{"id":249508,"date":"2025-07-09T01:44:11","date_gmt":"2025-07-09T01:44:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/249508\/"},"modified":"2025-07-09T01:44:11","modified_gmt":"2025-07-09T01:44:11","slug":"microsoft-said-to-have-unrealistic-expectations-for-xbox-but-not-everyone-agrees","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/249508\/","title":{"rendered":"Microsoft Said To Have ‘Unrealistic’ Expectations For Xbox, But Not Everyone Agrees"},"content":{"rendered":"

\"Microsoft<\/a><\/p>\n

With last week’s Xbox layoffs<\/a> still fresh in everyone’s minds, there’s been plenty of debate over the past few days about why they happened and what needs to be done to ensure they’re not repeated on such a large scale again.<\/p>\n

In Windows Central<\/a>‘s report about this a few days ago, it was mentioned that “sources” placed the blame on Microsoft CFO Amy Hood, with Windows Central editor Jez Corden mentioning that “Hood’s unrealistic fiscal expectations on Microsoft’s subsequent divisions have created a culture of fear and doubt”.<\/p>\n

Corden mentioned this again on social media, highlighting that “unrealistic” financial requirement:<\/p>\n

Microsoft CFO Amy Hood has given Xbox an utterly unrealistic financial requirement that is going to continue hurting the division. This isn’t over.\u2014 Jez (@JezCorden) July 5, 2025<\/a><\/p><\/blockquote>\n

However, The Verge editor Tom Warren advised that he doesn’t think it’s an unrealistic financial requirement, pointing out that because of acquiring Activision Blizzard<\/a> and a “Game Pass gamble” that “hasn’t paid off yet”, it’s ultimately “just the reality of the Xbox business” these days.<\/p>\n

Here’s a look at some of his exchanges:<\/p>\n

I don\u2019t think it\u2019s unrealistic, it\u2019s just the reality of the Xbox business after the ABK acquisition. Without that deal Xbox revenue would be down, and the Game Pass gamble hasn\u2019t paid off yet\u2014 Tom Warren (@tomwarren) July 5, 2025<\/a><\/p><\/blockquote>\n

they tried with the Series S. They missed an important generation with the Xbox One and digital libraries, and Game Pass was supposed to counter that. Mix that with game output struggles (Halo Infinite, Starfield, etc) and it\u2019s hard to justify the existing model\u2014 Tom Warren (@tomwarren) July 5, 2025<\/a><\/p><\/blockquote>\n

Xbox revenue was down before they made that decision\u2014 Tom Warren (@tomwarren) July 5, 2025<\/a><\/p><\/blockquote>\n

Whether the case may be, Windows Central also mentions there’s “sentiment among Microsoft staffers” that “many of the layoffs” revolve around a broadening shift towards AI and a concern that Microsoft could be losing the AI race.<\/p>\n

Is that actually a reason behind it? Who knows, but we do know that Microsoft is making a big push with AI right now, so it’s understandable that employees (and former employees) would put two-and-two together.<\/p>\n

Microsoft isn’t saying anything publicly about these Xbox layoffs at the moment, so all we can do is listen to reporters and “sources” and make our own minds up. Wherever the truth actually lies, here’s hoping everyone involved has learned some important lessons from last week’s situation.<\/p>\n

What are your thoughts on the situation? Let us know down in the comments section below.<\/p>\n

[source windowscentral.com<\/a>]<\/p>\n

\"Fraser<\/p>\n

Fraser is the News Editor at Pure Xbox, where he spends his time reporting on the biggest stories in the world of Xbox and beyond.<\/p>\n