Minecraft Profits Allegedly Funded Xbox's Other Gaming Ventures
Recent reports and discussions have focused on Xbox's perceived mismanagement over the years, leading to a significant "reset" and widespread layoffs. We've seen some studios regain their independence and others being sold off. It's also known that these layoffs have impacted some iconic developers, while others faced threats and might still be acquired by their founders.
A new article from Bloomberg offers a detailed look into Xbox's recent struggles, containing some rather striking claims. It's explicitly stated that the profits Microsoft generated from Minecraft and Mojang were directly utilized to "fund the rest of the gaming portfolio." This strategy apparently didn't sit well with the new Xbox CEO, Asha Sharma, especially as Mojang, along with King (a mobile developer that, with Mojang, boasts the "largest number of active players" within the Xbox family), will now report directly to her.
The report further highlights that the decision to include Call of Duty in Game Pass resulted in an approximate $300 million loss for Xbox in 2024 alone. This loss is attributed to a decline in the series' sales on Xbox consoles and PC, while Call of Duty: Black Ops 6 sales on PlayStation accounted for 82% of the game's total sales.
Needless to say, describing the situation at Xbox in recent years as "mismanagement" might be an understatement.
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Moana (2026)
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