BusinessSoftware

Microsoft Reportedly Mandates 30% Profit Margin Target for Xbox Division, Sparking Restructuring

Microsoft has reportedly imposed a stringent 30% profit margin target on its Xbox gaming division, according to Bloomberg sources. This financial benchmark has already triggered widespread job cuts, project cancellations, and strategic shifts across the gaming business. Industry analysts suggest the target exceeds typical gaming industry margins by a significant margin.

Microsoft’s Ambitious Profit Target for Xbox

Microsoft has reportedly directed its Xbox division to achieve substantial 30% profit margins, according to sources familiar with the matter. This financial mandate, reportedly implemented over the past two years under CFO Amy Hood’s leadership, represents what analysts suggest is an aggressive target for the gaming industry.

BusinessGamingHardware

Microsoft Distances Itself from ROG Xbox Ally Pricing Strategy, Points to Asus

Microsoft is deflecting criticism over the ROG Xbox Ally’s premium pricing, with Xbox president Sarah Bond stating Asus sets the prices based on their market research. The handheld starts at $600, significantly more than Microsoft’s consoles and the popular $400 Steam Deck. Competing devices like Lenovo’s Legion Go face similar pricing challenges in the growing handheld PC market.

Microsoft Shifts Pricing Responsibility to Asus

Microsoft has distanced itself from criticism surrounding the ROG Xbox Ally’s premium pricing, with Xbox president Sarah Bond stating that Asus determines the cost structure for the newly announced handheld device. According to reports from Variety, Bond described the pricing as entirely Asus’s decision during a recent interview, emphasizing that “their hardware” reflects Asus’s own market research into consumer preferences.

GamingHardware

Microsoft Attributes Xbox Ally X’s Premium Pricing to Asus Market Strategy

Microsoft’s Xbox division has clarified that partner Asus set the $1,000 price point for the new ROG Xbox Ally X handheld. According to Xbox president Sarah Bond, the pricing reflects Asus’ market analysis and understanding of gamer preferences. The device has reportedly sold out through multiple channels despite its premium positioning.

Xbox Defends Premium Handheld Pricing

Microsoft’s highly anticipated entry into the handheld gaming market comes with a substantial price tag that reportedly reaches $1,000 for the ROG Xbox Ally X model. According to sources familiar with the matter, the pricing strategy was primarily driven by hardware partner Asus rather than Microsoft’s direct input.