(Profit) Margin For Error

On this week’s episode, Nathan, Chris, and Riley discuss the recent revelation (via Bloomberg) that Microsoft has been seeking a 30 percent profit margin from its gaming division since 2023. This borders on ludicrous compared to what the rest of the industry typically achieves and fully clears that bar in the case of Xbox, which managed a 12 percent profit margin in 2022. Now here we are in 2025, following multiple rounds of mass layoffs and project cancellations, because while Xbox was profitable, it wasn’t profitable enough . We once again repeat what has become a common refrain: What is Microsoft thinking, especially as both the industry and the global economy enter increasingly uncertain times? And if it continues to pump out pricey hardware while laying off developers and shutting down studios, where will the money come from? Then we talk about TwitchCon, which Nathan attended, and the security woes that became the story of this year’s event. While the claim that TwitchCon had no security is definitively untrue, misogyny and sociopathic clip farming intrinsic to the modern platform ecosystem still managed to spill over into real life. How does Twitch handle that? At what point…