Microsoft CEO: We Have to Turn Xbox Into a Suitable Business, Claims More Monetization of Xbox Games Happening at YouTube Than at MS
It’s been a very busy month for Xbox and Microsoft, as the recent Xbox Games Showcase confirmed that Xbox is seeking to make some of its first-party games exclusive once more.
Not only that, but recently-minted Xbox division CEO Asha Sharma has been very active on sharing her plans to turn things around, and even mentioned how she is “resetting” Xbox.
If that’s not enough, Microsoft CEO Satya Nadella himself weighed in on the Xbox division, and it’s not a pretty one.
Microsoft CEO Says They’ve Been Investing in Xbox for 25 Years
In an interview, Nadella gave some revealing info about the Xbox business over at Microsoft, and he doesn’t paint it in a good light.
Nadella didn’t beat around the bush, and mentioned how they are looking to make the Xbox business sustainable, stating, “I think one of the things that Asha, who has just taken over Xbox, put out is that we’ve invested a lot. No one can accuse Microsoft of not having invested for the last 25 years. Now we have to turn this into a sustainable business that delivers what is fundamentally one of the best sources of entertainment.”
Not only that, but the CEO even made a glaring admission that Xbox games on YouTube have more monetization than at Microsoft itself. “Still, the challenge we have is that we haven’t been monetizing that entertainment. In fact, if anything, we’ve been subsidizing that entertainment. There’s more monetization of Xbox games happening on YouTube than at Microsoft,” Nadella added.
Talking more about the business, Satya Nadella also said they really want to do what their job is: build great hardware and great games, but “to do it in an economically sustainable way.”
Nadella on Xbox’s Business Future
When pressed about hardware prices going up, game prices going up, what sort of incentive can Nadella give gamers to go with Xbox,
Nadella gave a very candid response to rising costs, “there’s an issue because of what’s happening with the cloud and AI. Prices have gone up. It’s happening with PCs, it’s happening with phones, and Xbox is impacted as well. The scarcity of semiconductor supply and memory in particular is having a massive impact on consumer electronics overall.”
However, Nadella thinks this is “a temporary thing that I think we’ll get through. It’s not going to be permanent.”
He adds that the question is, what is the Xbox model going forward? “If you think about it, PCs and consoles both have their place. Obviously, mobile has people playing elsewhere as well. We have to bring it all together while staying true to what we’ve always done.” the CEO answered.
It’s certainly an interesting time at Microsoft. Not only has Microsoft’s CEO admitted that they’re not making money on Xbox, but even the division’s CEO is now reportedly looking for faster development time on The Elder Scrolls and Fallout franchises.
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