According to GameSpot, Microsoft has denied a Bloomberg report from earlier this year which claimed the company was pushing its Xbox division to increase its profit margin to 30%, up from 12% in 2022. The report stated Microsoft CFO Amy Hood implemented these goals starting in 2023, with the industry average sitting between 17% and 22%. In a statement to CNBC, Microsoft called the 30% figure incorrect while acknowledging “ambitious profit goals.” The denial comes after a year where Xbox raised console and Game Pass prices, released games on rival platforms, and laid off staff and closed studios. Xbox Game Studios head Matt Booty also noted the team needs to run a “healthy business” but has no current plans to raise game prices beyond $70.
The Numbers Game
Here’s the thing: denying a specific number like 30% is a very careful corporate move. It doesn’t mean the pressure isn’t real. Microsoft basically said, “We want more profit, but not *that* much more profit.” The fact that this all stems from the CFO’s office taking a larger role in gaming is the real story. When the finance team gets more involved, the mission shifts from pure growth and market share to… well, making money. And we’ve already seen the playbook: price hikes, multiplatform releases, and cost-cutting through layoffs. So the 30% might be wrong, but the trajectory? That seems spot on.
The Year of Anniversaries
Now, 2026 is being set up as a massive nostalgia play. Think about it: 25 years of Xbox and Halo, 40 years for Bethesda, 35 for Blizzard, 30 for Diablo. That’s not a coincidence; it’s a marketing calendar. But can you celebrate legacy while also squeezing for more profit? That’s the tightrope Phil Spencer’s team has to walk. You’ll likely see a lot of classic re-releases, maybe some remasters, all designed to monetize that history with relatively low development cost. It’s a smart business move, honestly. But will it feel like a genuine celebration to fans who just saw studios shuttered?
The Hardware Question
And what about the next console? The rumor mill says we might hear something in 2026. If the profit-margin pressure is as intense as it seems, that dictates everything about the next box. Does Microsoft go for a premium, high-margin device? Or a more affordable one to keep Game Pass subscriptions rolling? The upcoming Xbox Developer Direct in January will be our first real clue. They’ve said it won’t show everything, but the tone and the focus will be telling. Are they selling us on power, or on value? The finance department’s goals will ultimately answer that question.
