Microsoft's Xbox Warns of Hardware Component 'Crisis,' Rising Costs

MT Newswires Live05:59

Microsoft's (MSFT) Xbox warned it is facing a hardware component "crisis," with storage costs now more than five times higher than two years ago and another significant increase expected heading into the 2027 holiday season.

The company is currently unable to manufacture as many consoles as customers want to buy, adding that memory costs have risen along a similar trajectory, Xbox said Wednesday on its website in a message to global employees.

Xbox expects to end the fiscal year with an accountability margin of about 3%, down from a year earlier, and said that excluding Activision Blizzard King, annual revenue has fallen nearly $500 million over the past five years despite more than $20 billion invested in content, platform and hardware.

The company said it is pursuing a new hardware business model and partnerships while remaining committed to its Helix console platform.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment