Microsoft has spent years subsidizing Xbox rather than profiting from it, CEO Satya Nadella acknowledged this week, as he addressed the gaming division’s need for a new approach.
His comments came during a Wednesday evening taping of The New York Times’ “Hard Fork” podcast, released Friday. Hosts Kevin Roose and Casey Newton pressed Nadella on the future of Xbox a few hours after the division’s leadership signaled an upcoming reset.
“No one can accuse Microsoft of not having invested for the last 25 years,” Nadella said of the Xbox and games business. “And now we have to turn this into a sustainable business.”
I think Gamepass is just a problematic business model. A lot of people including myself had it when it was cheap and new. But gamers quickly realized, they don’t have time to play all these games. Its not like Netflix where you can binge all day for most gamers. It takes effort. It has to be very cheap for gamers to keep its and they can’t do that either, because games are expensive to make. I just don’t see it working long term.
Fuck off. Microsoft’s entire gaming business model is:
- buy a profitable studio close to a new release
- round of layoffs
- brag about profits from the new release
- another round of layoffs
- force increasingly lower quality games to be released with more player exploitation
- allow a high quality game to be released
- celebrate profits
- layoff and close the studio
Satya Nadella has no clue about consumer products. He is maybe able to do much money with business software, for some reason. But not getting that something like a console is an emotional thing. People feel bad about a brand with big layoffs, with big rises in price for something like gamepass. With bad advertising like with the xbox one. They on the way of lossing more and more brand reputation. It’s hard to find something they really excel in, currently. Sure phil spancer had a plan to make gamepass big and for a short amount of time, some people were praising gamepass. But now trusting gamepass is lost as well with such huge prices. I don’t see Xbox being as big as with Xbox 360 anytime soon. They will try a reset, but their brand is already quite damaged, people will remember that for sure.
I don’t think the competition is even that strong. Sony makes a lot money with playstation, but got a lot complains. Still, compared to Xbox they a lot more healthy. Asha Sharma has kind of a impossible task to make Xbox big again. Even more with such a stupid CEO, that want to make 30% profit value out of Xbox, something nobody does on gaming. The title say Xbox should be a sustainable business, but it is making even profit, but not enough for Nadella, so he pushes more and more stupid decisions to the Xbox Team.
Have they tried making good games?
Something slightly better than redfall
Enshittification incoming, GamePass enjoyers.
So glad I never got involved in that shitshow.
Like all “streaming” services it’s just a big fuck you to artists/developers and just money in the pocket of executives.
Spotify isn’t the only one that underpays the artists in their catalog.
lol. More subscriptions and paid for DLC>less users>less revenue>more expensive subscriptions and paid for DLC and the cycle continues.
People think that these are smart people. Some people do anyway.
Says the company which spunked billions on AI
AI probably told them to do it, and they did spend billions on it…lol.
