Microsoft spinning Xbox off into its own division is an idea that’s been floating around for a while now, but has caught more fire in recent times, especially given its overall lack of profitability. Generally, it is assumed that Microsoft will hold onto the division, though, because of Bill Gates’ support for the division (he was the one who spearheaded the development of the original Xbox back in 1999-2000). However, apparently Gates is willing to support the division being spun off, if that is what Satya Nadella, the new CEO of Microsoft, wants.

“Well, we’re taking PC gaming — Windows gaming — and Xbox gaming and bringing those a lot closer together,” Gates said. “The power of the PC graphics chips means you can do great games there. So I’m sure Satya and the team will look at that, and, you know, it’s up to them. But we’re going to have an overall gaming strategy, so it’s not as obvious as you might think.”

“Absolutely [I would support Nadella if he wanted to spin the division off],” he said.

It is interesting to note, however, that the discussion in this case was purely hypothetical- so it is not indicative of Microsoft trying to dump off Xbox any time soon at all.

[Fox News]

In the midst of months of speculation regarding its next CEO, Microsoft has finally announced that Executive Vice President of Microsoft’s Cloud and Enterprise group Satya Nadella is now CEO and a member of the Board of Directors effectively immediately. Current CEO Steve Ballmer will retire from his current role and pave the way for Nadella to lead the company forward.

Founder Bill Gates stated that, “During this time of transformation, there is no better person to lead Microsoft than Satya Nadella. Satya is a proven leader with hard-core engineering skills, business vision and the ability to bring people together. His vision for how technology will be used and experienced around the world is exactly what Microsoft needs as the company enters its next chapter of expanded product innovation and growth.”

Steve Ballmer stated that, “Having worked with him for more than 20 years, I know that Satya is the right leader at the right time for Microsoft. I’ve had the distinct privilege of working with the most talented employees and senior leadership team in the industry, and I know their passion and hunger for greatness will only grow stronger under Satya’s leadership.”

Nadella has been credited for Microsoft’s move to Cloud computing, especially when it comes to implementing Cloud infrastructures in services such as Bing, Xbox, Office and more. He stated that, ““Microsoft is one of those rare companies to have truly revolutionized the world through technology, and I couldn’t be more honored to have been chosen to lead the company. The opportunity ahead for Microsoft is vast, but to seize it, we must focus clearly, move faster and continue to transform. A big part of my job is to accelerate our ability to bring innovative products to our customers more quickly.”

What are your thoughts on Nadella’s ascent as the new CEO? Let us know below.

Ballmer revealed in a statement that, “There is never a perfect time for this type of transition, but now is the right time. My original thoughts on timing would have had my retirement happen in the middle of our transformation to a devices and services company focused on empowering customers in the activities they value most. We need a CEO who will be here longer term for this new direction.

“I will retire as CEO of Microsoft within the next 12 months, after a successor is chosen. There is never a perfect time for this type of transition, but now is the right time.

A special committee, working with Heidrick & Struggles International Inc., and which includes lead independent director John Thompson, chairman of the board Bill Gates, chairman of the Audit Committee Chuck Noski and chairman of the Compensation Committee Steve Luczo has been formed for the selection process.

Gates, who founded the company 38 years ago along with Paul Allen, stated that, “As a member of the succession planning committee, I’ll work closely with the other members of the board to identify a great new CEO. We’re fortunate to have Steve in his role until the new CEO assumes these duties.”

One wonders how this will affect the future of Xbox and Windows, two aspects in which Ballmer has been incredibly involved with driving the direction of.