Microsoft Gaming

{{see also|Xbox Game Studios}}File:Xbox Logo.svgUp through 2000, Microsoft had only a limited number of video game publishing efforts. With the announcement of the first Xbox in 2000 and its release in 2001, Microsoft established a division for internal development of video games for the Xbox and Windows, then known as Microsoft Game Studios (MGS). The Xbox hardware remained a separate division within Microsoft. After Steve Ballmer's departure as Microsoft's CEO, Microsoft investors attempted to exert pressure on the company to either sell or shut down its gaming business. However, these efforts did not gain significant traction. Microsoft's gaming division, including products such as the Xbox console, has remained a strategic focus for the company. Under the leadership of Satya Nadella, who assumed the role of CEO in 2014, Microsoft has continued to invest in and expand its presence in the gaming market.{{Cite web |date=2014-02-10 |title=Microsoft investors want new CEO to kill Xbox |url=https://www.destructoid.com/microsoft-investors-want-new-ceo-to-kill-xbox/ |access-date=2023-11-22 |website=Destructoid |language=en-US |archive-date=November 22, 2023 |archive-url=https://web.archive.org/web/20231122033103/https://www.destructoid.com/microsoft-investors-want-new-ceo-to-kill-xbox/ |url-status=live }}{{Cite web |title=Investors want Microsoft to dump Xbox and Bing, and they have a point |url=https://www.networkworld.com/article/747008/microsoft-subnet-investors-want-microsoft-to-dump-xbox-and-bing-and-they-have-a-point.html |access-date=2023-11-22 |website=Network World |language=en-US |archive-date=November 22, 2023 |archive-url=https://web.archive.org/web/20231122033102/https://www.networkworld.com/article/747008/microsoft-subnet-investors-want-microsoft-to-dump-xbox-and-bing-and-they-have-a-point.html |url-status=live }} Since 2009, Microsoft's games operations, including Xbox division, are located at Microsoft West Campus.{{cite web|title=Microsoft Has A Full-Blown Mall Right On Its Massive Headquarters|url=https://www.businessinsider.com/microsoft-mall-2013-7|first=Jay|last=Yarow|date=July 16, 2013|access-date=December 12, 2023|website=Business Insider|archive-date=December 12, 2023|archive-url=https://web.archive.org/web/20231212170441/https://www.businessinsider.com/microsoft-mall-2013-7|url-status=live}}{{cite web|title=A bridge to Xbox: Microsoft to fund $33M project connecting employees to light rail|url=https://www.geekwire.com/2013/microsoft-fund-33m-project-bridge-campus|first=Todd|last=Bishop|date=November 27, 2013|access-date=December 12, 2023|website=GeekWire}}

MGS made a number of acquisitions of studios to help build out the Xbox software library over its first decade, including Bungie, Lionhead Studios, and Rare while establishing internal studios 343 Industries for Halo development and Turn 10 Studios for Forza games. In 2014 after Satya Nadella was promoted to CEO (combined with the ascension of Phil Spencer to head of Xbox), Microsoft embarked on a new acquisition strategy, starting with the acquisition of Mojang Studios, the developer of Minecraft, for $2.5 billion.{{Cite web |title=Microsoft Buys Minecraft Maker Mojang for $2.5 Billion |url=https://www.pcmag.com/news/microsoft-buys-minecraft-maker-mojang-for-25-billion |access-date=2023-11-14 |website=PCMAG |date=September 15, 2014 |language=en |archive-date=November 14, 2023 |archive-url=https://web.archive.org/web/20231114021402/https://www.pcmag.com/news/microsoft-buys-minecraft-maker-mojang-for-25-billion |url-status=live }} Between 2014 and 2019, MGS also acquired several high-profile studios, including Ninja Theory, Playground Games, Obsidian Entertainment and inXile Entertainment. These acquisitions were aimed to help position MGS as the company's premier first-party development house comparable to PlayStation Studios for Sony.

Microsoft launched Xbox Game Pass in 2017, marking a pivotal year in which the company reevaluated its strategy to focus on a service-based business model rather than exclusive titles. This strategic shift allowed Microsoft to distinguish itself from other console manufacturers. By prioritizing a service-oriented business model with the Xbox Game Pass, Microsoft differentiated its approach from traditional console strategies that often relied heavily on exclusive game titles to attract users. Instead of competing solely based on exclusive content, Microsoft aimed to offer a broader value proposition to gamers through a subscription service that provided access to a vast library of games.{{Cite web |last=Peters |first=Jay |date=2020-11-04 |title=The different strategies of Microsoft and Sony's next-generation consoles |url=https://www.theverge.com/2020/11/4/21548077/microsoft-sony-next-generation-consoles-strategies-approaches |access-date=2023-11-22 |website=The Verge |language=en |archive-date=November 22, 2023 |archive-url=https://web.archive.org/web/20231122034113/https://www.theverge.com/2020/11/4/21548077/microsoft-sony-next-generation-consoles-strategies-approaches |url-status=live }}{{Cite web |title=Microsoft's Secret Weapon For Next-Gen Is Xbox Game Pass |url=https://www.gamespot.com/articles/microsofts-secret-weapon-for-nextgen-is-xbox-game-/1100-6477138/ |access-date=2023-11-22 |website=GameSpot |language=en-US |archive-date=September 26, 2023 |archive-url=https://web.archive.org/web/20230926131325/https://www.gamespot.com/articles/microsofts-secret-weapon-for-nextgen-is-xbox-game-/1100-6477138/ |url-status=live }} In 2017, Spencer was named Executive Vice President, Gaming at Microsoft.{{cite web|title=Alumnus Phil Spencer, CEO of Microsoft Gaming, receives Engineering Diamond Award|url=https://www.hcde.washington.edu/news/article/2022-01-27/alumnus-phil-spencer-ceo-microsoft-gaming-receives-engineering-diamond|date=January 27, 2022|access-date=December 13, 2023|website=HCDE Washington|archive-date=December 13, 2023|archive-url=https://web.archive.org/web/20231213115850/https://www.hcde.washington.edu/news/article/2022-01-27/alumnus-phil-spencer-ceo-microsoft-gaming-receives-engineering-diamond|url-status=live}}

In 2019, as part of a larger branding, MGS was renamed to Xbox Game Studios (XGS) as to align with the Xbox hardware branding, and further acquired Double Fine.{{Cite news |last=Colp |first=Tyler |date=2022-01-18 |title=Every game and studio Microsoft now owns |language=en |work=PC Gamer |url=https://www.pcgamer.com/every-game-and-studio-microsoft-now-owns/ |access-date=2023-11-14 |archive-date=November 14, 2023 |archive-url=https://web.archive.org/web/20231114021403/https://www.pcgamer.com/every-game-and-studio-microsoft-now-owns/ |url-status=live }} Microsoft acquired ZeniMax Media for $8.1 billion in 2020, the parent company of id Software, MachineGames, Arkane Studios, publisher Bethesda Softworks and others, to further expanding its portfolio of game development studios. ZeniMax remained a separate entity from XGS from its acquisition though overseen by Spencer.{{Cite news |date=2020-09-21 |title=Microsoft to Buy Bethesda for $7.5 Billion to Boost Xbox |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2020-09-21/microsoft-to-buy-bethesda-studios-for-7-5-billion-to-boost-xbox |access-date=2023-11-14 |archive-date=September 21, 2020 |archive-url=https://web.archive.org/web/20200921204343/https://www.bloomberg.com/news/articles/2020-09-21/microsoft-to-buy-bethesda-studios-for-7-5-billion-to-boost-xbox |url-status=live }}

