Despite facing major job cuts, the abandonment of Everwild and Perfect Dark, and The Initiative’s shutdown, it appears that Microsoft’s Gaming division may face a challenging year. As reported by Windows Central’s Jez Corden, Microsoft CFO Amy Hood has imposed an extremely demanding financial target on Xbox, which is likely to harm the division further.
Tom Warren expressed his viewpoint that the Xbox business, following the acquisition of Activision Blizzard King, is not a far-fetched scenario but a realistic one. He suggested that without this deal, Xbox’s revenue would decline, and the return on the Game Pass investment hasn’t been substantial yet. In response, Corden expressed his disagreement, acknowledging that Activision (especially Call of Duty) significantly boosts the company’s gaming income.
If the claimed financial need is for the present quarter or the rest of the fiscal year, it would still be quite demanding. The main first-party Xbox game releasing this year is The Outer Worlds 2, but it’s reasonable to assume that Microsoft is counting on Call of Duty: Black Ops 7 as a significant source of income. This game is scheduled for unveiling this Summer, and there have been recent leaks about its multiplayer features.
Without considering potential demands from Game Pass or the forthcoming Xbox Allies, if Xbox fails to fulfill these presumed prerequisites, it might lead to additional job cuts, as suggested by Corden’s statement, “This situation isn’t resolved yet.” As usual, keep an eye out for future developments.
Microsoft’s Chief Financial Officer, Amy Hood, has set an exceptionally challenging financial target for the Xbox division, one that could potentially cause ongoing harm. The situation is not likely to be resolved soon.
— Jez (@JezCorden) July 5, 2025
Disagree.
— Jez (@JezCorden) July 5, 2025
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2025-07-07 18:41