey, you're welcome.
Microsoft's Robbie Bach and J Allard leaving as part of broader shakeup; Xbox and Windows Phone teams now reporting directly to Ballmer
Well, it looks like the rumors were true. Not only is Microsoft's J Allard now officially leaving the company, but so is Robbie Bach, President of Microsoft's Entertainment & Devices Division, amid what's described as a broader restructuring that will effectively dissolve the division and give CEO Steve Ballmer more direct oversight of Microsoft's consumer initiatives like Xbox and Windows Phone as of July. Contrary to earlier reports, Allard says that he's not leaving due to the cancellation of the Courier, but instead says that after nineteen years with the company, he simply wants to devote more time to his personal interests, "particularly adventure sports." Allard also insists that he won't be moving on to Apple, Google or any other Microsoft rivals -- in fact, he's staying on as an advisor to Steve Ballmer. Robbie Bach's departure is equally curious -- despite being just 48, his move is being described as a "retirement," and he says that the decision was his own and that he wasn't encouraged to leave. He'll also apparently remain with Microsoft through the fall to aid in the transition. When all's said and done, mobile communications VP Andy Lees and interactive entertainment head Don Mattrick will each separately report to Ballmer -- both have headed their divisions for some time now, so we'd assume that things will otherwise proceed as planned. Still, the loss of talent at the top is certainly noticeable -- we'll see how Microsoft responds now that Ballmer is firmly driving its mobile and gaming efforts. We've got Ballmer's full letter to the company and Microsoft's official PR after the break, so take a peek. Update: Mary Jo Foley has J Allard's parting email to his employees.
WSJ: Microsoft's Entertainment and Devices Division getting a 'shakeup,' J Allard expected to leave
We were surprised enough to hear tales of J Allard possibly leaving Microsoft, but the Wall Street Journal is painting a bigger picture, saying "the organizational shakeup is broader than Mr. Allard's departure." We're taking that to mean there could be a larger changing of the guard here, particularly since the article is worded somewhat oddly and seems to imply the reshuffling could reach even Entertainment and Devices Division president Robbie Bach. As for Allard, WSJ reaffirms Mary Jo Foley's earlier report that there's a strong correlation between his departure and the Courier's swan song. An announcement pertaining to these moves is said to potentially come as early this week, so stay tuned -- this could be big.
Switched On: Kin dread spirit
Each week Ross Rubin contributes Switched On, a column about consumer technology. When deciding how to bring technologies to market, companies face the decision of whether to offer them in its own products, pursuing a strategy of vertical integration, or license constituent elements for inclusion in others' products. In the wireless operating system space, Apple, RIM and Palm (since Web OS) have chosen the former strategy while Symbian, Google (via Android and Chrome OS) and Microsoft have generally pursued the latter. It is difficult, if not unwise, for a licensing company to compete with its partners. Attempting to avoid this dynamic led to the disastrous split of Palm, Inc. into the PalmSource software company and PalmOne hardware company back in 2003. With the imminent release of its teen-targeted, social networking handset, though, Microsoft is seeking to have its Kin and eat it, too.
Microsoft's Bach says 'there are other places where Zune logically could go'
So that meeting a few days ago where financial analysts physically beat a few choice WinMo 7 nuggets out of Robbie Bach yielded something else that's pretty interesting, too: the expansion of the Zune franchise. Virtually everyone and their mother has been calling for a Zunephone since the day the first Zune 30 rolled off the assembly line, and a very, very carefully-worded statement by Bach in the meeting has us believing that we could finally see it make the bold leap to GSM (or CDMA, or both) this year. In response to a question about how Zune fits into Microsoft's mobile strategy, Bach had this to say: "Now, your other question was about I'm getting old. Zune, so Zune has been critically successful. And the way Zune is going to be successful for us in the future is you should think of that as our media service across multiple screens. We'll continue to have the Zune device screen. But, we now have Zune on Xbox. We have Zune on the PC. There are other places where Zune logically could go that we don't get to talk about yet. And I think lots of different screens with that capability can go." If you read between the lines there, it certainly sounds like Robbie's got his eyes on the prize -- but whether Zune will come to Windows Mobile or live as its own brand remains to be seen. No guarantees, but we're hoping all will be revealed at MWC next month.
