Bloomberg: Xbox profit margin just 3%, Major Layoffs next month.

[twintail]

Cerebralbore101 said:

twintail said:

How has it backfired? 

MS is still releasing all their games on PC. They just don't want them on PS or Switch. 

PC allowed Sony to recoup development costs while also potentially getting audiences interested in their IP.

PC has served it's purpose for both MS and Sony, and will continue to do so into the foreseeable future, albeit in different ways.

It backfired by slowing down console sales. Consoles make their money by getting people invested in the ecosystem and then getting 20% of every 3rd party game sold. Fewer console numbers = less revenue in the future. 

PS5 console sales are more or less aligned with PS4, with cost being the biggest factor stopping it from doing better. PS5 gen is also very easily their most profitable. So if revenue is the end goal of the argument that moving games to PC backfired, then I believe you're categorically incorrect. 

As for XB, I'm pretty sure the decisions they made regarding gamepass and pc releases were done to help them with revenue, but whether that was the best long-term decision is questionable. Nonetheless, they're still doing PC releases for all their games so they haven't gone back on it.