Microsoft does not actually require Xbox to have a 30% profitability
At the end of October, Bloomberg, citing sources, reported that Microsoft wanted to raise the profitability level of its gaming division to 30%—a very high figure. Two months later, the corporation denied the rumors.
Halo Infinite
Microsoft representatives, in comments to CNBC, called Bloomberg's sources' information mistaken. According to them, the corporation does indeed have "ambitious goals," but not as the media describes. The exact level of profitability they actually wish to achieve from Xbox is not specified.
The last time Xbox's profitability data was disclosed was in 2023 during the legal proceedings over the deal with Activision Blizzard. At that time, Xbox head Phil Spencer stated that it was in the "single digits" range, meaning it did not exceed 9%.
It is worth noting that Xbox is currently experiencing mixed results. By the end of the last financial year, the division achieved its best-ever revenue of 23.45 billion dollars. This record was made possible by the success of Game Pass and strong game sales. At the same time, console sales significantly dropped, and there are no signs that they will begin to grow again in the near future.