INDEX / DIRECTORY / XBOX / ECONOMIC

Xbox ECONOMIC

ECONOMIC AUDIT UPDATED 2026-09-08
Economic Score 7.20 /10 B Xbox - Complicity Index 711
Economic 7.20

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Xbox is a Microsoft product and business line rather than a separately identified corporate registrant in the reviewed filings. 1, 2

Supply Chain & Sourcing Relationships

No public evidence identified of Xbox or Microsoft procuring Israeli agricultural products or maintaining direct relationships with named Israeli produce exporters.

No public evidence identified of an Israel-specific Microsoft/Xbox importer-of-record subsidiary, joint venture, dedicated import entity, Xbox distributor agreement, or hardware shipment/customs documentation. 3

Microsoft’s FY2025 filing describes a general distributor and reseller sales network but does not identify an Israel-specific Xbox import structure. 3

No public evidence identified of recurring seasonal procurement from Israeli suppliers, Israeli-origin Xbox products supplied through identified third-party distributors, or white-label arrangements for Xbox products.

Microsoft announced an agreement to acquire Israel-based Peach Networks Ltd. on 29 August 2000, describing it as an enhanced-TV technology provider. 4

The reviewed announcement does not establish Peach Networks’ present corporate status, ownership, manufacturing activity, workforce, or connection to Xbox. 4

Product Origin, Labeling & Regulatory Compliance

No public evidence identified of Xbox goods originating in West Bank, East Jerusalem, Jordan Valley, or Golan Heights settlements.

No public evidence identified of Xbox-specific labelling enforcement, customs findings, or an occupied-territory labelling policy.

The reviewed 2025 OHCHR settlement-business database update does not identify Xbox in the supplied document-scoped pre-scan. 5

The absence of Xbox from that document-scoped pre-scan does not establish an absence for Microsoft, its subsidiaries, other database editions, or all settlement-related commercial activity. 5, 6

The reviewed 2023 OHCHR settlement-business database and the UN Special Rapporteur’s 2025 report likewise produced no “Xbox” text match in the supplied pre-scan. 6, 7

Investment, Capital & Financial Exposure

Microsoft’s FY2025 filing identifies Israel among the locations of its largest leased international properties as of 30 June 2025. 3

The filing characterises Microsoft’s international properties generally as offices, datacentres, and research-and-development facilities, without allocating Israeli property area, investment, revenue, or Xbox-specific activity. 3

Microsoft’s Israel materials describe an R&D centre and a commercial operation across Herzliya, Haifa, Tel Aviv, Be’er Sheva, and Nazareth, and state that a local data centre launched in November 2023. 8

Microsoft characterises its Israel activity as strategic and material to its global operations, while the reviewed materials do not separate Xbox activity from Microsoft’s broader local operations. 8

Investigative reporting based on leaked commercial records and Microsoft Israel subsidiary files reported that Microsoft supplied Israel’s defence establishment with cloud-computing, storage, and technical-support services after 7 October 2023, including at least US$10 million in technical-support deals. 9

That reporting is parent-group evidence and does not establish that Xbox products, Xbox revenue, or Xbox personnel funded, delivered, or were included in the reported arrangements. 9

Reporting in 2025 stated that Unit 8200 used a customised, segregated Azure environment and that Microsoft and Unit 8200 engineers worked on security measures in early 2022. 10

The same reporting located the relevant Azure storage in the Netherlands and Ireland rather than Israel. 10

Microsoft stated in September 2025 that it had ceased and disabled a set of services to a unit within the Israeli Ministry of Defense after a review of its own financial, internal, email, and messaging records. 11

Associated Press reported that Microsoft’s review found its AI and cloud products had been used to assist mass surveillance of Palestinians and that services were disabled to an Israeli military unit. 12

The September 2025 action concerned specified services and does not establish termination of every Microsoft relationship with Israeli state entities. 11, 12

