this post was submitted on 19 Sep 2023
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Microsoft May Exit Gaming Business If Game Pass Subscribers off Console Don't Increase Enough by 2027 (wccftech.com)
submitted 1 year ago by [email protected] to c/[email protected]
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Spencer said in no uncertain terms that Microsoft could exit the gaming business if this projection became reality. Microsoft needs the light green and blue segments (PC and cloud) to get much larger and much faster by fiscal year 2027, or it could opt out of the business altogether.

I do not believe that that is what the future Xbox business would look like. This is a presentation from our devices organization to the gaming leadership team, so this is the view from the team that is chartered with building our hardware on what the future business would look like.

I can fairly safely say that if we do not make more progress than this off of console, we would exit the gaming business. If this were the outcome, we would -- I don't believe we'd still be in the business.

A majority of our customers are found off of our own hardware, I would hope by earlier than 2030. So, when you asked me if I agreed with this chart that the light green and blue depending on what colors you see there would have to be much larger much earlier. I would say by FY26, '27 that we should be in that position, or we'd have to make a different decision with the business.

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[–] [email protected] 2 points 1 year ago* (last edited 1 year ago)

Nah, even then that guy is still right. Go check out what Microsoft makes in a quarter, Q22023 for example.

They can afford that loss. Remember, Microsoft is stupid big and makes stupid money, if you go to any world index fund, Microsoft is like 3% of it. It is titanic.