Xbox Bleeds Hundreds of Dollars per Series S|X Sold as Memory Costs Spike 700%, Report Claims
Wccftech • • technology
Key Points:
- Xbox is reportedly facing significant financial challenges, with a weak 3% margin after costs, prompting CEO Asha Sharma to plan a "reset" including potential layoffs of up to a thousand employees and possible studio closures, with Double Fine and Compulsion Games as likely candidates.
- Several Xbox game projects have underperformed or resulted in investment losses, including titles like Avowed, Keeper, and the canceled Perfect Dark reboot, while others such as State of Decay 3 and the Fable reboot have experienced delays but are targeting 2024 launches.
- A major issue contributing to Xbox's financial strain is a severe memory shortage, causing Xbox to lose hundreds of dollars per Series X|S console sold due to a 700% rise in wholesale memory prices since the consoles were initially costed.
- CEO Sharma acknowledged that past decisions have made Xbox more vulnerable to the component crisis than competitors, indicating that new partnerships and business models, such as manufacturing with partners like ASUS or MSI for the upcoming Project Helix console, will be necessary.
- These developments signify a period of major restructuring and strategic shifts at Xbox as the new leadership works to overhaul the platform's vision and stabilize its business.