{{Further information|Acquisition of Activision Blizzard by Microsoft}}

Microsoft announced its proposed acquisition of Activision Blizzard for $68.7 billion in cash on January 18, 2022. Simultaneously, Microsoft announced that Xbox Game Studios, ZeniMax Media and Activision Blizzard will fall under Microsoft Gaming, Microsoft's newly formed gaming division. Microsoft Gaming CEO Phil Spencer stated that one of the primary reasons for acquiring Activision Blizzard is to enter the mobile gaming market.{{Cite web |title=Phil Spencer Says Activision Blizzard Deal Is Focused On Candy Crush, Not Call Of Duty |url=https://www.gamespot.com/articles/phil-spencer-says-activision-blizzard-deal-is-focused-on-candy-crush-not-call-of-duty/1100-6509176/#:~:text=Microsoft%20Gaming%20CEO%20Phil%20Spencer%20has%20once%20again,seeing%20far%20higher%20growth%20than%20console%20or%20PC. |access-date=2023-11-30 |website=GameSpot |language=en-US |archive-date=November 28, 2023 |archive-url=https://web.archive.org/web/20231128172429/https://www.gamespot.com/articles/phil-spencer-says-activision-blizzard-deal-is-focused-on-candy-crush-not-call-of-duty/1100-6509176/#:~:text=Microsoft%20Gaming%20CEO%20Phil%20Spencer%20has%20once%20again,seeing%20far%20higher%20growth%20than%20console%20or%20PC. |url-status=live }} Meanwhile, Activision Blizzard CEO Bobby Kotick mentioned that they accepted the offer to access more talent, capitalize on the growing demand in the gaming industry, and to compete with rising gaming companies from China and Japan.{{Cite web |last=Littleton |first=Cynthia |date=2023-05-31 |title=Bobby Kotick Breaks His Silence: Embattled Activision CEO Addresses Toxic Workforce Claims as Microsoft Deal Hangs in Balance |url=https://variety.com/2023/digital/news/activision-blizzard-ceo-addresses-toxic-workforce-claims-microsoft-deal-1235628361/ |access-date=2023-12-17 |website=Variety |language=en-US |archive-date=November 20, 2023 |archive-url=https://web.archive.org/web/20231120092236/https://variety.com/2023/digital/news/activision-blizzard-ceo-addresses-toxic-workforce-claims-microsoft-deal-1235628361/ |url-status=live }}{{Citation |title=Activision's Kotick on Microsoft Deal, His Future | date=October 13, 2023 |url=https://www.youtube.com/watch?v=t0fPkAkjpJ0 |access-date=2023-11-22 |language=en |archive-date=November 22, 2023 |archive-url=https://web.archive.org/web/20231122040735/https://www.youtube.com/watch?v=t0fPkAkjpJ0 |url-status=live }} Microsoft Gaming has entered into several 10-year agreements with gaming companies including Sony, Nintendo, Nvidia, Boosteroid, Ubitus, Nware, and EE to bring Call of Duty to their respective platforms over the next decade.{{Cite web |date=July 16, 2023 |title=Microsoft and Sony sign deal to keep Activision's Call of Duty on PlayStation |url=https://www.cnbc.com/2023/07/16/microsoft-and-sony-sign-deal-to-keep-activisions-call-of-duty-on-playstation.html |access-date=2024-02-21 |website=CNBC |language=en-US |archive-date=February 22, 2024 |archive-url=https://web.archive.org/web/20240222015853/https://www.cnbc.com/2023/07/16/microsoft-and-sony-sign-deal-to-keep-activisions-call-of-duty-on-playstation.html |url-status=live }}{{Cite web |date=February 21, 2023 |title=Microsoft Signs 'Call of Duty' Pacts With Nintendo and Nvidia as Activision Deal Faces Scrutiny |url=https://www.wsj.com/articles/microsoft-signs-call-of-duty-pact-with-nintendo-as-activision-deal-faces-scrutiny-77f47443 |access-date=2024-02-21 |website=The Wall Street Journal |language=en-US}}{{Cite web |date=February 21, 2023 |title=Microsoft inks Nvidia game deal to assuage regulators over Activision merger |url=https://www.reuters.com/technology/microsoft-president-says-he-has-activision-licensing-deal-with-nvidia-2023-02-21/ |access-date=2024-02-21 |website=Reuters |language=en-US |archive-date=May 31, 2023 |archive-url=https://web.archive.org/web/20230531172357/https://www.reuters.com/technology/microsoft-president-says-he-has-activision-licensing-deal-with-nvidia-2023-02-21/ |url-status=live }}{{Cite web |date=March 14, 2023 |title=Microsoft signs another Call of Duty deal with cloud gaming company Boosteroid |url=https://techcrunch.com/2023/03/14/microsoft-signs-another-call-of-duty-deal-with-cloud-gaming-company-boosteroid/ |access-date=2024-02-21 |website=TechCrunch |language=en-US |archive-date=December 9, 2023 |archive-url=https://web.archive.org/web/20231209000157/https://techcrunch.com/2023/03/14/microsoft-signs-another-call-of-duty-deal-with-cloud-gaming-company-boosteroid/ |url-status=live }}{{Cite web |date=March 15, 2023 |title=Microsoft signs fourth Call of Duty deal in fresh bid to win over regulators |url=https://www.theverge.com/2023/3/15/23641071/microsoft-ubitus-call-of-duty-xbox-pc-games-deal-activision-blizzard-acquisition |access-date=2024-02-21 |website=The Verge |language=en-US |archive-date=February 22, 2024 |archive-url=https://web.archive.org/web/20240222015853/https://www.theverge.com/2023/3/15/23641071/microsoft-ubitus-call-of-duty-xbox-pc-games-deal-activision-blizzard-acquisition |url-status=live }}{{Cite web |author1=Samuel Tolbert |date=2023-03-15 |title=Microsoft agrees to yet another 10-year Cloud gaming deal for Xbox and Activision |url=https://www.windowscentral.com/gaming/xbox/microsoft-agrees-to-yet-another-10-year-cloud-gaming-deal-for-xbox-and-activision |access-date=2023-12-17 |website=Windows Central |language=en |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217033904/https://www.windowscentral.com/gaming/xbox/microsoft-agrees-to-yet-another-10-year-cloud-gaming-deal-for-xbox-and-activision |url-status=live }}{{Cite web |date=March 15, 2023 |title=Microsoft Signs Another 10-Year Call Of Duty Deal |url=https://kotaku.com/microsoft-call-of-duty-deal-activision-xbox-boosteroid-1850223974 |access-date=2024-02-21 |website=Kotaku |language=en |archive-date=February 22, 2024 |archive-url=https://web.archive.org/web/20240222015853/https://kotaku.com/microsoft-call-of-duty-deal-activision-xbox-boosteroid-1850223974 |url-status=live }}{{Cite web |date=April 11, 2023 |title=Microsoft announces another 10-year partnership, this time with EE |url=https://www.eurogamer.net/microsoft-announces-another-10-year-partnership-this-time-with-ee |access-date=2024-02-21 |website=Eurogamer |language=en-US |archive-date=February 22, 2024 |archive-url=https://web.archive.org/web/20240222043142/https://www.eurogamer.net/microsoft-announces-another-10-year-partnership-this-time-with-ee |url-status=live }}{{Cite web |date=April 28, 2023 |title=Microsoft signs 10-year deal with Spain's Nware after UK blocks Activision bid |url=https://www.reuters.com/technology/microsoft-signs-10-year-deal-with-spains-nware-after-uk-blocks-activision-bid-2023-04-28/ |access-date=2024-02-21 |website=Reuters |language=en-US |archive-date=April 30, 2023 |archive-url=https://web.archive.org/web/20230430071402/https://www.reuters.com/technology/microsoft-signs-10-year-deal-with-spains-nware-after-uk-blocks-activision-bid-2023-04-28/ |url-status=live }} Additionally, Microsoft Gaming sold Activision Blizzard's cloud gaming rights to Ubisoft for 15 years due to regulatory pressure from the acquisition of Activision Blizzard.{{Cite web |title=Ubisoft and Activision Blizzard's deal for cloud gaming rights, explained |url=https://www.theverge.com/2023/10/13/23915780/ubisoft-activision-blizzard-microsoft-cloud-gaming-rights-deal-explained |access-date=2023-11-25 |website=The Verge |date=October 13, 2023 |language=en-US |archive-date=November 23, 2023 |archive-url=https://web.archive.org/web/20231123055240/https://www.theverge.com/2023/10/13/23915780/ubisoft-activision-blizzard-microsoft-cloud-gaming-rights-deal-explained |url-status=live }} After several regulatory challenges, the deal was closed on October 13, 2023. The total cost of the acquisition amounted to $75.4 billion.{{Cite web |last=SECURITIES AND EXCHANGE COMMISSION |first=UNITED STATES |date=January 30, 2024 |title=MICROSOFT FORM 10-Q |url=https://microsoft.gcs-web.com/node/32336/html}}{{Cite news |last=Lombardo |first=Cara |date=January 18, 2022 |title=Microsoft to Buy Activision Blizzard in All-Cash Deal Valued at $75 Billion |newspaper=WSJ |url=https://www.wsj.com/articles/microsoft-to-buy-activision-blizzard-games-11642512435 |access-date=January 30, 2024 |archive-date=January 19, 2022 |archive-url=https://web.archive.org/web/20220119174036/https://www.wsj.com/articles/microsoft-to-buy-activision-blizzard-games-11642512435 |url-status=live }} This made Microsoft the third largest publisher of video games after Tencent and Sony Interactive Entertainment. On the day the acquisition was announced, Phil Spencer formed the Microsoft Gaming business, taking over as CEO, while Matt Booty headed Xbox Game Studios.{{cite web|title=Behind the Tech with Phil Spencer: CEO, Microsoft Gaming|url=https://www.microsoft.com/en-us/behind-the-tech/phil-spencer-ceo-microsoft-gaming|first=Kevin|last=Scott|website=Microsoft|date=June 1, 2022|access-date=December 13, 2023|archive-date=December 13, 2023|archive-url=https://web.archive.org/web/20231213115846/https://www.microsoft.com/en-us/behind-the-tech/phil-spencer-ceo-microsoft-gaming|url-status=live}}{{Cite web |last=Kovach |first=Steve |date=2022-01-18 |title=Microsoft to buy Activision in $68.7 billion all-cash deal |url=https://www.cnbc.com/2022/01/18/microsoft-to-buy-activision.html |access-date=2023-11-14 |website=CNBC |language=en |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118154835/https://www.cnbc.com/2022/01/18/microsoft-to-buy-activision.html |url-status=live }}{{Cite web |date=2023-10-13 |title=Microsoft has officially completed its acquisition of Activision Blizzard |url=https://www.videogameschronicle.com/news/microsoft-has-officially-completed-its-acquisition-of-activision-blizzard/ |access-date=2023-11-14 |website=VGC |language=en-GB |archive-date=October 13, 2023 |archive-url=https://web.archive.org/web/20231013193432/https://www.videogameschronicle.com/news/microsoft-has-officially-completed-its-acquisition-of-activision-blizzard/ |url-status=live }} Spencer's role includes all Microsoft's global interactive entertainment business across all devices and services.{{cite web|url=https://news.microsoft.com/wp-content/uploads/prod/sites/653/2023/10/Phil-Spencer-Bio.pdf|title=Phil Spencer biography|publisher=Microsoft|date=October 28, 2023|access-date=December 13, 2023}} In 2022, ZeniMax Media, acquired Nemesys Games, a Hungarian video game development studio. Following the acquisition, Nemesys Games was officially renamed to ZeniMax Online Studios Hungary.{{Cite web |title=Bethesda Quietly Acquired Nemesys Games Last Year, Now ZeniMax Online Studios Hungary |url=https://gamingbolt.com/bethesda-quietly-acquired-nemesys-games-last-year-now-zenimax-online-studios-hungary |access-date=2024-02-07 |website=GamingBolt |language=en-US |archive-date=April 22, 2023 |archive-url=https://web.archive.org/web/20230422132925/https://gamingbolt.com/bethesda-quietly-acquired-nemesys-games-last-year-now-zenimax-online-studios-hungary |url-status=live }}

