Microsoft(US:MSFT) Huan Qiu Wang Zi Xun·2025-07-08 02:58Group 1 - Microsoft CFO Amy Hood has set an "unrealistic" financial target for the Xbox division, which may exacerbate ongoing operational challenges within the department [1][4] - The aggressive financial goals are disconnected from the current slowdown in the gaming industry, forcing teams to sacrifice long-term content quality for short-term financial metrics [1][4] - Since early 2025, the Xbox division has undergone multiple rounds of layoffs affecting approximately 9,000 employees globally, attributed to high infrastructure costs and integration pressures post-Activision Blizzard acquisition [4] Group 2 - The ambitious financial targets have directly impacted content production, leading to the cancellation of projects like "Everwild" and "Perfect Dark" due to budget overruns [4][5] - Xbox's subscription service, Game Pass, has seen an 8% year-over-year revenue increase in Q3 FY2025, primarily driven by older titles from Activision Blizzard rather than new original content [5] - Xbox hardware revenue continues to decline, with a 23% year-over-year drop in U.S. market sales in the first half of 2025, falling behind competitors like Sony's PS5 and Nintendo Switch [5] Group 3 - Industry analysts express concerns that without the Activision Blizzard acquisition, Xbox revenue would likely be in negative growth territory [5] - Hood's target requires Game Pass subscriptions to exceed 50 million by the end of FY2026, despite a slowdown in growth from 35% in 2024 to 12% currently, making it nearly impossible to meet this goal with existing strategies [5] - Former Xbox employees have indicated that financial pressures are stifling creativity, with significant budget cuts impacting the development of major titles and leading to a focus on less ambitious projects [6]