Microsoft is directing its Xbox gaming division to achieve profit margins significantly higher than the industry standard, according to a Bloomberg report. Over the past two years, executives have set a goal of 30% "accountability margins," a term Microsoft uses for profit margins. This target is considerably above the estimated video game industry average, which has ranged between 17% and 22% in recent years. In response to this directive, the gaming division has reportedly canceled products, increased prices, and implemented thousands of job cuts. The new financial pressure may lead the company to prioritize games that are cheaper to produce or have a higher likelihood of generating substantial revenue, potentially at the expense of riskier projects. Sources also suggested that Xbox's hardware division could face a "significant rethinking" as part of this strategic shift.