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.