The reality behind Xbox’s cut-throat business decisions has been laid bare, as a report highlights the unrealistic profit goals laid down by Microsoft.

Between mass layoffs and a graveyard of cancelled games, it’s clear Xbox has been on the backfoot this generation, even as their new multiformat policy begins to pay dividends.

Microsoft’s purchase of Activision Blizzard for an astronomical $75.4 billion (£56 billion) was a key turning point. Since then, Activision’s profits have largely papered over Xbox’s financial losses, as sales for the Xbox Series X/S continue to nosedive.

Xbox has been adamant that its hoped for answer to all these problems, Xbox Game Pass, is profitable – but recent price hikes suggest not enough. And now a new report sheds light on why Xbox might be so desperate

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