Windows Mobile 7 coming to MWC in February, not just 'evolutionary'
We'd heard some rumblings, but apparently Robbie Bach let the cat out of the bag at an analyst briefing this week, stating that we should expect a showing of Windows Mobile 7 at the Mobile World Congress show in Spain, which begins on February 15th. He also added that the OS (which he's played with, surprisingly) will "set the bar forward not in (just) an evolutionary way," and that Microsoft is going to be "more engaged" with OEMs in its "go to market approach." We love a good buzzword or three, but the hope here is that Microsoft has learned its lesson from iPhone and Android and is ready to compete in the next-gen smartphone game in a big way -- a WinMo 7 showing just four months after the release of Windows Mobile 6.5 certainly smacks of that. [Thanks, Matthias]
Robbie Bach sits down for a roundtable discussion, Engadget is there
We're currently at a multi-purpose Microsoft event right now -- an event touring the company's holiday lineup, as well as today's launch of Windows phone devices (AKA, Windows Mobile 6.5). We had a chance to sit down with Robbie Bach, President of Microsoft's Entertainment & Devices Division, and ask him some questions about where the big M is headed with its recent lineup. Here are a few of our takeaways. We asked about convergence (or lack thereof) across Microsoft products. Zune, Xbox, and Microsoft phone products don't really play nice at this point. Robbie was hesitant to tackle the actual question, sticking mostly to the party line, though he did admit that their plans stretch further down the road than this -- a theme thus far. It sounds a lot like Microsoft isn't where it wants to be. In a later question, he asks us to "look where [Microsoft] is in two or three years." That's a long time to wait guys. An HTC HD2 is doing the rounds at the show (though it's in someone's pocket) -- when we asked why the company hasn't highlighted the device (which is pretty darn slick, by the way), Robbie seemed to glaze over the presence of the device. The line was "we want to work with all our partners." Why they wouldn't call out what is a groundbreaking device for Windows Mobile is somewhat perplexing. Michael Gartenberg, one of our contributors, asks about if the company is "still committed to pen computing" -- Robbie says yes, and that there's a lot of "research" going on right now. "The pen has been around for a long time," he says. "There's work that has to be done." Robbie says, "Microsoft is as proactive as it is reactive." On the Zune HD "Where we broke through is in software." Gartenberg asks about "devices that fall between a PC and a phone." Robbie chuckles pretty hard at that one. "Here's my favorite survey of the year... which will you buy, a Microsoft tablet or Apple tablet?" "Do I believe there are other devices out there that people want to use, like a Kindle-like device... yes." Peter Rojas asks about the company's acquisition of Danger. Robbie: "There were clear reasons for us to acquire Danger -- I think in time that will pan out. It wasn't another OS, it was services... the Sidekick isn't our brand, it's T-Mobile's brand." We ask Robbie about Pink and if a Microsoft phone is in the company's future: "I don't see that." Robbie was pretty vehement that making a piece of hardware for the mobile space isn't really in the company's plans. "Apple demonstrated that the end to end experience worked, so we did that with the Zune." He says he doesn't think it makes sense for the scale of the mobile market. On the experience with current Windows Mobile devices: "We're part of the way there with Windows Mobile 6.5." Andrew Yoon from Joystiq asks: "When can we stop calling it Natal?" Robbie laughs: "When we tell you to call it something else. I'll tell you this -- when we announce what we're calling it, you guys will report it, and people will get it." A question about Google's business model being similar to Microsoft's -- Robbie laughs and makes a face: "I'm confused about you calling it a 'business model'... I'm not sure what they're doing exactly." Ouch. "If you use a Google phone, that's fine, but what do you do about your music experience? What do you do about your photo experience? Then it starts to feel like another version of Linux."
