Ever since Satya Nadella took over Xbox, some analysts and investors have been calling for the spin-off or sale of the Xbox brand. Well, it looks like that isn’t on the table based on a memo sent by Nadella to Microsoft employees. In it, he offers support to the Xbox brand saying the company is “fortunate” to have the Xbox in their family of products.

“Xbox is one of the most-revered consumer brands, with a growing online community and service, and a raving fan base,” said Nadella. “Microsoft will continue to vigorously innovate and delight gamers with Xbox.”

Some of Nadella’s wording may throw people off. Especially, this line. “The single biggest digital life category, measured in both time and money spent, in a mobile-first world is gaming.”

Some may think this hints at Xbox going mobile. But, it’s not. Nadella is just talking about how gaming is still strong in a world dominated by mobile devices (i.e. smartphones and tablets).

Nadella wrote how “Microsoft will continue to vigorously innovate and delight gamers with Xbox.”

He also mentioned how Microsoft’s other technologies benefit from the tech being built on the gaming side. He cited “core graphics and NUI in Windows, speech recognition in Skype, camera technology in Kinect for Windows, Azure cloud enhancements for GPU simulation” as examples.

I believe this is the first we’ve heard of cloud enhancements on the GPU side. I may be wrong, but I don’t remember the Xbox team mentioning GPU specifics in the past.

Nadella finished up his Xbox portion of the memo with this. “Bottom line, we will continue to innovate and grow our fan base with Xbox while also creating additive business value for Microsoft.”

Good news for Xbox fans who were worried about rumblings from stock analysts and investors.

The Xbox One has started to see a turnaround in recent months. Phil Spencer becoming head of Xbox was a solid move. He communicates directly with fans and has been pushing for a gaming first mentality with the Xbox One. That’s evident by the removal of the Kinect from the Xbox One package. That, and they needed to do something to try to catch up with Sony.


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