Shortly after completion of the Activision Blizzard acquisition, Microsoft further reorganized Microsoft Gaming. In this move, the Xbox hardware line was brought into Microsoft Gaming led by Sarah Bond. Matt Booty was made president of game content and studios, which includes oversight of Xbox Game Studios and ZeniMax Media, while Activision Blizzard also remained directly under Spencer, with Bobby Kotick remaining as CEO until the start of 2024 to help with the transition.{{Cite web |last=Warren |first=Tom |date=2023-10-26 |title=Microsoft reorgs its Xbox and marketing teams to prepare for an AI and gaming future |url=https://www.theverge.com/2023/10/26/23933049/microsoft-reorg-xbox-marketing-ai-leadership-changes |access-date=2023-11-14 |website=The Verge |language=en |archive-date=November 13, 2023 |archive-url=https://web.archive.org/web/20231113195754/https://www.theverge.com/2023/10/26/23933049/microsoft-reorg-xbox-marketing-ai-leadership-changes |url-status=live }} In an email sent to employees, Bobby Kotick announced that he would leave the Activision Blizzard on December 29, 2023.{{Cite web |last=Capoot |first=Ashley |date=2023-12-20 |title=Activision Blizzard CEO Bobby Kotick to step down at the end of the year |url=https://www.cnbc.com/2023/12/20/activision-blizzard-ceo-bobby-kotick-to-step-down.html |access-date=2023-12-20 |website=CNBC |language=en |archive-date=December 20, 2023 |archive-url=https://web.archive.org/web/20231220183304/https://www.cnbc.com/2023/12/20/activision-blizzard-ceo-bobby-kotick-to-step-down.html |url-status=live }}{{Cite web |last=Parrish |first=Ash |date=2023-10-13 |title=Bobby Kotick will stay at Activision Blizzard until the end of 2023 |url=https://www.theverge.com/2023/10/13/23915559/activision-blizzard-ceo-steps-down-kotick-microsoft |access-date=2024-02-27 |website=The Verge |language=en |archive-date=December 5, 2023 |archive-url=https://web.archive.org/web/20231205205330/https://www.theverge.com/2023/10/13/23915559/activision-blizzard-ceo-steps-down-kotick-microsoft |url-status=live }}

Following Bobby Kotick's departure, Activision Blizzard has undergone organizational changes to realign with Microsoft Gaming.{{Cite web |last1=Young |first1=Jennifer |last2=published |first2=Jez Corden |date=2023-12-30 |title=As Bobby Kotick leaves Microsoft and Activision for good, ex-employees recall how Kotick once threatened to 'have an employee killed' |url=https://www.windowscentral.com/gaming/xbox/bobby-kotick-leaves-microsoft-and-activision |access-date=2024-02-27 |website=Windows Central |language=en |archive-date=February 27, 2024 |archive-url=https://web.archive.org/web/20240227223302/https://www.windowscentral.com/gaming/xbox/bobby-kotick-leaves-microsoft-and-activision |url-status=live }} Vice Chairman of Activision Blizzard, Thomas Tippl; President of Activision, Rob Kostich; President of Blizzard Entertainment, Mike Ybarra; and President of King, Tjodolf Sommestad, have begun reporting to Matt Booty, President of Game Content and Studios. The leadership teams at Activision, Blizzard Entertainment, and King remained unchanged. CCO Lulu Meservey departed Activision Blizzard on January 31, 2024. After assisting with the transition, Thomas Tippl, along with several other top Activision Blizzard executives, departed from the company in March 2024.{{Cite web |last=Parrish |first=Ash |date=2023-12-20 |title=Microsoft announces more Xbox leadership changes as Activision's Bobby Kotick departs |url=https://www.theverge.com/2023/12/20/24009129/microsoft-gaming-xbox-phil-spencer-bobby-kotick-activision-leadership-changes |access-date=2023-12-21 |website=The Verge |language=en |archive-date=January 14, 2024 |archive-url=https://web.archive.org/web/20240114153139/https://www.theverge.com/2023/12/20/24009129/microsoft-gaming-xbox-phil-spencer-bobby-kotick-activision-leadership-changes |url-status=live }}

