Microsoft CEO Satya Nadella suggests the company is done subsidizing Xbox.
"No one can accuse Microsoft of not having invested for the last 25 years," he recently said. "And now we have to turn this into a sustainable business that delivers what is fundamentally one of the best sources of entertainment."
Still the challenge we have is we're not the been monetizing that entertainment," Nadella continued. "In fact, if anything, we've been subsidizing that entertainment. In fact, there's more monetization of Xbox games happening on YouTube than at Microsoft. And so that doesn't mean we go do things that are unnatural. We want us to do what is really our job, which is to build great games, build great hardware, but we've got to do it in an economically sustainable way."
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