Xbox/Game Pass Missed Growth Targets So Badly That Nadella Is Losing Millions In Compensation

Source

Microsoft CEO Satya Nadella's performance incentives for the 12 months ending June 30, 2023, did not include a specific target for Xbox Game Pass subscriber growth, after that metric was included as a component in recent years.

Details: For 2023, the portion of Nadella pay relating to Xbox content and services revenue, was tied to a growth target of 4.4%, but the division only achieved growth of 0.7%, when adjusted for currency exchange rates, according to a new Microsoft filing.

• Other sections of Nadella's performance-based pay came closer to their targets or exceeded them, as was the case with goals tied to total LinkedIn sessions and growth in Microsoft Teams usage.
• Nadella's overall cash and stock compensation for 2023 is listed by Microsoft at $48.5 million, down from $54.9 million in 2022.

Soon we will have confirmation of Game Pass missing its internal growth target for the 3rd consecutive year.

2021 - The goal was 48% growth but they achieved 37%
2022 - The goal was 73% growth but they achieved 28%

Next year is gonna be the year! Right Lems?

They missed their targets because MGS had no 1st party releases for almost a year. Those projections were based on Starfield, Redfall, and STALKER 2 being released in 2022, and Forza in early 2023

This is old news, bro.

Next report will show GOAT Starfield increased GP growth by 250%. ;o

But I must admit...

lol :P

LMAO exiting from gaming in 2027 BY THE LATEST.

When your biggest GP game since GP was invented is a lazy and forgettable 7/10 game, how exactly can you grow your service and fanbase? Game quality is suffering so hard because of GP holy crap!

Expecting 73% growth is beyond ridiculous.

They would never hit that target even with all of those games.

Heck, I don't even think they hit that w/ COD Day One.

I’m so terribly concerned right now.

*Goes back to playing Starfield via Game Pass*

yeah, the targets used for executive bonus incentives are ridiculously high by design (and for obvious reasons).. this is definitely old (and expected) news..

i think the execs got their bonus for Game Pass in only one year when the service was just doing crazy numbers in growth..

Oh no.... I don't know how I will sleep knowing a 48.5 million dollar CEO will get less compensation. It's a travesty, and it certianly effects us all.

Unlike say, a $70 new release that is only 10 hours long - CGI included?

I hate to be the bearer of bad news, but Starfield is still quite popular. And, you Sony Ponies are still snorting the copium by the barrel over it.

Possibly, but they wouldn't have missed them by the margin that they did.

Wut? SPiderman2 sold more in 24h than anything made for the xbox since GP became a thing😎I think its safe to assume that one business model is perfectly functional while the other one is a complete and utter disaster.

Why are people talking about Spider-Man? That wasn't even the best or most successful game that launched last week.

Until MS actually delivers on the game front they'll keep missing whatever targets they have. And considering how Redfall was a failure and Starfield far from being a unanimously loved AAA, next year they'll miss whatever their unrealistic target they have.

I'm fine either way, one more year playing games in the service. Won't complain. But I'm very concerned, of course.

@hardwenzen: So your saying that a game that is only available by buying it outright sold more than games available on a subscription service?

Please, tell me more about your fascinating insights.

This will be your permanent excuse to damage control poor profits. Next time, NEVER bother talking about sales, cuz as you just implied it yourself, nobody buys shit with MS, they just rent😆6M+ on Steam alone my ass😂😂😂

@ghostofgolden: his compensation dropped from 54 million to 48 million? LOL, do you think people this rich care at that point? To me and you, this is a travesty, but for satya and others in his shoes, beyond a certain amount of money, it's just a number and has little meaning. To him, it's just a Tuesday. I'm sure he's had a talk with uncle Phil about the targets and how they plan to reach them.

But as usual, stay salty and butt hurt. We will have the entire AB catalogue on gamepass soon. And we will break into mobile. The only thing holding MS back is the monopoly of apple and Google in phones. I think MS should create some proper smart phones of their own based on Android, customize it and push free 3 months gamepass as an incentive.