Microsoft Gaming laid off 1,900 staff (approximately 8% of its workforce) in January 2024.{{Cite web |date=2024-01-25 |title=Microsoft cutting 1,900 gaming staff in post-Activision Blizzard deal layoff round |url=https://finance.yahoo.com/news/microsoft-cutting-1-900-gaming-144512966.html |access-date=2024-01-25 |website=Yahoo Finance |language=en-US |archive-date=January 25, 2024 |archive-url=https://web.archive.org/web/20240125202501/https://finance.yahoo.com/news/microsoft-cutting-1-900-gaming-144512966.html |url-status=live }} Additionally, Blizzard's president Mike Ybarra and Blizzard's co-founder and chief design officer Allen Adham left the company.{{Cite web |date=2024-01-25 |title=Blizzard's president and chief design officer are leaving, and its survival game has been cancelled |url=https://www.videogameschronicle.com/news/blizzards-president-and-chief-design-officer-are-leaving-and-its-survival-game-has-been-cancelled/ |access-date=2024-02-27 |website=VGC |language=en-GB |archive-date=February 27, 2024 |archive-url=https://web.archive.org/web/20240227224147/https://www.videogameschronicle.com/news/blizzards-president-and-chief-design-officer-are-leaving-and-its-survival-game-has-been-cancelled/ |url-status=live }} Blizzard Entertainment reportedly is the organization that is most affected by layoffs. Project Odyssey, a game that Blizzard Entertainment has reportedly been working on for six years, has been cancelled.{{Cite web |last=Webster |first=Andrew |date=2024-01-25 |title=Blizzard cancels survival game following layoffs |url=https://www.theverge.com/2024/1/25/24050297/blizzard-survival-game-cancelled-layoffs |access-date=2024-01-25 |website=The Verge |language=en |archive-date=January 25, 2024 |archive-url=https://web.archive.org/web/20240125143805/https://www.theverge.com/2024/1/25/24050297/blizzard-survival-game-cancelled-layoffs |url-status=live }} Toys for Bob and Sledgehammer Games reportedly lost over 30% of their staff due to layoffs.{{Cite news |date=2024-01-27 |title=Layoffs at Toys for Bob and Sledgehammer Games affect between 30% and 40% of staff, insider says |url=https://www.eurogamer.net/layoffs-at-toys-for-bob-and-sledgehammer-games-affect-between-30-and-40-of-staff-insider-says |access-date=2024-02-27 |work=Eurogamer.net |language=en |archive-date=February 27, 2024 |archive-url=https://web.archive.org/web/20240227224339/https://www.eurogamer.net/layoffs-at-toys-for-bob-and-sledgehammer-games-affect-between-30-and-40-of-staff-insider-says |url-status=live }} Microsoft Gaming also reportedly laid off the entire internal customer support team of Activision Blizzard and the team dedicated to bringing Xbox games to physical retail.{{Cite web |last=Birch |first=Nathan |date=2024-01-25 |title=Xbox Layoffs Reportedly Include Shutdown of Physical Release Teams, Acti-Blizz User Support |url=https://wccftech.com/xbox-layoffs-shutdown-physical-release-team-acti-blizz-customer-support/ |access-date=2024-01-25 |website=Wccftech |language=en-US |archive-date=January 25, 2024 |archive-url=https://web.archive.org/web/20240125201625/https://wccftech.com/xbox-layoffs-shutdown-physical-release-team-acti-blizz-customer-support/ |url-status=live }} Johanna Faries, the former general manager of the Call of Duty franchise, officially took on the role of the new president of Blizzard Entertainment on January 29, 2024, commencing her position on February 5.{{Cite news |date=2024-01-29 |title=Blizzard's New President Johanna Faries Is a Former 'Call of Duty,' NFL Executive |url=https://www.bloomberg.com/news/articles/2024-01-29/blizzard-s-new-president-johanna-faries-is-former-call-of-duty-nfl-executive |access-date=2024-01-29 |work=Bloomberg.com |language=en |archive-date=July 18, 2024 |archive-url=https://web.archive.org/web/20240718085324/https://www.bloomberg.com/news/articles/2024-01-29/blizzard-s-new-president-johanna-faries-is-former-call-of-duty-nfl-executive |url-status=live }} Simultaneously, Matt Cox assumed the position of the new general manager of the Call of Duty franchise. In February, Toys for Bob's office closed, and employees will work remotely.{{Cite web |date=2024-02-08 |title=Crash Bandicoot Developer Toys for Bob Struck by Layoffs, Office Closure |url=https://www.pushsquare.com/news/2024/02/crash-bandicoot-developer-toys-for-bob-struck-by-layoffs-office-closure |access-date=2024-02-08 |website=Push Square |language=en-GB |archive-date=February 8, 2024 |archive-url=https://web.archive.org/web/20240208105000/https://www.pushsquare.com/news/2024/02/crash-bandicoot-developer-toys-for-bob-struck-by-layoffs-office-closure |url-status=live }}

Rumors in early February 2024 suggested that Microsoft was looking to bring its first-party exclusives to either PlayStation 5 or Nintendo Switch, and that Microsoft may be leaving the hardware business. A special Official Xbox Podcast was held on February 15, 2024 with Spencer, Bond, and Booty, discussing that Microsoft Gaming was looking to release some of its first-party titles on other consoles.{{Cite news |date=2024-02-15 |title=Four Xbox-exclusive games heading to PS5 and Switch, confirms Phil Spencer |url=https://www.eurogamer.net/four-xbox-exclusive-games-heading-to-ps5-and-switch-according-to-phil-spencer |access-date=2024-02-28 |work=Eurogamer.net |language=en |archive-date=July 18, 2024 |archive-url=https://web.archive.org/web/20240718085225/https://www.eurogamer.net/four-xbox-exclusive-games-heading-to-ps5-and-switch-according-to-phil-spencer |url-status=live }} Spencer said that one of the reasons for this decision is to grow the Microsoft Gaming franchises, and he anticipates that in the next 5–10 years, console-exclusive games will be a smaller part of the gaming industry.{{Cite web |last=Warren |first=Tom |date=2024-02-15 |title=Microsoft's gaming chief on Xbox games coming to PS5, next-gen hardware, and more |url=https://www.theverge.com/24073666/microsoft-gaming-phil-spencer-interview-ps5-switch-games |access-date=2024-02-15 |website=The Verge |language=en |archive-date=February 15, 2024 |archive-url=https://web.archive.org/web/20240215201042/https://www.theverge.com/24073666/microsoft-gaming-phil-spencer-interview-ps5-switch-games |url-status=live }} In the months that followed, Spencer said that the gaming industry was undergoing changes in the methods by which games were developed and distributed, and that Microsoft was prepared to anticipate when considering a more aggressive multiplatform strategy.{{Cite web |last=Xbox |first=Pure |date=2024-08-22 |title=Phil Spencer On Game Exclusivity: 'We Have To Anticipate There's Going To Be More Change' |url=https://www.purexbox.com/news/2024/08/phil-spencer-on-game-exclusivity-we-have-to-anticipate-theres-going-to-be-more-change |access-date=2024-08-23 |website=Pure Xbox |language=en-GB}} By the end of 2024, Microsoft Gaming launched a new advertising campaign titled "This is an Xbox", intent on showcasing the various compatible devices that can access Xbox games and services beyond the traditional consoles, such as Windows PCs, Samsung Smart TV sets, and streaming devices like Amazon Fire TV through cloud streaming.{{Cite web |last=Warren |first=Tom |date=2024-11-14 |title=Xbox continues its push beyond consoles with new ad campaign |url=https://www.theverge.com/2024/11/14/24296420/microsoft-this-is-an-xbox-marketing-campaign-xbox-everywhere |access-date=2024-11-15 |website=The Verge |language=en}} Xbox Senior Marketing Director Craig McNary stated that the campaign's message was to illustrate "the evolution of Xbox as a platform that extends across devices," thus being evocative of a future where their games and content are accessible on a variety of hardware and software.{{Cite web |last=McNary |first=Craig |date=2024-11-14 |title=This Is an Xbox |url=https://news.xbox.com/en-us/2024/11/14/this-is-an-xbox/ |access-date=2024-11-15 |website=Xbox Wire |language=en-US}} Spencer also said that Microsoft Gaming will support the Nintendo Switch 2 following that console's announcement in January 2025.{{Cite web |date=2025-01-29 |title=Microsoft Gaming CEO confirms Xbox games will be on the Nintendo Switch 2 |url=https://www.tweaktown.com/news/102844/microsoft-gaming-ceo-confirms-xbox-games-will-be-on-the-nintendo-switch-2/index.html |access-date=2025-01-31 |website=TweakTown |language=en-US}}{{Cite web |last=Doolan |first=Liam |date=2025-01-25 |title=Xbox Will Continue To Ship More Games On PlayStation And Nintendo |url=https://www.purexbox.com/news/2025/01/xbox-will-continue-to-ship-more-games-on-playstation-and-nintendo |access-date=2025-01-31 |website=Pure Xbox |language=en-GB}}

