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Microsoft May Drop Their Xbox Division. Here's Why

Top Microsoft investors want new CEO Satya Nadella to slim down the company's operations and refocus on its core business: selling enterprise software to large businesses. And to do that, they want him to get rid of Bing, Surface, and even cash-cow Xbox.

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policymic.com
Rig_Master4485d ago

Only a matter of time till the new CEO dumps the entire Xbox fiasco.

LeeMajors4485d ago

Hard to see him leaving Ballmer's failed products intact. Microsoft is 0-3 in the console market after 14 years. It is long past time for them to dump the Xbox trainwreck.

The first Xbox just barely avoided coming in last place due to Nintendo giving up on the GameCube early. The Xbox 360 came in last place last gen. And now the Xbox One is crashing and burning. The PC market is rapidly dying and Microsoft is wasting time and resources on failed products like the Xbox instead of focusing on the core Microsoft markets that are vital to the company.

LOGICWINS4485d ago

The Xbox brand was a trainwreck? It singlehandedly introduced/popularized online gaming to the masses and made Sony prematurely drop the PS3s price less than a year after it launched.

Anyone who considers that a trainwreck isn't living in the realm of reality.

Rig_Master4485d ago

Yes. Microsoft's core monopoly market, desktop PCs, just went through a 10 percent drop. And Valve is starting to seriously threaten Windows as a gaming platform. And when the new Microsoft CEO has to answer what his plan is..."keep losing in the console market with the Xbox"..."keep trying to kill Google with Bing"? There is every indication that Microsoft is entering a new era and the Ballmer days of throwing billions at markets is coming to an end.

LeeMajors4485d ago (Edited 4485d ago )

"It singlehandedly introduced/popularized online gaming to the masses and made Sony prematurely drop the PS3s price less than a year after it launched"

Boggle.

PC online gaming, Dreamcast online gaming. Even the PS2 that didn't come with online capabilities but had to be bought as an add-on had more people playing the massively popular SOCOM online than Microsoft had online players on their entire system.

So, yes, the Xbox could be played online. Golf clap Microsoft.

And the PS3's first price drop came as a direct result of the very new and expensive Blu-Ray drives dramatically dropping in manufacturing costs.

LOGICWINS4485d ago

^^LOL, really? Blu-Ray drivers dramatically dropped in manufacturing costs in just SEVERAL months?

The PS3 dropping to $499 had NOTHING to do with the 360 stomping it early on?

/facepalm

Stay classy friend...stay classy ;)

LeeMajors4485d ago (Edited 4485d ago )

"360 stomping it early on"

My god. You can't possibly be serious.

The 200 dollar more expensive has PS3 outsold the Xbox 360 every single year on the market. Including the very first.

Let me guess...you get your 'sales' numbers from the little kid Xbox fan who created vgchartz...

In a hilariously pathetic way, the RRoD fiasco is really the one bright spot in the entire 14 year Xbox trainwreck in that it massively inflated installed base numbers for the 360. Too bad for Microsoft that those same 25-35 million Xbox fans out there are in no mood to once again buy 4-5 extra consoles like they did with the 360.

Anon19744485d ago (Edited 4485d ago )

You hit the nail on the head there. The idea that the PS3 was forced to drop the price due to the Xbox 360 "outselling" is laughably easy to disprove. Just go to either company's investor relations site and look at the sales figures. The PS3 handily outsold the 360 despite their price difference right from launch. Saying the 360 was outselling the PS3 is some serious revisionist history.

The main thing to remember here, and something I've pointed out before, is that it's not about if the EDD division is profitable. Even with the numbers they're putting up, it still pales compared to other divisions in Microsoft. If you invest the same amount in 2 divisions and one consistently gives you a 30% return, the other 5% , at some point you're going to want to reassess where you're putting your money.

