ck3D, on 30 July 2026 - 04:15 AM, said:
Thanks for correcting re: quality of source.
However I wouldn't be so quick at ruling out the role of AI in this at all (generally it is absolutely destructive to our society, I don't even care to argue with whoever would disagree, putting it in writing right here: they can piss off). You don't think that within the same group, budgets telescope? Of course business involves cutting out the unprofitable but generally makes sense that would be in favor of the most profitable. Saying AI has nothing to do with this sounds like either tunnel vision from an ignorant or biased standpoint, or irresponsible wannabe-tech bro garbo speech, either way is just refusing to put two and two together. I am not used to seeing your logic trip like that, it doesn't read like you. Did you yourself get that point from somewhere else?
Like, you know what I mean - if something is a correlation, calling it 'just a correlation' isn't going to invalidate it if someone doesn't like it. I promise not everybody is this dumb, that's just someone's brains on Elon.
I do concur in one regard: AI does factor in with hardware prices having become an issue affecting Xbox's profits.
However I do disagree heavily that the problem is AI focus or pure greed within Microsoft, and this is what the video is implying. From the official statements, the changes are a result of bad margins over multiple years, resulting from following the Gamepass strategy of broadening the portfolio with a large variety of games and buying up many different studios.
Quote
Our business today is not healthy. We are operating at margins that are 3-10x lower than comparable platform and publishing businesses. We entered Gen 9 with a smaller install base and a higher cost structure. To grow, we bet on Game Pass, multi-platform, and a broader portfolio of content. While those businesses have created meaningful value, they did not grow at the pace we expected. As that happened, our core business weakened, and we added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history. We must reset XBOX.
https://news.xbox.co...resetting-xbox/
The idea that studios are being cut down to support AI in other areas of Microsoft in my view doesn't make sense, since Microsoft already announced half a year ago that they would be scaling back Copilot, which is their AI focus project. They don't seem to be very confident in this branch anymore:
https://tech.yahoo.c...-144521568.html
The games industry *is* very profitable. If things were going well here, profits in the game industry branch could be used to prop up the AI business, which is very likely making losses in hopes of later profits (similar to what they hoped from Gamepass!). But making cuts in this area to me only makes sense if things have been going really badly for Xbox in particular. With games such as Dark Ages and Starfield, instead of releasing sales numbers, they instead focused on and promoted raw player counts. Releasing sales numbers would likely have been unimpressive given that these games released Day 1 on Gamepass, with many people likely not purchasing them in favor of using the cheaper subscription service. And it's difficult to assign the subscription income to any singular game.
Are they restructuring so that they can refocus on AI assisted development within games, replacing developers with AI? Officially, this was also denied:
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As monetization and AI evolve and influence this future, we will not chase short-term efficiency or flood our ecosystem with soulless AI slop. Games are and always will be art, crafted by humans, and created with the most innovative technology provided by us.
https://blogs.micros...crosoft-gaming/
Sure, you can doubt these statements -- we don't have the objective data of what's really going on with Xbox. But my view isn't based entirely on speculation and assumption.