Microsoft CEO: More Monetization of Xbox Games Happens on YouTube

Microsoft CEO Satya Nadella said the company must find a sustainable way to make its gaming business profitable, speaking at The New York Times Hard Fork event. He argued Xbox has invested heavily over the past 25 years but has yet to turn that investment into reliable returns, and called for innovation in both hardware and games that also makes economic sense.

“The challenge now for us is to think about how do you innovate both in hardware as well as in the games going forward in a world in an economically viable way,” he said. Nadella singled out a failure to monetize: “Still the challenge we have is we’re not the been monetizing that entertainment.

In fact, if anything, we’ve been subsidizing that entertainment. In fact, there’s more monetization of Xbox games happening on YouTube than at Microsoft.” He added that Microsoft’s role remains building great games and hardware, but that must be balanced with economic sustainability.

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