Microsoft’s Strategy to Win Back Gaming

Whether you grew up with one or not, the Xbox is a staple of gaming history. It was the first console to provide an authentic, exceptionally fast, and reliable space for online multiplayer, and gave birth to some of the most successful and memorable franchises in the industry. Microsoft Gaming has admitted that it lost the console wars in recent times, but is still fighting to maintain a solid position. Hardware Is Not Enough Anymore With Nintendo and its library of first-party exclusives, and the PlayStation's vastly improved online services and exclusives, it became less important to invest in an Xbox as a console over the years. This is true even for the most dedicated gamer. Given how well the Nintendo Switch has sold in spite of hardware that was outdated even at the time of the console's release, and the fact that the Xbox Series S has sold even better than the Xbox Series X in certain key markets, it's clear that technological oomph is not a significant variable of consideration anymore when purchasing a console. Read more: Xbox Loses $200 For Every Console Sold, According To Phil Spencer Without a strong library of first-party exclusives, how can Microsoft Gaming continue to sell people an Xbox? Fortunately, in spite of what it looks like, the Series X|S still has a ton going for it. What Microsoft Gaming Has Going For It Source: Xbox The greatest asset Microsoft Gaming has always had on its side with the Xbox is support for backwards compatibility. From the moment the Xbox 360 launched, the practice of providing access to legacy titles on the most recent system has been a tradition for Microsoft Gaming. This idea translated perfectly into the company's greatest invention: Xbox Game Pass. Regardless of whether you own the more powerful Series X or the economic Series S, Xbox Game Pass lets you stream games to both devices. What's even better, is the fact you don't even need to own an Xbox to play titles on Game Pass, as the streaming capability extends to Windows PCs and smartphones. Xbox Game Pass is a subscription service originally introduced in 2017, and for a time, Microsoft Gaming offered a $1 trial for up to three months of access to get new players invested. Yes, for your $1, you can play Halo 5: Guardians on your PC or your phone. Despite a soaring record of new accounts and subscriptions, this $1 offer was abandoned and the regular price was reintroduced. Finally, the Xbox controller in general, and its iterations, is considered by many to be the best input device in gaming history. Even third parties that introduce their own devices still base their designs on the aesthetic and feel of Xbox controllers. The Next Step In recent times, Microsoft has been on a path to acquire as many studios and franchises as possible in order to shift back to a strategy that focuses on exclusives. Although this path debatably started with the acquisition of Minecraft back in 2014, the trend has been slowly ongoing, with Microsoft swooping in to purchase Bethesda in 2021. Microsoft's Activision Blizzard Acquisition Over the past year or so, Microsoft has been working to acquire Activision Blizzard for close to $70 billion. This represents the biggest deal ever seen in gaming. From popular, globally renowned franchises such as Call of Duty and World of Warcraft, Activision Blizzard has grown into the largest publisher in the industry. Such a bold move has been observed as a major threat to competitors, so much so that Sony has ardently lobbied against the deal, the U.S. Federal Trade Commission (FTC) attempted to legally block it, and the U.K.'s Competition and Markets Authority has tried to stop it. Jim Ryan, chief of PlayStation and CEO of Sony Online Entertainment, has vowed that the company would cut off communication with Activision Blizzard if the deal went through. This is due to the risks of ownership by a primary competitor. Microsoft recently bypassed the injunction by the FTC to block the deal from happening in the United States. By overcoming the final legal hurdle in the UK, it was able to secure the deal for $69 billion to acquire Activision Blizzard King on October 13, 2023. The Future Even with the industry at its knees in fear of this major business move, Microsoft has taken measures to ensure that competitors won't be completely alienated. For example, Nintendo and Microsoft have signed a 10-year deal to have Call of Duty on Switch and future consoles. In addition, Microsoft made an agreement with NVIDIA for the GPU company to develop Xbox PC Games on GeForce Now, a direct competitor in the cloud gaming market.

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