Gamepass brings in 5 Billion a year in revenue

[Scaaar]

In a year this company does $281 billion in revenue. Something generating $5 billion is less that 2% of annual revenue. Would you buy a company for a segment of the business that’s 2% of total annual revenue even if it was a profitable segment?

Investors care about stuff like Azure and AI. Game Pass margins are an afterthought if that.

You're talking about M$ as a whole which everyone knows is profitable. But the Xbox division is something that investors do look at as well too. They do care which is why Phil has basically been stripped of all power and there is speculation that he will be let go soon. Plus all the layoffs and canceled games that just happened recently means that it's not an afterthought lol. They spent all that money buying all those companies. They're going to want a return on those investments. Successful businesses that want to continue to thrive will sell off parts of their company that aren't making a profit or have a pathway forward to one.

 

[The Mad Titan]

You're talking about M$ as a whole which everyone knows is profitable. But the Xbox division is something that investors do look at as well too. They do care which is why Phil has basically been stripped of all power and there is speculation that he will be let go soon. Plus all the layoffs and canceled games that just happened recently means that it's not an afterthought lol. They spent all that money buying all those companies. They're going to want a return on those investments. Successful businesses that want to continue to thrive will sell off parts of their company that aren't making a profit or have a pathway forward to one.

 

[MeachTheMonster]

You're talking about M$ as a whole which everyone knows is profitable. But the Xbox division is something that investors do look at as well too. They do care which is why Phil has basically been stripped of all power and there is speculation that he will be let go soon. Plus all the layoffs and canceled games that just happened recently means that it's not an afterthought lol. They spent all that money buying all those companies. They're going to want a return on those investments. Successful businesses that want to continue to thrive will sell off parts of their company that aren't making a profit or have a pathway forward to one.

#Alternate universe

 

[winb83]

You're talking about M$ as a whole which everyone knows is profitable. But the Xbox division is something that investors do look at as well too. They do care which is why Phil has basically been stripped of all power and there is speculation that he will be let go soon. Plus all the layoffs and canceled games that just happened recently means that it's not an afterthought lol. They spent all that money buying all those companies. They're going to want a return on those investments. Successful businesses that want to continue to thrive will sell off parts of their company that aren't making a profit or have a pathway forward to one.

People don’t know what profit margins Xbox has. Who is that stopping from buying the stock? That gets traction here because it’s a video game forum but Xbox isn’t a deciding factor for the average Microsoft investor just like people aren’t really buying Google for Waymo and Reality Labs isn’t a deciding factor for Facebook / Meta. If it blows up and makes a lot of money great if it doesn’t the business as a whole is so profitable it doesn’t matter.

 

[Killer Instinct]

9k layoffs.
Canceled games that have been in development for years.
Where are all those billions going?

 

[Phantum]

9k layoffs.
Canceled games that have been in development for years.
Where is the money going then?

Super yachts and bad bytches

 

[MeachTheMonster]

9k layoffs.
Canceled games that have been in development for years.
Where are all those billions going?

Be stuck in a cac tweet fuled sony cult brehs

 

[winb83]

9k layoffs.
Canceled games that have been in development for years.
Where are all those billions going?

To the investors in the form of share buybacks and dividends. It’s a cold world and they lay a man off so they can pay someone who invested in the company more or have cash sitting on the balance sheet to buy another company.

 

[Luke Cage]

9k layoffs.
Canceled games that have been in development for years.
Where are all those billions going?

This wouldn't happen to sega

 

[5n0man]

To the investors in the form of share buybacks and dividends. It’s a cold world and they lay a man off so they can pay someone who invested in the company more or have cash sitting on the balance sheet to buy another company.

And you think this is good for the industry?

 

[winb83]

And you think this is good for the industry?

All industries with publicly traded companies do share buybacks and dividends. Shareholders want to be rewarded and without interested investors what would any industry be?