Microsoft has reacted to a report that said the company is pushing Xbox to make more profit. In a statement to CNBC, the company said it has ambitious profit goals, but the specific 30% profit-margin figure was not correct. The statement was paraphrased and not attributed to any specific person at Microsoft, and GameSpot has followed up with Microsoft in an attempt to get more information.
Earlier this year, Bloomberg reported that Microsoft pushed the Xbox team to increase profit margins starting in 2023, with the goal of rising to 30% (up from 12% in 2022). The industry average for profit margins is likely between 17% and 22%, analysts said in the Bloomberg piece.
According to the report, Microsoft CFO Amy Hood implemented the new goals, and her team has “taken a larger role” in the company’s gaming business recently.
