Microsoft Focuses on Games, Not Consoles
Microsoft is not hiding its interest in video games, which was also confirmed by Satya Nadella during the recent investor call. The CEO assured that the company's efforts are focused on providing players with the games and services they expect.
Although Microsoft's attention seems to be focused on something other than the launch of 9th generation consoles, recent moves by the Redmond giant should dispel doubts about the company's involvement in the gaming market. If, however, someone still had reservations about this, a recent investor call should dispel them. Satya Nadella, CEO of Microsoft, stressed that the company is still focused on video games, whether the titles themselves or the related services. He did not fail to mention the importance of the launch of Xbox Series X/S, but stressed that the company's strategy revolves around providing players with rich content (via Seeking Alpha):
First thing, we're very excited about the new console launches in the market. [...] But the broader vision we have is to ensure that the 3 billion gamers out there are able to play their games, anywhere they want with all the content they want and with whom they want to. [...] We are absolutely very, very much focused on gaming, and ensuring that all the 3 billion gamers around the world get the best content, best community and the best cloud services to power their gaming experiences going forward.
Such a strong affirmation may please the gamers, but in the context of what Microsoft has done so far, it can be taken for granted. The very announcement of the purchase of ZeniMax and its subsidiary Bethesda clearly showed that the Redmond giant is serious about investing in game development. This is accompanied by later (although rather vague) assurances about "taking in" more developers. Microsoft is apparently also interested in esports initiatives, as suggested by yesterday's announcement of the purchase of the smash.gg platform.
Of course, this attitude is due to financial reasons, or more precisely - the huge money coming from this segment. According to Amy Hood, Microsoft's CFO, this fiscal year the video game market brought the company $11 billion in revenue. This is largely due to the record-breaking interest in the Xbox Game Pass service, which is likely to increase when games from Electronic Arts catalogue are included in its offer.
