Is Xbox Over? Inside Microsoft's Gaming Reset | Pixels & Profits

Is Xbox over? Microsoft paid $75 billion for Activision Blizzard, and less than three years later its new gaming CEO, Asha Sharma, announced about 3,200 job cuts and a full reset of Xbox. Joseph Kim, Matthew Kanterman (Blue River Financial) and Eric Kress (Deconstructor of Fun) break down how Xbox lost its lead, why Game Pass broke the console business, what the reset memos actually say, and why both guests think Xbox is being set up to be spun out of Microsoft. What you'll learn: • How Xbox went from beating PlayStation in the West with the 360 to roughly 3-to-1 behind today • Why Game Pass and the move away from exclusives took away the reason to buy an Xbox • Four straight years of hardware revenue decline, and why job cuts alone don't fix the margins • What the reset memos say about studios, Game Pass, and hardware, and what they leave out • Why Eric thinks hardware OEM deals would be "the end of the line" for Xbox as a platform • Matthew's timeline for a spin-off, and why Eric would keep the company whole rather than sell the pieces • Whether consoles are shrinking or just maturing, and where Minecraft and King fit in an AI-era spin-co Chapters: 0:00 Xbox After the $75B Bet 1:32 How Xbox Lost Its Lead 6:15 Was Game Pass the Downfall? 9:10 The Numbers: Four Years of Decline 12:28 Sharma's Reset: 3,200 Cuts 15:13 Inside the Memos 17:24 The Easy Part Is Done 20:24 Dressing Up the Prospectus 21:25 What Happens to Game Pass? 26:13 Hardware: OEM or Exit? 31:33 Spin Out, Then Carve Up? 35:20 Whole Company or Pieces? 38:07 How the Spin Gets Done 42:35 Is Console Shrinking? 49:50 AI, Minecraft and King 53:22 When Xbox Goes Independent 55:56 Wrap Hosted by Joseph Kim and Matthew Kanterman, with guest Eric Kress. 📰 Read the full write-up: https://pixelsprofits.com/p/is-xbox-o... 👉 Subscribe: https://pixelsprofits.com/subscribe 💬 Spin-off, OEM, or a comeback? Tell us what you think Xbox should do in the comments. Disclaimer: This video is for informational and educational purposes only and is not investment advice. Figures discussed are as reported at the time of recording or are the speakers' own estimates. Do your own research before making any investment decisions. #Xbox #Microsoft #GamePass