BusinessStartupsTechnology

Microsoft Reportedly Sets Aggressive 30% Profit Target for Xbox Division, Exceeding Industry Norms

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.”

BusinessGamingTechnology

Nintendo Reportedly Ramps Up Switch 2 Production to Meet Strong Holiday Demand

Nintendo is reportedly boosting Switch 2 production significantly, targeting 25 million units by March 2026. Analysts suggest the console could sell 20 million units this fiscal year, exceeding initial forecasts.

Production Boost for Holiday Season

Nintendo has reportedly requested a substantial increase in production for its Switch 2 console, with plans to manufacture 25 million units by the end of March 2026, according to sources familiar with the matter. This move is said to be aimed at maximizing sales during the critical Christmas holiday period, as reported by Bloomberg via NintendoLife. The company’s aggressive production strategy reflects confidence in sustained consumer demand for the new handheld hybrid system.