High schoolers grill Microsoft's Robbie Bach on Zune, Windows
As we've learned over the past 72 hours, Microsoft is clearly changing its approach to the Zune. And connected TV. And just about every other entertainment-related aspect of its business. As it seeks to better connect people via its software and devices (and make "The Social" something worth showing up to), Robbie Bach has explained that the company's new retail focus actually has a lot to do with it. The bigwig recently sat down in front of 150 students in order to take questions and relive some childhood memories, and given that kids always say the darnedest things, it's not shocking to hear that some of the conversation was awkward, if not comical. Point blank, Bach was asked if Windows 7 would be better than Vista, and he expectedly shot back with "Windows 7 is a huge step forward." There's far too much dialogue to cover in this space, but if you're looking for a little insight from the top, feel free to wade through the read links below.[Via CNET]Read - High school questionsRead - Retail thoughtsRead - More retail thoughts
Microsoft waves dismissive, bloated hand at iPhone sales figures
Microsoft's Robbie Bach feigned an uninterested yawn at Apple's 6.9 million iPhones figure in an interview with BusinessWeek the other day. He wasn't particularly insulting of the product, but didn't think the number means too much in the long run. "Apple had a big launch of a new product, and they launched at scale in a lot of new countries with a lot of new [wireless] operators. This quarter, RIM is having its big launch, and at some point we'll have our big launch. We'll have to see where things normalize." While that statement is encouraging for the fact that it semi-implies that Windows Mobile 7 is supposed to be released at "some point," we're not sure we're picking up what Robbie is putting down -- 6.9 million of a single device seems to imply a bit more than "launch buzz." Things devolved quickly when Bach started spouting about how carriers want a balanced ecosystem. That may be true, but consumers are the ones that buy the phones, and if their RAZR buying habits are any indication, "ecosystem" isn't their top priority.[Via Electronista]
Robbie Bach says no Zune Phone, no Xbox Blu-ray... maybe a touchscreen Zune
Someone clearly didn't want Microsoft fans being left out at this time of extreme Apple coverage. In an interview with SFGate, Robbie Bach manages to deftly deny the rumored Xbox / Blu-ray match-up, deny a Zune Phone is coming anytime soon (although he intimates Zune software may come to phones), but still cleverly suggests that a Zune Touch could be in the offing. Of course, by "cleverly suggest" we mean he mentions the possibility of a device with touch capabilities, which is like saying Dell might release a laptop with a keyboard. Is that the device pictured above? No silly, that's just someone's Photoshop work. Steve Jobs -- anything to say about this?[Via wmpoweruser; Image courtesy anythingbutipod]
Robbie Bach on Microsoft Surface: "We don't want to be in the furniture business"
There's always an element of risk and uncertainty when stepping outside of the status quo. So it's no surprise that Robbie Bach, president of Microsoft's Entertainment and Devices division (think: Xbox, Zune) and accused drunk thought more than once about killing off Microsoft's Surface. "I thought about killing it every year it was in development," he said. Robbie revealed that Surface (or project Milan as it was known) was in development for 5 years with a core team of 20 Microsoft employees developing the computer. Bill Gates himself was always a "big supporter." Regarding the size of the device, Bach quipped, "We don't want to be in the furniture business," as he looked forward to a more manageable consumer version in 2011. We guess that's a direct response to the wisecracking video spoof which chided, "one day your computer will be a big-ass table." Don't remember the video? No problem, we've embedded it for you after the break.P.S. Surface is an Engadget fave, we kid the ones we love.
