YouTube Earns More from Xbox Than Microsoft Itself - Satya Nadella

In a recent episode of The New York Times' Hard Fork podcast, Microsoft CEO Satya Nadella openly acknowledged fundamental problems with the gaming division's business model.

According to him, the corporation has been subsidizing Xbox for 25 years, while third-party platforms derive much greater benefit from the company's games. As an example, Nadella cited YouTube, where content monetization for Xbox projects brings creators more revenue than Microsoft itself receives.

Despite recognizing the problem, the head of the company was quick to reassure players, stating that Microsoft would not implement aggressive or "unnatural" monetization methods in its projects.

Nadella emphasized that the corporation intends to continue releasing high-quality consoles and video games, but now this process must become fully "economically sustainable."

The CEO's revelations perfectly complement the recent statements by the new head of Xbox, Asha Sharma, who previously announced a large-scale financial "reboot" of the entire gaming division.