During a new interview, the head of Obsidian Entertainment has seemingly mentioned Microsoft’s 30% profit target.
For those unaware, back in October 2025, a report revealed that Microsoft had set a target to achieve 30% “accountability margins” across the company, including Xbox. Microsoft had debunked the report, stating that the 30% profit margin target was incorrect. Now, the profit margin has popped up again in conversation with Obsidian.
Obsidian Talks About Xbox Accepting Not Being at 30% in Terms of “Profitability Standpoint”
During a new interview with Bloomberg, Obsidian Entertainment’s head, Feargus Urquhart, appears to have mentioned Microsoft’s 30% profit target. While discussing Justin Britch and Marcus Morgan, Urquhart’s lieutenants at Obsidian, the profit target was mentioned as something the duo will have to handle if they take the head’s place. The aforementioned 30% target is stated, along with the fact that this has pressured Xbox into publishing games on PlayStation.
The target appears to be achievable for Obsidian, provided they are allowed to keep experimenting. Urquhart mentioned that Xbox is still open to investing in riskier projects, prioritizing creative achievements over strong sales. Xbox does that even if it means to accept that where Obsidian is “going to be from a profitability standpoint isn’t going to be 30%,” added Urquhart.
The report also highlights other important details from the studio, including no current plans to make a third Outer Worlds game, what Avowed’s original pitch was, Obsidian’s plan forward, and much more.
In other news, Tim Cain returned to Obsidian last year to work on an unannounced project. What are your thoughts on Obsidian seemingly confirming Microsoft’s 30% profit target? Leave your thoughts down in the comments, and join the official Insider Gaming Discord server.
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