Microsoft CEO Satya Nadella is set to earn $79.1 million this financial year—a 63 percent increase from his 2023 compensation. Microsoft announced that this boost in cash and stock options reflects the company’s strong economic performance in recent months despite a challenging year for its workforce.
Microsoft’s success in the stock market has been noteworthy, with its market value now exceeding $3 trillion, spurred on by its advancements in artificial intelligence. However, the company’s rapid growth has come at a cost to employees, as Microsoft has implemented two significant rounds of layoffs in 2024. The first, in January, saw 1,900 staff members laid off. Later, in September, 650 employees in the Xbox division were let go. In another strategic move, Microsoft closed down three game studios under its Bethesda subsidiary in June—Arkane Austin, the now-external Tango Gameworks, and Alpha Dog—as Xbox head Phil Spencer cited slow growth in the console market as a reason for the consolidation.
In Microsoft’s 2024 Annual Report, released last night, Nadella shared an optimistic outlook. He highlighted the success of Microsoft’s acquisition of Activision Blizzard King, finalized in October 2023, which has expanded Microsoft’s gaming ecosystem significantly. This acquisition has brought hundreds of millions of additional players into the company’s fold, enhancing Microsoft’s already impressive franchising lineup, each generating over $1 billion in revenue. Notable titles such as Candy Crush, Diablo, Halo, Warcraft, Elder Scrolls, and Gears of War are now bolstering Microsoft’s presence across multiple gaming platforms.
Nadella also emphasized Microsoft’s push towards cloud gaming, transforming how players engage with their favorite games. Through Xbox Cloud Gaming, the company strives to make gaming more accessible, offering users more flexibility in when, where, and how they play. This commitment to accessibility includes expanding Xbox’s content across various platforms. Recently, Microsoft launched several of its popular titles on the Nintendo Switch and Sony PlayStation for the first time, part of a broader strategy to reach a more diverse gaming audience.
Looking ahead, Microsoft plans to continue expanding its cross-platform releases. Next is Indiana Jones and the Great Circle, which will be available on PC and Xbox in December and PlayStation in February 2025. The success of these initiatives highlights Microsoft’s commitment to broadening its market reach and diversifying its content offerings, creating more opportunities for gamers and positioning the company at the forefront of the evolving gaming industry.