As Microsoft prepares to transition to life under Satya Nadella, the company's head cloud computing architect named CEO on Tuesday morning, the tech giant should consider spinning off its lucrative video game business, CNBC's Jim Cramer said.
A spinoff will help "move the needle" at the company, Cramer said on Tuesday, moments after Microsoft made the long-awaited announcement of its next CEO, a process that took several months and went through several names.
(Read more: Microsoft names Nadella as CEO)
"You just do not get any value for Xbox in the embedded Microsoft," Cramer said. "I'd love to have an entertainment company that is Xbox and Skype. I would love that piece of paper. That could be a piece of paper where you could really see some money going that way."
While Cramer lauded Microsoft's most recent quarter, he said the company sorely needs someone to "start reshuffling the deck" and cause "fundamental change."