Even after suffering significant layoffs, the cancellation of Everwild and Perfect Dark and the closure of The Initiative, Microsoft’s Gaming division seemingly has a tougher year ahead. According to Windows Central’s Jez Corden, Microsoft CFO Amy Hood has given Xbox an “utterly unrealistic financial requirement that is going to continue hurting the division.”
The Verge’s Tom Warren weighed in, believing that it was not “unrealistic” but rather “The reality of the Xbox business after the Activision Blizzard King acquisition. Without that deal, Xbox revenue would be down, and the Game Pass gamble hasn’t paid off yet.” While Corden simply replied, “Disagree,” it’s already known that Activision (particularly Call of Duty) contributes heavily to the company’s gaming revenue.
Whether the alleged financial requirement is for the current quarter or the remainder of the fiscal year, it would still be a tall ask. The only major first-party Xbox title launching this year is The Outer Worlds 2, though it’s likely that Microsoft is looking at Call of Duty: Black Ops 7 to be a major revenue generator. The latter is slated for a reveal this Summer, with details on its multiplayer modes recently leaked.
That’s not even accounting for expectations from Game Pass or even the upcoming Xbox Ally. If Xbox doesn’t meet these supposed requirements, it could mean further layoffs (as evidenced by Corden stating, “This isn’t over”). As always, stay tuned for more updates.
