| Leynos said: 357 billion of Market cap lost and MS mainly blames Xbox division. https://www.cnbc.com/2026/01/29/microsoft-market-cap-earnings.html As I said before. Only reason SEGA had to drop out is they didn't have daddy's credit card. Xbox would have died with the first console without MS. Phil and Co tanked a brand worse than anyone else ever has in console gaming.
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I've been pointing out since 2019 that Xbox has never been it's own division and has never once stood on its own two legs. Xbox fans have tried to point to financials but that is pointless when Azure and personal computers are lumped in with the Xbox brand. Claims of profitability after the 100 billion spending spree they made aren't really claims of Xbox being profitable, but claims that the profit from the 3rd party companies they bought overpower the losses that the original Xbox portions sustained and still sustain. Imagine you own four failing ice cream shops and then you use daddy's billions to buy out Baskin Robbins. You never turned your business around. You just absorbed an already profitable business to hide your losses.
In hindsight the claims of Gamepass being profitable was just MS accountants getting loose with PNL data.
Sega on the other hand had a couple of decades of profitability as a game company. They've existed since the 60s after all.
I don't know. Maybe Sega did fall further because they were a real game company and MS never was.
Everything Sega made except the 32X was a good console with a good library. And they never just relied on 3rd party games the way that MS and Sony do these days. They were prolific with their own game releases.
Last edited by Cerebralbore101 - on 30 January 2026
