Microsoft’s 50% Game Pass price increase shocked subscribers, but analysts see it as a necessary pivot toward sustainability. The new segmented model could finally make gaming subscriptions profitable.
Microsoft is reportedly demanding unprecedented profitability from its Xbox division, with sources indicating a 30% margin target that far exceeds industry norms. This aggressive financial goal appears to be driving recent studio closures, game cancellations, and a strategic pivot toward service-based games. Analysts suggest the target may be unrealistic given current market conditions.
Microsoft has reportedly set what industry analysts are calling unrealistic profit targets for its Xbox division, according to multiple sources familiar with the company’s strategy. Sources indicate the technology giant is demanding a massive 30% profit margin from its gaming business, a figure that significantly exceeds typical gaming industry profitability.
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