XBOX |OT|

[G2ThaUNiT]

JRPGfan said:

"#2: We will end this fiscal year at about a 3% accountability margin, down year-over-year. Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform, and hardware subsidy, but our annual revenue has declined nearly half a billion during that time. Going forward, this cannot continue."

If your revenue is down half a billion "annually" for over 5 years....... does that mean $2.5 bn in total less revenue today, than 5 years ago?

And they pumped $20 bn into the console to try and improve things, but the end results are that the revenue line keeps going down year on year?

Holy hell.... She is dunking on Phil & Sara.

She kinda dunks on them even more on #3 on the hardware side of things. That Xbox pays more for components than competitors because of choices made over the past 5 years.

It's been numerously reported, but is also obvious in many regions where Xbox consoles are just no longer sold, that console shipments were intentionally scaled back to help improve profit margins and make Xbox more of a software-based business. Which on the surface, I can kinda see why Phil and Sarah came to that decision. Xbox has never made a profit on console sales in its entire 25-year history, which obviously brings down profit margins substantially. But at the same time, if you don't have enough consoles to sell, then no one can then buy them if they wanted to, where they could end up spending hundreds, if not thousands, of dollars on the platform.

And to make matters worse, Phil & co couldn't have predicted a global component shortage. So it created a perfect storm in a way as manufacturing was intentionally brought to a crawl, but then there's very little to nothing Asha can do currently to ramp manufacturing back up.