Previous reports suggested that Microsoft’s Chief Financial Officer, Amy Hood, had implemented a specific “margin of accountability” for the company’s gaming segment.
Microsoft has officially dismissed assertions that its Xbox division is required to maintain a profit margin of 30%.
This clarification surfaced in a recent feature by CNBC, where journalists engaged with Microsoft representatives to discuss various pressing industry topics and reports that have circulated over the past year.
In October, Bloomberg reported that CFO Amy Hood had established a 30% profit target, described as an “accountability margin” for the entire gaming business. According to Bloomberg’s sources, this aggressive fiscal objective allegedly led to widespread job cuts and the cancellation of several internal projects, a narrative that was supported by various industry insiders.
For comparison, the standard profit margin within the gaming industry typically ranges between 17% and 22%, which is significantly lower than the rumored target.
Addressing these claims, Microsoft informed CNBC that while the company does set ambitious performance goals, the specific 30% figure is inaccurate. However, the tech giant declined to provide the actual financial benchmarks currently assigned to the Xbox division.
Source: iXBT.games