Worried about MS guys, seems dire over there. :(

He says Xbox will double down on development and publishing. That's good to hear, a much better step moving forward than barbaric corporate bloodletting across the board **cough**Sony**cough**

Curious how good they'll make on the commitment. They have that third party event tomorrow, probably lots of content to look forward to on Game Pass, there's really no need to show Alan Wake 2 but they are, perhaps we'll see that shadow drop the announcement of day one on Game Pass, perhaps they end it with the surprise world premier of GTA6 wirh the cherry on top - day one on Game Pass (i.e. "suck it haters 🖕🤣🖕"... perhaps too hopeful, that'd be awesome though, cows would have a meltdown and demand Sony buy Square Enix or they're walking.

@hardwenzen: I deffo won’t make any points about sales as stupid as yours. Imagine celebrating sales of a game you don’t even like….comical.

Imagine not understand why someone might be celebrating sales for a game they aren't buying🤡🤡🤡🤡🤡🤡🤡A successful game WILL see a sequel, and those who enjoy it, will have another game to play. Funny how i had to tell you this, and lets see if there's a sequel for Redfall😁😁😁😁

They'll never hit their targets. Game Pass doesn't really seem to be more than a dangling carrot to trick people into getting into the Xbox ecosystem then finally yanking the rug when it bleeds too much, reverting back to the traditional model for bigger titles. It is one hundred percent unsustainable in its current form, but I have no doubt the final purpose is to function as a bait and switch anyway

Rich dude bummer

unfortunately for your fanboy narrative, Xbox Game Pass is already profitable..

RIP🪦

It's funny how you counted "Since Game Pass". Halo 4 sold more, in the same time frame, with a smaller user base.

Marcia, you hate facts.

Halo 4 was released on the 360, and it had a smaller userbase? The fk???? What are you talking about, dabear?

I'm sure most people only subscribe to gamepass short term when a new game hits. I see no point in subscribing long term.

Oops. I goofed. And, I admit my mistakes.

There are more PS5s sold right now than 360s in 2011. I thought Halo 4 was released in 2011, not 2012.

@ghostofgolden: Look i'm no fan of Gamepass that much is clear, but your unhealthy obsession with it is off the charts.

I think that if you make another bet and lose, when you come back you should be called GamepassGolden 🤣

Typically you can get up to 2 years using a conversion trick and MS rewards. It cuts off a lot of the costs of subscribing to it long term if you do this but most people aren't going to do this.

I like it

Never feel sorry for millionaires.

Wow…

A darn shame . I was hoping their would be good news for lems after the starfield flopping debacle

Game Pass maybe good but there are few gamers who likes to buy their games rather then renting them and I'm one of those gamers who like to buy'em and adding them to my gaming collection. Game Pass has its place, but it really all depends on what games you wanna play on the service.

Game Pass growth will always bounce up or down, it really depends what game is one it to make it worth the consumers interest.

Microsoft owns ABK now. Game Pass will grow like crazy in upcoming years.

It's an overpriced, low value service filled with Indie garbage. Even PS+ Extra is better. I am not surprised to read this. The Xbox brand has always been a disappointment to both gamers and investors. Eventually, investors will punish the company for not hitting targets and hopefully both will fade away to the dustbin of history. Sony, Nintendo, and PC devs are all the market needs.

This tells us basically nothing about the future of Game Pass. Doesn't look awesome for them right now I guess, that's about it.

Personally, I find subscriptions like these annoying and wouldn't mind at all if they disappeared. I'd much rather have demos of games to try before buying. I guess it's because I don't play one game at a time and only once. I like to take my time with games I find to be good. Sometimes I also like to pause a game. I don't want to constantly worry about getting my value worth in time.

lol. Let's not exaggerate.

So now I should start caring about CEO's monetary compensations?

@R4gn4r0k said:

So now I should start caring about CEO's monetary compensations?

According to OP.🤭

Cows having to pay 70-80 dollary doos for 10 hour movies while PC and Xbox gamers feast on monthly bangers for a low price of $1-15 has really lit a match to these forums, these daily meltdown threads are entertaining to say the least.

@Pedro: Mr Concerned is at it again. XD

@R4gn4r0k said:

So now I should start caring about CEO's monetary compensations?

No. But it’s through missed KPI’s that we know Game Pass missed another growth target. And now Game Pass growth is not a KPI moving forward.

I know y’all see rich people making millions of dollars and you get in your feelings.

Poo cows. lol :P

Good! About time MS had some damage against them after recent buyouts.

Translation: “guys, i don’t get to play the best games at launch, but look at this $5 game I got from a game released 5 years ago!”