I remember years ago talking about Xbox for Microsoft was talking about a secondary division It wasn’t even profitable. A whim of Bill Gates that his heirs had to maintain over the years. Everyone assumed investors weren’t taking the entertainment division seriously.
With the arrival of the Xbox 360 and the enormous outlay made by the Americans, things did not improve, even less considering the money it cost them to correct the famous three red light error. Millions of dollars that weren’t rented because revenues didn’t exceed losses.
Xbox is Microsoft’s fourth business
Today the picture is much different, the games division is now an inseparable part of the Windows experience, the consoles are selling well and the Xbox Game Pass is advancing inexorably with a growing user base unlocking a religious monthly payment that goes into the American coffers. It hasn’t been easy, of course, but today the concept of the brand is very different.
Based on the annual financial results, we can see that the Xbox division reached the figure of $15.4 billion in revenue, which is quite an interesting figure. This represents 9% of the company’s total revenue
Of course, we are talking about income, Microsoft makes a big investment buying studios, intellectual properties and creating games, so its profitability is surely more long term. Yet what they manage to achieve is crazy considering where they come from.
