The video game industry has had a turbulent few years. The pandemic made people play more and caused a small boom, which then subsided, resulting in wave after wave of massive layoffs. Microsoft, one of the major console manufacturers, is shifting its strategy for Xbox as the company shifts its focus to AI. And now, Electronic Arts, once a load-bearing publisher for the industry with brands like The Sims and Madden, is going private via a leveraged buyout in a deal involving Saudi Arabia’s Public Investment Fund and Jared Kushner.
Video games are more popular than ever, but many of the biggest companies in the business seem like they are struggling to adapt and convert that popularity into stability and sustainability. To try and understand what the hell is going on, this week we have a conversation between Emanuel and Jason Schreier, who reports about video games for Bloomberg and one of the best journalists on this beat.
Jason helps us unpack why Microsoft is now aiming for higher-than-average profit margins at Xbox and why the company is seemingly bowing out of the console business despite a massive acquisition spree. We also talk about what the EA deal tells us about other game publishers, and what all these problems tell us about changing player habits and the future of big budget video games.
Listen to the weekly podcast on Apple Podcasts, Spotify, or YouTube.
Become a paid subscriber for early access to these interview episodes and to power our journalism. If you become a paid subscriber, check your inbox for an email from our podcast host Transistor for a link to the subscribers-only version! You can also add that subscribers feed to your podcast app of choice and never miss an episode that way. The email should also contain the subscribers-only unlisted YouTube link for the extended video version too. It will also be in the show notes in your podcast player.
- Microsoft Pushes Xbox Division to Hit Higher Profit Margins
- EA's Deal to Go Private Could Be Good for Investors, Bad for Employees
- EA Buyout Highlights Gaming Struggles as Growth Slows
- The Video-Game Industry Has a Problem: There Are Too Many Games