And according to financial analysts as recent as last November, the Xbox is costing Microsoft 2 billion annually and this is being hidden in the division by Android revenue. Do people honestly think that's going to get better with the way the Xbox One is performing relative the PS4?

pwnsause_returns4485d ago (Edited 4485d ago )

i wouldnt say the xbox brand is a trainwreck. it has done a few things right in the past 8 years. it forced sony to make drastic changes with the PS brand as well.

it also has a fanbase.

say what you say about the x1, but people are buying them here and in the UK. its just harder for them to break thru worldwide.

if anything, they need smart people up there and stay current with what the fanbase wants. they suffered last year because they didnt do that and are paying for it. they put idiots up there that in which my opinion, almost destroyed the brand in the past 4 years. but it looks like they're listening now.

LeeMajors4485d ago

"it forced sony to make drastic changes with the PS brand as well."

LOL!

Always the same rhetoric when teams or groups come to grips with the inevitable losing outcome of their side. The 'we did not lose in vain!' rationalization.

Irishguy954485d ago Show
BitbyDeath4485d ago

@Irish, don't forget 360's numbers were heavily inflated by at least 10-20 million due to the RROD fiasco.

If you were to take that away plus the one year advantage they really only got around 40-50 mill consoles. Bit more than the first console sales but then again many jumped to 360 because PS3 wasn't available until a year later.

Rig_Master4485d ago

>Sony went from butt****ing the Xbox to 'matching' the Xbox 360 in sales.

Wait! You mean that Xbox installed base numbers drastically went up on a console with a failure rate so bad the average owner bought 4-5 duplicate consoles hoping to finally own a model that functioned properly?

Shocking!

Perhaps Microsoft should bring back the RRoD to help inflate Xbox One sales?

Gamer6664485d ago (Edited 4485d ago )

To begin with they are not 0-3 in the console market. They did not win the first two generations they participated in and they are on target to be at least second this generation (X1 sales are about double Wii U sales at this time last year). Not coming in first is not a reason to exit. Pepsi is second to Coke... Are they selling off?

Also, I would hardly call the last generation a failure. MS had a console that lasted a year longer than PS3. And coming in 3rd is more a statistical tie for second than it is truly coming in third. Both PS3 and 360 are in the 80 million range.

As for the first gen Xbox, MS came late to the party and made a pretty good showing with about 25 million sold. Which speaks to their improvement in the second generation X360 to over 80 million sold.

As opposed to Sony... Its first generation was 100 million, Its second console was 155 million, but the PS3 plummeted to 80 million. Who should really consider their options?

And Nintendo hasn't even cracked 5.7 million and it has seen two holiday seasons with Wii U. After selling over 100 million with the Wii. They really need to look at their options.

MS has a product that has improved its sales in every generation it participated in so far and according to current figures is on the path to do the same this generation. Meanwhile Sony showed close to a 50% decline from PS2 to PS3... And Nintendo is showing a epic fall. IF anyone needs to rethink their products it is Sony and Nintendo. Fortunately for Sony they did on PS4 and the results are looing good. Nintendo, not so much.

Christopher4485d ago

LOGICWINS is correct.

Sony definitely went into the PS3 genre with too much arrogance. This doesn't mean they sucked, but they did not expect to have the competition they did.

Microsoft forced them to vastly improve PSN in so many ways. But, Sony also has forced MS to improve in so many ways.

We have the PSN and services we do now because of competition. We have the XBL and no-DRM on XBO because of competition.

This is the whole point of competition. It forces them to keep on their toes to beat one another.

Hocking4485d ago

"@Irish, don't forget 360's numbers were heavily inflated by at least 10-20 million due to the RROD fiasco.

If you were to take that away plus the one year advantage they really only got around 40-50 mill consoles. Bit more than the first console sales but then again many jumped to 360 because PS3 wasn't available until a year later."

Yep.

And now we are seeing the Xbox fanbase back at its true size with the Xbox One.

Axios24485d ago

http://www.geekwire.com/201...

360 bested the PS3 in years 08, 10, 11.

Anyone who thinks the sales of 360 hardware are inflated need do one thing...

Check software

or

Check the financial reports from the publishers

in both cases 360 sells more games

Hocking4485d ago

"As opposed to Sony... Its first generation was 100 million, Its second console was 155 million, but the PS3 plummeted to 80 million. Who should really consider their options?"

My god. Stop to think what you just wrote.

