Microsoft asks Xbox business to hit 30% profit margins, Bloomberg says

Microsoft (MSFT) wants its Xbox gaming unit to produce profit margins far above the industry average, creating more pressure on its video game makers during a difficult time for the sector overall, Bloomberg’s Jason Schreier and Dina Bass report. Over the past two years, executives at the software and technology giant have established an across-the-board target of 30% “accountability margins,” a term the company uses instead of profit margins, the authors say, citing people familiar with the business. The gaming business has responded by canceling games, increasing prices for products and services, and laying off thousands of workers, the authors say, noting the average profit margin in the video game industry recently has ranged between 17%-22%.