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Xbox chief sets margin targets to match rivals in staff memo

7/31/2026

Microsoft (MSFT) has directed Xbox to bring its profit margins in line with those of competitors, according to a staff memo from the Xbox chief executive focused on margin objectives for the gaming division.

The directive The Xbox CEO authored the memo and circulated it to staff, the source shows. The goal stated in the document: Xbox margins should align with those of competing gaming businesses.

No specific figures, timelines, or named competitors were disclosed.

Reading the business signal Framing profitability as a gap to close against a peer group, rather than a standalone internal target, signals that Microsoft views Xbox's current margin as below the competitive standard.

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