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 the Gabecube is going to be a big problem for them, too. It’ll bring the full PC ecosystem of cheap games to a console-like format.
SteamOS/CachyOS outperform Windows on Windows games, too, so the only way Microslop can compete in the Console-like-PC gaming form factor is either rebuilding Windows from the ground up to be an actual efficient OS (with vibe coding? lol, good luck) or by switching Windows to a Linux distro (not /s, to be clear.)
Like, who’s going to buy an Xbox 5? A Gabecube will do everything it can do, but better, and the PS6 will probably have all the good non-Nintendo console exclusives.