Xbox gaming will survive in some form for a while, if they countinue to diminish the brand and run massive debt for AI squeezing the other divisions they may end up selling it off.

February 21, 2026 - 14:21 UTC

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If they do sell it, which I don't think they will, there won't be a 3rd console maker. Hardware isn't a good business if you don't publish.

Their MSFT gaming revenue drop is from not being able to sell the console. But their publishing revenue is growing.
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Microsoft may divest some studios eventually but I think it’s stores in general that all this hinges on. Unfortunately again for Microsoft, Sony and Nintendo own the home console store space and Valve owns the pc store space. The only avenue, with limited competition, open to them is subscriptions.
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