According to reports published by Microsoft, the Xbox division has exceeded its growth targets for the first time since 2020, leading to a performance bonus for CEO Satya Nadella and other top executives.
The milestone achieved by Xbox in the fiscal year that ended on June 30 concerns annual growth. The company needed to achieve more than 14% growth in revenue from Xbox content and services.
At the end of the twelve-month period, considering market fluctuations, the actual figure was just under 15%. This means the target was met, and Nadella, along with other executives, received a significant bonus.
Although this success alone does not necessarily reflect the overall health of the Xbox division, it marks the end of a negative streak that had lasted for several years.
Xbox’s New Strategic Direction
Just hours after the surprising announcement of Halo: Campaign Evolved, marking the series’ debut on PlayStation, Xbox’s multiplatform strategies now appear fully established — and they seem to be producing strong financial results.
When it comes to targets, Microsoft’s gaming division failed to meet them in 2021 and 2022, when the goal was to increase Game Pass subscribers. The company also missed targets in 2023 and 2024, when the focus shifted to revenue from Xbox content and services.
One interesting detail is that Xbox’s reported revenue from content and services no longer includes physical game sales. It now accounts only for income from first- and third-party games, DLCs, subscriptions, advertising, cloud services, and royalties.
