After being speculated for years, based on FTC testimony, it has now been reported that Microsoft’s Amy Hood is tasking the Xbox division with hitting a 30% profit margin.
Famed press sneak f*ck, Jason Schreier of Bloomberg, has reported today that Xbox’s Amy Hood has tasked the gaming division with a 30% ‘accountability margin’ target since late 2023. This has led to numerous job cuts, studio closures, and an entire paradigm shift in how the Microsoft Gaming division operates.
During the FTC trial over the acquisition of Activision Blizzard King, Amy Hood submitted a statement that said they expected the gaming division to match the company’s profit margin targets. Ever since that point, friend of the site Jez Corden has talked about how unrealistic margin expectations were driving Xbox’s shift in behavior.
Today’s report confirms what Jez and others who paid attention to that trial have said. Microsoft Gaming CEO Phil Spencer and his team have been forced to abandon plans and cut amazing teams because of pressure from the top of the company. The timing matches both the ABK acquisition and the company’s shift to seemingly never-ending spending towards generative AI infrastructure.
You can read the full report HERE
