Xbox hits profitability pivot as Microsoft shifts from subsidizing hardware to sustainable growth
TL;DR
Microsoft’s Xbox division is being forced onto a path to profitability after years of heavy investment. CEO Asha Sharma and the company are trimming costs, potentially shrinking or reorganizing studios, and refocusing on blockbuster franchises and Game Pass while expanding cross‑platform releases. Rising AI and data‑center costs, along with higher console prices, have squeezed margins to about 3%, prompting Nadella’s warning that the era of subsidizing hardware is over and that Xbox must become a sustainable, revenue‑driven business, with the possibility of structural changes like a standalone unit on the table.
- Xbox at a crossroads: 25 years later, Microsoft is done playing around GeekWire
- Avowed and Outer Worlds dev Obsidian is reportedly one of the Xbox studios negotiating to avoid closure Video Games Chronicle
- Here’s The Part About The Xbox ‘Reset’ I Still Can’t Figure Out Kotaku
- Xbox has been promising 'State of Decay 3' for years — and now it could be facing cancellation, despite its trailers and alpha. What are we even doing here? Windows Central
- 'Fallout: New Vegas 2' Speculations: Game Could Be Greenlit Over at Xbox player.one
Want the full story? Read the original reporting
Read on GeekWire