Microsoft CEO Satya Nadella's Pay Soars Amidst Significant Layoffs

Microsoft has seen a dramatic boost in CEO Satya Nadella's financial compensation, reaching a staggering $79.1 million for the current financial year—an increase of 63% compared to his pay in 2023. This announcement, made on October 25, 2024, comes against a backdrop of financial success for the tech giant but a challenging period for its workforce.

In 2024, Microsoft executed two major rounds of layoffs, starting with the termination of 1900 employees in January, primarily from Xbox and Activision Blizzard divisions. A subsequent layoff in September further saw 650 Xbox employees losing their jobs. Despite these internal challenges, Microsoft's market valuation has climbed over $3 trillion, fueled by the company's strategic focus on artificial intelligence.

Corporate Decisions and Market Strategies

In a bid to streamline its gaming operations, Microsoft closed three Bethesda studios in June 2024—Arkane Austin, Tango Gameworks, and Alpha Dog. This move coincided with Xbox head Phil Spencer’s acknowledgment of stagnation in the console market growth.

Comparatively, Microsoft’s revenue has been bolstered by the integration of Activision Blizzard, a major acquisition finalized in October 2023. This deal expanded Microsoft’s gaming ecosystem substantially, introducing new players to a suite of 20 franchises, each generating over $1 billion in lifetime revenue. Popular titles like Candy Crush, Diablo, Halo, Warcraft, and Elder Scrolls remain at the forefront of this growth.

Expanding Gaming Horizons

In his outlook for the future, Nadella emphasized Microsoft's innovation in cloud gaming through Xbox, providing gamers with diverse options for engagement across various devices. Microsoft's cross-platform strategy continues to evolve, with popular games now available on platforms like Nintendo Switch and Sony PlayStation.

Upcoming attractions include the highly anticipated release of 'Indiana Jones and the Great Circle' for PC and Xbox in December, and its PlayStation debut anticipated in February 2025, indicating a sustained emphasis on cross-platform availability. These expansions underscore Microsoft's ongoing commitment to diversifying its gaming content reach.

For more details, check out the Original Source on Eurogamer.

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