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For every good decision Microsoft makes, they seem to eventually inadvertently step on a rake.
Microsoft set an unprecedented 30% profit margin goal for Xbox post-Activision acquisition, impacting strategy.
KEY POINTS
- Xbox's ongoing hardware shortage was intentionally engineered by Microsoft to meet margin targets, not due to weak demand.
- Xbox considered dropping backward compatibility and shifting focus toward software to meet profit goals.
- Short-term profit chasing forced Xbox to release games on competing platforms, undermining hardware exclusivity.
- Current AI-driven memory shortages mean Xbox will have no new hardware stock available for GTA 6’s release.
COMPANIES
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