Satya Nadella, CEO of Microsoft, stated in an interview that YouTube is able to monetize Xbox games more effectively than Microsoft itself. According to the executive, more revenue is being generated from the company's games on the video platform than through Microsoft's own channels.
The statement comes at a challenging time for Microsoft's gaming division. The company revealed that the unit operates with very tight margins, and Nadella acknowledged that the point has been reached where it is no longer feasible to indefinitely subsidize the video game business. The executive said it is necessary to transform the division into a self-sustaining operation that generates returns on accumulated investments since the Xbox brand's creation.
The comment reflects financial pressure on Microsoft's gaming segment in 2026, a year that was meant to mark the 25th anniversary of Xbox but instead is shaping up as a period of restructuring and reassessment of the company's gaming business model.
