Microsoft XBox Losing Money, Layoffs and Studio Shutdowns (As Well as Price Hikes) Not the Solution
Microsoft layoffs will continue to impact XBox. There's no real future to XBox, at least not as a console. Sales have collapsed. Right now there's an attempt to salvage something.
Microsoft does not quite talk about profits, it talks about "revenue". Shortly before faking XBox "revenue" by adding that of a company it had tentatively acquired the revenue of XBox sank, based on Microsoft's own figures.
A new article about this notes how profitability looks across the "big 3" (Nintendo, Microsoft, Sony). Quoting some portions: "Xbox's primary hurdles to profitability include manufacturing and producing hardware at a total loss, having a firm 3rd place in the console market, and high software content production costs. [...] Xbox consoles were also hiked in a bid to improve the margin losses, and it's unclear what those look like now, especially with the DRAM shortages affecting supply and surging costs. Microsoft also faced constricted supply in 2020 and 2021 during COVID-19 disruptions. Other measures to boost profits include mass layoffs across various units, including project cancellations and entire studio closures. [...] These are the kinds of key distinctions that determine how the profit numbers will look, and how they are determined within Microsoft's internal accounting remains unclear."
That "remains unclear" because Microsoft hides the profit; it doesn't want shareholders to see how much money gets lost, including on buying companies for their revenue (because XBox revenue went down, not up, over time). █