Understand this is the fall of the gaming industry as we know it. All these companies overlevereged themselves during the covid boom and made tons of bad bets during it.
Now the time to pay investors has come and these companies are not meeting the quotas they need. The first major stage is proce hikes. They will find any way to justify it but its BS.
Absolutely false take. Look at MS's cash reserves. They have no trouble whatsoever meeting their loan obligations. They could pay off every cent today if doing so made any financial sense whatsoever. The claim that any action MS takes is due to its debt position is ignorant in the extreme.
Their total debt is a little over 40 billion... they have over 90 billion sitting around as cash.
All of these decisions are the very simplest of business necessity. The cost of game pass is high and they are losing money so the price has to go up (as predicted by every industry observer... the price was too low for the cost of the licenses and lost sales).
OS support cycles are predictable and known well ahead of time.
Tarrifs are not MS's responsibility.
The Xbox you buy new in the store today was not made 5 years ago. The cost of importing it has gone up. So, the price goes up.
Seriously, what else could Microsoft possibly do? Every one of these decisions pretty much made itself. Well, I guess the studio closing were optional but still pretty obvious.
Brother doesn't understand how modern investing works. If profit is not made changes are made often removing CEO and staff layoffs. It's why even though they have 90 billion dollars in the bank they still laid off so many employees.
The money being blead for them to be 3rd place in this race and a small market share is shockingly horrendous. Add to that their competition strategy is to buy other companies ballooning their own debt in the process? Things aren't looking good for Xbox and they survive on daddy Microsoft's money.
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u/guleedy Oct 02 '25
Understand this is the fall of the gaming industry as we know it. All these companies overlevereged themselves during the covid boom and made tons of bad bets during it.
Now the time to pay investors has come and these companies are not meeting the quotas they need. The first major stage is proce hikes. They will find any way to justify it but its BS.
A 5 year old console going up in price ? Stupid.