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In the wake of mass layoffs at Xbox and several studios exiting the company, Microsoft’s gaming division has outlined it plans for growth. Some of these plans include a focus on its biggest IP, investing more in games like Minecraft, and removing several layers of management to streamline its studio model. One other major area of focus will be on Xbox hardware itself, as the company says its flagship console represents 80% of its current business.
“In order to grow, we made a bunch of bets–and as we did that, we inherently didn’t focus on the core business,” Xbox CEO Asha Sharma said to Fortune. “The number one measure of your strategy is what you put your resources behind, and we simply spread ourselves too thin. A healthy Xbox could weather the shock of the hardware crisis. With an unhealthy Xbox, it becomes really challenging, and it accelerates a lot of the changes we need to make.”
https://www.youtube.com/watch?v=4FatSqS3VYY
If Xbox is going to focus more on its hardware, then it’s doing so in an industry that’s grappling with sharply increased costs and component shortages. This shift also comes during a time when Xbox hardware revenue has dipped by a
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