this post was submitted on 23 Oct 2025
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Management’s goal of 30% profit margins for gaming has led to job losses, canceled projects

top 22 comments
sorted by: hot top controversial new old
[–] devolution@lemmy.world 4 points 5 days ago

Private Equity mindset ruins everything.

[–] ICastFist@programming.dev 5 points 5 days ago

So you're telling me M$ will kill the xbox division for good?

An Xbox spokesperson said in a statement that they take a long-term view of their business and that success “doesn’t look the same across every project or priority.” - “We look at the business as a whole, balancing creativity, innovation, and sustainability across a diverse portfolio of offerings,” the spokesperson said.

HAAAAAAAAAHAHAHAHAHAHAHAHAH AHHAHAHAHAHAHA
Oh my fucking god, these corporate stooges

To account for the lost sales, Xbox offers its developers a credit, which it calls “member-weighted value” and is calculated based on several factors, such as the number of hours that Game Pass players collectively spend on a particular title. The opaque formula seems to favor games in which players can spend the most amount of hours, such as online multiplayer titles, according to people familiar with the calculations.

Interesting, that explains why some studios are getting fucked out of that deal

In July, Hood said on a call with investors that operating income in the Xbox division rose 34% for the quarter that ended in June due to “continued prioritization of higher margin opportunities.” The company is due to report earnings again on Oct. 29.

I'm sure M$ can keep cancelling projects and firing people ad infinitum to ensure a continual rise of operating income /s

[–] frezik@lemmy.blahaj.zone 45 points 1 week ago* (last edited 1 week ago) (3 children)

The only thing that saves the Xbox brand at this point might be firing the entire executive staff.

Strange that two years ago, there was worry that Xbox would take over everything after the Activision-Blizzard merger. Sony once again manages to take advantage of its competitor's mistakes by mostly sitting and watching.

[–] ArchmageAzor@lemmy.world 5 points 5 days ago

It's a very American thing, that kind of unprompted self-destruction.

[–] sentient_loom@sh.itjust.works 16 points 1 week ago

firing the entire executive staff.

Guaranteed they're a huge expense, and they have no interest in making cool games or experiences. It's all just angles to dominate or manipulate the customer. Like, just give us computers that play games. Focus on running fast and effective and having cool titles. But nooooo, they want gimmicks and angles and cost-cutting and microtransactions etc etc

[–] FreedomAdvocate -3 points 1 week ago

Strange that two years ago, there was worry that Xbox would take over everything after the Activision-Blizzard merger.

That was never a real concern for anyone who had been paying attention to the video game world for even the last 10 years.

[–] Reality_Suit@lemmy.world 26 points 1 week ago

Take it from the CEO bonus.

[–] a1studmuffin@aussie.zone 16 points 1 week ago

Please drink a verification can.

[–] technocrit@lemmy.dbzer0.com 15 points 1 week ago

Gotta fund that "AI" grift by any means necessary.

[–] woelkchen@lemmy.world 13 points 1 week ago (1 children)

Imagine Microsoft's top management was competent and leveraged their PC operating system monopoly with their dominant gaming position (ABK + Minecraft alone are massive, not even counting Bethesda and the older 1st studios).

[–] FreedomAdvocate 0 points 1 week ago (1 children)

with their dominant gaming position

If only Microsoft ever had that position. They've been distant third since the Switch 1 came out, distant second from day 1 of the PS4.

[–] woelkchen@lemmy.world 1 points 6 days ago (1 children)

If only Microsoft ever had that position. They’ve been distant third since the Switch 1 came out, distant second from day 1 of the PS4.

Wrong. You confuse the Xbox console with Microsoft's overall position as game publisher which includes all of Activision-Blizzard-King, Bethesda, Minecraft, Halo, Forza,... across multiple platforms.

[–] FreedomAdvocate 0 points 6 days ago (1 children)

You’re confusing the word “dominant”. They’ve never been even remotely close to being dominant in gaming.