PS2 vs PS3

PS2 150 million console over 12 years
PS3 80 million consoles over 7 years

PS2 12.5 million consoles/year
PS3 11.4 million consoles/year

The PS2 sold 80 million more console AFTER it dropped to 200 dollars in the second half of its life.

The PS3 has easily another five years of sales...

Do the math.

Sayai jin4485d ago

@LeeMajors...investors look at market share. Looking at who came in as far 1st, 2nd, and 3rd is very misleading. Sony owned 65 to 70% of the market during the PS1 days...they crushed the MS and Ninty. MS and Ninty shared the other 30 to 35%. Last gen Sony lost their market share by a large margin..each manufacturer did very well, but only MS and Ninty gamined market share. Soplease tell me how MS is 0-3. This gen has just barely started.

JokesOnYou4485d ago (Edited 4485d ago )

"Microsoft May Drop Their Xbox Division. Here's Why." -Tom McKay, PolicyMic

"Meanwhile, Xbox is widely considered the most successful product Microsoft has engineered in the last decade. And writing off Microsoft Studios, which helped engineer video game franchise successes like Halo, would be a massive loss of developer talent. Meanwhile, it's unclear who Microsoft would even want to sell Xbox off to. Any potential buyer would also be one of their biggest competitors."

"The bottom line: Don't freak out — Xbox doesn't seem to be going anywhere just yet. And even if Nadella does decide to make a major transition, it seems even more unlikely that they'll just decide to shut it down." -Tom McKay, PolicyMic

-Uhm Tom not only did you never give any solid reason other than just a waaay out of left field guess that pretty much sounds like "yeah they might sell off the xbox division because microsoft has a new CEO", OK so?....but worst is your final two paragraphs from your own article contradict your headline, lol= even he doesn't believe his own news piece.

-If anything micro recent acquisitions in cellular and investments in new studio's says the xbox division is a key part of their future business strategy=

"The Entertainment and Devices division was as well up until 2008, and it’s thought that the Xbox business is the primary reason it’s in profit now" 

"And although it is now making a profit you can see from the graph that it’s a very negligible one compared to Microsoft’s other divisions." 
http://fileiserve.info/2014...

-So this "negligible" profit since 2008 is 1-2 billion dollars per year, yet a brand that started in the red should be dumped just when it's making you a few billion just because it isnt making 10's of billions like other divisions even though the company as the whole is making huge profits???? I think alot company's like sony for instance who are losing tons of cash as a whole would like that fanatical position.= It would be terrible business to dump a investment that is making profits.

Godmars2904485d ago (Edited 4485d ago )

Really can't count XB1 as a failure with it launched in under six months. Its going to be at least a year to properly judge such.

@LOGICWINS:
I for one hate if not despise online for what its done. From the fall of SP gaming to titles being released unfinished and buggy, to DLC - Or as it use to be known, Unlockable and Easter eggs!

@cgoodno:
MS should have never allowed DRM "rumors" to reach the level they did, whcih became public conformation.

And still, where most of Sony's arrogance was applied to devs and publishers with the PS3, MS tried to dictate to consumer and industry alike. Continued to do so with indies and even Kinect well after the DRM 180s.

BG115794485d ago (Edited 4485d ago )

People aren't seeing the big picture here.
When there are only 2 consoles that can compete in the market, it is really easy to get a good second place. The big problem her is how much money MS is spending to only get a second place.
This is really bad. Investors must not be very pleased with the results.

Rockstar4485d ago

@ Rig_Master...

>Sony went from butt****ing the Xbox to 'matching' the Xbox 360 in sales.

Wait! You mean that Xbox installed base numbers drastically went up on a console with a failure rate so bad the average owner bought 4-5 duplicate consoles hoping to finally own a model that functioned properly?

Shocking!

Perhaps Microsoft should bring back the RRoD to help inflate Xbox One sales?

...Give it time ;)

SITH4485d ago

Not going to happen. You kids better be more concerned with console maker that IS closing divisions to keep the lights on.

+ Show (19) more repliesLast reply 4485d ago
AngelicIceDiamond4485d ago

Again with this?

MS spent way to much time money on the X1. and have many first party projects in the works right now.

