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Microsoft to exit gaming business?

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Tomateaux Quinoa Gumbeaux

Tomateaux Quinoa Gumbeaux

Geaux Tigahs!
    • wccftech.com

    Microsoft May Exit Gaming Business If Game Pass Subscribers off Console Don't Increase Enough by 2027

    Microsoft's Phil Spencer said in testimony that the company may exit its gaming business if GP subscribers off consoles don't increase a lot.
    wccftech.com wccftech.com

    FTC lawyer James Weingarten put the following internal Xbox Game Pass slide in front of Spencer, asking him whether he agreed with the projections that show the subscription service surpassing 100 million users between FY29 and FY30, largely due to an increase in the PC and cloud market.

    Spencer said in no uncertain terms that Microsoft could exit the gaming business if this projection became reality. Microsoft needs the light green and blue segments (PC and cloud) to get much larger and much faster by fiscal year 2027    , or it could opt out of the business altogether.

    I do not believe that that is what the future Xbox business would look like. This is a presentation from our devices organization to the gaming leadership team, so this is the view from the team that is chartered with building our hardware on what the future business would look like.

    I can fairly safely say that if we do not make more progress than this off of console, we would exit the gaming business. If this were the outcome, we would -- I don't believe we'd still be in the business.

    A majority of our customers are found off of our own hardware, I would hope by earlier than 2030. So, when you asked me if I agreed with this chart that the light green and blue depending on what colors you see there would have to be much larger much earlier. I would say by FY26, '27 that we should be in that position, or we'd have to make a different decision with the business.
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