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Microsoft - XBOX |OT| - View Post

JRPGfan said:

What the heck does almost having a 3% accountability margin mean?

Is that like, we would have had 3% profit margins, if you dis-reguard x,y,z ?
Potentially meaning they arn't profitable atm?

From Jason Schreier:

"Seeing a lot of misunderstanding about this. Profit margin is the percentage of revenue that is kept as profit. A 3% margin means that for every $100 you make, you're spending $97 and keeping $3. Margins don't reflect how much money you're making; they reflect how efficient the business is.

"A business with 3% margins could be making millions of dollars and doing totally fine. But if you're part of a company like Microsoft, which has divisions with 40%+ margins, then it's much harder to convince the bean-counters to keep making big investments in your biz"

Post by @jasonschreier.bsky.social — Bluesky



VGChartz Sales Analyst and Writer - William D'Angelo - I stream on Twitch and have my own YouTube channel discussing gaming sales and news, as well as posting random gaming content. Follow me on Bluesky.

I post and adjust the VGChartz hardware estimates, with help from Machina.

Writer of the Sales Comparison | Monthly Hardware Breakdown Monthly Sales Analysis | Marketshare Features, as well as daily news on the Video Game Industry.