Microsoft Denies Report About Increased Profit-Margin Goals At Xbox

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Microsoft responded to a recent report claiming the company is prioritizing profits with Xbox. In a statement to CNBC, Microsoft confirmed it has strong profit goals, but disputed a reported target of a 30% profit margin. The statement was general and didn’t come from a specific Microsoft representative. TopMob has reached out to Microsoft for further clarification.

According to a Bloomberg report from earlier this year, Microsoft has been focused on improving the profitability of its Xbox division since 2023. They’re aiming for a profit margin of 30%, a significant increase from the 12% they saw in 2022. Analysts quoted in the report suggest the typical profit margin for companies in this industry is between 17% and 22%.

The report indicates that Microsoft’s CFO, Amy Hood, established new objectives, and her team has become more involved in the company’s gaming division.

In 2025, Xbox tried to increase revenue through several changes, like raising the price of Xbox consoles and Game Pass subscriptions, and by releasing some of their games on platforms that compete with Xbox. Unfortunately, Microsoft also had to make difficult decisions, including layoffs, game cancellations, and studio closures. According to Microsoft Gaming CEO Phil Spencer, these actions were necessary due to the realities of the business world.

So, Microsoft was thinking about raising the price of new games to $80 this year, but they scrapped that idea. Matt Booty, who runs Xbox Game Studios, said they need to make sure Xbox is profitable, but that doesn’t automatically mean games are going to cost more than the usual $70. It’s good news for my wallet, honestly!

We’re seeing revenue come in through a lot of different avenues, so we’ll keep listening to what our fans think. We need to make sure the business is stable, of course, but currently, we don’t have any changes to announce regarding content pricing, he explained.

2026 will be a significant year for Microsoft, celebrating major milestones for several of its key franchises. It will be the 25th anniversary of Xbox and Halo, as well as the 40th anniversary of Bethesda, the 35th of Blizzard, and the 30th of the first Diablo game. There’s also speculation that Microsoft might reveal details about its next-generation console that year, though that hasn’t been confirmed.

In January 2026, Microsoft will hold an Xbox Developer Direct event to reveal some of the games and features planned for Xbox in 2026, though they won’t be showing everything at once.

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2025-12-22 19:09