- Xbox executives, including the CEO, have reportedly missed 5 yearly performance targets since 2020.
- For this year’s milestone, Xbox aimed for 4.3% growth in content and services but declined by 6% instead.
- The company is now making drastic changes to improve Game Pass and content and services revenue.
Xbox is undergoing drastic restructuring to save the company from decline. The gaming business is letting go of nearly 3200 developers by the end of FY27, with hundreds of developers already fired and studios reorganized. More rounds of layoffs are already being planned.
A new report now reveals that Microsoft CEO and other top-named Xbox executives have reportedly failed to meet annual performance targets in 5 of the last 6 years despite these goals being tied to their compensation.
Why it matters: The inability to meet these performance milestones for Xbox further shows its decline over the last six years. However, the ongoing yet controversial efforts under Asha Sharma are expected to start bearing fruit in the next few years.
As mentioned in a recent report by GameFile, Xbox executives were unable to hit milestones related to Game Pass subscriber growth and Xbox content and services.
For this year specifically, Xbox aimed for a 4.3% growth in the content and services category by the end of June. However, it saw a staggering 6% decline instead.
These milestones focused on Game Pass until 2023, before the focus shifted towards content and service-related revenue targets.
Regardless, the performance goals are different from business targets but tied to the compensation of these executives. So, failing to meet them still shows the depressing decline of Microsoft’s gaming brand over the years.
On a side note, Xbox only saw a measly 3% profit last year despite its strong multiplatform push. It is now backtracking towards exclusivity instead under Asha Sharma.
Unfortunately, even with Asha Sharma’s ongoing efforts to pull Xbox out of the red, it will likely take a few more years before Xbox starts bringing in enough revenue to support itself and grow moving forward.
Do you think improving Xbox sentiment and an expected revenue increase over the next few years will affect these performance milestones positively moving forward? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devotedly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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