According to reports, Microsoft has implemented an ambitious 30% profit margin goal for its Xbox gaming division, a figure that sources indicate far exceeds the industry standard. This directive, reportedly set by Microsoft’s CFO, has allegedly influenced decisions to cancel projects and shift resources, raising questions about the division’s strategic direction.
Ambitious Financial Targets
Microsoft has reportedly set a challenging profit margin goal for its Xbox gaming division, a target that sources indicate is significantly higher than the industry average. According to a Bloomberg report, the tech giant implemented an “across-the-board goal” of 30 percent profit margins in 2023. The report states that Microsoft refers to these internally as “accountability margins.”