Microsoft seems to be discrediting itself by setting financial targets for Xbox that are turning out to be impossible to achieve!

The troubles at Xbox are far from over, as Microsoft’s CFO has reportedly set completely unrealistic financial goals for the division, which could continue to harm the company’s gaming arm well into the future. Over the weekend, Jez Corden, editor of Windows Central, revealed on Twitter that Amy Hood, Microsoft’s chief financial officer, had supposedly set a highly unrealistic financial target for Xbox. This only adds to the sense that the problems behind the recent wave of layoffs are not yet resolved.

The Verge editor Tom Warren joined the discussion, noting that these requirements are now the reality for Xbox after the Activision Blizzard King acquisition. Without that deal, revenues would fall, and Microsoft’s big bet on Game Pass hasn’t exactly worked out yet (as highlighted in today’s news).

I don’t think it’s unrealistic, it’s 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’t paid off yet

— Tom Warren (@tomwarren) July 5, 2025

The recent round of layoffs at Xbox hit many of Microsoft’s game development studios especially hard. Turn 10, the studio behind Forza Motorsport, reportedly lost more than 70 employees and is rumored to be turning into a Forza Horizon support team. Rare saw Everwild cancelled, and The Initiative shut down completely after its Perfect Dark reboot was scrapped. ZeniMax Online, developer of The Elder Scrolls Online, was affected as well after its next MMO was canceled—even though Xbox chief Phil Spencer reportedly loved it after testing it in March.

Other partner studios have also been severely impacted, such as Romero Games—the team founded by DOOM co-creator John Romero and his wife Branda Romero. After the cancellation of their next FPS, the studio at first appeared to close its doors, but the team recently stated this was a misunderstanding. Either way, it’s clear things aren’t looking good for Microsoft’s gaming business right now.

Source: WCCFTech