Last quarter Microsoft as a company generated more net income than Xbox generates revenue in a year. In 3 months they generated as much money in net income as Sony generated for revenue in PlayStation for 2022 minus maybe a billion or so.The thing is Microsoft isn’t really making cheap games either. A lot of their fans are acting like they’re Nintendo but Pentiment, Hi Fi Rush and Grounded are the equivalents to ratchet and clank, destruction all stars, Sackboy A big Adventure, astrobot, etc.
They are games that come out but aren’t really major sellers. We haven’t talked about all their games that have been in production for 5+ years with huge studios and budgets that are no where to be found. Stuff like Perfect Dark, State of Decay 3, What Coalition is doing, Fable, Hellblade 2, etc. these are games that have gone through numerous re-works and changed hands, and are all positioned as games that can compete with sonys. They aren’t cheap, and player numbers aren’t telling half the story.
Its certainly going to be interesting if people think microsoft are safe because they don’t report profits or have some endless warchest to fund them forever.
As long as Nadella says go yeah they can fund Xbox forever. In 6-9 months they will have replenished all the money they spent to buy Activision Blizzard and not really have even noticed.
Since they don’t publish Xbox hard numbers who the hell knows how it’s really doing. The board doesn’t seem to care and they hardly get asked about it on earnings calls. These tech giants have whole arms of their businesses that are unprofitable and yet remain. No way is Apple Music profitable if Spotify isn’t yet I doubt Apple drops it. Microsoft seems to feel that way about Xbox.