Plus future X1 OS integration's and updates.

Forget it, its not happening.

Why would anyone wish a downfall for a console anyway? I mean who is that sick in the head?

BitbyDeath4485d ago

Someone else will buy it, Xbox will live on.

Godmars2904485d ago

"Someone else will buy it, Xbox will live on."

Not the way Windows has been interwoven into the brand. Anyone who buys Xbox would have to consider either rebuilding the whole thing from scratch, or continue to rely on MS for support. Effectively lease something supposedly outright bought.

Axios24485d ago (Edited 4485d ago )

What kind of flame bait article goes back 2 quarters to find a loss for Surface?

Why not post the most recent quarter with Surface profits?

Oh ya, flame bait, truth goes out the window

Surface revenue of $893 million last quarter

matt1394485d ago

As soon as that happens you will see the prices of playstation products sky rocket and the quality deteriorate as they won't have any competition to keep up with!!

S2Killinit4485d ago

I really don't think MS is going to get rid of xbox. However, I do hope that they split the xbox division from the rest of Microsoft, allowing xbox to live as a separate entity. That way, xbox will loose the anti consumer BS, and still survive.

otherZinc4485d ago (Edited 4485d ago )

LMAO! At the clowns that think they know how business is run at the corporate level.

Yeah, M$ is about to release a System Selling game TitanFall. Now, a wannnabe journalist business expert wants to get rid of the XBOX Division, funny.

This is a ploy to damper the enormous attention M$ is getting, due to the overwhelming approval of the TitanFall reveal.

M$ will enjoy the massive fiscal year end March sales numbers of TitanFall & the XBOX ONE console.

So no, this is a stupid article.

+ Show (3) more repliesLast reply 4485d ago
donnieboy4485d ago (Edited 4485d ago )

No those investors need stfu!! All of Microsoft's consumer fan base will be tarnished if he does that...

Mikelarry4485d ago (Edited 4485d ago )

while i don't agree with the article " all microsoft consumers" i don't think so, MS is not just a games/ console company but it would not look good on them as this would be the 2nd console they just uped and left

donnieboy4485d ago

Microsoft is trying really hard to make consumers favor them and create a fan base. Its going for the pro-consumer and consumer crowd than the professorial crowd....

dedicatedtogamers4485d ago

They absolutely won't drop the Xbox division.

HOWEVER (and we're already seeing the evidence of this everywhere) they will turn Xbox into their catch-all media brand and shift focus away from gaming. They're already pushing stuff like "Xbox Music" and "Xbox Video" and whatnot. Xbox will be used as their media brand where gaming just happens to be a part of it, but it will no longer be the focus.

MightyNoX4485d ago

I don't know, man, weirder things have happened. I'm not saying we're going to wake one day and see an article headline 'WTS Xbox Division, Plz PM Sateya99' but I can see them making taking the steps prepping it to be a subsidiary ala what Sony with their TV division.

Mikelarry4485d ago

From the article
adella said he saw "a 'software-powered world,' a 'mobile and cloud-first world,' and that doesn't sound like a world where Microsoft makes a gaming system

did i wake up in a twilight world or wasn't the cloud what the xbox one is all about????

jhoward5854485d ago

Microsoft won't abandoned their xbox division b/c too much money was invested in their cloud tech.

kingdip904485d ago

Microsoft would still own the cloud tech if they sold xbox... azure is used for much more than the potential it offers gaming.

Half-Mafia4485d ago

Azure has been around for years. The XBO just has been integrated into it.

Show all comments (77)
60°

Final Fantasy X 25th Anniversary Website Launches With New Nomura Artwork and Merchandise

Square Enix launches Final Fantasy X 25th anniversary site, revealing new Nomura art, books, music releases, and merchandise.

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twistedvoxel.com
-Foxtrot28d ago

Look I know VIII has its issues and all that but how on earth can the do big anniversary events with new artwork and merchandise for VII, IX and X yet VIII got sweet f*** all.

They could have given it something during its 25th anniversary yet all it got was a single Happy Anniversary post on their social media.

solideagle27d ago

they should know that we are OG fans of VIII as it sold truckload as well. not as much as VII or X. I personally didn't like IX but X and VI are my personal fav.

