Microsoft CEO Satya Nadella on Xbox: ‘We Have to Turn This Into a Sustainable Business’
The company is weighing a spinoff, subsidiary or joint venture as Xbox faces layoffs, budget cuts and a push to offset years of losses.
- On Friday, The Information reported that Microsoft is considering options for its Xbox gaming unit, including a potential spinoff or restructuring as a wholly owned subsidiary.
- Xbox CEO Asha Sharma told employees in a memo that the division's heavy spending and declining revenue "cannot continue," noting the company spent more than $20 billion over five years.
- Sharma, about 100 days into the job, plans to pair layoffs with increased investment in "Halo," "Fallout," and "The Elder Scrolls," a plan Microsoft CEO Satya Nadella and CFO Amy Hood approved.
- Nadella acknowledged the company has been subsidizing Xbox rather than profiting, stating "And now we have to turn this into a sustainable business," while noting more monetization occurs on YouTube.
- During a Wednesday taping of The New York Times' "Hard Fork" podcast released Friday, Nadella described two business pressures: temporary semiconductor shortages and the lasting question of Xbox's business model.
16 Articles
16 Articles
Microsoft CEO Satya Nadella on Xbox: ‘We have to turn this into a sustainable business’
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…
Microsoft has considered spinning off Xbox, the Information reports
Xbox Games Are Being Monetized More On YouTube Than At Microsoft, Says CEO
Xbox games are being monetized more on YouTube than at Microsoft, according to the company’s CEO, Satya Nadella. During a recent interview with Hard Fork, Microsoft CEO Satya Nadella was asked about his strategy for Xbox, and about the recent memo from leaders of the division stating that the platform will soon receive a hard reset involving a new business model. In response, he acknowledged that Xbox is at a crossroads. Nadella talked about th…
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