Xbox Hits Reset Button on Business & Netflix Has a ‘Season 2’ Problem
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What major changes is Microsoft making to its Xbox division?
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Good morning, Brew Daily Show. I'm Neil Freiman. And I'm Toby Howell. Today, Netflix has a problem. People aren't sticking around for the second season.
Then Xbox is on the struggle bus and is laying off thousands. It's Tuesday, July 7th.
How is AI affecting Microsoft's investment strategies?
Let's ride.
Oof. Last night at the World Cup, the U.S. men's national team got shellacked by Belgium 4-1, an abrupt and frankly embarrassing end to what had been a promising tournament run. Tensions were high leading up to the game after America's star striker Fuller and Balogun was allowed to play after FIFA rescinded his one-match ban. But once the teams got on the pitch, it was all Belgium for 90 minutes and a familiar sinking feeling for USA fans. And so the world cup rolls on without the stars and stripes, but Toby, I'm a free agent. Who should I root for? Who is my new team?
I can't believe these words are coming out of my mouth, but maybe England had such a gutsy performance against Mexico that they won me over Morocco. is also a very solid bandwagon to get on they have not lost an official match in regular extra time since late 2023 34 matches unbeaten and finally you gotta love the Norwegians yes they play England next round but Holland is an absolute terror. I'm all in on the rowing after games.
What challenges is Netflix facing with viewer retention?
They also feel like the last true underdog left. So maybe take your attention to Norway if you want to kind of ride the underdog.
It is very frustrating because I think Norway and England are my top two and they're playing against each other. So I guess whoever wins that game, I'll ride or die with them. And now a word from our sponsor, Ultra Running. Toby, are you a shoe man? I like to think I have a certain theatrical nature about me, yes. Shoe man, Toby, not show man. Because today we're talking about Ultra. They actually make shoes shaped like feet.
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Why are Netflix's second seasons struggling to attract viewers?
Remember the red ring of death from your Xbox 360? It was a sign of your console's imminent demise. Right now, the entire Xbox division looks ringed in red after Microsoft announced it was cutting up to 20% of its workforce. It's also selling or spinning off four to five game studios that it acquired within the past decade. The gaming division inside Microsoft had been spending money like a 13-year-old in GameStop for the first time. In 2023, it bought Activision Blizzard, home to Call of Duty and Candy Crush, for $69 billion, the largest gaming acquisition ever. Microsoft followed that up by buying the studio behind Fallout and Skyrim for $8.1 billion. The idea was to assemble a great catalog of games so they could sell a bunch of Xboxes and a bunch of subscriptions to Game Pass, Microsoft's online game store.
But instead of becoming the Netflix of gaming, some boss levels rolled around. Xbox CEO Asha Sharma said Xbox ended up losing 64 cents for every $1 invested into its game studios. Our business today is not healthy, she wrote in a memo to employees. But perhaps the final boss was AI. Microsoft is spending roughly $190 billion this year on AI infrastructure, so some resources are being redirected away from slower-growing businesses like gaming.
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Chapters
8 chapters
1
What major changes is Microsoft making to its Xbox division?
0:01–0:51
2
How is AI affecting Microsoft's investment strategies?
0:51–2:04
3
What challenges is Netflix facing with viewer retention?
2:04–3:05
4
Why are Netflix's second seasons struggling to attract viewers?
3:05–4:33
5
What impact does binge-watching have on show popularity?
4:33–5:42
6
How does Netflix's release strategy differ from its competitors?
5:42–7:21
7
What is the trend of grocery tourism and why is it gaining popularity?
7:21–8:57
8
How do grocery stores reflect local cultures and lifestyles?
8:57–30:17
Speakers
5 identifiedMore from Morning Brew Daily
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