[–] woelkchen@lemmy.world 1 points 5 days ago (1 children)

You’re confusing the word “dominant”. They’ve never been even remotely close to being dominant in gaming.

Look up the revenue numbers. Nobody else comes close. Minecraft alone with its different editions is massive.

[–] FreedomAdvocate 0 points 3 days ago* (last edited 3 days ago) (1 children)

Sony easily beat them lol. Did you even look up the numbers?

[–] woelkchen@lemmy.world 1 points 3 days ago* (last edited 3 days ago) (1 children)

Sony easily beat them lol.

PlayStation consoles beat Xbox consoles but that's not the whole gaming market. Microsoft and their subsidiaries publish games for PlayStation, Nintendo, iPhones, Windows,... This is really not hard to understand.

Did you even look up the numbers?

Yep, revenue numbers from when ABK was still independent, user numbers of the various Minecraft editions, etc. All public information easily to find for any person with basic media competency.

Articles like https://www.videogameschronicle.com/news/microsoft-was-the-no-1-games-publisher-in-the-world-last-month/ are really easy to find.

[–] FreedomAdvocate 0 points 2 days ago (1 children)

Now go look at both companies total gaming revenue for the whole year, not just the month that the biggest game of the year releases.

PlayStations revenue is about 50% more than Xbox’s.

[–] woelkchen@lemmy.world 0 points 2 days ago (1 children)

PlayStations revenue is about 50% more than Xbox’s.

Minecraft, Bethesda, and Activision Blizard are not part of Xbox. They are separate publishing arms within Microsoft. How is that so hard to understand? How can one not grasp such a simple thing?

[–] FreedomAdvocate 0 points 2 days ago* (last edited 2 days ago) (1 children)

How is that so hard to understand? How can one not grasp such a simple thing

The irony of this is just incredible.

Their revenues are all included in Xbox’s revenue lol. Have you ever even read one of Microsoft’s earnings reports? Doesn’t look like it. If there was a “confidently incorrect” community on here your comments would be pinned to the top lol

https://www.tweaktown.com/news/96558/big-3-revenues-compared-playstation-made-30-billion-in-2023-xbox-18/index.html

Now that Sony, Microsoft, and Nintendo have all published their holiday earnings reports, we can compile the data and get a total sum for the entire year. According to data provided by the companies and analyzed by TweakTown, gaming's Big 3 generated over $60 billion in combined annual revenues.

PlayStation leads the charge with a staggering $30.12 billion made during the year.

Microsoft is firmly in second place as Xbox tallies up to a mighty $18.128 billion. This of course includes Activision Blizzard King revenues as a result of the ABK acquisition. Xbox gaming revenues increased by 16.5% in 2023, compared to $15.563 billion in 2022. This is an increase of $2.56 billion, most of which was from the recognition of Activision's revenues.

Show me ONE source showing that Xbox makes more revenue than PlayStation. Just one.

[–] woelkchen@lemmy.world 0 points 2 days ago* (last edited 2 days ago)

Their revenues are all included in Xbox’s revenue lol.

Activision-Blizzard is not part of Xbox. Both are separate branches under Microsoft Gaming.

I also thought it was clear that by "dominant position in game publishing" I didn't mean the revenue taken solely from the 30% platform tax and not from hardware sales but from the combined sales of their games. It was my mistake to not clarify this. Sony releases only a handful of games per year. I also referenced user numbers of Minecraft, a cheap game with a massive user base but it would be madness to include the revenue of the Minecraft movie into a comment about the standing in game publishing.

I thought I made myself clear that my comment was about using all those games properties and Windows monopoly to further hurt the market. Making Minecraft exclusive to Windows and Xbox would be such a move.

[–] yetAnotherUser@lemmy.ca 10 points 1 week ago

The title reads like "gimme more money", which isn't very far from the truth

[–] ohlaph@lemmy.world 6 points 1 week ago

They want that short-term squeeze.