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

[MeachTheMonster]

You talking to these dudes like they know what a 10k is let alone fiscal years

I guess i thought some of them were adults…..

 

[Gizmo_Duck]

you know they live in a different world

 

[King Sun]

 

[Instant Classic]

He overestimated the growth that happened during the pandemic, so I don't blame him for switching his compensation. I feel people need to stack up as many extra months they can of gamepass because the price of the brick is going up when COD launches on gamepass next year. I am unsure if they do a big increase like Sony did a couple of months ago. They can't increase gamepass too much because PC gamers will drop it and can't increase console too much because it would make consumers angry if gap is too large.

This time next year should be intersting

 

[Hood Critic]

You talking to these dudes like they know what a 10k is let alone fiscal years

 

[Pressure]

So I'll rephrase the question...why did Nadella think he could spur Xbox related growth by 4.4%, yet fell short of 1%? Something didn't work out as anticipated and I'm interested in what that was. Could have been ROI on an acquisition, certain title, GamePass, console market share, or anything but something or a few things fell far short of expectations.

Starfield was delayed, redfall was a nightmare, and the ABK deal closed after games like Diablo dropped.

Without further insight into their OKRs, it’s mostly guesswork.

But with game dev cycles not being what they once were, why would you put your bonus on that when you can easily get a better return on “Co-Pilot.”

Such a strange question to ask when we saw Sony only release one game this year.

 

[Hood Critic]

Again, the big 3 things that were supposed to happen during FY 2023 did not happen.

Starfall was supposed to come out last year. Forza was supposed to come out last year and they expected to close on Activision last year.

You and I both know that 2 titles and a fresh acquisition is not the sole driver of 4%+ of Xbox growth. But I'ma let y'all cook.

 

[Hood Critic]

Starfield was delayed, redfall was a nightmare, and the ABK deal closed after games like Diablo dropped.

That's not driving 4%+ Xbox growth by itself.

Without further insight into their OKRs, it’s mostly guesswork.

But with game dev cycles not being what they once were, why would you put your bonus on that when you can easily get a better return on “Co-Pilot.”

Xbox targets accounted for 10% of his target, per the article. So we're not talking about cloud, co-pilot or Bing Chat. He set a target even if it was intentionally optimistic, and he came nowhere close to it. Yet he reasonably thought there was something in the Xbox space that could get him reasonably close. Just interested in what that is but yes, I admit we'll almost certainly never know.

Such a strange question to ask when we saw Sony only release one game this year.

Axios' analysis shows that Nadella previously had targets based on the subscriber growth of Xbox Game Pass.

So why is it strange to ask this question?

 

[Gizmo_Duck]

He overestimated the growth that happened during the pandemic, so I don't blame him for switching his compensation. I feel people need to stack up as many extra months they can of gamepass because the price of the brick is going up when COD launches on gamepass next year. I am unsure if they do a big increase like Sony did a couple of months ago. They can't increase gamepass too much because PC gamers will drop it and can't increase console too much because it would make consumers angry if gap is too large.

This time next year should be intersting

Yeah, its going to be interesting to see for sure, especially since it’s already the most expensive gaming sub for ultimate. I think the only subscription service in general that is more annually right now is Netflix UHD which equals about to 276 after the recent price increase.

 

[MeachTheMonster]

You and I both know that 2 titles and a fresh acquisition is not the sole driver of 4%+ of Xbox growth. But I'ma let y'all cook.

Without further context there’s no way to know this.

They had zero big releases during FY2023

When they made those bonus projections they expected to have at least 3.

There was also a lot of high profile 3rd party delays.

 

[Loose]

 

[Pressure]

You and I both know that 2 titles and a fresh acquisition is not the sole driver of 4%+ of Xbox growth. But I'ma let y'all cook.

This growth is specific to gamepass. Why wouldn’t releasing more games available day and date increase purchases and increase subs?

That's not driving 4%+ Xbox growth by itself.

games don’t drive growth in gaming now?

Nevermind

 

[Killer Instinct]

Xbox console going to die soon

Can't wait.

 

[NotAnFBIagent]

Sony accounting team on the job expeditiously