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guidedlight • today at 4:08 AM • 4 replies • view on HN

There are rumours that Microsoft is internally demanding 30% margin from Xbox, and the gaming industry simply doesn't operate with those types of margins long term and it's not even in a position to dictate industry pricing.

It's like the entire company is only satisfied with being #1.

The whole thing is very confused and lacks consistency. The latest rumours are they are going to break up its Game Pass subscription offering so there are different subscriptions for multiplayer, cloud, games, etc. Isn't that the opposite of an effective subscription strategy?


Replies

rao-v • today at 4:10 AM

GPUs that were planned for cloud streaming are much more valuable now. It (unfortunately) makes sense for the only real cloud streaming player to significantly revisit pricing.

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bathtub365 • today at 5:48 AM

This type of internal financial management is a sign that the people running Microsoft aren’t interested in how any of the divisions actually work or making strategic decisions about their portfolio. They’re accountants pushing the difficult decisions down

asanineassasin • today at 7:57 AM

Everything but the bubble is lossy, abandon all industry but the bubble industry symptom?

eddythompson80 • today at 4:24 AM

Doesn’t Steam also take a 30% cut?

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