Bloomberg: For the last 2 years Microsoft has pushed Xbox to hit profit margins of 30% an ambitious target that's far higher than the industry average

Legal

Veteran
Supporter
Joined
May 7, 2012
Messages
17,188
Reputation
3,591
Daps
65,485
Reppin
NULL
Profit margins don't mean anything to the consumer. We don't even know how much of that is re-invested and where (business line).

Unfortunately, it does in the sense that developers are more susceptible to getting shut down after catching a brick than they were before.

Bill came due on those acquisitions. :yeshrug:

ain't shyt for free.

Corporate like "Where my money Phil :ufdup: "

I feel like we (as in literally you and I) tried making this point back when either the Bethesda or Activision acquisitions happened.

All that "Microsoft has money, they're not worried about it" talk only lasts so long when someone starts thinking that the valuation is being held back by them not bringing in enough of a return on the investment. Sucks, but that's how the business works now.
 

Scaaar

Superstar
Joined
Mar 19, 2017
Messages
5,558
Reputation
1,279
Daps
22,364
Unfortunately, it does in the sense that developers are more susceptible to getting shut down after catching a brick than they were before.



I feel like we (as in literally you and I) tried making this point back when either the Bethesda or Activision acquisitions happened.

All that "Microsoft has money, they're not worried about it" talk only lasts so long when someone starts thinking that the valuation is being held back by them not bringing in enough of a return on the investment. Sucks, but that's how the business works now.
Remember they were bragging that M$ could even buy Sony if they felt like it!! They had the unlimited black card :mjlol:
 

Gizmo_Duck

blathering blatherskite!
Joined
Aug 15, 2018
Messages
84,434
Reputation
7,215
Daps
183,588
Reppin
Duckburg, NY
Remember they were bragging that M$ could even buy Sony if they felt like it!! They had the unlimited black card :mjlol:


“Microsoft’s Phil Spencer says acquiring Nintendo would be ‘a career moment”

In the newly discovered email by The Verge, which is dated to August 6, 2020, Spencer is replying to Microsoft marketing executives Takeshi Numoto and Chris Capossela on an email chain with the subject "random thought." Spencer said that Nintendo is "THE prime asset for us in gaming."

Spencer said he already had "numerous conversations" with Nintendo's leadership team about a "tighter collaboration" between the two companies. He added that, "If any US company would have a chance with Nintendo, we are probably in the best position." Microsoft and Nintendo recently reached a 10-year deal to bring Call of Duty to Nintendo if the Microsoft buyout of Activision Blizzard closes.

But a full-on buyout of Nintendo? Don't bet on it happening soon, if it ever does.

Spencer went on to acknowledge that Nintendo is "sitting on a big pile of cash" thanks in part to the huge success of the Nintendo Switch and might not be receptive to the idea of an acquisition by Microsoft. Spencer did note, however, that a former Microsoft Board of Director member, Mason Morfitat ValueAct, has been acquiring Nintendo shares, and this would "create opportunities for us," Spencer said.

Finally, Spencer said the opportunity to buy Nintendo may never come to bear. Without the "catalyst" of some kind of involvement with Morfit, Spencer said, "I don't see an angle to a near-term mutually agreedable merge of Nintendo and MS, and I don't think a hostile action would be a good move, so we are playing the long game."

However, Spencer said Microsoft's Board of Directors has seen a "full writeup" on Nintendo and Valve, noting that Microsoft's Board of Directors is "fully supportive on either if opportunity arises as am I."
 

MeachTheMonster

YourFriendlyHoodMonster
Joined
May 24, 2012
Messages
73,916
Reputation
4,269
Daps
117,149
Reppin
Tha Land
it's impacting Xbox games directly, studios have been closed due to this, makes sense why the consumer would care. Also prices have been raised over and over again
And this is the part where the cult bubble gets silly.

Literally EVERYBODY in the industry making the same moves.

When it’s talked about as an “industry” thing it’s dismissed by all these same people.

None of this is “news” or unique to xbox.

But here you all pretend it is, so you can dap yourselves and circle jerk on the coli.com :stopitslime:
 

MeachTheMonster

YourFriendlyHoodMonster
Joined
May 24, 2012
Messages
73,916
Reputation
4,269
Daps
117,149
Reppin
Tha Land
Unfortunately, it does in the sense that developers are more susceptible to getting shut down after catching a brick than they were before.

I feel like we (as in literally you and I) tried making this point back when either the Bethesda or Activision acquisitions happened.

All that "Microsoft has money, they're not worried about it" talk only lasts so long when someone starts thinking that the valuation is being held back by them not bringing in enough of a return on the investment. Sucks, but that's how the business works now.
https://en.m.wikipedia.org/wiki/2022–2025_video_game_industry_layoffs




So……we ready to ACTUALLY talk about this yet, or naw…..:patrice:
 

Harry B

Veteran
Joined
May 20, 2012
Messages
34,025
Reputation
-776
Daps
69,353
lol at industry average why not just say Sony and Nintendo.

Like what if Nintendo is 40% and Sony 10%, then msft is aiming higher than the industry average. But it’s also much lower than the leader.

Journalists love to play with statistical terms.


Edit I was too quick, they obviously mean studios but the point still stands. Aiming to be above average is not weird
 
Top