Happy New Year! Welcome to Xbox in 2024. ???
It’s a new dawn for Microsoft Gaming. We’re now over a full decade removed from the dark days of the Xbox One launch, and we’ve now moved beyond simply turning a page on the Xbox of yore. We now have a whole new book to write, and 2024 is arguably its first chapter.
The Growth of Xbox: A Look Ahead at 2024
In October 2023, Microsoft completed its acquisition of Activision-Blizzard for a cool $70 billion. This completes a truly gargantuan few years of investment in gaming from Microsoft, which includes studios like Undead Labs, Compulsion Games, and InXile, but also ZeniMax and Bethesda. The vastness of the legacy now within Microsoft’s umbrella is hard to visualize, but we’re talking franchises spanning decades here — Nintendo-like nostalgia that has, up until now, largely eluded the Xbox brand. Microsoft has also expanded its hardware footprint, investing massively in cloud gaming servers powering experiences you can enjoy right from your television, no console required. Microsoft is also making bets on the future for gaming, including AI for dev tooling, graphics, and potentially even gameplay.
Xbox Game Pass Expansion: What to Expect in 2024
At least from a revenue perspective, Xbox is expected to have a huge leap in growth this quarter, as money from Call of Duty, Candy Crush, and World of Warcraft starts pouring in. The jump could put Microsoft ahead of long-time competitors like PlayStation in the global games rankings. And with Tencent’s outlook battered by China’s aggressive (and evolving) regulatory stance towards home-grown gaming companies, Microsoft potentially has an opportunity to leapfrog them too.
New First-Party Titles: A Sneak Peek at Xbox’s 2024 Lineup
What does that mean for gamers, though? Well, cash flow from games like Call of Duty will help subsidize Microsoft’s gaming operations in general, helping to offset risk as more traditional single-player experiences get ever increasingly expensive to produce. Xbox CEO Phil Spencer also previously hinted that Activision-Blizzard titles will start hitting Xbox Game Pass in 2024 as well, although it might take a little while for some of the more heavy hitters like Diablo 4 and Call of Duty itself to join the service. Initially, I would expect to see games from Activision’s back catalog hit the service first. Perhaps we’ll get classic Call of Duty games in there initially, alongside games like Crash Bandicoot, Spyro, Tony Hawk’s Pro Skater, and maybe Diablo 3.
Hardware Innovations: What’s Next for Xbox in 2024
Microsoft has noted its long-standing ambition to get one major game launch in per quarter for Xbox Game Pass moving forward. We know ARA: History Untold, Towerborne, Hellblade 2, and Avowed are slated for 2024, but what else could fit the bill? I would also say it’s fair to expect some major surprises at upcoming events, as Microsoft’s investments begin to hit their stride in the post-pandemic era.
Customer Expectations: What Do Gamers Want from Xbox in 2024?
A major leak last summer detailed Microsoft’s Xbox hardware thought processes from back in 2021. While some of the information is outdated, it does serve us to take a look back and remind ourselves what Microsoft has been considering in recent years. In the leaks last year, it was revealed that Microsoft has geared up minor mid-gen refreshes for the Xbox Series X and S, codenamed Brooklin and Ellewood. These consoles would both become all-digital, ditching disc drives entirely, while incorporating Bluetooth 5.2 for better accessory compatibility, as well as Wi-Fi 6E for improved streaming and internet consistency.
In conclusion, 2024 looks to be an exciting year for Xbox and Microsoft Gaming. With the acquisition of Activision-Blizzard and the expansion of Xbox Game Pass, the company is set to dominate the gaming industry. The release of new first-party titles and potential hardware innovations will further enhance the Xbox experience for gamers. Customer expectations are high, and Microsoft is well-positioned to deliver on those expectations. As we embark on a new year, it’s clear that Xbox is ready to take on the challenges and opportunities that lie ahead.
Analyst comment
Positive news. Analyst outlook: With the acquisition of Activision-Blizzard and the expansion of Xbox Game Pass, Microsoft is poised to dominate the gaming industry. Revenue growth is expected, potentially surpassing long-time competitors. New first-party titles and possible hardware innovations will enhance the Xbox experience. High customer expectations are likely to be met. 2024 looks promising for Xbox and Microsoft Gaming.