First-party games that were launched for non-Xbox consoles during 2024 included Pentiment and Grounded for PlayStation 4, PlayStation 5 and Nintendo Switch, as well as Hi-Fi Rush and Sea of Thieves for PlayStation 5.{{Cite web |last=Booty |first=Matt |date=February 21, 2024 |title=New Platforms, New Players: Four Fan-Favorite Xbox Games Coming to Nintendo Switch and Sony Platforms |url=https://news.xbox.com/en-us/2024/02/21/new-platforms-new-players-xbox-games-switch-playstation/ |website=Xbox Wire |access-date=February 22, 2024 |archive-date=February 21, 2024 |archive-url=https://web.archive.org/web/20240221180843/https://news.xbox.com/en-us/2024/02/21/new-platforms-new-players-xbox-games-switch-playstation/ |url-status=live }} Other games that Microsoft plans for additional consoles during 2025 include PlayStation 5 ports of Age of Mythology: Retold, Indiana Jones and the Great Circle,{{Cite web |last=Warren |first=Tom |date=2024-08-20 |title=Microsoft confirms Indiana Jones is coming to PS5 after its Xbox debut |url=https://www.theverge.com/2024/8/20/24224284/indiana-jones-and-the-great-circle-ps5-release-date |access-date=2025-02-23 |website=The Verge |language=en-US}}{{Cite web |last=Marshall |first=Cass |date=2024-08-20 |title=Indiana Jones and the Great Circle will be released on PS5, too |url=https://www.polygon.com/gamescom/442222/indiana-jones-great-circle-playstation-port-release-date-gamescom-2024 |access-date=2025-02-23 |website=Polygon |language=en-US}}{{Cite web |last=Warren |first=Tom |date=2025-03-24 |title=Indiana Jones and the Great Circle arrives on PS5 in April |url=https://www.theverge.com/news/610817/indiana-jones-and-the-great-circle-ps5-release-date |access-date=2025-03-24 |website=The Verge |language=en-US}} Forza Horizon 5,{{Cite web |date=2025-01-30 |title=Forza Horizon 5 coming to PS5 this spring |url=https://www.gematsu.com/2025/01/forza-horizon-5-coming-to-ps5-this-spring |access-date=2025-01-31 |website=Gematsu |language=en-US}}{{Cite web |last=Games |first=Playground |title=Forza Horizon 5 Comes to PlayStation 5 in Spring 2025. |url=https://forza.net/news/forza-horizon-5-comes-to-ps5 |access-date=2025-01-31 |website=Playground Games |language=en}} Age of Empires II: Definitive Edition,{{Cite web |date=2025-02-04 |title=What's Coming in 2025 for Age of Empires and Age of Mythology - Age of Empires - World's Edge Studio |url=https://www.ageofempires.com/news/whats-coming-in-2025-for-age-of-empires-and-age-of-mythology/ |access-date=2025-02-04 |website=www.ageofempires.com |language=en-US}}{{Cite web |last=Shakir |first=Umar |date=2025-02-04 |title=Age of Empires is the latest Microsoft franchise coming to PS5 |url=https://www.theverge.com/news/606102/xbox-ps5-age-of-empires |access-date=2025-02-04 |website=The Verge |language=en-US}} and Senua's Saga: Hellblade II.{{Cite web |date=2025-05-21 |title=Senua’s Saga: Hellblade II coming to PS5 this summer |url=https://www.gematsu.com/2025/05/senuas-saga-hellblade-ii-coming-to-ps5-this-summer |access-date=2025-05-21 |website=Gematsu |language=en-US}} The Elder Scrolls IV: Oblivion Remastered,{{Cite web |last=Yin-Poole |first=Wesley |date=2025-04-22 |title=The Elder Scrolls 4: Oblivion Remastered Finally Revealed in First-Look Gameplay — and It's Out Today |url=https://www.ign.com/articles/the-elder-scrolls-4-oblivion-remastered-finally-revealed-in-first-look-gameplay-and-its-out-today |access-date=2025-04-22 |website=IGN |language=en}} Doom: The Dark Ages,{{Cite web |last=Stedman |first=Alex |date=2024-06-09 |title=Phil Spencer Briefly Explains the Decision to Bring Doom: The Dark Ages to PlayStation 5 - IGN Live 2024 |url=https://www.ign.com/articles/phil-spencer-briefly-explains-the-decision-to-bring-doom-the-dark-ages-to-playstation-5-ign-live-2024 |access-date=2024-08-21 |website=IGN |language=en}} Tony Hawk's Pro Skater 3 + 4,{{Cite web |last=Webster |first=Andrew |date=2025-03-04 |title=Tony Hawk’s Pro Skater 3 + 4 remake launches in July |url=https://www.theverge.com/news/622957/tony-hawks-pro-skater-3-4-date-trailer-xbox-ps5-pc-switch |access-date=2025-03-14 |website=The Verge |language=en-US}} Gears of War Reloaded,{{Cite web |last=Peters |first=Jay |date=2025-05-05 |title=Microsoft announces a Gears of War remaster – and it’s coming to PlayStation, too |url=https://www.theverge.com/news/661169/gears-of-war-reloaded-remaster-release-date |access-date=2025-05-05 |website=The Verge |language=en-US}} Ninja Gaiden 4,{{Cite web |last=Skrebels |first=Joe |date=2025-01-23 |title=The "Year of the Ninja" Commences: NINJA GAIDEN 4 Is Coming, and NINJA GAIDEN 2 Black Is Out Today |url=https://news.xbox.com/en-us/2025/01/23/ninja-gaiden-4-developer-direct-2025/ |access-date=2025-02-01 |website=Xbox Wire |language=en-US}} and The Outer Worlds 2 are all slated to launch for PlayStation 5 simultaneously with Xbox and PC,{{Cite web |last=Marshall |first=Cass |date=2024-12-13 |title=Obsidian reveals The Outer Worlds 2 gameplay at The Game Awards 2024 |url=https://www.polygon.com/gaming/496100/obsidian-the-outer-worlds-2-new-trailer |access-date=2024-12-13 |website=Polygon |language=en-US}} while Pro Skater 3 + 4 is also slated to launch for both Nintendo Switch and Nintendo Switch 2.{{Cite web |title=Tony Hawk's Pro Skate 3 + 4 coming to Switch 2 this summer. - News |url=http://www.nintendoworldreport.com/news/70565/tony-hawks-pro-skate-3--4-coming-to-switch-2-this-summer |access-date=2025-04-06 |website=Nintendo World Report}} The Great Circle, which was initially planned as a console exclusive for Xbox Series X/S, was amended to include a PlayStation 5 version also slated for Spring 2025 following its Xbox and PC launch in December 2024, which Spencer said resulted from the positive reception to the prior four Xbox titles released on other platforms in the earlier half of 2024, in addition to a need to maintain a strong business and interest in their franchises as they work to grow the Xbox ecosystem.{{Cite web |last=Square |first=Push |date=2024-08-21 |title=Xbox Renegotiated Indiana Jones Deal to Exclude PS5, Then Ported It Anyway |url=https://www.pushsquare.com/news/2024/08/xbox-renegotiated-indiana-jones-deal-to-exclude-ps5-then-ported-it-anyway |access-date=2024-08-21 |website=Push Square |language=en-GB}}{{Cite web |last=Xbox |first=Pure |date=2024-08-21 |title=Xbox Boss Phil Spencer Comments On Indiana Jones PS5, And Microsoft's Plan Moving Forward |url=https://www.purexbox.com/news/2024/08/xbox-boss-phil-spencer-comments-on-indiana-jones-ps5-and-microsofts-plan-moving-forward |access-date=2024-08-21 |website=Pure Xbox |language=en-GB}} Other first-party games in Microsoft's portfolio, including Starfield, are not expected to retain platform exclusivity, as Spencer expressed that Microsoft Gaming desired to take games where new players could potentially be accumulated.{{Cite web |last=Yin-Poole |first=Wesley |date=2025-01-27 |title=Is Starfield Coming Out on PS5? Phil Spencer Won't Rule It Out |url=https://www.ign.com/articles/is-starfield-coming-out-on-ps5-phil-spencer-wont-rule-it-out |access-date=2025-01-31 |website=IGN |language=en}}{{Cite web |date=2025-01-25 |title=Phil Spencer explains why you should buy an Xbox in its multiplatform era: 'We want to win on capabilities' |url=https://www.videogameschronicle.com/news/phil-spencer-explains-why-you-should-buy-an-xbox-in-its-multiplatform-era-we-want-to-win-on-capabilities/ |access-date=2025-01-31 |website=VGC |language=en-US}} Despite the shift to agnostic games publishing, Spencer maintained that Xbox hardware remains a key component of Microsoft's gaming business, and that they intended to compete on console features as opposed to exclusive software.{{Cite web |date=2025-01-25 |title=Phil Spencer explains why you should buy an Xbox in its multiplatform era: 'We want to win on capabilities' |url=https://www.videogameschronicle.com/news/phil-spencer-explains-why-you-should-buy-an-xbox-in-its-multiplatform-era-we-want-to-win-on-capabilities/ |access-date=2025-02-01 |website=VGC |language=en-US}} Spencer elaborated on the strategy in February 2025, stating that due to player investment in libraries on other platforms, Microsoft was no longer attempting to move prospective users towards Xbox, instead concluding that multiplatform distribution enabled the publisher to build a better games portfolio.{{Cite web |last=Xbox |first=Pure |date=2025-02-17 |title=Phil Spencer Says Xbox Is Done Trying To Convince PS5 & Switch Players To Move Over |url=https://www.purexbox.com/news/2025/02/phil-spencer-says-xbox-is-done-trying-to-convince-ps5-and-switch-players-to-move-over |access-date=2025-02-19 |website=Pure Xbox |language=en-US}} Beginning with the Xbox Developer Direct in January 2025, Microsoft Gaming presentations advertised the availability of their first-party titles on PlayStation and Nintendo consoles.{{Cite web |last=Yin-Poole |first=Wesley |date=2025-02-17 |title='I Know It's Not What Everybody Else Is Doing' — Xbox Boss Phil Spencer Will Keep on Putting PlayStation and Nintendo Logos in Microsoft Showcases |url=https://www.ign.com/articles/i-know-its-not-what-everybody-else-is-doing-xbox-boss-phil-spencer-will-keep-on-putting-playstation-and-nintendo-logos-in-microsoft-showcases |access-date=2025-02-19 |website=IGN |language=en}}

