Technology

The best way to innovate in gaming is to have good margins, that's according to Microsoft chief executive Satya Nadella. He made the comments during an interview days after Bloomberg reported that Microsoft has expected unrealistic profit margins from its gaming division, which the report suggested was a likely reason for studio closures, game cancelations and thousands of layoffs at Xbox. Nadella used the word "innovation" at least five times during the interview but never offered specifics about what he meant by it. He said Microsoft needs to "invent, maybe, some new interactive media" because gaming's competition is short-form video rather than other games. The CEO described Microsoft's new gaming strategy as being "everywhere, on every platform" after comparing the company's game publishing business to Microsoft Office. He said "the biggest gaming business is the Windows business" and added that he is looking forward to "the next console, the next PC gaming."

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Hedge fund Apollo has reached a deal to sell AOL to Italian tech holding group Bending Spoons in a deal valued at roughly $1.5 billion, Axios reported Wednesday From the report: AOL still drives hundreds of millions of dollars of free cash flow. Bending Spoons CEO Luca Ferrari said AOL has around 30 million monthly active users across its email and web content properties. That "incredibly loyal user base," as he called it, could be better served with greater investments in AOL's product and user experience, he noted. [...] Bending Spoons is a privately held Italian holding company that acquires assets with large user bases and invests in their turnaround with technology improvements. The company tends to sit on their investments long term after acquiring them. Some of the other companies Bending Spoons has acquired include Vimeo, Evernote, WeTransfer, Brightcove.

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