Xbox is (probably) not for sale | Opinion
For much of this year, each new week has brought with it a new impetus for a rash of articles on Microsoft’s Xbox misfortunes. From deep wounds like layoffs and project cancellations, to stinging papercuts like internal memos, poorly received public statements, or unflattering data points, as the company struggles to turn around a giant business that’s veered terribly off track, each new headline…
For much of this year, Microsoft's Xbox division has been the subject of numerous articles, detailing the company's struggles to turn around a struggling business. In recent weeks, the division's financial results have been particularly disappointing, with a third straight quarter of decline, a 10% slump in Xbox content and services, and a 29% drop in hardware sales.
This has led to a 4% drop in the overall "More Personal Computing" division, which includes Xbox, Windows, Surface, and Bing. Microsoft CEO Satya Nadella and Xbox CEO Asha Sharma have both expressed optimism about a return to growth for the division, but the financial numbers are not a new or steeper decline, but rather a confirmation of expectations set earlier.
While the results are not good, they are not surprising, and the division is not a significant drag on Microsoft's overall financial performance. The Windows business, for example, also had a 7% revenue decline, but the overall company still saw an 18% growth in revenue and a 31% growth in net income. Selling off Xbox would be a costly move that could be difficult to achieve, as the division still drives billions of dollars in revenue each quarter, thanks in part to major acquisitions like Activision Blizzard.
Written by urgent.news from GamesIndustry's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
