Xbox missed revenue targets for the fifth time in six years

Instead of the planned 4.3% growth, Xbox content and services revenue declined, leaving top managers, including the head of the company, without part of their bonuses.

For the fifth time in six years, Xbox failed to meet financial targets related to Microsoft executive bonuses: instead of expected growth, revenue from the gaming division's content and services decreased by 6%.

Microsoft expected to increase this figure by 4.3% by June 30, 2026. In the end, the result was more than 10 percentage points below plan.

Since 2020, bonuses for key Microsoft executives, including the head of the company, have partially depended on Xbox's success. Initially, the growth in Game Pass subscribers was primarily taken into account, but in 2023, revenue from content and services became the main indicator.

Microsoft expects that new Game Pass tariffs, the development of cloud gaming, and a review of exclusivity policy will bring results in the long term. For now, financial indicators show that the restructuring has not solved the brand's main problem.