Uploaded June 2026 | Updated September 2026, 2 weeks ago
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“Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform and hardware subsidy, but our annual revenue has declined nearly half a billion during that time,” Asha wrote. “Going forward, this cannot continue.” Xbox CEO intends to slash the marketing budget and reduce costs in other areas of the business, per Bloomberg
Xbox has spent $20 billion over last few years on content and platform (excluding Activision), but revenue has dropped significantly. Xbox plans 'major reset' at the company going forward as the business falls under strain:
▪️Excluding Activision, Xbox has lost roughly half a billion dollars in revenue per year over the past five years
▪️Will end this fiscal year at ~3% profitability, down year-over-year
▪️Prices for console storage components will be 5x what they were last Fall
▪️Xbox has been impacted "more greatly" than many of their peers due to choice made in the past 5 years
▪️Need new business models and partnerships for hardware, committed to Helix
▪️Xbox is "overextended" after expanding the amount of first party studios
▪️"Need to reassess the balance" in investment priorities for the next 5 years
▪️Will "evolve and rebuild our stack and look at capabilities across all of Xbox and potential M&A to help us win in hardware, PC, mobile, and streaming" Xbox CEO Asha Sharma removed a planned Halo Campaign Evolved trailer from PlayStation’s State of Play, potentially “damaging the relationship between” Xbox and Sony, Bloomberg report
Follow me on social media:
Instagram: instagram.com/dreamcastguy
Patreon: patreon.com/DreamcastGuy
Twitch: twitch.tv/thedreamcastguy
“Excluding Activision Blizzard King, over the past five years, we have spent over $20 billion on ongoing investments in our content, platform and hardware subsidy, but our annual revenue has declined nearly half a billion during that time,” Asha wrote. “Going forward, this cannot continue.” Xbox CEO intends to slash the marketing budget and reduce costs in other areas of the business, per Bloomberg
Xbox has spent $20 billion over last few years on content and platform (excluding Activision), but revenue has dropped significantly. Xbox plans 'major reset' at the company going forward as the business falls under strain:
▪️Excluding Activision, Xbox has lost roughly half a billion dollars in revenue per year over the past five years
▪️Will end this fiscal year at ~3% profitability, down year-over-year
▪️Prices for console storage components will be 5x what they were last Fall
▪️Xbox has been impacted "more greatly" than many of their peers due to choice made in the past 5 years
▪️Need new business models and partnerships for hardware, committed to Helix
▪️Xbox is "overextended" after expanding the amount of first party studios
▪️"Need to reassess the balance" in investment priorities for the next 5 years
▪️Will "evolve and rebuild our stack and look at capabilities across all of Xbox and potential M&A to help us win in hardware, PC, mobile, and streaming" Xbox CEO Asha Sharma removed a planned Halo Campaign Evolved trailer from PlayStation’s State of Play, potentially “damaging the relationship between” Xbox and Sony, Bloomberg report
