"Earlier this year, Bloomberg reported that Microsoft pushed the Xbox team to increase profit margins starting in 2023, with the goal of rising to 30% (up from 12% in 2022). The industry average for profit margins is likely between 17% and 22%, analysts said in the Bloomberg piece. According to the report, Microsoft CFO Amy Hood implemented the new goals, and her team has "taken a larger role" in the company's gaming business recently."
"Head of Xbox Game Studios Matt Booty said the Xbox team needs to run a "healthy business," but this doesn't necessarily mean increases beyond $70 for new games. 'From our point of view, monetization just happens in so many different ways right now. So we're going to continue to listen to the feedback from fans. We're going to continue, to balance that with needing to run the healthy business. But right now, on the content side, we don't have any pricing updates,' he said."
Microsoft said it has ambitious profit goals but disputed a specific 30% profit-margin figure. The company set targets to raise Xbox margins from around 12% in 2022 toward a higher target, with CFO Amy Hood taking a larger role in gaming operations. Xbox actions in 2025 included higher console prices, Game Pass membership increases, and wider releases on rival platforms, alongside layoffs, game cancellations, and studio closures. Microsoft Gaming CEO Phil Spencer characterized cuts as necessary under capitalism. Plans to charge $80 for new games were canceled. Xbox leadership emphasized monetization through multiple channels and no current content-side pricing updates.
Read at GameSpot
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