Microsoft sets a new target for its ‘struggling’ Xbox unit: Perform above …
Microsoft is reportedly demanding much higher profits from its Xbox gaming division than what’s typical in the video game industry. According to a report by Bloomberg, the tech giant has set a tough new goal: Xbox must achieve 30% “accountability margins” – Microsoft’s term for profit margins – across all its gaming operations. This target, implemented in fall 2023, is significantly higher than what most game companies achieve and has forced Xbox to make difficult decisions about its future, the report noted.
Citing financial research firm S&P Global Market Intelligence, the publication says that the average profit margin in the video game industry typically ranges between 17% and 22%.
