Tech giant Microsoft has reportedly dictated a 30 per cent profit margin for its Xbox division. 

That's according to Bloomberg, which reports that this is well above the industry average, which lies between 17 per cent and 22 per cent. Microsoft also calls them "accountability margins". 

This demand appears to be one of the reasons behind the massive wave of layoffs, project cancellations and studio closures. 

"We look at the business as a whole, balancing creativity, innovation, and sustainability across a diverse portfolio of offerings," an Xbox rep said. 

"As with any creative business, sometimes that means making hard decisions and stopping work on things that are no longer working for a variety of reasons, and shifting resources toward the projects that are more aligned with our direction and priorities."