Microsoft to Release Four Video Games on Competing Consoles in Bid to Expand Gamer Base
Microsoft is taking a bold step by releasing four video games on competing consoles, according to Phil Spencer, the head of Microsoft’s gaming division. Contrary to expectations, this move is not a deviation from the company’s core exclusivity strategy but rather an effort to tap into a broader base of gamers. The decision comes on the heels of Microsoft's acquisition of Activision Blizzard for a staggering $75 billion.
Despite the popularity of its Xbox Series X and Series S consoles, Microsoft believes that expanding its franchises to other platforms presents a golden opportunity. These games, which have been available to Xbox players for over a year, will exclude highly anticipated titles like Starfield and the forthcoming Indiana Jones game. Out of the four titles, two are community-driven, while the others were initially designed as non-exclusives for Microsoft consoles. Spencer predicts that hardware-exclusive games will become less common in the gaming industry over the next decade.
With the acquisition of Activision Blizzard, Microsoft aims to bolster its position in the fiercely competitive video game market. However, shortly after the acquisition, Microsoft announced layoffs affecting approximately 8% of its gaming division. The move to release "Diablo IV" as the first game from Activision Blizzard after the acquisition is seen as a strategic move to entice Xbox Game Pass subscribers, starting from March 28. Nevertheless, research firm NewZoo suggests that the market for multi-game subscription services is expected to slow down, reflecting possible challenges ahead.
As the gaming landscape continues to evolve, Microsoft is seizing the opportunity to expand its reach and cater to a wider audience. By diversifying its game offerings, Microsoft sets its sights on solidifying its position in the gaming industry and creating a more inclusive gaming experience for all.
Analyst comment
Positive news: Microsoft is releasing four video games on competing consoles, aiming to tap into a broader base of gamers and expand its franchises. This move aligns with Phil Spencer’s belief that hardware-exclusive games will become less common in the industry.
Short analysis: With the acquisition of Activision Blizzard, Microsoft aims to strengthen its position in the competitive videogame market. Despite some layoffs and a slowdown in the multi-game subscription service market, the release of “Diablo IV” for Xbox Game Pass subscribers indicates potential growth for Microsoft in the gaming industry.