Activision developer Toys for Bob left Microsoft on agreeable terms in February 2024 to become an independent studio, and signed a publishing agreement for their next title with Microsoft in May 2024.{{Cite web |title=We're Going Indie! |url=https://www.toysforbob.com/blog/2024/WereGoingIndie |access-date=2024-02-29 |website=www.toysforbob.com |language=en |archive-date=February 29, 2024 |archive-url=https://web.archive.org/web/20240229181407/https://www.toysforbob.com/blog/2024/WereGoingIndie |url-status=live }}{{Cite web |date=2024-02-29 |title=Crash Bandicoot 4 developer Toys for Bob is going independent |url=https://www.digitaltrends.com/gaming/toys-for-bob-goes-independent/ |access-date=2024-02-29 |website=Digital Trends |language=en |archive-date=February 29, 2024 |archive-url=https://web.archive.org/web/20240229184800/https://www.digitaltrends.com/gaming/toys-for-bob-goes-independent/ |url-status=live }}{{Cite web |last=Dinsdale |first=Ryan |date=2024-05-31 |title=Xbox Is Publishing Toys for Bob's Next Game |url=https://www.ign.com/articles/xbox-is-publishing-toys-for-bobs-next-game |access-date=2025-02-02 |website=IGN |language=en}}

On April 9, 2024, Microsoft Gaming and NetEase Games announced an agreement to bring Blizzard Entertainment games back to China. Previously, Blizzard terminated a publishing deal with NetEase in 2022.{{Cite web |last=Parrish |first=Ash |date=2023-01-23 |title=Blizzard games go offline in China |url=https://www.theverge.com/2023/1/23/23567868/activision-blizzard-china-netease-world-of-warcraft |access-date=2024-04-10 |website=The Verge |language=en |archive-date=April 10, 2024 |archive-url=https://web.archive.org/web/20240410022215/https://www.theverge.com/2023/1/23/23567868/activision-blizzard-china-netease-world-of-warcraft |url-status=live }} Microsoft Gaming also revealed plans to bolster their collaboration through a strategic partnership focused on expanding the availability of NetEase video games across various Microsoft Gaming platforms.{{Cite news |last=Huang |first=Jiahui |title=Blizzard Videogames to Return to China in New Deal With NetEase |url=https://www.wsj.com/tech/blizzard-videogames-to-return-to-china-in-new-deal-with-netease-ecc79180?mod=Searchresults_pos1&page=1 |access-date=2024-04-10 |work=WSJ |language=en-US |archive-date=April 10, 2024 |archive-url=https://web.archive.org/web/20240410022215/https://www.wsj.com/tech/blizzard-videogames-to-return-to-china-in-new-deal-with-netease-ecc79180?mod=Searchresults_pos1&page=1 |url-status=live }}

Microsoft Gaming shut down three development studios on May 7, 2024: Alpha Dog Games in Canada, Arkane Austin in the US, and Tango Gameworks in Japan. Additionally, Roundhouse Studios will merge with ZeniMax Online Studios in the US.{{Cite web |author1=Hirun Cryer |date=2024-05-07 |title=Microsoft reportedly closing the Bethesda studios behind Redfall, Hi-Fi Rush, and more following "reprioritization of titles and resources" |url=https://www.gamesradar.com/games/action/microsoft-reportedly-closing-the-bethesda-studios-behind-redfall-hi-fi-rush-and-more-following-reprioritization-of-titles-and-resources/ |access-date=2024-05-07 |website=gamesradar |language=en |archive-date=May 7, 2024 |archive-url=https://web.archive.org/web/20240507145742/https://www.gamesradar.com/games/action/microsoft-reportedly-closing-the-bethesda-studios-behind-redfall-hi-fi-rush-and-more-following-reprioritization-of-titles-and-resources/ |url-status=live }} According to Microsoft Gaming, this move is a part of a larger "reprioritization of titles and resources" that Microsoft's gaming division is carrying out. The intention is to boost investment in their library of games and new intellectual assets while focusing on high-impact titles. Some teams have been reassigned to other projects inside Bethesda and ZeniMax, and production on some games has stopped as a result of these companies closing.{{Cite web |last=Yin-Poole |first=Wesley |date=2024-05-07 |title=Microsoft Closes Redfall Developer Arkane Austin, Hi-Fi Rush Developer Tango Gameworks, and More in Devastating Cuts at Bethesda |url=https://www.ign.com/articles/microsoft-closes-redfall-developer-arkane-austin-hifi-rush-developer-tango-gameworks-and-more-in-devastating-cuts-at-bethesda |access-date=2024-05-07 |website=IGN |language=en |archive-date=May 8, 2024 |archive-url=https://web.archive.org/web/20240508214113/https://www.ign.com/articles/microsoft-closes-redfall-developer-arkane-austin-hifi-rush-developer-tango-gameworks-and-more-in-devastating-cuts-at-bethesda |url-status=live }}

