… We are operating at margins that are 3-10x lower than comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. …
… And while a lot of effort has been put into improving Game Pass, multi-platform gaming, and the number of games available on Microsoft platforms, the business did not grow at an expected pace. …
… It sounds as though King will be a major part of Xbox’s strategy going forward, per Sharma’s memo: “These two studios have increasingly become platforms and are our largest by monthly active players. …