(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 does TwitchCon become so much of a reputational risk that Twitch would be better off pulling the plug? Finally, we talk about both Mario (the video game character) and Luigi (Mangione).

Credits

- Hosts: Nathan Grayson, Chris Person, & Riley MacLeod

- Podcast Production & Ads: Multitude

- Subscribe to Aftermath!

About The Show

Aftermath Hours is the flagship podcast of Aftermath, a worker-owned, subscription-based website covering video games, the internet, and everything that comes after from journalists who previously worked at Kotaku, Vice, and The Washington Post. Each week, games journalism veterans Luke Plunkett, Nathan Grayson, Chris Person, Riley MacLeod, and Gita Jackson – though not always all at once, because that’s too many people for a podcast – break down video game news, Remember Some Games, and learn about Chris’ frankly incredible number of special interests. Sometimes we even bring on guests from both inside and outside the video game industry! I don’t know what else to tell you; it’s a great time. Simply by reading this description, you’re already wasting time that you could be spending listening to the show. Head to aftermath.site for more info.

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