The last 12 months have been pretty depressing for anyone invested in the long-term future of Xbox and the general health of the games industry. Back in May, Microsoft data-i13n=”cpos:1;pos:1″ href=”https://www.engadget.com/big-tech/microsoft-is-laying-off-3-percent-of-its-global-workforce-154755787.html” data-ylk=”slk:laid off;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>laid off 3 percent of its global workforce, with the company’s gaming division being one of the big data-i13n=”cpos:2;pos:1″ href=”https://www.engadget.com/gaming/xbox/microsoft-gaming-division-suffers-further-layoffs-142430386.html” data-ylk=”slk:casualties;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>casualties, and a number of data-i13n=”cpos:3;pos:1″ href=”https://www.engadget.com/gaming/everwild-has-reportedly-been-cancelled-amid-xbox-layoffs-162200526.html” data-ylk=”slk:upcoming;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>upcoming titles were subsequently data-i13n=”cpos:4;pos:1″ href=”https://www.engadget.com/gaming/xbox/microsoft-is-closing-the-studio-developing-the-perfect-dark-reboot-and-cancelling-the-game-182257902.html” data-ylk=”slk:canceled;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>canceled. It painted a picture of a brand in crisis, but according to a new data-i13n=”cpos:5;pos:1″ href=”https://www.bloomberg.com/news/articles/2025-10-23/microsoft-pushes-xbox-studios-to-hit-higher-profit-margins?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTc2MTIxNzIzNiwiZXhwIjoxNzYxODIyMDM2LCJhcnRpY2xlSWQiOiJUNEtaV0FHUTdMMTAwMCIsImJjb25uZWN0SWQiOiJCMUVBQkI5NjQ2QUM0REZFQTJBRkI4MjI1MzgyQTJFQSJ9.bf1wS0et59C0q96ZZnfBqLTX_eTIqjZTmQbk_j6Pwok” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:report;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas” class=”link “>report, Microsoft has been setting its gaming division unrealistic profit targets for several years.
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