Jerret West, Xbox's chief marketing officer, left Microsoft Gaming at the end of June 2024. West led the marketing efforts for the Xbox Series X/S consoles and his team was responsible for developing marketing plans for games, hardware, and Xbox Game Pass. Following his departure, Microsoft is reorganizing some of its marketing teams. A new, expanded central gaming marketing team is set to be created under Kirsten Ward, VP of Xbox integrated marketing. Consequently, games marketing would become a part of the game content and studios division led by Matt Booty, while Xbox marketing, led by Chris Lee, would move to the Xbox organization and report to Xbox president Sarah Bond.{{Cite web |last=Warren |first=Tom |date=2024-06-17 |title=Microsoft shakes up Xbox marketing as key exec departs for Roblox |url=https://www.theverge.com/2024/6/17/24180277/microsoft-xbox-marketing-jerret-west-leaving-roblox |access-date=2024-06-17 |website=The Verge |language=en |archive-date=June 17, 2024 |archive-url=https://web.archive.org/web/20240617214644/https://www.theverge.com/2024/6/17/24180277/microsoft-xbox-marketing-jerret-west-leaving-roblox |url-status=live }}

On August 7, 2024, Krafton reached an agreement with Microsoft Gaming to acquire Tango Gameworks as well as the Hi-Fi Rush IP.{{Cite web |author1=Jez Corden |date=2024-08-12 |title=Former Xbox studio Tango Gameworks and 'Hi-Fi Rush' have been acquired by PUBG's Krafton Inc, saving it from closure |url=https://www.windowscentral.com/gaming/xbox/former-xbox-studio-tango-gameworks-and-hi-fi-rush-has-been-acquired-by-pubgs-krafton-inc-saving-it-from-closure |access-date=2024-08-12 |website=Windows Central |language=en}}

In September 2024, Spencer announced another round of layoffs affecting 650 staffers in "corporate and supporting functions" following the acquisition of Activision Blizzard.{{Cite web |last=Maas |first=Jennifer |date=2024-09-12 |title=Microsoft Gaming to Lay Off 3% of Global Workforce, About 650 Employees, in Additional Post-Activision Blizzard Cuts |url=https://variety.com/2024/gaming/news/microsoft-gaming-layoffs-650-employees-1236141947/ |access-date=2024-09-12 |website=Variety |language=en-US}} In an interview with Bloomberg News in November 2024,{{Cite news |date=2024-11-13 |title=Microsoft's Gaming Chief Is Still Open to Acquisitions After Activision Deal |url=https://www.bloomberg.com/news/articles/2024-11-13/microsoft-s-gaming-chief-is-still-looking-for-acquisitions-sees-future-growth |access-date=2024-11-13 |work=Bloomberg.com |language=en}} Phil Spencer expressed a desire to continue acquiring studios, specifically taking interest in Chinese developers and partnerships with mobile game publishers similar to their relationship with Tencent Games, whom they collaborated with to produce Age of Empires Mobile.{{Cite web |last=Astle |first=Aaron |date=2024-11-13 |title=Microsoft eyes potential mobile studio acquisition |url=https://www.pocketgamer.biz/microsoft-is-considering-another-mobile-games-studio-acquisition/ |access-date=2024-11-13 |website=PocketGamer |language=en}} Spencer also confirmed that the company was prototyping a possible handheld Xbox console, though stressed that "such a device is a few years out."{{Cite web |last=Yin-Poole |first=Wesley |date=2024-11-13 |title=Microsoft Confirms Plans to Release an Xbox Handheld, but It's Years Away |url=https://www.ign.com/articles/microsoft-confirms-plans-to-release-an-xbox-handheld-but-its-years-away |access-date=2024-11-13 |website=IGN |language=en}} Spencer commented on Microsoft Gaming's efforts to establish a first-party Xbox storefront for mobile devices amidst ongoing conflicts with platform holders such as Apple Inc. and Alphabet Inc., who respectively control the App Store and Google Play, saying that he envisions an environment where such companies are more open to hosting Xbox's content in co-existence with their marketplaces.{{Cite web |last=Lowry |first=Brendan |date=2024-11-13 |title="I think the ball is moving in the right direction." Xbox head Phil Spencer confirms Microsoft mobile game store delay amid Apple, Google regulations in interview |url=https://www.windowscentral.com/gaming/xbox/xbox-head-phil-spencer-confirms-microsoft-mobile-game-store-delay |access-date=2024-11-13 |website=Windows Central |language=en}}

Microsoft Gaming introduced Muse, a world and human action generative artificial intelligence model trained to generate gameplay snippets and controller actions, developed by the Microsoft Research team in Cambridge, UK, in collaboration with Ninja Theory, in February 2025. Muse generates low-resolution gameplay clips (300x180, 10 frames per second) and responds to real-time interactions, including controller actions and in-game elements like power cells.{{Cite web |last=Warren |first=Tom |date=2025-02-19 |title=Microsoft's Xbox AI era starts with a model that can generate gameplay |url=https://www.theverge.com/news/615048/microsoft-xbox-generative-ai-model-gaming-muse |access-date=2025-02-20 |website=The Verge |language=en-US}} Microsoft demonstrated the technology using Ninja Theory's 2020 game Bleeding Edge.{{Cite web |author1=Samuel Tolbert |date=2025-02-19 |title=Microsoft is using a long-forgotten Xbox game for a new generative AI experiment |url=https://www.windowscentral.com/gaming/xbox/microsoft-muse-ai-gameplay-ninja-theory-bleeding-edge |access-date=2025-02-20 |website=Windows Central |language=en}} Nadella said that Microsoft plans to build Muse's engine from their library of games as well as testing games developed with help of Muse.{{cite web | url = https://www.videogameschronicle.com/news/microsofts-ceo-says-xbox-will-have-a-catalog-of-games-using-generative-ai/ | title = Microsoft's CEO says Xbox 'will have a catalog of games using generative AI' | first = Andy | last = Robinson | date = February 23, 2025 | accessdate = February 23, 2025 | work = Video Games Chronicle }}

