Microsoft officially refuted a report claiming it pressured the Xbox gaming division to achieve a 30% profit-margin target. In a statement to CNBC, the company clarified that while it sets ambitious financial goals, the specific 30% figure was inaccurate.
This denial addresses a Bloomberg report. That report suggested Microsoft’s finance team, led by CFO Amy Hood, was increasing oversight of the gaming business to boost profitability from previous levels.
The clarification comes as the Xbox division faces financial headwinds. In the first quarter of fiscal 2026, overall gaming revenue fell 2%. Hardware sales declined 29% during the same period.
Amid these challenges, the company is adjusting its gaming strategy. Xbox now focuses more on subscriptions, cloud services, and cross-platform releases.