No public evidence identified of Xbox/Microsoft holdings of Israeli sovereign bonds, Israel Bonds, Israel-focused funds, or portfolio holdings specifically attributed to Xbox. 3

Operational Presence & Market Activity

Xbox maintains a current Hebrew-language site directed at Israel that promotes consoles, games, Game Pass, accessories, support, and Microsoft Store functions. 13

Microsoft Store Israel lists Xbox digital gift cards priced in shekels and states that the codes can be used for purchases in Microsoft Store online, Windows, and Xbox. 14

This establishes a digital consumer-sales channel directed at Israel but does not establish an Israeli retail shop, warehouse, or Xbox-operated physical facility. 14

Microsoft’s Israel page states that its local group has “thousands” of employees and distinguishes the Israel R&D centre from Microsoft Israel’s commercial operation. 8

Microsoft’s careers page identifies offices in Herzliya, Tel Aviv, Haifa, and Nazareth, describing local work in software and hardware development, cybersecurity, artificial intelligence, business intelligence, sales, and marketing. 15

Microsoft’s locations page gives its Herzliya address as 3 Alan Turing Street, 4672415, Israel. 16

The reviewed materials do not separately report Xbox workforce, revenue, or facilities in Israel. 8, 15

No public evidence identified of Xbox-operated offices, warehouses, support centres, retail locations, or authorised reseller locations within settlements in the West Bank, East Jerusalem, or the Golan Heights.

No public evidence identified in the reviewed authoritative corporate records of a Microsoft/Xbox physical location in the West Bank, East Jerusalem, or Golan Heights.

Corporate Structure & Foundational Ties

Microsoft Corporation is a Washington-incorporated corporation headquartered at One Microsoft Way, Redmond, Washington. 2, 3

Microsoft stated in 2001 that it would hold all trademark rights to Xbox, which it described as its video-game console system. 1

Microsoft’s selected-subsidiaries exhibit lists Activision Blizzard, Inc. and Activision Publishing, Inc., while expressly omitting subsidiaries that are not significant in the aggregate. 17

That exhibit does not identify an Xbox legal entity or an Israel-incorporated entity, which is a document-scoped disclosure limitation rather than evidence that no such entities exist. 17

Microsoft’s own Israel materials state that its Israeli activity began in 1989 as one of the company’s first international branches outside the United States. 8

No public evidence identified that Xbox was founded or incorporated in Israel, has an Israeli headquarters or principal place of management, holds Israeli PTE status, is Israeli tax-resident, or is controlled by Israeli capital. 3, 8

No public evidence identified of Microsoft/Xbox state ownership, Israeli government board appointments, golden-share arrangements, charter restrictions, or designation as Israeli critical national infrastructure. 3, 8

Microsoft’s 2025 proxy identifies Satya Nadella as Chairman and Chief Executive Officer and Sandra Peterson as Lead Independent Director. 18

The proxy lists Vanguard and BlackRock as the only beneficial owners above 5% as of 30 September 2025, at 8.95% and 7.30% respectively, while directors and executive officers as a group held less than 1%. 18

Profit Repatriation & Economic Contribution

No public evidence identified of Xbox or Microsoft revenue specifically attributed to Israel in Microsoft’s FY2025 filing, or of Xbox profit generated in Israel or profit-repatriation flows involving Israel. 3

Microsoft describes its Israeli presence as strategically significant and as a major technology employer, but the reviewed material does not quantify Israeli revenue, taxes paid, payroll, local procurement, or repatriated profits. 8

No public evidence identified of personal or family-office investments in Israeli companies by Xbox-specific controlling principals from the reviewed sources. 3, 8

Microsoft’s U.S. corporate PAC, MSVPAC, is registered with the Federal Election Commission as an active monthly corporation PAC. 19

The FEC reports $1.309 million in contributions and $1.183 million in contributions to other committees for MSVPAC from 1 January 2025 through 31 July 2026, without establishing an Israel/Palestine-specific purpose or recipient. 19

