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Apple's ultra-thin iPhone flops as foldable iPad hits a crease

2 weeks ago
Weak demand for iPhone Air and delays to a costly foldable tablet suggest Cupertino's hardware experiments are struggling

Apple's run of hardware experiments appears to be hitting some turbulence: The company's ultra-thin iPhone Air has reportedly failed to catch on with buyers, while its long-awaited foldable iPad is slipping further down the calendar amid engineering snags and soaring costs.…

Owen Hughes

Microsoft Demands 30% Profit Margins from Struggling Xbox Division

2 weeks ago
Microsoft has set a 30% profit margin goal for its Xbox gaming division, Bloomberg reported Thursday, well above the video game industry's average of 17% to 22%. The target, implemented in fall 2023 by CFO Amy Hood, represents a sharp departure from Xbox's previous approach of allowing developers to focus on making quality games without specific financial constraints. Xbox historically maintained profit margins between 10% and 20% and reported a 12% margin for the first nine months of Microsoft's 2022 fiscal year. The division has responded by canceling several projects that had been in development for more than seven years, including Everwild, Perfect Dark and Project Blackbird. It has also eliminated thousands of jobs and raised prices. In 2024, Xbox began releasing most of its games on rival Nintendo and Sony platforms. The heightened scrutiny comes as Microsoft prioritizes investment in generative AI while overseeing a gaming division that has struggled despite spending $76.5 billion on acquisitions.

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