It has been a pretty busy week for those living in the world of XBOX. We’ve seen studios parting ways with the company, a massive management restructuring, thousands of layoffs stacked up, and the most significant restructuring in the brand’s history being lined up. It has been a pretty divisive time across the wider gaming industry, but at least they’re not threatening the future of discs, right?
In a new report from Bloomberg, more information was revealed from within the confines of XBOX, including a pretty surprising fact about how the team was funding its wider gaming portfolio for a hot minute.
Minecraft’s Success is XBOX’s Gain
Asha Sharma recently dropped a monumental bombshell, publishing a massive letter across social media revealing the future of the XBOX label. There’s one hell of a shakeup in store for the company, owing to the firm being in a financial hole and bleeding money faster than it can recoup its losses.
Bloomberg recently published a new report diving deep into the strategy side of XBOX and why everything went wrong. It’s what inevitably led to a whopping 3,200 layoffs being lined up across the entire company, which includes the stripping out of multiple management layers.
The report discussed Minecraft and Mojang, as Sharma stated that this studio will be invested in a little more going forward, as she believes it’s underutilized. There might be a reason for that, of course.
- RELATED: Asha Sharma’s Full Memo to XBOX
It was stated by those ‘familiar with XBOX operations’ that, once upon a time, Minecraft’s profits were ‘used to fund the rest of the gaming portfolio.’
That’s probably one major driving factor in Sharma now deciding that Mojang (and King, the mobile-first developer behind Candy Crush) will report directly to her.
Are you surprised that XBOX was repurposing Minecraft’s profits to fund the rest of the gaming slate? Let us know your thoughts on the Insider Gaming Discord server.
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Grant has been gaming for 30+ years and in the industry for 10+. You'll probably find him playing a post-apocalyptic game or an extraction shooter somewhere.
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