Obsidian Seemingly Confirms Microsoft's 30% Profit Margin That Company Denied

Just in October, a report of Microsoft expecting Xbox to deliver 30% profit margins – a much higher number than the common 17-22% and Xbox's 12% reached in 2022 – was spread on the internet, but the company denied the rumor, saying "while the company does set ambitious goals, the reported 30% profit margin target was incorrect."

However, in a new interview with Bloomberg, Feargus Urquhart, the head of Obsidian Entertainment, Microsoft's subsidiary, seems to have confirmed that the 30% talk actually happened.

He hopes that Obsidian's riskier, inexpensive but profitable, games, like Pentiment, will keep satisfying Microsoft, even if "maybe where we are going to be from a profitability standpoint isn't going to be 30%."

It looks like Justin Britch and Marcus Morgan, who are meant to replace Urquhart when he retires, will have to take the responsibility for reaching these numbers. But who knows? Perhaps Microsoft will debunk the report once again.

For now, the studio is working on Grounded 2 and some original games, but no Outer Worlds 3.

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