Microsoft CEO Satya Nadella stated the Xbox division must become a sustainable business to address current economic challenges. Nadella noted that YouTube currently generates more monetization from Xbox games than Microsoft. This trend underscores the company's difficulty in fully capitalizing on its own gaming content.
Xbox CEO Asha Sharma recently issued an internal memo outlining a plan to reset the gaming branch. This strategic shift follows a decline in Game Pass subscribers. Microsoft is now reassessing its hardware and game development strategy to ensure long-term economic viability.