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Why Would ANYONE Buy an Xbox?

Transcribed Jun 18, 2026 Watch on YouTube ↗
Intermediate 6 min read For: Gamers, tech enthusiasts, and industry observers interested in the business and strategy behind Xbox and Microsoft.
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🚀 Viral

AI Summary

The video analyzes the current dire state of Xbox, revealing that despite a $20 billion investment, revenue has declined and the division is barely profitable. It explores the core question of why anyone should buy an Xbox, given that exclusives are now on other platforms and cross-play is standard. The creator offers a set of recommendations for a potential reset, including fixing Windows on Xbox, shipping a next-gen console, and committing to Game Pass.

[3:47]
Massive Investment, Declining Revenue

Microsoft has invested $20 billion into Xbox over the last five years, but revenue has gone down.

[4:04]
PlayStation's Total Profit

Sony has profited about $20 billion from PlayStation since the PS1 launched over 30 years ago.

[5:00]
Xbox's Thin Profit Margin

The entire Xbox division is running at a 3% accountability margin, which is trending down.

[5:11]
CEO's Harsh Reality Check

Satya Nadella said there is more monetization of Xbox games happening on YouTube than at Microsoft.

[2:19]
Rising Component Costs

The cost of memory and storage has already doubled and is expected to increase fivefold by next year.

[5:52]
The Identity Crisis

The core question Xbox cannot answer is why anyone should buy an Xbox, as exclusives are on other platforms and cross-play is standard.

[7:38]
Price and Value Issues

The Xbox Series S was a cheap entry point at $300, but price hikes and losses per console have eroded that advantage.

[9:19]
A Path Forward

Recommendations include fixing Windows on Xbox, shipping a next-gen console, leaning into exclusives, and committing to Game Pass.

Clickbait Check

85% Legit

"The title accurately reflects the video's central question and the dire situation described, making it a fair representation of the content."

Mentioned in this Video

Study Flashcards (10)

How much has the cost of memory and storage increased for Xbox, and what is the projected increase?

medium Click to reveal answer

The cost of memory and storage has already doubled and is expected to hit more than five times the cost before the RAM crisis by holiday of next year.

2:19

How much money has Microsoft invested in Xbox over the last five years?

easy Click to reveal answer

Microsoft has poured approximately $20 billion into Xbox over the last five years.

3:47

Did Xbox revenue increase or decrease after Microsoft's $20 billion investment?

easy Click to reveal answer

Revenue has gone down.

3:50

What is Sony's total profit from PlayStation since its inception?

medium Click to reveal answer

Sony has profited about $20 billion from PlayStation since the PS1 launched over 30 years ago.

4:04

What is the current accountability margin for the Xbox division, and what is its trend?

medium Click to reveal answer

The entire Xbox division is running at a 3% accountability margin, which is trending down.

5:00

What did Satya Nadella say about monetization of Xbox games?

hard Click to reveal answer

Satya Nadella said there is more monetization of Xbox games happening on YouTube than at Microsoft.

5:11

What was the name of the memo published by the Xbox team?

medium Click to reveal answer

The Xbox team published a memo called 'Next 100 Days: XBOX Reset'.

1:52

What was the price of the Xbox Series S, and why was it significant?

easy Click to reveal answer

The Xbox Series S was the cheapest ticket into modern gaming at $300.

7:38

How much is Microsoft spending on CapEx in 2026, and what is the primary focus?

hard Click to reveal answer

Microsoft is spending $190 billion on CapEx in 2026, mostly on AI build out.

8:49

What are the four main recommendations given for Xbox's reset?

hard Click to reveal answer

The video recommends getting Windows right, shipping Helix, leaning into exclusives, and sorting out the business side.

9:19

💡 Key Takeaways

📊

$20 Billion Investment, Revenue Down

Highlights the staggering financial disconnect where massive investment led to declining revenue.

3:47
📊

PlayStation's $20 Billion Profit Over 30 Years

Provides stark context by comparing Xbox's spending to Sony's total historical profit.

4:04
💡

The Core Question: Why Buy an Xbox?

Identifies the fundamental identity crisis Xbox faces, which even they admit they can't answer.

5:52
🔧

Recommendations for Xbox Reset

Offers a concrete, actionable plan for Xbox to turn around its fortunes.

9:19

✂️ Creator Tools: Viral Hooks

AI-generated clip ideas for Shorts based on the transcript

Why Does Xbox Even Exist?

45s

Opens with a provocative question that challenges the relevance of Xbox, sparking debate among gamers.

