alt Hacker NewsIt’s painful to watch this because the recipe for success at Microsoft is so obvious. They’ve just been fumbling the ball for so many years that it’s catching up to them.
And the thing is they’re not unprofitable. Gutting their studios and technology development isn’t going to help growth, it’s going to contract the business.
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Growth over a long period of time involves two things: consistency in vision, and willingness to take risks.
We do not have a market designed to reward these things, at least not for the likes of Microsoft. For them, it's far easier to simply cut people while collecting on their previous labor. Once the product of that previous labor is no longer as valuable, it can then simply be spun off or shut down permanently.
Have you ever watched Shaq fall?
In my experience, once organizations have enough history and size, they can't just pivot. Whatever happens within MS the organization makes it impossible for them to become anything other than what they've always been.
Their MO will always be EEE and they'll always (attempt to) abuse their monopoly power, while giving corpos and consumers just a glimmer of hope to keep them strung along...
Also any company they acquire will be gutted until it looks like the rest of the org.
They are unprofitable though. Profit margins of the entire Xbox division are less than just sticking the money in the bond market.
But it will result in a fat bonus for Asha Sharma.
The only thing that truly counts, for her.