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English => News => Topic started by: Redaktion on October 24, 2025, 19:33:04

Title: Microsoft’s executive-mandated 30% profit target reportedly drove Xbox layoffs, studio shutdowns, and canceled projects
Post by: Redaktion on October 24, 2025, 19:33:04
A Bloomberg investigation reports that Microsoft finance chief Amy Hood had imposed a 30% profit-margin "accountability" target on Xbox in late 2023. The goal, which is nearly double the industry average, seems to have directly contributed to waves of subsequent layoffs and studio closures that have plagued its game divisions since

https://www.notebookcheck.net/Microsoft-s-executive-mandated-30-profit-target-reportedly-drove-Xbox-layoffs-studio-shutdowns-and-canceled-projects.1146022.0.html
Title: Re: Microsoft’s executive-mandated 30% profit target reportedly drove Xbox layoffs, studio shutdowns
Post by: indyp on October 24, 2025, 22:02:43
Be interesting to see if greed is Microsoft's downfall in the gaming world.

Wonder why they closed gaming studios instead of selling them off?
Title: Re: Microsoft’s executive-mandated 30% profit target reportedly drove Xbox layoffs, studio shutdowns
Post by: A on October 24, 2025, 22:07:46
Quote from: indyp on October 24, 2025, 22:02:43Be interesting to see if greed is Microsoft's downfall in the gaming world.

Wonder why they closed gaming studios instead of selling them off?

It isn't first time, Balmer did such crap too encouraging self sabotage.

As for why close them instead of selling them, probably because they plan to keep the IP but don't want to maintain the cost of maintaining the studio. This way they can license the IP to others for pure profit.