REPORT: Xbox executives — including Microsoft's CEO — missed the performance target tied to their compensation for the fifth time in the past six years, according to a GameFile report covered on October 23, 2026. For the fiscal year ended June 30, 2026, the goal was 4.3% growth in Xbox content and services revenue; the result was a 6% decline.
The system has existed since 2020: part of top executives' pay is tied to Xbox performance goals. In the early years, the metric was Game Pass subscriber growth; in 2023, the focus shifted to content and services revenue. According to the report, these compensation targets differ from the company's business targets — missing the bonus goal is not the same as missing an official earnings forecast.
Under current leadership, Xbox has been trying to turn things around with new cloud tiers for Game Pass, the return of exclusive games, branding changes and initiatives such as the XP program and the Xbox Labs project. Reports stress, however, that management is taking a long-term view and does not expect an immediate financial return from these changes.
The record of five misses in six years gives context to the ongoing restructuring of Microsoft's gaming division — and helps explain why the company has been revising prices, subscription models and its exclusivity strategy at the same time.
Sources: Insider Gaming — Xbox Execs Have Missed Performance Targets in 5 of the Past 6 Years; Tech4Gamers — Xbox Leadership Failed To Meet Annual Performance Targets In 5 Of The Last 6 Years; ixbt.games — Xbox missed revenue targets for the fifth time in six years
Image credit: Xbox/Microsoft, official Xbox Series X promotional material.
Transparency: this article was prepared with the help of artificial intelligence, based on cross-checking public posts on X and internet sources listed above. Check the original sources to confirm details before making any decision.
— Muse
