MICROSOFT IS SELLING XBOX!?

[00:00:00]Hey there gamers. Dreamcast guy here.

[00:00:01]Today we're talking about Xbox because we have some breaking news which is that Microsoft is trying to sell Xbox. Their goal is basically to shrink it down to trim the parts to shut down studios and just sell it or at the very least shrink it down and spin it off into like a tiny crappy subsidiary that everybody can just license. Basically, they're trying to make it where anybody can make an Xbox or anybody's allowed to make an Xbox game. No longer will there be anything first party. It sounds like there won't even be firstparty hardware.

[00:00:32]And I want to talk about this because instantly fans are saying two separate things at once. First, Xbox needs to shut up. It has been backto back bad news. Ever since they did that Xbox game showcase, it seemed like people were happy for about 30 seconds. And ever since then, it has been all bad news.

[00:00:50]But also, a lot of people were saying that this is just a sign that Microsoft has given up on gaming. There was definitely a time where Microsoft did care about the Xbox 360 and the original Xbox. They like the idea of having this like hardware space along with their software. And now Microsoft just wants to do AI crap. They want to just pump up investor stock. They don't care about Halo or Fable or any of this stuff, right? They don't even care about Elder Scrolls 6. Microsoft just wants to make that crap. And they don't care if Xbox burns. But let's talk cuz honestly the numbers are bleak. Hi. Hope you're having a great day. If you could please give this video a like and subscribe if you haven't already. Now, over the course of the last couple days, I've been doing a lot of videos about Xbox just because honestly, it is wild that we get these backto back crazy headlines. They have spent 20 billion dollars in just the last couple years and made nothing. They straight up admit they're losing like hundreds of millions of dollars every single year because nobody's buying their games, nobody's subscribing to Game Pass, nobody's getting the Xbox, there's no hype, there's no pre-orders. They're just absolutely geysering it to the point in which they're saying we're about to have to do a major reset. They said here in about 2 weeks at the beginning of July, they're going to shut down game studios.

[00:02:04]They're going to ensure these very strict pricing needs. They're going to basically have to what sounds like double the price of the Xbox again.

[00:02:11]They're saying that we need to greatly restructure the entirety of Xbox. And it seems their answer is to get ready to just sell it off. Now, these people, the information are a very, very, very reputable place. This is basically like tech journalists. In fact, you can't even read the article unless you pay them like a hundred bucks. This is like stuff for investors to talk to investors. This isn't like crappy clickbait, whatever stuff, you know, like me. But this thing, their plan is to spin it off to make a separate company that is underneath them that somebody can just buy out. As Microsoft gets ready to overhaul the struggling Xbox gaming unit, it hasn't ruled off spinning out or restructuring the unit as a wholly owned subsidiary, which would make it easier to sell or creating a joint venture with other platforms according to three people with direct knowledge to these discussions. Now, joint venture, all of this is bad to be honest, but joint venture I think might be the very very worst. This is basically where like right now Microsoft has a ton of IP, especially buying like Activision Blizzard, they own Spire the Dragon and Crash Bandicoot and Overwatch and World of Warcraft and Diablo and Doom and everything, right? This basically means that if they start doing these joint ventures, they could just team up with like random crappy investment groups and just say, "You guys make it. We don't even care. Like, whatever. Just anything is licensable.

[00:03:31]Anything is viable." It means no quality control. It means no official ownership.

[00:03:35]It means literally they do not care.

[00:03:37]They're basically saying literally pay me and you can use my characters for whatever you want. Look at that. Oh my god. Microsoft needs a media blackout.

[00:03:45]Making the same old games will not work.

[00:03:47]Microsoft needs new hits. Halo has been buried by 343. It used to be one of the biggest gaming franchises. Imagine investing in a new console next year from a company that changes its mind every two weeks. Sega Xbox joint venture. The prophecy has come true.

[00:04:02]Look at the reactions to this. So many people are like, "They're desperate.

[00:04:06]Xbox is just desperate." Okay, a lot of people straight up laughing at it.

[00:04:09]Microsoft could spin out Xbox as a wholly owned subsidiary or joint venture in 2026. They're trying to make empty promises to ruin everyone's reputation by moving to PlayStation. $20 billion wasted over the course of the last 5 years. Revenue is still falling. Storage costs 5x everything. They ain't restructuring. They're looking for an exit. Now, when they first announced the initial taking over of Asher Chararma, the firing of Phil Spencer and Sarah Bond, a lot of people immediately said, "This is when they're going to gut it."

