2 ms·

I’d argue that Nadella has considered spinning off or even selling Xbox considering how it’s been going for them.

by ErneX 4mo ago

wil421 4mo ago
They should’ve done it a while ago before Microsoft acquired more studios.
Atotalnoob 4mo ago
That doesn’t make sense, they spent billions on a shopping spree of game devs. Their game pass business model, which is terrible for consumers once the rug pull happens, is making them a lot of money and market share
- ErneX 4mo ago
  In the hopes of selling more consoles and that didn’t work. Not sure if you have seen the recent news but things are not looking great there. Gamepass is not making them a lot of money at all. Even after acquiring Activision their operating margin is 3% Big layoffs / studio closures coming in July, on top of the previous ones. Internal memo: https://news.xbox.com/en-us/2026/06/10/next-100-days-xbox-reset/ https://news.xbox.com/en-us/2026/06/10/next-100-days-xbox-re... Spinning off Xbox: https://www.reuters.com/business/microsoft-has-considered-spinning-out-xbox-information-reports-2026-06-12/ https://www.reuters.com/business/microsoft-has-considered-sp...
- altmanaltman 4mo ago
  Most gamers think xbox is dead and Microsoft doesn't seem too sure either, they recently had a change in leadership but the whole division is not doing great and struggling. Game pass is not as popular as it used to be
  - drw85 4mo ago
    Gamepass was never popular enough to justify the expenses and investments on the level they did. They just thought growth will forever be exponential until they have a billion subscribers.
- philipallstar 4mo ago
  > Their game pass business model, which is terrible for consumers once the rug pull happens, is making them a lot of money and market share How much money is it making, and how much market share?
- throwaway27448 4mo ago
  > Their game pass business model, which is terrible for consumers once the rug pull happens, is making them a lot of money and market share It seems more like their game pass price hike destroyed market share. Whatever revenue it yielded them now is sure to cost them in the long term because people viewed them as price gouging and moved to playstation. I don't understand the model, tbh. It strikes me as more useful as a loss-leader to build market share at cost to the company and make money in licensing fees long-term. But as it is, the console seems doomed.
tonyedgecombe 4mo ago
I suppose it doesn’t really fit into a business that is so focused on enterprise so I wouldn’t be surprised. Especially seeing as Windows is becoming less relevant to the typical consumer as well.
throwaway27448 4mo ago
This would be incredibly foolish. The consumer value of windows has gone off a cliff, and while the Xbox hasn't been competing with the PS5, it's going to be a solid earner for decades. They just need to avoid another game pass catastrophe that destroyed trust with the consumer.
- ralfd 4mo ago
  what was the game pass catastrophe?

I’d argue that Nadella has considered spinning off or even selling Xbox considering how it’s been going for them.

by ErneX 4mo ago

I’d argue that Nadella has considered spinning off or even selling Xbox considering how it’s been going for them.

wil421 4mo ago

They should’ve done it a while ago before Microsoft acquired more studios.

Atotalnoob 4mo ago

That doesn’t make sense, they spent billions on a shopping spree of game devs. Their game pass business model, which is terrible for consumers once the rug pull happens, is making them a lot of money and market share

ErneX 4mo ago
In the hopes of selling more consoles and that didn’t work. Not sure if you have seen the recent news but things are not looking great there. Gamepass is not making them a lot of money at all. Even after acquiring Activision their operating margin is 3% Big layoffs / studio closures coming in July, on top of the previous ones. Internal memo: https://news.xbox.com/en-us/2026/06/10/next-100-days-xbox-reset/ https://news.xbox.com/en-us/2026/06/10/next-100-days-xbox-re... Spinning off Xbox: https://www.reuters.com/business/microsoft-has-considered-spinning-out-xbox-information-reports-2026-06-12/ https://www.reuters.com/business/microsoft-has-considered-sp...
altmanaltman 4mo ago
Most gamers think xbox is dead and Microsoft doesn't seem too sure either, they recently had a change in leadership but the whole division is not doing great and struggling. Game pass is not as popular as it used to be
- drw85 4mo ago
  Gamepass was never popular enough to justify the expenses and investments on the level they did. They just thought growth will forever be exponential until they have a billion subscribers.
philipallstar 4mo ago
> Their game pass business model, which is terrible for consumers once the rug pull happens, is making them a lot of money and market share How much money is it making, and how much market share?
throwaway27448 4mo ago
> Their game pass business model, which is terrible for consumers once the rug pull happens, is making them a lot of money and market share It seems more like their game pass price hike destroyed market share. Whatever revenue it yielded them now is sure to cost them in the long term because people viewed them as price gouging and moved to playstation. I don't understand the model, tbh. It strikes me as more useful as a loss-leader to build market share at cost to the company and make money in licensing fees long-term. But as it is, the console seems doomed.

tonyedgecombe 4mo ago

I suppose it doesn’t really fit into a business that is so focused on enterprise so I wouldn’t be surprised. Especially seeing as Windows is becoming less relevant to the typical consumer as well.

throwaway27448 4mo ago

This would be incredibly foolish. The consumer value of windows has gone off a cliff, and while the Xbox hasn't been competing with the PS5, it's going to be a solid earner for decades. They just need to avoid another game pass catastrophe that destroyed trust with the consumer.

ralfd 4mo ago
what was the game pass catastrophe?