Microsoft’s $70 Billion Gaming Bet Just Imploded. Here’s Why It Was Doomed from the Start.
Microsoft just laid off 4,800 gaming employees despite a $3 trillion market cap and $70 billion in acquisitions. The real story isn’t cost cuts—it’s that Game Pass is structurally unprofitable. This article explains why the subscription model can’t sustain AAA development and what it means for gamers, investors, and the future of Xbox.