CE-Oh no he didn't! Part LIV: Jobs calls Robbie Bach a drunk
Proving once again that the truth is stranger (and more entertaining) than fiction, Steve Jobs himself delivers one of the finest Oh no he didn't moments ever. Apparently riding high on the thrill of introducing the MacBook Air, a hit of oxygen from his personal stash, and the espresso colonic he'd received earlier in the day, old Jobsy went "off" on Microsoft's Robbie Bach when questioned about the executive's statement that the Zune was a "worthy alternative" to the iPod. "Was he inebriated?" Jobs asked CNBC reporter Jim Goldman, and then went on to inquire, "Do you even know anyone who owns a Zune?" Uh, let's be honest -- that is way harsh. Robbie, we feel your burn... and eagerly await a response.[Via MacDailyNews]
Microsoft sort of owns up to the Xbox 360 Arcade
Well, it looks like Microsoft has acknowledged what we've known for almost a week -- the Xbox 360 Arcade is real and shipping. When asked by the Financial Times, Microsoft's Robbie Bach said the $279 console was designed to draw in gamers who are "more casually focused, they're looking for a new family experience or they're more price focused." Robbie might want to tell the rest of Microsoft that the cat's out of the bag though -- their PR reps are still telling our buds at Joystiq that they don't have anything to announce. [Via Joystiq]
Bach sold additional $3 million before 360 warranty extension
It was reported last month that Robbie Bach, current head of Microsoft's Entertainment and Devices unit (which contains both the Xbox and Zune), sold millions in stock during the months leading up to the July announcement that the Xbox 360 warranty had been extended to three years. It was initially reported that Bach sold $6.2 million in stock between May 2nd and the July announcement. Announced today by Dow Jones (via CNN), it looks like Bach actually sold an additional $3 million that went unreported due to "an administrative error."Microsoft still maintains that the stock transactions, including the recently uncovered $3 million, were in no way related to the warranty announcement. Furthermore, a Microsoft spokesperson claims that the company has "followed the procedures required of late-filers and is now in full compliance." It's worth noting that Microsoft's stock value saw little change after the warranty announcement -- which incurred a loss of over $1 billion to the company -- so Microsoft's claims about Bach's transactions still hold water for the moment.[Via Joystiq]
Robbie Bach and Don Mattrick talk to Joystiq about Peter Moore's departure
We had a chance to speak with Microsoft's President of the Entertainment & Devices Division, Robbie Bach, as well as Don Mattrick, the new Peter Moore, about Peter Moore's departure, which was announced earlier today. First, when asked how important one person is, and whether gamers should care about Moore's resignation, Bach responded that there is a group of gamers that track the industry and track its personalities, and that these gamers would care about the decision (that's you guys, if you're reading along at home). Bach suggested that, in the near term, Moore's departure will have "basically no effect. Halo 3 is still Halo 3, and Don's not changing that. Peter wasn't changing that." However, if you look out two to three years, "a leader does have an impact." For example, Peter was "uniquely good at understanding the importance of communication." Bach described him as a "consummate speaker, marketer, and evangelist" for their product who did a "great job with gamers, the press and analyst community, and retail partners."Alright, so we all know who Peter Moore is, but what about Don Mattrick? Bach said Mattrick will obviously be the new "public face" of their business, though his core talents are different from Moore's. Where Moore was focused on the marketing and strategy side, Mattrick will be focused more on their core product. So, while there was some overlap between Peter and Robbie, Bach feels that he and Don will work in slightly different ways. Of course, Don has been working as a "strategic adviser" for the Entertainment & Devices division since February after leaving EA in 2005. So, was this a groomed succession or serendipity?
Bach sold millions in Microsoft stock in months before warranty announcement
MarketWatch is reporting that Robbie Bach, head of Microsoft's entertainment and devices unit (which includes the Xbox 360), sold $6.2 million in company stock between May 2 and last week's announcement that the company would extend the warranty on the system for certain failures to three years. Bach's sales came after eight months of selling no company stock.Bach himself did not comment on the story, but a Microsoft spokesperson insisted that the stock sale and the warranty were completely unrelated, saying "[He] continues to hold a significant stake in Microsoft and remains confident in the long-term success of the company." In the two months before the announcement, two Microsoft employees sold more stock than Bach: General counsel Brad Smith, who said he used the money he made to purchase more Microsoft stock, and Bill Gates.One analyst, who said that bad timing for insider trading is often by chance, said he believed that Bach should be given the benefit of the doubt in this case, especially considering that the announcement barely moved Microsoft stock. We'll have more on this story as it develops.