▶ Play Clip

Xbox's $20 Billion Loss Revealed

60s

Shocking financial numbers and comparison to PlayStation's total profit create high engagement and controversy.

▶ Play Clip

Xbox CEO Admits Failure

60s

Direct quote from Microsoft's CEO about monetization issues adds credibility and drama, perfect for viral clips.

▶ Play Clip

Why Buy an Xbox? No One Knows

60s

Highlights the core identity crisis of Xbox, resonating with frustrated fans and sparking discussion.

▶ Play Clip

Xbox's Last Chance: 100 Days to Fix It

60s

Urgency and actionable solutions create a compelling narrative that viewers will want to share and discuss.

▶ Play Clip

[00:00] - Why does Xbox exist?

[00:02] I mean, it seems like a simple question,

[00:04] but for the last year or so,

[00:05] there really haven't been

[00:07] as to why you should buy an Xbox.

[00:10] It seems like the people in charge

[00:11] don't have a better answer either.

[00:13] So, look, I'm gonna be honest,

[00:15] I want Xbox to at least be competitive.

[00:18] Do you wanna live in a world

[00:19] where PlayStation has zero competition?

[00:21] It's also a little personal for me,

[00:23] and you can kinda tell the

[00:25] through the last few generations of Xbox.

[00:27] Back in 2009, I traded my

[00:30] to buy an Xbox 360.

[00:32] It almost immediately Red Ringed on me.

[00:34] I mean, my first E3 was the

[00:38] one of the most infamous

[00:41] And getting to reveal the Series X

[00:43] was one of the biggest

[00:45] So yeah, I want Xbox to,

[00:50] which is why we've gotta

[00:55] It was literally last

[00:58] where I said that the easy part was done

[01:00] and the hard part was coming.

[01:01] I didn't expect the hard

[01:04] Okay, so to be totally fair to Xbox,

[01:06] the last 100 days of Asha running the show

[01:09] have been genuinely good.

[01:11] They cut the price of Game Pass,

[01:13] they brought back real console exclusives,

[01:15] so there's Gears E-Day

[01:17] as well as Clockwork Revolution to start,

[01:19] and almost certainly more to come.

[01:21] They killed the stupid

[01:23] that basically nobody liked,

[01:25] and the showcase itself was solid.

[01:27] Gears, Halo, Fable, I

[01:30] and selling big numbers.

[01:32] Asha has walked in as the new CEO

[01:34] and really given Xbox fans

[01:36] in just her first three months on the job.

[01:38] But these were the easy wins.

[01:41] The real problems are,

[01:42] well, very real, and they just shared them

[01:45] in way more detail than they should.

[01:48] Last week, just a few days after Showcase,

[01:50] the Xbox team published a memo called,

[01:52] "Next 100 Days: XBOX Reset."

[01:55] And holy (quacks).

[01:58] The Xbox team have been doing the rounds

[02:00] with interviews the last couple of weeks,

[02:02] setting stage here,

[02:04] to the business not being,

[02:06] But this memo, which I wanna be clear,

[02:08] it wasn't leaked, they posted publicly,

[02:11] paints a terrible picture

[02:13] of where things really

[02:15] I'll be honest, it is actually

[02:17] but here are some of the takeaways.

[02:19] The cost of memory and storage,

[02:21] you know, the chips inside every console,

[02:23] has already doubled, and

[02:26] to hit more than five

[02:29] before the RAM crisis

[02:32] Now, they think that they

[02:34] than anyone else in the industry,

[02:35] because of, quote unquote,

[02:36] "Choices they've made

[02:39] which I feel like is a loaded phrase

[02:41] that I bet there's a whole backstory too.

[02:43] But they're in a mess.

[02:45] A huge part of my job is

[02:48] And here's the thing, y'all

[02:51] So when Zapier reached

[02:53] it was the perfect time to build something

[02:55] I've wanted forever, an easy

[02:58] and feedback from the comments

[02:59] into something I can actually use.

[03:01] Zapier's pitch is simple,

[03:03] their job is to connect apps

[03:06] Zapier has an MCP server,

[03:09] that you can plug it directly into tools,

[03:11] such as Claude or ChatGPT.

[03:12] Now, I had to authorize it

[03:15] It's not always on,

[03:16] it's only something that

[03:19] So now, Claude can pull

[03:21] and drop the organized

[03:24] In just a few minutes of setup,

[03:25] I had my first batch of ideas,

[03:27] including one on smartphone features

[03:28] that were killed too soon.

