To carry out this plan, Xbox is cutting costs: canceling projects, increasing prices and laying off employees. Previously, Xbox’s profitability rarely exceeded 20%, and in 2022 it was only 12%, according to analysts. New targets were set by Microsoft CFO Amy Hood in 2023.
Now the company abandons long and risky projects and relies on cheaper and more profitable games. Those canceled include, for example, Everwild, Perfect Dark and Project Blackbird. At the same time, Xbox began releasing its games on rival consoles Sony and Nintendo in order to increase its revenue.
However, experts state that it will be difficult to make a 30% profit.
Source: Ferra
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