Microsoft wants its Xbox gaming division to achieve high profit margins of 30%, forcing it to cut costs and cancel projects, resulting in significant job losses. Executives have set this ambitious goal across the entire company, leading studios to raise prices, slash jobs, and cancel products, creating a challenging environment for the video game industry as a whole.
Source: https://www.bloomberg.com/news/articles/2025-10-23/microsoft-pushes-xbox-studios-to-hit-higher-profit-margins