this post was submitted on 13 Jun 2026
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Microsoft has spent years subsidizing Xbox rather than profiting from it, CEO Satya Nadella acknowledged this week, as he addressed the gaming division’s need for a new approach.

His comments came during a Wednesday evening taping of The New York Times’ “Hard Fork” podcast, released Friday. Hosts Kevin Roose and Casey Newton pressed Nadella on the future of Xbox a few hours after the division’s leadership signaled an upcoming reset.

“No one can accuse Microsoft of not having invested for the last 25 years,” Nadella said of the Xbox and games business. “And now we have to turn this into a sustainable business.”

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[–] definitemaybe@lemmy.ca 1 points 12 hours ago (1 children)

I think you misunderstood my comment; if the XBox 5 is no longer a console (because Microsoft can't compete with the PS6) and is instead a Windows gaming PC, then it no longer has any purpose in the market: the PS6 will have exclusives, and the Gabecube will be a better gaming PC (since SteamOS outperforms Windows 11... and Steam is better than Windows Store, for that matter.)

[–] DdCno1@beehaw.org 2 points 5 hours ago

Sure, I don't think the Xbox 5 will be a success, but it's highly likely it'll still ship far more units than the Gabecube, simply because Microsoft is able to shift more units as a larger organization with more presence everywhere (including in the retail space and online stores other than their own).

The difference is that for an organization the size and bloat of Microsoft, numbers that would make Gabe happy would be disastrous for them.

No consumer actually cares about minute differences in performance (or other aspects) between different operating systems and platforms. People buy the platform that has the games and meaningful features they seek, like for example portability, Nintendo's second-strongest pull after their IPs. Microsoft is hastily trying to claw back their exclusives after a disastrous abandonment of this strategy, which sent margins down the drain. Yes, this will mean that they'll continue serving the PC, so you can play most of their games on Valve's devices or any other gaming PC as well, but once more: Normal people buy what's on the front page on Amazon or on the most illuminated shelf at their local store.

The overwhelming majority don't even configure their task bar, for crying out loud. Seeing an unmodified one with the big useless search box, spam widget, applications they are never using is one of the quickest reliable indicators that someone is not a tech person.