According to Geekwire, Microsoft's recent job cuts that include X Box go a lot deeper than just saving money.

   Could X Box be Facing a Sunset Down the Road?

No it's not going away anytime soon. But, job cuts including major sweeps at X Box are happening at Microsoft.

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 As Geekwire reported, back in 2007, the company spent over a billion dollars to fix consoles that were freezing up, you may recall the three flashing red lights that gamers called the "red ring of death."   Then CEO Steve Ballmer said to do it, it was part of a calculated gamble for Microsoft to win the "living room" in homes.

  But Now, X Box is Facing Major Cuts

The bottom line is, X Box has never made tons of money for Microsoft.  Their profit window is now about 3 cents on the dollar.  Various subscription and 'membership' platforms have helped, but Offiicials say the company is done "subsidizing" X Box as opposed to making money off of it.

So, what will they do now?  Microsoft is closing or selling off some studios that create X Box content, and focusing on their best selling offerings, such as Halo, and Fallout. They are also going to back off or get rid of some lesser-selling games.

 Is Microsoft Going to Dump Some X-Box Offerings?

According to Geekwire, what else are they doing:

 "It’s leaning on Game Pass and releasing most of its games on PCs and rival consoles from Sony and Nintendo, reaching players well beyond Xbox’s shrinking base, even as it holds back a few new exclusives like Gears of War to give owners a reason to stay."

How the future plays out remains to be seen, but the days of Microsoft dumping tons of money into X Box at the expense of AI spending, are over.

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Gallery Credit: Liz Barrett Foster

 

 

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