In today’s Daily Fix:According a report from Bloomberg, Xbox’s recent layoffs and game cancellations were due to a lofty profit margin goal set by Microsoft. Currently, the gaming industry standard is around 17%-22% profit margins, but Microsoft has allegedly pushed Xbox into hitting a high 30% profit margin. The goal was apparently set around the time Xbox was completing its acquisition of Activision Blizzard in 2023. In other news, Borderlands 4 is off to a great start for Gearbox and publisher 2K Games. The game is reportedly outpacing Borderlands 3 in terms of dollar sales in its first month of release (it’s worth noting that Borderlands 4’s different editions are more expensive than Borderlands 3’s). Borderlands 4 also debuted as the number one premium title for September. And finally, Elden Ring’s Switch 2 port has been delayed. The Tarnished Edition, which includes the Shadow of the Erdtree expansion, has been pushed to sometime in 2026.
Xbox Layoffs, Cancellations Reportedly Due to Microsoft’s Profit Margin Goal – IGN Daily Fix
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It’s always tough to hear about layoffs and cancellations in the gaming industry. It’s a challenging time for many, but hopefully, this will lead to new opportunities and innovations in the future.
Absolutely, it really is a difficult situation for everyone involved. It’s interesting to see how companies prioritize profit margins, especially in such a creative field. Hopefully, this will lead to a more sustainable approach in the long run.