Finance Operative here, I want to add that a operating profit of between 5-10% is normal for most companies. Double digit (Im so tired of that phrase) profit is the target but hard to achieve but some do reach this.
15% is consider strong.
This is why I’m not worried about Xbox(even the console) because Satya and the whole Microsoft organization see their gaming division as their consumer product that appeals to the masses, while also being one of the fastest growing industry in terms of entertainment.
It can be entertaining to see delusional Sony fanboys just being their silly old selves. But it can be downright ridiculous and embarrassing too.
I watched a clip of Fritanga roasting Lucas on his absolutely ridiculous take that Phil should be fired because of a recent interview where he said CoD stays where it is, that they also don’t see how it would benefit anyone to have exclusive content for it etc. Clown goes on to say that exclusives are good, that they don’t harm consumers in any way. He really isn’t the smartest, because had Phil tried for full exclusivity this deal would not have passed.
Whilst I agree with the basic premise that MS aren’t going to exit the gaming industry and indeed will probably become the major player within it I don’t agree necessarily that ‘any worries should be gone’ is accurate.
For this reason. You could make the argument that with everything Phil has said (and Phil is IMHO a man who never says something he believes untrue) that ABK more or less are a multiplatform play.
That doesn’t necessarily to me scream their priority is their own hardware or even necessarily ecosystem.
My only concern as an Xbox player is that we get a console next gen, and the gen after that are focussed on giving me the best TV and couch gaming experience possible. And whilst I absolutely am not one of those ‘make Xbox players your primary focus’ people - I don’t expect MS to do what PS do - I do still have a concern that given the huge and disproportionate loss they make on hardware, their decision to restrict production to mitigate those costs, their (as it stands) reduction in console hardware market share compared to last gen and their seeming acceptance that they won’t really move the needle in that market, that a dedicated Xbox console is lower in their priority list, or even (and I think right now this is highly unlikely but not impossible) low enough to not exist or exist in a radically different form.
I specifically said software company, which gaming companies are. And Playstation is not only a gaming or software company/division, its one with a huge and dominant marketshare. How can a 5-10 percent profit margin be normal if you run your own store where you get 30% from every transaction?