Bloomberg: Xbox profit margin just 3%, Major Layoffs next month.

[KLAMarine]

Zippy6 said:

Taken from the email:

"We are in a hardware component crisis. When I joined as CEO in February, the price we paid for console storage components was over 2x as high as we paid last fall. These costs have since doubled again. And as we plan for the 2027 holiday season, we expect another significant increase, taking us over 5x the prices we paid only two years earlier. Memory costs have followed a broadly similar trajectory."

Prices for console storage and memory have increased 4x since Fall 2025. Expected to increase even further by Holiday 2027.

A great way to tackle the problem of higher storage prices is to lower the memory size of games.