I’m not being facetious, I likely *am* missing something. If Xbox’s revenue is increasing year over year, then isn’t that kind of objectively doing pretty well?
As far as I can tell, it seems like the decision to bring their games to other platforms, while obviously lowers demand for their own console, actually seems like it’s a pretty smart play? It would be kind of depressing to see them leave the console market, but if the company is still seeing record(?) profits, then it certainly doesn’t seem to be necessary.
What am I missing?
Revenue is not profit! Revenue is just how much money is flowing into your company. You can increase that by increasing your cost. For example,if i sell a product at loss,my revenue will likely go up because people will buy the product more(because it's cheaper) but i'm not making any money,in fact,i'm losing it.
A lot of silicon valley companies boost their revenues by increasing their cost, offering unsustainable deals to their users.
Examples of this is We Work,Uber,Twitter(before Elon),Twitch,Youtube,netflix(up until recently at least),etc...
All of them are money losers that offer insane deals to their users and generate big revenues because of that, but when you look at the fine print,they are on the red.