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.”

GamingHardware

Xbox Executives Address ROG Ally X Pricing Strategy and Market Reception

Microsoft’s Xbox division has responded to questions about the ROG Ally X’s premium pricing, noting that hardware partner Asus determined the final cost. Despite the $1,000 price tag, early sales reportedly exceeded expectations, with devices selling out rapidly across multiple retailers.

Xbox Leadership Clarifies Pricing Strategy for Premium Handheld

Xbox executives have addressed consumer questions surrounding the $1,000 price point of the recently released ROG Ally X handheld gaming device, according to reports. In statements to Variety, Xbox President Sarah Bond indicated that hardware manufacturer Asus ultimately determined the pricing structure based on their market analysis and component costs.

GamingTechnology

Microsoft Confirms Next-Generation Xbox Hardware in Development, Dismissing Console Exit Rumors

Microsoft is actively developing next-generation Xbox hardware according to company president Sarah Bond. The confirmation comes amid speculation about Microsoft’s console future following recent handheld partnerships and Game Pass pricing changes.

Next-Generation Xbox Confirmed

Xbox President Sarah Bond has confirmed that Microsoft is developing next-generation hardware, according to reports from Variety. This announcement directly addresses recent speculation that Microsoft might exit the console hardware business following price increases to Xbox Game Pass Ultimate and the company’s expanded multiplatform strategy.