Spencer said in no uncertain terms that Microsoft could exit the gaming business if this projection became reality. Microsoft needs the light green and blue segments (PC and cloud) to get much larger and much faster by fiscal year 2027, or it could opt out of the business altogether.
I do not believe that that is what the future Xbox business would look like. This is a presentation from our devices organization to the gaming leadership team, so this is the view from the team that is chartered with building our hardware on what the future business would look like.
I can fairly safely say that if we do not make more progress than this off of console, we would exit the gaming business. If this were the outcome, we would – I don’t believe we’d still be in the business.
A majority of our customers are found off of our own hardware, I would hope by earlier than 2030. So, when you asked me if I agreed with this chart that the light green and blue depending on what colors you see there would have to be much larger much earlier. I would say by FY26, '27 that we should be in that position, or we’d have to make a different decision with the business.
While less competition is bad, I’m not sure there’s been a competition with Microsoft since like 2009. They have continuously proven that they will make the dumbest choices with stuff like always on online, can’t play used games, gimping games for the series x because the series s is basically just the Xbox one again, buying game developers and doing absolutely nothing with them, and releasing maybe two interesting exclusives in the span of 15 years. I was team green from the og launch until I got my PS4 but man I hope they just kick Xbox to the curb and just let PC kinda do its own thing. I have zero confidence in Xbox making any decision right in the gaming space.
I’m totally okay with that, I don’t think Microsoft represents a positive force in gaming or in technology in general.
Click bate title. Just a slide of what they think they will hit. Microsoft is not going to drop gaming when it just spent how much on studios?
Microsoft paid Ninja about $50 million to leave Twitch and stream solely on their Mixer platform, only to close Mixer entirely less than a year later.
They will absolutely buy up a bunch of stuff and then just close down altogether. Their market cap is in the trillions; these things don’t really matter to them in the end.
True but aren’t they spending billions for Activision and Bethesda?
Much bigger than millions
Activision has a money printer business in CoD, WoW, hearthstone, etc. Those have realized business equities. They’re practically self sustaining.
Hopefully the end up leaving, nothing positive has come from Microsoft in the gaming industry since the early 360 era.
Second-biggest chunk of the console market, effectively necessary for the PC market, gobbling up studios and publishers like fucking Galactus, and these empty suits still treat “making less money than the number we pulled from our asses” as losing money.
“Sold out” doesn’t mean anything. For the last four generations, Sony has deliberately underproduced consoles at launch, specifically to claim ‘It’s flying off shelves! We can’t keep it stocked!’ This free publicity stunt even worked for the PS3… which struggled for years.
That said, yeah, apparently the Xbox whatever-it’s-called sells about half as many units per year, compared to either the PS5 or Switch. Rough.
Still making money hand over first.