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TechRadar
TechRadar
Rhys Wood

Microsoft has allegedly tasked Xbox to deliver a 30% profit margin, and if true, it could explain the reason behind its price hikes and mass layoffs

Xbox.
  • Xbox has reportedly been tasked by Microsoft to deliver a 30% profit margin
  • If true, it could explain recent studio closures and price hikes across hardware
  • Bloomberg notes the average profit margin target is typically around 17-22%

We may now know the reason behind Xbox Studios' rampant layoffs, game cancellations, and price increases for its hardware and subscription models - and it's all down to achieving a profit margin target from Microsoft.

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