Microsoft CEO Satya Nadella has acknowledged that the company needs to rethink the future of Xbox and find a more economically sustainable path for its gaming business. Speaking at the Hard Fork Live event, Nadella said Microsoft has spent decades investing heavily in gaming and now needs to turn those investments into a profitable long-term business.
«We’ve invested a lot. No one can accuse Microsoft of not investing in gaming over the last 25 years. Now we have to turn that into a sustainable business that delivers one of the best forms of entertainment», — Nadella said.
According to the Microsoft chief, the company’s biggest challenge is that it has struggled to properly monetize its gaming ecosystem.
«We’ve not been monetizing that entertainment. If anything, we’ve been subsidizing it. In fact, there’s more monetization of Xbox games happening on YouTube than at Microsoft», — he stated.
Nadella emphasized that Microsoft is not looking to pursue artificial solutions purely for profit. Instead, the company wants to continue building great games and hardware while ensuring the business remains financially sustainable. He also pointed to new Xbox head Asha Sharma, who is currently reviewing the division and is expected to present a refreshed strategy in the coming months.
The executive also highlighted rising hardware costs caused by growing demand for AI and cloud infrastructure, along with ongoing semiconductor and memory supply pressures. According to Nadella, these issues are affecting not only Xbox consoles but also PCs and smartphones across the industry.
At the same time, he admitted Microsoft has yet to find the perfect formula for combining its major gaming assets, including Call of Duty, Game Pass, xCloud, Candy Crush, and Xbox hardware, into a highly profitable ecosystem. Finding that balance and building a sustainable long-term business model remains one of Xbox’s biggest priorities moving forward. та прибутковість бізнесу, залишається одним із головних завдань для Xbox у найближчі роки.
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