Microsoft CEO says Xbox must become 'sustainable' as it reportedly considers major spinoff

Microsoft CEO Satya Nadella stated that Xbox must become a 'sustainable' business, implying it has been subsidized rather than profitable. This follows reports that Microsoft is considering spinning out Xbox into a standalone unit, potentially to sell it or find a partner. The company also aims to speed up development for major franchises like Halo and The Elder Scrolls, while addressing challenges like memory chip price increases driven by AI companies.

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Microsoft Reevaluates Xbox Strategy Amid Financial Woes

Microsoft is reportedly considering spinning off Xbox as a standalone entity or even selling it due to significant financial losses and underperformance. CEO Satya Nadella emphasized the need for Xbox to become a 'sustainable' business, acknowledging more game monetization occurs on YouTube than internally. This strategic reevaluation follows studio closures, layoffs, and a questioning of the brand's future as a hardware platform.

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