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Bloomberg reveals Microsoft demands Xbox maintain a 30% profit margin—a target even Nintendo can’t consistently hit—explaining the mass layoffs, studio closures, and multiplatform strategy destroying the brand.
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00:00 A Crushing Target
02:22 Xbox’s Messy Half Decade
04:18 Bloomberg’s Report
05:39 Their Chaos, Explained
07:39 Activision’s Margins
10:26 The Competition Has Long-Term Plans
13:21 The Internal Threat
Sources:
https://www.theinformation.com/articles/microsofts-gaming-business-falls-short-despite-activision
https://insider-gaming.com/microsoft-activision-responds-report-regarding-financial-performance/
https://www.theverge.com/2024/1/25/24049050/microsoft-activision-blizzard-layoffs
https://publish.obsidian.md/vg-layoffs/Archive/2025
https://www.windowscentral.com/gaming/xbox/microsoft-xbox-layoffs-july-2025
https://www.bloomberg.com/news/articles/2025-10-23/microsoft-pushes-xbox-studios-to-hit-higher-profit-margins?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc2MTIxNzIzNiwiZXhwIjoxNzYxODIyMDM2LCJhcnRpY2xlSWQiOiJUNEtaV0FHUTdMMTAwMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.bf1wS0et59C0q96ZZnfBqLTX_eTIqjZTmQbk_j6Pwok&leadSource=uverify%20wall
https://www.linkedin.com/feed/update/urn:li:activity:7348078934854430721/
Research at Microsoft 2023: A year of groundbreaking AI advances and discoveries
https://www.trueachievements.com/news/canceled-xbox-mmo-project-blackbird
Activision Blizzard margins before the acquisition closed
— AmericanTruckSongs10 (@ethangach.bsky.social) 2025-10-23T21:41:06.954Z
https://www.activision.com/cdn/activisionblizzard/investors/annual-reports/Activision%202022%20Annual%20Report%20BookMarked.pdf
https://www.activision.com/cdn/activisionblizzard/investors/annual-reports/Activision%202021%20Annual%20Report%20Final%203.6MB.pdf
https://www.nintendo.co.jp/ir/pdf/2025/250508_5e.pdf
https://www.sony.com/en/SonyInfo/IR/library/presen/er/pdf/24q4_sonypre.pdf
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000789019/000119312525245150/d908201ddef14a.htm
https://www.gamefile.news/p/microsofts-xbox-team-snaps-a-four