Since Microsoft bought Activision Blizzard – a very expensive purchase – they’ve been carefully controlling Xbox to ensure they see a profit. This has resulted in several Xbox game development teams being closed, projects being canceled, layoffs affecting hundreds of employees, and increases in the cost of Xbox consoles and online services.
So, I’m reading that after Microsoft finalized the acquisition, they’re really pushing Xbox to be profitable. Apparently, they’re expecting profit margins around 30%, which is pretty crazy high for gaming, especially right now. It seems like they’re putting a lot of pressure on the gaming division to make money.
According to Bloomberg, Xbox’s profit margin was around 12% in 2022. This explains why leaders like Phil Spencer and Sarah Bond made significant cuts to spending and increased prices in order to meet their goals.
The recent shift away from making games exclusive to certain platforms likely stems from new financial goals, despite marketing efforts framing it as a benefit for players.
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2025-10-23 15:16