Topic: profit margins
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Microsoft's Xbox Price Hikes, Studio Closures Driven by Profit Goals
Microsoft's Xbox division is implementing price increases, studio shutdowns, and layoffs to meet a new corporate mandate for a 30% profit margin, set by CFO Amy Hood in late 2023. This target is significantly higher than the industry's typical 17-22% margin and more than double Xbox's 12% margin ...
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Microsoft CEO: Next Xbox Will Be More Like a PC
Microsoft's next-generation Xbox will function as a console-PC hybrid, allowing users to access multiple gaming marketplaces like Steam and potentially play PlayStation titles directly on the hardware. CEO Satya Nadella emphasized a platform-agnostic strategy, aiming to make Microsoft games avail...
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Xbox Ally Hints at Next-Gen First-Party Focus
Microsoft has confirmed the next Xbox will be a first-party product, dismissing rumors of exiting the hardware market and describing it as a premium, high-end experience. The next-generation Xbox is expected to launch around 2027-2028 and may function as a hybrid device, integrating Xbox software...
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Are Rising Prices the End of Game Consoles?
The video game industry is experiencing unprecedented price increases for major consoles, breaking the traditional pattern of price reductions over a console's lifespan and challenging consumer expectations. These price hikes are driven by a combination of external factors like geopolitical insta...
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Xbox Sales See Continued Decline
Xbox hardware sales are in a severe and ongoing decline, with revenue dropping 29% year-over-year in Q1 2026, continuing a trend of significant quarterly decreases. Microsoft is shifting its strategy away from traditional consoles to an "Xbox everywhere" approach, expanding game and service acces...
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