Microsoft Xbox executives miss performance targets in five of last six years

Microsoft Xbox executives have failed to meet performance targets linked to their compensation in five of the last six years, according to a report based on official shareholder disclosures.

For the fiscal year ending June 30, 2026, Microsoft aimed for a 4.3% growth in Xbox content and services revenue. However, the actual metric used for executive evaluation saw a 6% decline, representing a gap of more than 10 percentage points from the target. This metric includes game sales, add-on content, Xbox Game Pass subscriptions, cloud gaming services, and advertising.

Since 2020, Microsoft has tied a portion of senior leadership compensation, including CEO Satya Nadella, to Xbox performance. While the company initially focused on Game Pass subscriber growth, it shifted its primary metric in 2023 to prioritize revenue growth in content and services. Despite this strategic shift, the division has struggled to consistently meet these specific internal benchmarks.