Last week, Microsoft laid off around 9,000 employees , also affecting its Xbox gaming division, resulting in the cancellation of projects and the closure of The Initiative, which was developing the now-cancelled Perfect Dark.
According to Windows Central’s Jez Corden, Microsoft CFO Amy Hood has imposed “absolutely unrealistic” financial targets on the Xbox gaming division that will continue to hurt the industry.
The Verge’s Tom Warren disagrees with Jez Corden, arguing that the targets reflect the reality of Xbox’s post-Activision Blizzard acquisition business, while Corden maintains that the demands are excessive.
“Microsoft CFO Amy Hood has set a completely unrealistic financial target for the Xbox division, which will continue to hurt the industry. This isn’t over yet ,” shared Jez Corden.
“I don’t think it’s unrealistic, it’s just the reality of the Xbox business after the ABK acquisition. Without this deal, Xbox revenue would be down, and the Game Pass gamble hasn’t paid off yet ,” Tom Warren responded.
The financial target imposed on Xbox would be difficult to achieve, either in the current quarter or for the rest of the fiscal year. With few major releases, such as The Outer Worlds 2, Microsoft may be banking on Call of Duty: Black Ops 7 to boost revenue.
There is still pressure around Game Pass and Xbox Ally, and if the goals are not met, further layoffs could occur, suggesting that Xbox’s troubles are far from over.