Shadow Hearts 2 covenant is another game I love. I hope one day someone can make remake, I would be delighted

Relientk7727d ago

Final Fantasy VIII is great and you are always the first to defend it in the comments

40°

Star Wars: Bounty Hunter Let Jango Fett Loose

LucasArts gave Jango Fett his own game in 2002, and it pulled Star Wars into a much dirtier, rougher, and more interesting corner of the galaxy.

Read Full Story >>
swtorstrategies.com
Relientk7732d ago

I remember playing this back in the day on PS2. What a sick game!

270°

We Are Xbox

Dear team,

Xbox has always been different.

We started with a simple idea. Games should bring people together through shared experiences. That led to the first Xbox in 2001, Xbox Live in 2002, and new ways to connect, from friends lists and achievements to parties and play across devices. Today, Xbox reaches over 500 million players around the world, with some of the most important franchises in entertainment.

Read Full Story >>
news.xbox.com
33d ago Replies(15)
Outside_ofthe_Box33d ago (Edited 33d ago )

If they go back to exclusive games it at least shows that they are finally getting it. They would be turning down immediate money for something that will potentially workout in the long term.

Only issue is they've already opened Pandora's box. A lot of their base has moved to PC or jumped to PS. So will be a long road to get back on track.

We have been saying this from day one exclusives are a must if you are going to be selling hardware look at Nintendo and Sony before Jim Ryan. That's the proven formula. You had some that were deluded and blinded by loyalty accepting that multiplat was the future and that MS was merely getting ahead of where the industry was headed, but at least they can finally see the light and agree with what everyone has been saying for a decade+

pwnmaster300033d ago

True, blame it on the rabid fanboys. MS can do no wrong and spinner this multiplatform move. While the actual fans moved on.

I feel like with the new Xbox coming they are hoping to bring back those old fans and then if it goes well. Bring back exclusives.

If the new console is performing like series x and one. Naw they staying multiplatform.

darthv7233d ago

Actual fans dont move on... they can add to their hobby while waiting for the next new release. If you believe what you typed then I guess PS fans moved on too.... you know, since its been a Sahara for 1st party games this gen.

S2Killinit32d ago

The fans didn’t tell them to go multilat. MS was forced to after the 82 billion they spent to destroy gaming. Then, while xbox fans cheered, MS realized they can’t justify the price tag by selling through xbox only, so they went multiplat and in the process began to downplay console gaming.

33d ago Replies(4)
CrashMania33d ago

I think it's too late, xbox sales were diving even before ABK, they got even worse since then even long before the full multiplatform push. I'd be surprised if they even went back to timed exclusivity at this point, Helix is basically a PC and is going to be expensive, they already struggle to sell cheaper xbox consoles, it will be low volume and they'll have a very small 'console' base to sell to, which has already been conditioned to just play via gamepass anyway.

S2Killinit32d ago

They will do what they always do, they will promise the world at the beginning of next GEN and then failed to deliver all generation long. But there will always be some gamers who will buy into their promises.

ocelot0732d ago

Absolutely agree, Do people genuinely believe Microsoft are now going to go. Hang on how's about we go back to 2020. Then GP was stagnating, Games sold where awful because of GP. Outsold by Playstation by a landslide.

They have sold 5m of Forza I believe on PS5. Spite it being a old game. I think Starfield is going to sell well in the end. Halo is deffinetly going to sell well as is Fable and Forza Horizon 6.

I think at best (for Xbox fans). Single player titles like Clockwork will have a timed exclusivity. Multiplayer centric games like Forza, E Day will release day and date on all platforms.

Or all games will release on all platforms day and date. But maybe Xbox and Windows Store copies will have exclusive bonuses. Or may even get timed exclusive dlc like Fallout and Elder Scrolls and COD use to do.

I think they will treat Xbox players like the premium customers or at least act the way. But will serve just the Playstation and Switch 2 customers as well.

