"This cannot continue": Xbox leaders lay out "hard truths" behind sagging brand
6 hours ago
- #Microsoft Gaming
- #Xbox Reset
- #Profit Margins
- New Microsoft Gaming CEO Asha Sharma has initiated an 'Xbox reset' due to poor performance across the Xbox division.
- Xbox's profit margin has dropped to 3%, below industry averages and far from Microsoft's 30% target.
- Overextension from acquisitions like the $69 billion Activision deal has contributed to declining gaming revenues, down nearly $500 million over five years.
- Microsoft has underfunded key franchises and faced layoffs and game cancellations, highlighting a need for a stronger exclusive game pipeline.
- Hardware challenges, including supply chain issues and rising storage and RAM costs, are impacting Xbox more severely than competitors.