Recently, well-known Xbox insider Jez Corden broke the news that Microsoft recently lowered the profit target of its Xbox team in order to alleviate the financial difficulties caused by Xbox's losses. Previously, Microsoft required the Xbox team to achieve a 30% profit margin. Because it was difficult to achieve, it not only laid off many employees, but also indirectly affected the development capabilities of the Xbox team, because it had to develop profitable games to complete the target.
It's unclear what lowering the profit target will mean for the Xbox team, but at least now Xbox has more room to experiment and will no longer be limited to prioritizing those features or games that are most likely to make money.
Previously, under the leadership of new CEO Asha Shire, Xbox has completed multiple rounds of organizational structure adjustments and strategic optimization, and this relaxation of profit assessment is undoubtedly an important pavement for the next-generation console "Project Helix". Project Helix will be released in 2027, and Microsoft's gaming department may also have the opportunity to try some features that may not have been possible before.
