A new report reveals that XBOX execs have missed a performance target in 5 of the past 6 years despite their compensation being tied to it.
The information regarding XBOX execs not being able to meet their performance targets comes from a report by GameFile. The company had set a goal of achieving a 4.3% growth in Xbox content and services revenue by June 30, 2026. However, instead of growth, they experienced a decline of 6%.
XBOX Execs Have Had a Performance Goal in Their Package Since 2020
The report reveals that the exec’s compensation targets for Xbox’s performance differ from the company’s actual business targets. Since 2020, top executives, including the CEO, have had their compensation tied to these performance goals. In the initial years, the performance goal was focused on the growth of Game Pass subscribers, but in 2023, it was shifted to the growth of Xbox content and services. However, over the past six years, the executives have failed to meet this performance target five times.
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Since the arrival of the new CEO, XBOX has been actively trying to increase its content and services revenue. Players have already seen the addition of new cloud-based tiers for Game Pass, the return of exclusive games for the platform, the branding for the company has changed, new additions like XP and XBOX Labs, and so much more. However, the CEO doesn’t expect instant returns and is going to take the long-term view.
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