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Microsoft CEO says ‘YouTube monetizes Xbox better than we do’, ahead of expected layoffs
Video Games Chronicle • • technology
Key Points:
- Microsoft CEO Satya Nadella criticized the Xbox division's financial performance, noting that YouTube generates more revenue from Xbox gaming content than Microsoft itself does.
- Xbox head Asha Sharma revealed that the division's annual revenue declined by nearly $500 million over five years, with hardware costs quadrupling and the studio system overstretched.
- Nadella emphasized the need for Xbox to develop a sustainable business model, balancing innovation in hardware and games while addressing economic viability.
- Sharma indicated plans to make the upcoming Xbox console, codenamed Helix, more affordable and explore radically different business models amid ongoing hardware supply challenges.
- Nadella acknowledged temporary semiconductor shortages but stressed the importance of defining Xbox's strategic role alongside PC and mobile gaming for long-term success.