Neonridr33d ago

I don't see them removing PC from the equation. Considering MS has a heavy enough investment in the PC market, it would be foolish to abandon them. I could see them taking away games from PlayStation or ensuring they are timed exclusives at the very least. Say what you will but if Call of Duty ends up becoming a timed exclusive to Xbox machines, that would hurt PlayStation, don't pretend like those games don't sell millions.

Outside_ofthe_Box33d ago

They would lose out on a lot of CoD sales tho. Doesn't PS make up most of the sales?

Neonridr32d ago

@Outside - possibly, but it might push people to want Xbox hardware so they can play with their buddies day one.

Who knows.

S2Killinit32d ago (Edited 32d ago )

it would but remember doing that can splinter the COD fan base and in the process damage the call of duty brand which is probably the only franchise in that $82 billion purchase that in anyway gets even close to delivering what Microsoft thought they bought. If Microsoft fudges around too much with the COD franchise, you might even see a competitor franchise show up on the scene and that would be a catastrophe after the huge debt that Microsoft put itself into with the ABK purchase.

But Its almost guaranteed that Microsoft will want to do something drastic at the beginning of the next generation as they always do. We will see.

Pyrofire9533d ago

Their lifeline of solely the Xbox consoles is dry. Good-Great games on a 1st party scale can't be made at a loss so willingly - sent to the Xbox to only sell limited copies.
They invested billions scooping up studios and need to start making returns.
Sucks that nearly every company is publicly traded and have to be so shareholder biased but that's how it is.
Their words are strong but it'll take time to see what their actions accomplish. Lowering the cost of Game Pass and taking CoD off of it was a good clear start.

darthv7233d ago

More like, allot of their base just played game pass. So now they need to encourage them to start buying again.

S2Killinit32d ago (Edited 32d ago )

A lot of their base left for greener (bluer?) pastures.

--Onilink--33d ago

What exactly is the long term goal with exclusives though?

Because for the most part, the hardware side of things has never been the most profitable, even sometimes being subsidized for a period before breaking even. And that’s before the hardware component nightmare we currently live in.

The whole point of exclusives was to get more people to buy your console in order to have a bigger install base, which meant even bigger software sales.

But if their ports to PS5 are selling (for the most part it seems) quite well, then other than negating the cut Sony takes there, unless you are REALLY increasing your software sales on your own console, it probably doesn’t make that much of a difference?

Honestly I don’t even understand Sony’s decision to scale back on it for PC unless they weren’t even recouping the port expenses. They released ports when the hardware sales never really dropped, and now that all consoles will undoubtedly take a noticeable drop in sales due to the ridiculous prices, that’s when they decide they don’t want to sell to a larger install base to more easily recoup dev costs… it’s just weird

Outside_ofthe_Box32d ago (Edited 32d ago )

I agree. I mean once they went multiplat, in theory there should be no going back especially when you have games that have sold really well on other platforms.

Microsoft are the ones that announced that they are reevaluating. So I'm just guessing on what their end goal is. Right now Xbox as a hardware is not a must buy for anyone but fans of the brand because their games can be played elsewhere. Going exclusive would solve this, but you lose out on a ton of money instantly which has always been what the company does not want to do so not really sure what their "reevaluating exclusives" means unless they are pulling a Phil Spencer and are just saying what people want to hear and will continue to do what they are currently doing.

darthv7232d ago

Their ports to PS5 are selling because Sony's output has been so dry... the fans are thirsty, and MS is the oasis.

SIdepocket32d ago

Unfortunately, the studios they buy wither under their leadership.

mcstorm32d ago

Microsoft still has a name with Xbox the issue is the casual games are not looking at the console because its not the same console their friends have. Look at that poll on how many users upgraded from xbox 365 to one and then the X. Part of Microsoft's downfall was thinking that the Wii was the market they had to be in when really it was the core market. If you get the core gamers you then get the market to. As I posted a few minuets ago on another post Microsoft putting exclusives on PS this gen could bold well if they hit next gen with all our games are staying exclusive from this new gen. They will then get gamers wanting Halo, Forza Gears but this is also where Microsoft fell over with the xbox one and X in terms of they did not have may quality 1st party games affter they fell into the Gears, Forza and Halo cycle. If they can get some old IPs back to bring back the old core gamers as well as fresh ips to bring in new gamers things could improve next gen. But as I said in my last post its all if buts and maybes at the moment. No one knows if the next home consoles will be to expensive that people move to pc as we are now seeing or look at the stem deck as a cheepier alternitive.

