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

[Gamernyc78]

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

 

[Box]

Please just shut down Xbox already, they have been a burden from day one

 

[Jim Ryan]

Ouch, after all these acquisitions. That is shameful.

They want to double down? So they really are trying to tank the industry!

 

[Vertigo]

Gamepass is earning itself bad branding. “Good enough for gamepass” has stuck and consumers recognize it as such — junk.

They could backpedal back to day one full retail for future releases the “aaa pedigree” of Starfield but I doubt they actually care if studios make money or not.

 

[Doncortez77]

Nutella on the morning he received the Game pass numbers.

 

[Dabaus]

It doesnt matter. Xbox isnt operating on year to year growth or profits. They want to outspend sony, and probably nintendo too out of the market and are in a "unique positiion to do so" according to Matt Booty. Their goal is to buy publishers to eventually gain so many IP you have no choice but to go through them.
This is gaming now whether we like it or not:

-MS buys said company
-Phil goes out and lies saying its great for gamers
-Said studios new game comes out, is a total flop sales wise and doesnt move the gamepass needle
-All studio heads and founders leave
-IP is a shell of its former self
-Repeat

That is gaming now. Id prefer sony invest or acuire publishers close to them but theyd rather lay people off than fight back.

 

[flaccidsnake]

Every time you sign up for Gamepass, I cancel twice.

 

[Petekilla]

This is why they were so desperate for Activision. Bethesda was never going to be enough.

 

[Gamernyc78]

It doesnt matter. Xbox isnt operating on year to year growth or profits. They want to outspend sony, and probably nintendo too out of the market and are in a "unique positiion to do so" according to Matt Booty. Their goal is to buy publishers to eventually gain so many IP you have no choice but to go through them.
This is gaming now whether we like it or not:

-MS buys said company
-Phil goes out and lies saying its great for gamers
-Said studios new game comes out, is a total flop sales wise and doesnt move the gamepass needle
-All studio heads and founders leave
-IP is a shell of its former self
-Repeat

That is gaming now. Id prefer sony invest or acuire publishers close to them but theyd rather lay people off than fight back.

How in the world would they outspend Nintendo out the market? Nintendo relies heavily and gets most sales off of their hardware and exclusive software, what Microsoft is doing is not affecting them, shit most of those games under Microsoft banner aren't even on Switch like CoD.

Sony will be fine too.

 

[CloudStrife]

This is why they were so desperate for Activision. Bethesda was never going to be enough.

Yep....they are going for so much content that you have no choice but to subscribe. They are clearing this for the long haul. I hope Sony has a plan.

 

[ethomaz]

Let's make some maths.

On January 18, 2022 the Gamepass official numbers were 25 million.
Their target was around 45 million at end of June 2023.
They reached 32 million at end of June 2023.

 

[Gamernyc78]

Every time you sign up for Gamepass, I cancel twice.

I subscribed one time and never again. I played maybe three games for like three hours and was like Meh it was when Gears and Halo first came out. They didn't resonate with me.

 

[KiryuRealty]

Yep....they are going for so much content that you have no choice but to subscribe. They are clearing this for the long haul. I hope Sony has a plan.

Game Pass is doing so poorly that its growth is no longer a KPI for executive pay. Sony has nothing to be afraid of.

 

[SLB1904]

Xbox doesn't have a single game that would make me subscribe to gamepass. I paid 3 years for £40 and I feel I got robbed

 

[Gods&Monsters]

So instead of using Game Pass only as a target, they used Xbox as a whole...and it still failed miserably

 

[Gods&Monsters]

How in the world would they outspend Nintendo out the market? Nintendo relies heavily and gets most sales off of their hardware and exclusive software, what Microsoft is doing is not affecting them, shit most of those games under Microsoft banner aren't even on Switch like CoD.

Sony will be fine too.

Easy. Nintendo is braindead, they will accept Xbox games and Game Pass on Switch 2. It will be a big partnership between both companies to stick it to Sony.

 

[historia]

clock is ticking. Green rats will see their doomdays

 

[Bryank75]

clock is ticking. Green rats will see their doomdays

How long do we think till Xbox consoles are no longer made? If things continue like this...

 

[Gamernyc78]

Easy. Nintendo is braindead, they will accept Xbox games and Game Pass on Switch 2. It will be a big partnership between both companies to stick it to Sony.

Thts not buying them out the market, thts entering into a diff strategy and a partnership. No one could buy Nintendo out the market ala developer acquisitions because they don't rely heavily on tht. Buying them out completely as in purchasing Nintendo could happen but never will and thts diff.

 

[KnittedKnight]

Never wish anyone bad luck.

Hope this continues.