- Microsoft’s gaming division, Xbox, hits the annual growth mark for the first time since 2020.
- This results in a pay increase for Microsoft employees, including CEO Satya Nadella, who got paid nearly $100 million in a year.
- Still, achieving these growth targets doesn’t imply that the gaming giant is profitable.
Microsoft’s struggle with its gaming division has been pretty evident since the start of the Xbox Series X|S generation. Even after multiple billion-dollar acquisitions, Xbox wasn’t able to build a brand appealing enough to draw more customers.
As such, the gaming giant has now taken a different approach by making Xbox more of an ecosystem rather than being tied to just consoles. The starting point was bringing first-party exclusives to rival platforms like PlayStation and Nintendo, thanks to which the Xbox division reports the first instance of growth since 2020.
Why it matters: Even with all these strategies and changes, if Xbox were to stagnate still, it would mean the end for the platform. Thankfully, this new publisher approach guarantees that the gaming giant is here to stay.
Published in Microsoft’s annual proxy filings, new key details were revealed for stakeholders. Xbox had a yearly growth target of 14% this year, which they managed to achieve and even exceeded by a percentage.
This is the first time Microsoft’s gaming division has reached its growth mark in the last 4 years, during which it failed to grow Game Pass users or Xbox content and services.
Thanks to this target being met, Microsoft workers’ salaries also increased. Microsoft CEO Satya Nadella had a record annual payout of $96.5 million, a 22% pay raise. For non-executives, their pay rise was a much smaller bump.
However, Xbox’s growth still doesn’t mean that the division is profitable or not. Earlier this year, we saw multiple layoffs at the gaming giant, resulting in the cancellation of games like Perfect Dark reboot and the closure of other studios.
Still, Microsoft has managed to find the right footing for its gaming division, which is now in the form of a third-party publisher, similar to what SEGA is right now. The only exception is that Xbox remains committed to developing new console(s), which can cost more than $1000.
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[Staff Writer]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheerzahid03@gmail.com
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