Skip to main content
  1. Home
  2. Gaming
  3. News

Digital Trends may earn a commission when you buy through links on our site. Why trust us?

Its game over for risky titles as Xbox chases 30 per cent profits

Microsoft’s getting ambitious, and gamers are going to pay

Add as a preferred source on Google
Xbox Controller
Unsplash

What Happened: It sounds like there’s some serious number-crunching going on behind the scenes at Xbox. According to a Bloomberg report, Microsoft is demanding that its gaming division hit a 30% profit margin, which is way higher than the usual 17-22% you see in the gaming world.

  • This super-ambitious goal apparently came down from the head finance boss back in late 2023. And to try and hit that number, Xbox has reportedly been forced to cancel games, raise prices, and lay off a whole bunch of people at its studios.
  • We’re hearing that several big projects that had been cooking for years – like Everwild, Perfect Dark, and Project Blackbird – have been axed.
  • On top of that, they’ve started putting more of their own games on PlayStation and Nintendo consoles, hoping to make up the cash that way.

Why This Is Important: This is a massive shift for Xbox. They used to talk all about creativity and pushing boundaries. Now, it seems like the accountants are running the show.

  • That 30% target is nearly triple the 12% profit Xbox was making just a couple of years ago. It feels like Microsoft is losing patience with gaming and would rather pour its money into the AI gold rush.
  • The report quoted industry experts saying that hitting a 30% profit margin is almost unheard of. Expecting that could totally change the kinds of games Xbox makes. We might see a lot more sequels and fewer risky, original ideas.

Why Should I Care: So, what does this mean for gamers? Well, probably fewer of those big, ambitious exclusive games we used to get excited about, and everything is getting more expensive.

  • The Xbox Series X is already up to $650, and Game Pass Ultimate now costs a whopping $30 a month. Don’t be surprised if we start seeing a lot more “safe bets” like multiplayer games designed to keep you paying and playing forever.
  • Plus, there’s a worry that relying so heavily on Game Pass is already hurting actual game sales. How developers get paid through the service is complicated, and some worry it might push studios away from making those amazing single-player story games we love.
Recommended Videos

What’s Next: Microsoft has an earnings call coming up on October 29th, and everyone expects them to talk about making more money by focusing on “high-margin opportunities.” In the meantime, Xbox is trying to get people excited again by relaunching the Halo franchise (now under a new studio name and using a new game engine).

It really feels like the era of Xbox taking big creative swings might be over, replaced by a laser focus on the bottom line. Expect fewer risks, higher prices, and a much more corporate feel going forward.

Moinak Pal
Moinak Pal is has been working in the technology sector covering both consumer centric tech and automotive technology for the…
Roblox’s AI Build tool wants to make game development as easy as texting
Just describe your idea, and Roblox's AI will help turn it into a playable game.
Roblox

Roblox is turning 20 soon, and it's marking the occasion with a new way to make games without writing a single line of code. The platform's whole pitch has always been that anyone can be a creator, not just professional studios. Now, with millions of daily users, Roblox is finally bringing that power straight to your tablets and phones.

What exactly is Build?

Read more
This gaming mouse has a Noctua fan inside, and it finally has a launch date
Pulsar’s Noctua-cooled gaming mouse finally launches on July 21
Pulsar Feinmann F01 Noctua Edition mouse in hand

More than a year after its Computex 2025 debut, the Pulsar Feinmann F01 Noctua Edition gaming mouse is finally ready to launch. Sales begin through Pulsar’s online store on July 21 at 4 p.m. KST, although pricing has not yet been announced.

We also saw the mouse at Computex 2026, where it appeared much closer to a finished retail product. Its defining feature remains the tiny Noctua fan built into the shell, designed to push air toward your palm during long gaming sessions.

Read more
Gaming against AI could make you more confident with real teammates
Turns out getting beaten by bots wasn't the worst thing after all
Representative image of mobile gaming

Artificial intelligence is often blamed for making people less social. Whether it's AI replacing conversations, reducing teamwork, or making gaming feel less human, the narrative has largely remained the same. But a new study suggests the opposite could also be true. In fact, AI might be quietly encouraging people to spend more time with their friends.

Researchers studying PUBG: Battlegrounds have found that introducing AI-controlled opponents into multiplayer matches didn't isolate players. Instead, it made them more confident, kept them playing longer, and even encouraged them to squad up with friends more often. The findings, which will appear in the journal Information Systems Research, offer an interesting perspective on how AI can improve user experiences rather than simply automating them.

Read more