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Microsoft pushed Xbox to boost profits to 30%, triggering cuts, cancellations, and price hikes.
Microsoft has reportedly directed its Xbox division to achieve a 30% profit margin, significantly above the industry average of 17% to 22% and Xbox’s recent 10% to 20% range, according to a Bloomberg report.
The mandate, set by CFO Amy Hood in fall 2023, has led to widespread changes including job cuts, project cancellations like the Perfect Dark reboot, and the release of first-party games on rival platforms.
The company has also raised prices for consoles, Game Pass, and development kits.
While Microsoft maintains its commitment to long-term gaming growth and confirms new premium hardware is in development, the push for higher profitability has sparked concerns over innovation and creative risk-taking.
Microsoft presionó a Xbox para aumentar las ganancias al 30%, desencadenando recortes, cancelaciones y aumentos de precios.