DarXyde32d ago

"Only issue is they've already opened Pandora's box."

That's very optimistic. It's not the only issue, far from it. There is a serious rupture between Microsoft generally and the public caused by their weird Game Pass price fluctuations, taking down physical game space in stores, and being the first to go nuts on hardware price hikes that they themselves played a big part in.

They're also charging beyond a premium for Helix which is just vile at a time when the economy is in shambles.

The company itself is really not doing itself any favors with the approach they're taking Windows. Even France is looking to ditch Windows in favor of Linux.

But the most offensive thing is this AI push. They're doubling, tripling, and quadrupling down on the very technology they're using to replace a considerable proportion of their workforce... And the slap in the face is how they bake copilot into everything when nobody likes it—they couldn't even make Bing stick, so why on earth are they trying so hard? You know it's bad when people would rather use ChatGPT than Copilot which is killing their OS. But aside from their snatching up of farmland to build data centers (and reduce the agriculture capacity of whichever country allows them to build them), they made an AI-generated gamer gurl that loves AI the head of Xbox.

Even if we grant them the full benefit of the doubt, it hardly matters what Xbox wants to do if Nadella says no, and that includes exclusive games. Microsoft's relationship with Xbox is the opposite of Sony's relationship with PlayStation—Microsoft pulls the reins of Xbox, but Sony damn near went under for the PS3.

Tanktopmaster9232d ago (Edited 32d ago )

“If they go back to exclusive games it at least shows that they are finally getting it.”

Great strategy, especially after Forza selling 5 million on PlayStation and sea of thieves selling at least another million (2 million) for example. In March 2026, Xbox consoles sales ratio vs PS was 10:1.

In addition to that, with Gamepass, which unequivocally cuts out chunks of sales (Cannibalizing revenue from 1st month sales especially).

I’m sure going exclusive again after releasing everything on Ps5 is going to work out great for business.

+ Show (8) more repliesLast reply 32d ago
maximusprime_33d ago

Despite all of that, it's clear that Microsoft's Xbox division is broken beyond repair.

33d ago
BeHunted33d ago

PlayStation is currently draining money on flop after flop. It's Sony that needs to re-evaluate their strategy

33d ago
CrashMania33d ago (Edited 33d ago )

Wonder how much money was lost on perfect dark, hellbalde 2, 300 million lost revenue
by putting cod on gamepass. The recent Jason schrier news that Xbox has cancelled dozens of projects, spent 70 billion just to see Xbox sales further collapse and gamepass see little growth.

The fact is this has been PlayStation's most profitable generation and they are making loads of money and selling plenty of consoles and games. While MS won't give you any sales figures or profit numbers for Xbox, says it all really.

S2Killinit32d ago

Sony PlayStation has deservedly dominated xbox. Facts

Tanktopmaster9232d ago (Edited 32d ago )

Ok tween.

Xbox series SX got outsold 10:1 last month. lol.

32d ago
+ Show (3) more repliesLast reply 32d ago
shadowT33d ago

"Our presence on PC isn’t strong enough."

Fishy Fingers33d ago

It isnt. But I dont think they mean in 'games', rather, footprint.

They own the OS but as far as gaming is concerned, Steam dominate. I imagine the VAST majority of people who use the Xbox app/launcher are PC gamepass subs. No ones buying their 3rd party PC games through Xbox PC.

badz14932d ago

and many gamers prefer SteamOS for gaming over Windows too. If only Valve would be more uncompromising to the anti-cheat makers that locked out non-windows players, more pc gamers would have moved onto SteamOS by now and not looking back to Windows. overall, Win11 is a terrible, bloated, unoptimized OS which is not what many people want

ocelot0732d ago

Agreed and I think that's where they are going to focus on more. I think cheaper games on Windows/Xbox store (MS IP) compared to Steam and Epic and maybe even compared to PSN store as well.

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