Microsoft CEO Satya Nadella stated that the Xbox unit has been heavily supported by the company for the last 25 years, but now it needs to stand on its own feet. Nadella emphasizes that Xbox must now create a sustainable business model and generate direct revenue from its content.

Speaking in an interview with Hard Fork, Nadella pointed out that Xbox games bring better income on platforms such as YouTube rather than Microsoft. This shows that the era of Microsoft financing the gaming part is indefinitely over.

New Era and Strategic Changes for Xbox

After taking office, Xbox CEO Asha Sharma devotes the first 100 days to determining a new strategy that will meet the expectations of fans on both the hardware and publishing side. The new administration is working on a model that will combine console, PC, portable and cloud platforms under one roof.

On the hardware side, Project Helix stands out as a solution that will allow users to play PC games via Xbox consoles. However, current economic conditions and difficulties in semiconductor supply directly affect Xbox’s strategy by increasing hardware costs.

Exclusive Games and Future Plans

Xbox’s strategy on the software side is kept limited until things have a healthier structure. The company plans to reduce financing of smaller-scale projects while focusing on a limited number of special games such as Gears of War: E-Day and Clockwork Revolution.

The new leadership team aims to increase the profitability of the brand by increasing investment in major series such as Halo, Fallout and Elder Scrolls. It will take time for these new strategic breakthroughs to be reflected in the company’s financial results.

Do you think Microsoft’s new strategy will be enough to save the future of Xbox?