Microsoft's gaming business is expected to end the fiscal year at about a 3% profit margin, and management said years of heavy spending without revenue growth "cannot continue." Bloomberg and The Verge also reported major job cuts coming next month, signaling a cost-cutting reset for the division. The update is negative for operating momentum and points to restructuring pressure in Xbox/gaming.
Microsoft's gaming business is expected to end the fiscal year at about a 3% profit margin, and management said years of heavy spending without revenue growth "cannot continue." Bloomberg and The Verge also reported major job cuts coming next month, signaling a cost-cutting reset for the division. The update is negative for operating momentum and points to restructuring pressure in Xbox/gaming.
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strongly negative
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