Keep pulling the thread on Tom Warren.
Years ago, Microsoft CEO Satya Nadella considered spinning off the Xbox division but was convinced by Phil Spencer to instead invest heavily in acquisitions like Activision Blizzard King.
The largest component of Apple's fast-growing services revenue is the 30% commission it takes on in-app purchases in games.
Phil Spencer, who led Xbox for over a decade and was CEO of Microsoft Gaming, is retiring from Microsoft.
Sarah Bond, the Xbox president and presumed successor to Phil Spencer, is also leaving Microsoft.
Asha Sharma, formerly an executive on Microsoft's core AI team, has been appointed the new CEO of Microsoft Gaming, replacing Phil Spencer.
Nilay Patel believes Microsoft's major gaming acquisition strategy, which included the largest acquisitions in the company's history, has failed to produce results.
Microsoft corporate leadership, including CEO Satya Nadella and CFO Amy Hood, has significantly increased pressure on the gaming division to improve profit margins over the past couple of years.
Microsoft's strategy to launch Xbox Cloud Gaming (formerly xCloud) as a mobile-first platform was significantly hindered by Apple's App Store rules, forcing them to use a web-based solution.
An internal Microsoft slide deck from 2021 or 2022, leaked during the FTC trial, revealed an ambition to reach 100 million Game Pass subscribers by 2030.
Microsoft's primary thesis for acquiring Activision was to become a bigger player in mobile gaming, with a focus on acquiring King's mobile IP like Candy Crush.
Microsoft is concerned that consumers in their 20s are no longer buying gaming consoles, a trend that is also beginning to impact Sony.
Tom Warren predicts Microsoft's next-generation Xbox will be architecturally a PC.