Phil Spencer had already put it in the ditch by the time she took over. “Everything is an Xbox” was a joke of a strategy, spending $70 billion on a company with a weak slate in the Activision purchase
replyI'm not sure thats all on Phil. He was told they needed 30% profit margins or else. He was grasping and trying to make that happen when they only had 12% (market average was something like 10). This really feels like Phil was setup to take a fall and Asha is swooping in to either be a hero or sell it all off so Microsoft can focus on AI.
replyThat’s a fair point. I do think Game Pass was a major strategic misstep, but I assume they were also pushed to show regular recurring revenue which obviously flies in the face of a traditional game publisher’s revenue pattern.
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