A recent report reveals that although Xbox executives' compensation is directly linked to performance metrics, they failed to meet their set performance targets in five out of the past six years.
This information regarding Xbox executives missing their targets comes from a report by GameFile. Microsoft had originally set a goal for Xbox content and services revenue to grow by 4.3% by June 30, 2026. However, instead of growing, the actual results showed a 6% year-over-year decline.
Reports indicate that Xbox's performance metrics are not entirely aligned with Microsoft's overall business goals. Since 2020, the compensation and bonuses for Xbox executives, including the division CEO, have been tied to these performance targets. In the early stages, the metrics primarily focused on the growth of Xbox Game Pass subscribers. After 2023, the focus shifted to revenue growth from Xbox content and services. However, over the past six years, executives have failed to meet these targets five times.
Since the new CEO took office, Xbox has been actively pushing to increase revenue from its content and services sector. Players have already seen numerous initiatives: the launch of a new cloud gaming tier for Game Pass, a renewed focus on exclusive titles, a brand image update, the addition of an XP system, the Xbox Labs program, and more. However, the new CEO does not expect immediate returns, choosing instead to view business development from a long-term perspective.