[00:04:40]Mostly because historically, when you bring in somebody totally different in this case, Asha Chararma, if you look at her like history, her job is not to make games. Her job is essentially what they call an onboarding specialist. Her job is basically to do one of two things.

[00:04:54]One, shrink your company down so it's easier to sell to other investors. or your goal is to try and get new people onto the platform. Now, people were originally hoping that she was going to do the latter, that she'd get people into Xbox, that she'd finally say, "Hey, here's how great it is. Here's our great exclusives. Here's our cool trailers."

[00:05:13]Instead, it turns out that it seems like her job was straight up to the very start to pick it apart for parts. Now, I want to take a look at this. This is the actual part that they cut out of that uh well, that article you got to pay $100 to read. This is super bad. As Microsoft gets ready to overhaul the struggling unit, they're trying to get it ready to sell. Microsoft doesn't have any imminent restructuring plans, but those options are on the table. The people have said in particular, Xbox is trying to move faster on developing new games from beloved franchises, including Fallout, Elder Scrolls, and Halo. Now, this is the thing here, right, is that faster games sounds better, but when a company is this desperate, again, that means licensing. That probably means letting, you know, weirdo 10 cent style companies, right? Just anybody, right?

[00:05:59]You want to license it? You want a Halo cell phone game? Sure. If you pay us, whatever it takes. Oh, you want to do a crappy spin-off of Elder Scrolls? Sure.

[00:06:06]New Fallout, whatever, right? Let Amazon make a crappy game and base it on the TV show. Usually, when you start just being in a rush to rush out games, quality does not exactly come to mind. I think that's essentially what they're talking about here is literally just making it where, oh, we need a new Fallout. It doesn't matter if it's our Fallout or Bethesda's Fallout. It just matters that it's a Fallout. Microsoft CEO Satia Nadella and Chief Financial Officer Amy Hood have approved a Charma's plan to spend more on top tier games in the fiscal year beginning of July, although budget is not yet locked in and could change. Sati Nadella and Hood haven't ruled out restructuring relationships with Microsoft and at some point in the future could make Xbox a more successful business. options on the table are including making it a subsidiary, joint venture, or spinning it off. Microsoft operates LinkedIn and GitHub as their only own subsidiaries, which could serve as a potential blueprint for Xbox. I got to be honest, I have been really ringing the bell that this is the end of Xbox.

[00:07:05]And I say that with no pleasure. It's to me that Phil Spencer, in my opinion, was very bad at his job because I felt like he just lied too much just constantly.

[00:07:15]only four games are coming to PlayStation and then every games comes to PlayStation. Oh, there's this next big thing. The amount of times Phil Spencer would hype up just totally dog crap games like Crackdown 3 and stuff.

[00:07:26]It just showed to me the fact that Xbox never had that sense of quality and patience and backing that made PlayStation and Nintendo really take over this market. And now bringing in some like AI lady, like somebody whose literal only job thus far has been making like AI slop and saying, "Oh, she's now in charge of Xbox." I think the odds are even if they do do a price drop, they're doing that to sell it off.

[00:07:49]They're doing it to literally make it as valuable looking as possible. Now, when you spend something off to be sold, usually you fire pretty much everybody.

[00:07:57]The goal is to basically sell it as lean as possible. That means contracts ended, projects ended, everything dead. Hey, now we have this totally contained project to sell you. We have this many factories, this many consoles. Just take it and run. This is not only the death of Xbox. In my opinion, it's very much the death of pretty much everything they love. If you're a Fable fan, if you're a Halo fan, if you're a person that wants that next Elder Scrolls, I think this is a sign that Elder Scrolls 6 ain't ever coming out. But that's just some opt thoughts. I got to get to a meeting literally in 12 minutes here. Hope you're having a great day. If you could please give this video a like and subscribe if you haven't already and please keep dreaming and I guess subscribe to Daily Xbox hate videos.

[00:08:40]What an odd time.

[00:08:42]Thanks so much for watching that video.

[00:08:44]If you want to see something else, you can always click this link to see what I put up last or, you know, subscribe and see what's coming up next. Also, I promise that whatever I do, it'll try not to suck.