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[Axios] Xbox content and services revenue grew by 0.7%, missing Nadella's target of 4.4% for 2023

Tsaki

Member
5FJUjix.jpg


Disclaimer: Executive pay targets aren't an actual business plan. Nadella's goals don't necessarily indicate the numbers Microsoft needs its divisions to hit to be successful.

For 2023, the portion of Nadella pay relating to Xbox content and services revenue, was tied to a growth target of 4.4%, but the division achieved growth of 0.7%, when adjusted for currency exchange rates.

Satya Nadella's performance incentives for the 12 months ending June 30, 2023, did not include a specific target for Xbox Game Pass subscriber growth, after that metric was included as a component in recent years.

Other sections of Nadella's performance-based pay came closer to their targets or exceeded them, as was the case with goals tied to total LinkedIn sessions and growth in Microsoft Teams usage.

Game Pass subscriber growth exceeded Nadella's pay target for the popular all-you-can-play service in 2020 but fell short the following two years.
  • In 2022, the Nadella pay target called for 73% growth for Game Pass but it achieved growth of 28%.
  • Microsoft said in January of last year that Game Pass had 25 million subscribers.

AXIOS link, headline #3
 
Game Pass keeps missing all MS's expectations. What else is new?

This lack of news following Starfield release is also...weird to say the least.
It's been almost 2 months and all we got was the number of people that downloaded the game and hit "New Game" basically.

This was probably the big huge test for the service and you'd think they would be doing plenty of PR statements if GP numbers had increased as intended...but so far nothing.
 

Mownoc

Member
Important to note that the Activision Blizzard acquisition went through at least 6 months later than Microsoft was anticipating as well.

I'm sure those projections anticipated acquiring ActiBlizz much sooner.
The projection is way too low to be lumping Activision Blizzard acquisition into it. Not a chance.

Activision made $2.3 billion in revenue just the last quarter. That means with just that one quarter revenue would have grown 12% instead. Triple the growth they were projecting.
 
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F0rneus

Tears in the rain
Important to note that the Activision Blizzard acquisition went through at least 6 months later than Microsoft was anticipating as well.

I'm sure those projections anticipated acquiring ActiBlizz much sooner.
This and plus they are moving towards the mobile market, which will make them a powerhouse. Doom and gloom is too soon.
 
I don't know why anybody actively roots against MS or Sony. It perplexes me.
You can root against business practices you don't like or work against you. For example, most people hate Konami. It isn't about the company, it is about what they aim to do. I see Streaming as going back to the bad old days when you can only play what developers allow you to play. I don't want to relinquish control over what i play, i don't want someopne else being able to take away my right to own games. MS already make it impossible to own Windows, so clearly they also don't want you to own games either.
 

Heisenberg007

Gold Journalism
Game Pass keeps missing all MS's expectations. What else is new?

This lack of news following Starfield release is also...weird to say the least.
It's been almost 2 months and all we got was the number of people that downloaded the game and hit "New Game" basically.

This was probably the big huge test for the service and you'd think they would be doing plenty of PR statements if GP numbers had increased as intended...but so far nothing.
Not just Starfield-related news, Xbox also hasn't announced what their next game is and when it is releasing.

There are literally 0 games with an official release date as of today.
 

Heisenberg007

Gold Journalism
Important to note that the Activision Blizzard acquisition went through at least 6 months later than Microsoft was anticipating as well.

I'm sure those projections anticipated acquiring ActiBlizz much sooner.
The projection is way too low to be lumping Activision Blizzard acquisition into it. Not a chance.

Activision made $2.3 billion in revenue just the last quarter. That means with just that one quarter revenue would have grown 12% instead. Triple the growth they were projecting.
What Mownoc Mownoc said. Also, Microsoft recently lumped all XBLG subscribers into Game Pass -- which is expected to be around ~5-10M.

Even if we account for just those 10 million, that's a 20-40% growth.
 
Not just Starfield-related news, Xbox also hasn't announced what their next game is and when it is releasing.

There are literally 0 games with an official release date as of today.
I mean...neither does Sony. Even Nintendo announces dates close to release now.
That's how things are nowadays.
 

adamsapple

Or is it just one of Phil's balls in my throat?
Not just Starfield-related news, Xbox also hasn't announced what their next game is and when it is releasing.

There are literally 0 games with an official release date as of today.

We know they have at least 3~4 games confirmed for calendar year 2024.

You have a real way with words turning anything Xbox into 10x more negative than it is :messenger_grinning_sweat: :messenger_clapping:
 
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The Fuzz damn you!

Gold Member
Disclaimer: Executive pay targets aren't an actual business plan. Nadella's goals don't necessarily indicate the numbers Microsoft needs its divisions to hit to be successful.

Just quoting this bit for you, because half the people here seem to have missed it.

This is a disappointment, sure, but hardly a sign of Xbox’s imminent demise.
 
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ReBurn

Gold Member
Phil already regrets that 10 year COD deal with PlayStation 🤣
Not likely. Deals like that are what's going to help him hit revenue targets in absense of organic growth. I wouldn't be surprised if Microsoft isn't looking for more acquisition targets to force growth in the segment.
 
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