Xbox Fell Short of Annual Revenue Forecasts By Nearly $800 Million

Game Pass Did Not Meet Targets Either!

While Microsoft has recovered from the last console generation, recent financial information has not lived up to the company’s expectations. According to TweakTown, Xbox missed annual revenue forecasts by nearly $800 million.

Why it matters: Microsoft has seen much better performance after the release of the Xbox Series S|X. The new consoles and Game Pass have provided a fresh start for Xbox, but the brand still struggles to meet expectations.

Xbox Gaming Quarterly Revenues
Xbox Gaming Quarterly Revenues

This information was revealed due to the ongoing case for the Activision Blizzard merger. The case file includes an eighty-page Microsoft document related to plans for Xbox growth.

Microsoft was targeting revenue of $17 billion for Q3 FY22 for the Xbox division. However, Xbox only made $16.22 billion in this quarter. As such, the gaming giant missed the target by a whopping $780 million.

While $16.22 billion is far from terrible, Microsoft previously admitted that Xbox is underperforming. During the recent hearings, Phil Spencer was questioned if Xbox was meeting internal targets.

He replied:

“It is not right now, No.“

Game Pass Subscription Growth
Game Pass Subscription Growth

Additionally, the report also highlights Microsoft’s expectations for Game Pass. Microsoft was hoping to grow Game Pass by 72.8%. However, the subscription was unable to meet this target.

Game Pass grew from 18 million to 25 million users, but Microsoft would have needed 6 million more subscribers to meet the goal.

Despite these hurdles, Xbox is currently in a much better position than before. With games like Starfield coming in 2023, the next few months should lead to a massive surge in Game Pass subscribers.

Xbox is also targeting at least four big games each year. Games like Hellblade 2 and Avowed are set to release next year, and more games will likely be announced in the coming months.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Obaid Ur Rehman
Obaid Ur Rehman
Obaid is pursuing a Law degree, while working as a content writer. He has worked as a gaming writer for over a year because of his passion for the medium and reporting the latest updates in the industry. Having played hundreds of games, Obaid finds himself coming back to Elden Ring and Red Dead Redemption 2, with these games being among his favorites. He has also been mentioned on highly regarded websites, such as Wccftech, Metro UK, PS Lifestyle, GamePressure, VGC, and Gamespot.

Latest News


Please enter your comment!
Please enter your name here

Follow Us



Starfield: Bethesda Spent Nearly One Year On Bug Fixes Alone

Todd Howard has revealed that most of the development of Starfield was already done by 2022, and the last year was spent on bug fixes.

COLORFUL Releases Evol P15 Gaming Laptop Powered By Intel & Nvidia

The COLORFUL Evol P15 uses the 12th generation of Intel CPUs and Nvidia RTX 4000 graphics cards to deliver a stellar gaming experience.

Another Game Pass Price Increase Is Inevitable, Claims Phil Spencer

Phil Spencer claims that it is inevitable for the price of Xbox Game Pass to go up again, but Microsoft hopes to maintain its value.

Bungie More Valuable Than Activision Would Have Been, Claims Sony

Jim Ryan believes Sony has more to gain from the Bungie acquisition than a potential merger with Activision Blizzard.

Starfield Steam Users Reviews Are Now Worse Than Fallout 76

Starfield has become one of Bethesda's worst-rated games by user reviews on Steam, falling behind Fallout 76.