Shareholders care very little about the console race, that's for us gaming enthusiasts. They want to see green numbers with a plus in front of them when it comes to income, active users, etc., where they stand compared to Sony means nothing to them besides a confidence boost that results could go higher with the right moves. The Xbox division is profitable by all means, and Xbox is in no risk of disappearing, hence their long-term compatibility plans, Game Pass, etc.. It is not our job to worry about how'll they manage their finances until it's profitable, what should matter to us is what's best for us, consumers. And being able to play the games I bought in the previous decade in next decade's Xbox, now suddenly in 4K or whatever, is a fucking huge win for me, and makes it practically a guaranteed unit sold as far as the console goes. If enough people think the same, it may have been more worth it than releasing a couple half-assed remasters that cash in immediately but won't be relevant in a couple years.
No but they do care about growth, and if underneath the line it isn't growing, they aren't growing in fortune. That is sadly how this sick world works :(. Green numbers is one thing, but "ooh we went got 40% of growth!" that is even more interesting for them. Profit sadly isn't all, I'd agree with you, but in the hyper-capitalist world, sustainability and healthy businesses are not important. Growth is, as that is the short term gain for finances. Any growth and making numbers "bigger". And believe me, no company in the hyper-capitalist world is in it for "second place". Right now the mindset is "SONY SONY SONY!", look to youtube and what the lets players play? That's what kids want, they don't ask for Xbox, and that is something shareholders take notice off, and that's the questions Phill will need to answer and in a justifying way of :"Why should sustain you any longer? How do you represent growth to my stock? You seem more detrimental to it. Now if I vote to sell you, I get a short term financial injection and thus growth to my stock.".
Is it fucked up? Yes, as Xbox is healthy and running a profit, but in a world of "MORE MORE MOREEE!" that hyper-capitalism represents, you simply can't run on "healthy and we are making a profit". There the mind set is:"stable is standing still, growing is running forward.".
Now Xbox is far from doomed, but don't underestimate it either. Phil Spencer can easily be canned, there is a reason why the Xbox One started out as this "TV TV TV" media box, and it wasn't just Don Matrick. It was an orchestrated event to throw the Xbox to fold the Xbox into the Mobile division of Microsoft and make it into an "Apple TV". It never should have been there, and should have stayed it's own. Let's just hope current shareholders understand that, but I doubt they look to long term and sustainability. For goodness sake, Value act (the destroyers of Motorola ) are on the board these days.