Xbox loses 64 cents for every dollar it invests, CEO Asha Sharma said.
Microsoft is laying off 4,800 roles at the company – including 3,200 at its gaming division Xbox – as the company seeks to cut costs and flatten its organisational structure in response to AI and a changing landscape.
Xbox has faced particular financial hardships in recent years, driven by rising memory prices that affected the entire industry, but effects of which were exacerbated by poor decision-making at the division.
The latest round will reportedly affect around 20pc of Xbox’s staff, and comes after the division was understood to be hit hard in a large round of job cuts last year. Some of Microsoft’s approximately 3,500 Dublin and Belfast-based employees were affected in that round.
“We are operating at margins that are three to 10-times lower than comparable platform and publishing businesses,” Xbox CEO Asha Sharma said.