[03:30] Manually, I probably

[03:32] but these are ideas from you,

[03:33] Zapier just helps to surface

[03:36] There are so many things

[03:39] so if you wanna check it out,

[03:39] I'll have a link in the description.

[03:41] And again, big thank you to Zapier

[03:42] for sponsoring this video.

[03:45] The crazier part is the

[03:47] Over the last five years,

[03:48] essentially, the Xbox Series X generation,

[03:50] Microsoft has poured something

[03:55] only for revenue to go down.

[03:57] For context, because

[03:59] we're all desensitized to

[04:02] over the entirety of PlayStation,

[04:04] Sony profited about $20 billion.

[04:07] Now, I'm not saying the PS5,

[04:09] which is the most profitable generation,

[04:11] no, $20 billion from PlayStation

[04:14] over 30 years ago.

[04:16] Seriously, just sit

[04:19] (lips trilling)

[04:20] You can say a lot about Microsoft,

[04:22] but you cannot fault them

[04:23] for not investing huge

[04:27] The idea of putting $20 billion in,

[04:30] and during that time, seeing

[04:33] is honestly kind of unbelievable.

[04:35] I maybe wouldn't have shared those numbers

[04:40] if I was running the show,

[04:41] but hey, appreciate the transparency

[04:44] by really letting everyone know

[04:45] just how deep a hole they're really in.

[04:47] This by the way completely sidesteps

[04:49] the almost $70 billion they invested

[04:52] in buying Activision Blizzard,

[04:53] a deal I think in hindsight

[04:57] As of right now, the entire Xbox division

[05:00] is running at a, quote unquote,

[05:04] which, again, is trending down and not up.

[05:06] To top it off, you've got Satya Nadella,

[05:08] the CEO of all of Microsoft, saying this.

[05:11] - Like there's more monetization

[05:15] on YouTube than at Microsoft.

[05:18] - Holy (quacks).

[05:20] I mean, I do think he's kinda joking here,

[05:23] but clearly, things are

[05:26] Now, again, I wanna be really

[05:28] I want Xbox to succeed.

[05:30] But reading these numbers

[05:33] I mean, even for a huge

[05:36] this is not sustainable.

[05:37] I think that that's why

[05:40] they've got to make some

[05:43] and this memo is kind of

[05:45] So that's the situation,

[05:47] which brings us right

[05:49] that even Xbox admits

[05:52] "Why should anyone buy an Xbox?"

[05:55] I mean, historically this

[05:58] You bought an Xbox, or a

[06:00] to play the big exclusives,

[06:02] and because that's where

[06:03] But at this point, neither

[06:06] Games like Halo and

[06:10] but they're also on PS5.

[06:11] And cross play has largely

[06:14] which means it's a real edge case

[06:15] to not be able to play with your friends,

[06:17] regardless of the platform.

[06:18] The days of picking a console,

[06:20] because that's where all your friends are,

[06:21] that's just not a thing anymore.

[06:23] Opening things up did work to sell games,

[06:25] but it gutted almost every

[06:29] outside of Game Pass?

[06:32] I mean, the obvious

[06:34] has just been to buy a PS5,

[06:37] And guess what?

[06:38] Everyone's bought a PS5.

[06:39] The sales have not even

[06:42] Now, they have started to

[06:45] but this is gonna be a slow process.

[06:46] I mean, they've already committed

[06:49] like Halo: Campaign

[06:52] Just snapping your fingers

[06:54] and pulling everything back to Xbox

[06:56] would just lose sales at this point

[06:57] and really, really piss off Sony.

[06:59] And that's the tough balance.

[07:01] Do you value selling games,

[07:03] you know, the thing that

[07:05] or do you give up on at least some of that

[07:07] in favor of building the reasons

[07:08] for people to buy an

[07:11] I mean, I think they're

[07:13] on a case by case basis.

[07:14] I mean, it would be crazy

[07:15] to take something like

[07:18] and games like Call of Duty

[07:19] have already been committed

[07:21] for basically ever.

[07:22] But there will be at least some big games

[07:24] that only land on Xbox

[07:27] it's just gonna take a while

[07:28] to actually make an impact for them.

[07:30] Exclusives are one part of the

[07:33] The current generation has been rough,

[07:35] but the silver lining has

[07:38] At $300, at least up until recently,

[07:41] it has been the cheapest

[07:44] And I know a lot of people

[07:45] who have picked one up,

[07:47] and are still really happy.

[07:48] Except they hiked Xbox

[07:51] and are reportedly still losing

[07:53] as much as hundreds of

[07:57] With the RAM crisis,

[07:58] even $650 for a Series X

[08:02] This whole thing is still

[08:04] So exclusives are part of the story,

[08:07] price, unfortunately, probably isn't.

