this post was submitted on 23 Oct 2025
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Microsoft Pushes Xbox Division to Hit Higher Profit Margins (www.bloomberg.com)
submitted 1 week ago by technocrit@lemmy.dbzer0.com to c/technology@lemmy.world
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Management’s goal of 30% profit margins for gaming has led to job losses, canceled projects

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[–] ICastFist@programming.dev 5 points 5 days ago

So you're telling me M$ will kill the xbox division for good?

An Xbox spokesperson said in a statement that they take a long-term view of their business and that success “doesn’t look the same across every project or priority.” - “We look at the business as a whole, balancing creativity, innovation, and sustainability across a diverse portfolio of offerings,” the spokesperson said.

HAAAAAAAAAHAHAHAHAHAHAHAHAH AHHAHAHAHAHAHA
Oh my fucking god, these corporate stooges

To account for the lost sales, Xbox offers its developers a credit, which it calls “member-weighted value” and is calculated based on several factors, such as the number of hours that Game Pass players collectively spend on a particular title. The opaque formula seems to favor games in which players can spend the most amount of hours, such as online multiplayer titles, according to people familiar with the calculations.

Interesting, that explains why some studios are getting fucked out of that deal

In July, Hood said on a call with investors that operating income in the Xbox division rose 34% for the quarter that ended in June due to “continued prioritization of higher margin opportunities.” The company is due to report earnings again on Oct. 29.

I'm sure M$ can keep cancelling projects and firing people ad infinitum to ensure a continual rise of operating income /s