It was previously reported that Microsoft CFO Amy Hood had set a so-called "accountability margin" for the gaming division.
Microsoft has officially refuted claims that its Xbox gaming division is required to achieve a 30% profit margin.
The statement was made as part of a recent CNBC article, where journalists discussed a number of current issues and publications from the past year with Microsoft representatives.
In October, Bloomberg reported on a 30% profit margin target for Xbox, set by Microsoft CFO Amy Hood as an "accountability margin" for the entire division. This ambitious goal, according to Bloomberg, led to mass layoffs and project cancellations. The information was supported by statements from insiders in the gaming industry.
For comparison, the average profit margin in the gaming industry is 17–22%, which is significantly lower than the stated target.
In response, Microsoft clarified to CNBC that the company does set ambitious goals, but the specific figure of 30% is not true. At the same time, Microsoft did not say what financial performance goals Xbox actually faces.
