Xbox Consoles Make Up 80% of Microsoft’s Gaming Business
The future of Xbox is going through a reset. A total of 3,200 people will lose their jobs, with 1,600 layoffs already made, and multiple studios, are leaving the company. Double Fine and Compulsion Games are separating, Ninja Theory and Undead Labs have been sold, and it remains to be seen what will happen with Arkane Lyon.
Bethesda will also focus on its most successful series and franchises, while Sharma admits that Xbox Game Pass has not grown as fast as expected. Even so, Microsoft will continue to support the service with new deals.
Microsoft is also still backing Project Helix, the next Xbox console after Xbox Series X|S, because consoles are still very important for Xbox.
Xbox’s New CEO Says Microsoft Spread Itself “Too Thin” as Consoles Become the Focus Again
In an interview with Fortune, Sharma said: “In order to grow, we made a bunch of bets … and as we did that, we inherently didn’t focus on the core business. The number one measure of your strategy is what you put your resources behind, and we simply spread ourselves too thin.”
That main business is Xbox consoles. Even if Game Pass is a strong service and cloud gaming keeps getting better, hardware is still central to Microsoft, as Xbox consoles now represent 80% of Microsoft’s gaming business.
Because of this, Xbox Series X|S and Project Helix are very important to Microsoft’s plans, both now and in the future. Sharma’s challenge will be to bring Xbox Series X|S back into focus during the final years of this generation.
In other news, Xbox is currently testing a disc-to-digital feature that will still let people lend and sell their games in a digital future.
Stay connected to MP1st and the latest news by following us on Bluesky, X, Facebook, TikTok, YouTube, and Google News.