[08:09] Even Microsoft with their deep pockets

[08:11] can't afford to lose big cash

[08:14] Maybe the answer is building

[08:18] I mean, sure, a super powerful

[08:21] but once you get above like 1,000 bucks,

[08:23] which it almost certainly would be,

[08:25] it is always going to be a

[08:28] And what I'm hearing

[08:29] is that they're considering

[08:31] and cut costs regardless.

[08:32] Who knows what Helix actually

[08:35] Finding a real reason for

[08:37] is just a tough sell right now.

[08:39] You can't even really blame Sony here.

[08:41] I mean, look at the problems.

[08:43] Microsoft chose to bring Halo

[08:46] Even the RAM crisis kinda comes

[08:49] They're spending $190

[08:53] most of which is going

[08:56] you know, the thing that's

[08:58] to begin with.

[08:59] Look, there's no way around

[09:02] There's a real reason for

[09:05] spinning Xbox off into its

[09:08] cutting studios, or even

[09:11] on console hardware entirely.

[09:12] But I do think there are things

[09:14] that Asha and the team can

[09:17] that can make a difference.

[09:19] First of all is the biggest

[09:23] The biggest strength of a console

[09:24] is the simplicity and

[09:28] Having the flexibility

[09:30] and while Xbox Mode is an

[09:34] Now, they've still got time,

[09:35] but this has to be priority

[09:38] for the entire next

[09:41] But you've gotta make it

[09:44] what's an Xbox versus a PC.

[09:46] The details matter here.

[09:48] Make the true Xbox version

[09:51] with a guaranteed set of features,

[09:53] like full Xbox backwards compatibility

[09:55] and clear performance tiers.

[09:57] Then, ship Helix.

[09:59] Now, my understanding

[10:00] is that it's largely built

[10:02] at least on the development side.

[10:03] But, look, you don't have to rush it,

[10:06] no one is clamoring

[10:09] at least not yet.

[10:10] Take the time to lower

[10:13] whatever you gotta do.

[10:14] But I do think putting

[10:15] a real next gen Xbox on shelves matters.

[10:18] Hopefully, they can do this

[10:19] along with a true affordable

[10:22] and probably, by opening up the Xbox brand

[10:24] to more third-party

[10:27] And then, lean all the way

[10:31] Sure, I mean, keep things

[10:33] on what games are true exclusives,

[10:35] maybe which ones are timed,

[10:36] and which ones just go

[10:38] but now is not the time to gamble

[10:40] on new and unproven concepts.

[10:43] Get Elder Scrolls VI out the door,

[10:45] give us an actually new Halo game,

[10:47] remake Fallout 3 or New Vegas.

[10:49] How about StarCraft 3?

[10:51] Look, I don't care which

[10:53] but just green light and fast track some

[10:55] of these obvious slam dunk games

[10:57] to not only bring some

[10:59] but also to have some real next gen titles

[11:02] to sell Project Helix and Game Pass.

[11:04] And finally, the hard one,

[11:07] Game Pass is still the

[11:10] so just fully commit.

[11:12] You can't ship a next gen

[11:14] Bring back Xbox All Access

[11:17] and bundle the hardware with Game Pass

[11:19] in a reasonable monthly price.

[11:21] While you're at it, give

[11:23] make Xbox Live Multiplayer actually free.

[11:26] If you're shipping a PC, you

[11:29] since no one pays for online on PC

[11:32] outside of specific titles

[11:34] Announce the free

[11:37] when you tweak the Xbox Game Pass tiers,

[11:39] and eventually, release that

[11:41] that's been teased forever.

[11:43] (Austin sighing)

[11:44] Okay, I'll admit, this is a lot,

[11:47] and the Xbox team certainly

[11:49] of what to do than I do.

[11:50] But look, this is a rare opportunity,

[11:53] not everyone gets the

[11:56] This can be an opportunity

[11:59] to become a truly healthy business again.

[12:02] They have all the pieces,

[12:04] maybe they're a little broken

[12:06] but, look, I know this

[12:09] but I do think it's fixable.

[12:11] I also think the next 100 days

[12:14] but I'm gonna be here for it.

[12:16] If you too wanna be here for it,

[12:17] make sure to subscribe to the channel

[12:18] and ring-a-ling that ding-a-ling button.

[12:20] And definitely stay tuned,

[12:21] it is about to get real, real spicy,

[12:24] for good and for not so good.

[12:27] (suspenseful music)

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