Despite Microsoft's long-standing focus on Xbox Game Pass, cloud gaming, and a multi-device ecosystem, consoles remain the foundation of Xbox's gaming business. As reported by Fortune, they account for about 80% of the company's entire gaming division.
This data sheds new light on the situation following the recent Xbox restructuring. In recent years, console sales have declined, and Xbox Game Pass has not grown at the pace Microsoft expected. At the same time, the gaming division's profitability remained low.
Xbox head Asha Sharma previously admitted that Microsoft had strayed too far from its core business, actively investing in numerous projects and acquisitions. Now, the company intends to focus on its largest franchises, simplify its management structure, and direct more resources to the most promising series, including Minecraft.
Despite the development of digital services and cloud gaming, Microsoft is not going to abandon console production. The hardware platform remains a key part of the Xbox ecosystem.