Jez Corden shares some interesting insight behind the scenes for Microsoft.
He shared this information on Twitter:
One thing I’ve heard recently is that Xbox has reduced margin pressure from the top down. This has given Xbox extra breathing room to work on features and systems that aren’t directly tied to profitability.
This report is tied to his Patreon, but he also talked about it in a recent Xbox Two podcast.
Jez brings up the rumor that Amy Hood mandated a profit margin of 30 % on Xbox, a number that Microsoft has categorically denied. Regardless, Hood apparently put pressure mandates for both Xbox and Windows to increase profits.
Jez says this put Xbox’s Phil Spencer and Sarah Bond in a ‘financially losing battle’ because it created constraints on what they could do. Ultimately, Jez believes Microsoft flipped on the policy as this ‘margin austerity’ has backfired, making them lose market share to competitors.
If Jez’s rumor and theories hold true, it could explain why Asha Sharma now seems so much more responsive at running Xbox for so short a time.
