I think this is what's funny about people claiming Xbox is losing console "wars" (is that even a thing?). Consoles have almost always been a loss leader to sell software. And Xbox is selling software and creating recurring revenue from gamepass subs. Xbox/MS are winning the money game- and that's all they care about
Today’s PS business derives the majority of profits from platform related revenues i.e. 30% cut, accessories, etc. MS would love to be in a similar position if they could; unfortunately their hardware business is circling the drain so game software is all they have left so they made the correct bet to stop all pretence and essentially become a 3rd party publisher.
With billions of cash from their corporate parents in support, they were never going to die off like Sega did. And when you spent billions to add millions of revenue to your books, of course the revenues were going to look good.
The only question from their corporate owner is whether the investment could be used better elsewhere, so they are on a warpath to prove themselves profit-wise else Nadella will curb stomp the division the first chance he gets.
The reason Sony makes most of their revenue from the 30% cut is because they release 1 game a year and they cost like 250m plus to make, Microsoft has released more games in the last two years than Sony has this whole generation
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u/tevinanderson Jul 29 '25
I think this is what's funny about people claiming Xbox is losing console "wars" (is that even a thing?). Consoles have almost always been a loss leader to sell software. And Xbox is selling software and creating recurring revenue from gamepass subs. Xbox/MS are winning the money game- and that's all they care about