The FEC’s 2023–2024 cycle table reports $2.072 million in MSVPAC candidate contributions. 20

Microsoft co-founder Bill Gates is not listed as a current Microsoft director in the 2025 proxy, and the Gates Foundation identifies him as directing the foundation with its governing board and as trustee of the Gates Foundation Trust. 18, 21

The Gates Foundation’s 2023 grant schedule includes Israeli-domiciled recipients including Apogense Ltd. and Eleven Therapeutics Ltd.; it records a $5 million convertible-debt grant to Eleven Therapeutics dated 14 July 2022, with $604,440 expended in 2023 for health and development innovation. 22

These foundation grants concern an entity associated with Microsoft’s co-founder rather than Xbox or Microsoft Corporation, and the reviewed materials do not establish an Xbox corporate connection to them. 18, 22

The Gates Foundation Trust’s 2023 return lists Israel among countries in which the Trust had a financial interest, without identifying an Israeli asset, value, or counterparty in that disclosure. 23

Footnotes

  1. https://news.microsoft.com/source/2001/06/15/microsoft-xbox-technologies-settle-trademark-dispute/ ↩ ↩2

  2. https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm ↩ ↩2

  3. https://www.sec.gov/Archives/edgar/data/789019/000095017025100235/msft-20250630.htm ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10

  4. https://news.microsoft.com/source/?p=12762 ↩ ↩2

  5. https://www.ohchr.org/en/press-releases/2025/09/un-human-rights-office-updates-database-businesses-involved-israeli ↩ ↩2

  6. https://www.ohchr.org/sites/default/files/documents/hrbodies/hrcouncil/sessions-regular/session31/database-hrc3136/23-06-30-Update-israeli-settlement-opt-database-hrc3136.pdf ↩ ↩2

  7. https://docs.un.org/A/HRC/59/23 ↩

  8. https://news.microsoft.com/source/emea/2025/07/about/?lang=he ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9

  9. https://www.theguardian.com/world/2025/jan/23/israeli-military-gaza-war-microsoft ↩ ↩2

  10. https://www.theguardian.com/world/2025/aug/06/microsoft-israeli-military-palestinian-phone-calls-cloud ↩ ↩2

  11. https://blogs.microsoft.com/on-the-issues/2025/09/25/update-on-ongoing-microsoft-review/ ↩ ↩2

  12. https://apnews.com/article/microsoft-israel-military-gaza-hamas-artificial-intelligence-3f4bf8036e7e02f385b258bd353af1fd ↩ ↩2

  13. https://www.xbox.com/he-IL ↩

  14. https://www.microsoft.com/en-il/p/%D7%9B%D7%A8%D7%98%D7%99%D7%A1-%D7%9E%D7%AA%D7%A0%D7%94-%D7%9C-xbox-%D7%A7%D7%95%D7%93-%D7%93%D7%99%D7%92%D7%99%D7%98%D7%9C%D7%99/cfq7ttc0k7qj/0003 ↩ ↩2

  15. https://careers.microsoft.com/v2/global/en/locations/israel.html ↩ ↩2

  16. https://www.microsoft.com/en-us/hub/locations ↩

  17. https://www.sec.gov/Archives/edgar/data/789019/000095017025100235/msft-ex21.htm ↩ ↩2

  18. https://www.sec.gov/Archives/edgar/data/789019/000119312525245150/d908201ddef14a.htm ↩ ↩2 ↩3 ↩4

  19. https://www.fec.gov/data/committee/C00227546/ ↩ ↩2

  20. https://www.fec.gov/resources/campaign-finance-statistics/2024/tables/pac/PAC5b_2024_24m.pdf ↩

  21. https://docs.gatesfoundation.org/documents/2024_gf_990pf_pd.pdf ↩

  22. https://docs.gatesfoundation.org/documents/2023%20bmgf%20form%20990-pf.pdf ↩ ↩2

  23. https://docs.gatesfoundation.org/documents/2023%20bmgft%20form%20990-pf.pdf ↩