Microsoft's Xbox loses 64 cents on every dollar of revenue

Incoming CEO Asha Sharma disclosed Xbox's unit economics are severely broken: a 64-cent loss per dollar of revenue. The division is cutting 3,200 jobs through 2027, with 1,600 eliminated by July 2026. Sharma called it structurally unsound, not cyclical. Either first-party game costs are unsustainable, Game Pass pricing cannot cover content expenses, or both.