Overview
- Bloomberg reports the target was introduced in fall 2023 by CFO Amy Hood, with finance taking a larger role in gaming decisions, and not every project required to hit 30%.
- Sources tie the mandate to project cancellations including Everwild, Perfect Dark and Project Blackbird, studio closures, thousands of layoffs, and higher prices for consoles, Game Pass and developer kits.
- Xbox has expanded multiplatform publishing to boost returns, with titles such as Indiana Jones and the Great Circle, Sea of Thieves and Forza Horizon 5 finding success on PlayStation 5.
- Day-one Game Pass placement has reduced traditional sales, and Microsoft’s internal “member-weighted value” credit—favoring long-play and multiplayer—complicates studios’ paths to the 30% target.
- Microsoft said it balances creativity, innovation and sustainability and sometimes stops projects that no longer fit priorities, while Hood told investors Xbox operating income rose 34% by prioritizing higher-margin opportunities.