Takeover of studios (Bethesda, Activision Blizzard), ever richer Game Pass, cloud gaming service… Microsoft’s video game offer continues to expand. If it is impossible to know if Microsoft will one day catch up with Sony’s sales, its bet seems to have been successful for the moment.
Distanced by Sony for several years, Microsoft has never given up. Nobody believed in his chances before the release of the Xbox Series X and Series S, he is now a credible contender for the throne of king of consoles. The acquisition of Activision Blizzard, announced on Tuesday January 18, 2022, is an additional sign pointing in the direction of a historic recovery. Xboxes have never been so sexy, including for PlayStation fans.
Takeovers galore
It was at E3 2018 that Microsoft showed the first signs of its new strategy, without anyone guessing what was going to happen at the time. The company announces the acquisition of the studios Playground Games, ninja theory, Undead Labs and Compulsion Games. Later that same year, Microsoft got its hands on Obsidian Entertainment and InXile Entertainment, before renaming the company behind its video game productions to “Xbox Game Studios”. After several rather quiet years, Microsoft seems determined to expand its catalog of exclusives, but at the time, the press did not really panic. It must be said that none of these studios had a very great reputation.
In 2020, Microsoft is entering a new dimension. No more small studios, the giant gets its hands on ZeniMax Media, the parent company of Bethesda for $7.5 billion. Several dozen ultra-popular licenses integrate Xbox Game Studios and allow Microsoft to gain credibility in the market. The announcement of the takeover ofActivision Blizzard, in early 2022, further strengthens Microsoft’s position. Who would have imagined franchises as popular as call of duty Where World of Warcraft under the aegis of the company? This $68.7 billion takeover is historic on many levels.
The Xbox Game Pass, machine to seduce
Of course, Microsoft’s strategy in the video game market is not just about getting out your checkbook. Its other advantage is the Xbox Game Pass which, for 9.99 euros (Game Pass) or 12.99 euros per month (Game Pass Ultimate, with Xbox Live Gold, cloud gaming and PC games) undoubtedly offers one of the most interesting catalogs on the market.
It is often presented as a “Netflix of video games”, a single subscription provides access to everything. Microsoft offers hundreds of games there, including almost all of the catalogs it has bought, as well as those of partners like EA. The other strength of the Game Pass is the availability date of the games. New releases, including the most anticipated, are available there at no extra charge on the day of their release. Enough to make PlayStation players salivate who often have to pay a high price to have a game when it comes out… at the risk of not liking it.
Since last summer, the Xbox Game Pass Ultimate subscription also allows you to play certain titles from your smartphone or tablet thanks to the cloud gaming. Again, Microsoft is playing it very smartly. Its gaming ecosystem is becoming so enticing that it is now likely to tempt those who have always sworn by PlayStation. Also remember that the Game Pass offer is available on Windows and that Microsoft does not see PC players as competitors of its Xbox. It also benefits him.
Can sales reverse?
Let’s be honest, in the medium term, it’s very unlikely. The gaming market is faithful and the trend is not in the direction of an inversion of the curves. Xbox Series S and X are selling well, but every week PS5s are selling better. There have been rare exceptions (from November 20 to 27, the Xbox took the lead), but every day Sony is widening the gap a little more. There were around 17.5 million PS5s in circulation at the end of 2021, compared to 11.7 million Xbox Series S and X.
However, Microsoft’s efforts could pay off in the future. Little taken seriously a few years ago, the Xbox is now intriguing. It’s probably not this generation that will overtake the PlayStation, but depending on Microsoft’s policy with its exclusives, the Xbox Series could quickly gain popularity. The company also has a strategy to bring its services to other platforms, which means that its Game Pass could one day become essential on other platforms.
Anyway, and even without overtaking Sony in terms of sales, Microsoft seems well on its way to succeeding in the bet it initiated in 2018.