On May 1, 2025, Microsoft Gaming announced that video game prices will increase to $80 USD by the end of the year, marking the first major price hike since 2020.{{Cite web |last=Valentine |first=Rebekah |date=2025-05-01 |title=Microsoft Raises the Price of All Xbox Series Consoles, Xbox Games Confirmed to Hit $80 This Holiday |url=https://www.ign.com/articles/microsoft-raises-the-price-of-all-xbox-series-consoles-xbox-games-confirmed-to-hit-80-this-holiday |access-date=2025-05-01 |website=IGN |language=en}} Later that month, a Windows Central report detailed that Microsoft had internally de-prioritized plans for their first-party Xbox handheld console, originally scheduled for 2027, to focus on improving the gaming performance on Windows 11 and leverage collaborations with third-party partners on Xbox-branded handheld PCs, such as "Project Keenan" developed by Asus.{{Cite web |last=published |first=Jez Corden |date=2025-05-29 |title=EXCLUSIVE: Xbox's first-party handheld has been sidelined (for now) |url=https://www.windowscentral.com/gaming/xbox/exclusive-xboxs-handheld-pembrooke-has-been-sidelined-for-now-as-microsoft-doubles-down-on-windows-11-pc-gaming-handheld-optimization |access-date=2025-05-30 |website=Windows Central |language=en}} The Verge later reported in June that the first-party Xbox handheld had been canceled behind-the-scenes to allocate more resources towards further developing the Xbox software platform and third-party devices.{{Cite web |last=Warren |first=Tom |date=2025-06-12 |title=Microsoft just teased its next-gen Xbox console, and nobody noticed |url=https://www.theverge.com/notepad-microsoft-newsletter/686101/microsoft-xbox-next-gen-console-handheld-hints-notepad |access-date=2025-06-12 |website=The Verge |language=en-US}} The Asus project was revealed in the June 2025 Xbox Games Showcase as the ROG Xbox Ally and a higher-end model, the ROG Xbox Ally X, a pair of Xbox-branded variants for the existing Asus ROG Ally and ROG Ally X handheld PCs.{{Cite web |last=Broadwell |first=Josh |date=2025-06-08 |title=The Xbox handheld is a new, more powerful Asus ROG Ally |url=https://www.polygon.com/gaming/605341/xbox-handheld-asus-rog-ally-2-reveal-specs |access-date=2025-06-09 |website=Polygon |language=en-US}} Both units run on a custom version of Windows with support for Xbox Game Pass, Xbox Cloud, Remote Play, supported Play Anywhere titles, and access to other PC stores such as Steam, Epic Games Store and Battle.net.{{Cite web |date=2025-06-09 |title=ROG Xbox Ally handheld gaming devices are real and will be released during the 2025 holiday season |url=https://www.engadget.com/gaming/xbox/rog-xbox-ally-handheld-gaming-devices-are-real-and-will-be-released-during-the-2025-holiday-season-142135533.html |access-date=2025-06-09 |website=Engadget |language=en-US}}{{Cite web |last=Skrebels |first=Joe |date=2025-06-08 |title=ROG Xbox Ally Handhelds Revealed: Experience Clair Obscur: Expedition 33, Gears of War: Reloaded and More - Wherever You Go |url=https://news.xbox.com/en-us/2025/06/08/xbox-handheld-rog-ally-x-games-showcase/ |access-date=2025-06-09 |website=Xbox Wire |language=en-US}} During The Outer Worlds 2 Direct segment following the Xbox Games Showcase, Microsoft also announced that the title would be the first game to be priced at $79.99 USD from Xbox Game Studios.{{Cite web |last=Yin-Poole |first=Wesley |date=2025-06-08 |title=The Outer Worlds 2 Is Microsoft's First Confirmed $80 Game |url=https://www.ign.com/articles/the-outer-worlds-2-is-microsofts-first-confirmed-80-game |access-date=2025-06-09 |website=IGN |language=en}}{{Cite web |title=The Outer Worlds 2 Launches at $80, Joining a New Trend in Gaming |url=https://www.cnet.com/tech/gaming/the-outer-worlds-2-launches-at-80-joining-a-new-trend-in-gaming/ |access-date=2025-06-09 |website=CNET |language=en}}

{{Main|Xbox}}

Microsoft Gaming develops and produces the Xbox line of home gaming consoles along with associated peripherals. The company supports the consoles with online services, utilizing the base Xbox network. Since the late 2010s, Microsoft began combining its standard paid subscription service, originally known as Xbox Live Gold, with Xbox Game Pass, which in addition to online multiplayer and matchmaking support, provides subscribers with a rotating library of games to play through the Xbox, on Windows computers, or through cloud gaming.

{{Main|List of Microsoft Gaming video games|List of Xbox Game Studios video games|List of Bethesda Softworks video games|List of Activision video games|List of Blizzard Entertainment games|List of King games}}

Among the video game franchises owned by Microsoft Gaming include Call of Duty, Halo, Minecraft, Warcraft, Diablo, StarCraft, Overwatch, The Elder Scrolls, Fallout, Crash Bandicoot, Spyro, Banjo-Kazooie, Perfect Dark, Doom, Wolfenstein, Quake, Dishonored, Pillars of Eternity, State of Decay, Hellblade, Gears of War, Fable, Forza, Tony Hawk's, Guitar Hero, Skylanders, Microsoft Flight Simulator, Age of Empires, and Candy Crush.

{{quote box

| quote = The business isn’t how many consoles you sell. The business is how many players are playing the games that they buy, how they play.

| source = —Phil Spencer on Xbox's business

| width = 25em

| salign = right

}}Microsoft Gaming's strategy in the video game industry is characterized by a commitment to inclusivity and accessibility.{{Cite web |title=Game on: An interview with Microsoft's head of gaming ecosystem {{!}} McKinsey |url=https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/game-on-an-interview-with-microsofts-head-of-gaming-ecosystem |access-date=2023-11-14 |website=www.mckinsey.com |archive-date=December 8, 2023 |archive-url=https://web.archive.org/web/20231208224105/https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/game-on-an-interview-with-microsofts-head-of-gaming-ecosystem |url-status=live }} The company aims to reach a wider audience and meet different gaming preferences by publishing games on mobile, PC and Xbox platforms.{{Cite web |last=Carpenter |first=Nicole |date=2021-06-21 |title=Xbox Game Studios exec says the focus is diversity — in games, studios, and players |url=https://www.polygon.com/interviews/22539158/xbox-game-studios-diversity-peter-wyse |access-date=2023-12-17 |website=Polygon |language=en-US |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217023138/https://www.polygon.com/interviews/22539158/xbox-game-studios-diversity-peter-wyse |url-status=live }} At the center of Microsoft Gaming's strategy is the Xbox Game Pass subscription service. This service offers a variety of game libraries for a monthly fee, emphasizing a shift towards a content-first platform.{{Cite web |title=Harvard Business Publishing Education |url=https://hbsp.harvard.edu/product/KE1246-PDF-ENG |access-date=2023-11-14 |website=hbsp.harvard.edu |archive-date=July 18, 2024 |archive-url=https://web.archive.org/web/20240718085224/https://hbsp.harvard.edu/product/KE1246-PDF-ENG |url-status=live }}{{Cite web |date=2020-09-15 |title=Microsoft explains why Xbox is now a service-first business |url=https://www.tweaktown.com/news/75185/microsoft-explains-why-xbox-is-now-service-first-business/index.html |access-date=2023-11-14 |website=TweakTown |language=en-US |archive-date=November 14, 2023 |archive-url=https://web.archive.org/web/20231114031436/https://www.tweaktown.com/news/75185/microsoft-explains-why-xbox-is-now-service-first-business/index.html |url-status=live }} Microsoft Gaming's chief financial officer (CFO), Tim Stuart, has asserted that Microsoft ceased disclosing the number of consoles sold in 2016 because their focus shifted towards content, services, and increased customer spending.{{Cite web |last=Nelva |first=Giuseppe |date=2023-11-28 |title=Xbox CFO Discusses Opportunities with AI, How Microsoft Measures Its Success in Games, and More |url=https://techraptor.net/gaming/news/xbox-cfo-discusses-opportunities-with-ai-how-microsoft-measures-its-success-in-games |access-date=2023-11-29 |website=TechRaptor |language=en |archive-date=November 29, 2023 |archive-url=https://web.archive.org/web/20231129173328/https://techraptor.net/gaming/news/xbox-cfo-discusses-opportunities-with-ai-how-microsoft-measures-its-success-in-games |url-status=live }}File:Phil_Spencer_Xbox.jpg of Microsoft Gaming since 2022.]]

Phil Spencer has expressed that his vision for Xbox has consistently aimed at shifting the brand's focus from being primarily console-centric to becoming a content-first platform, with a strong emphasis on prioritizing player engagement over sheer console sales.{{Cite web |last=Webster |first=Andrew |date=2019-06-11 |title=Xbox boss Phil Spencer on the future of gaming: "The business isn't how many consoles you sell" |url=https://www.theverge.com/2019/6/11/18661247/phil-spencer-interview-xbox-project-scarlett-xcloud-e3-2019 |access-date=2023-12-18 |website=The Verge |language=en |archive-date=March 4, 2020 |archive-url=https://web.archive.org/web/20200304094134/https://www.theverge.com/2019/6/11/18661247/phil-spencer-interview-xbox-project-scarlett-xcloud-e3-2019 |url-status=live }} Phil Spencer expressed his viewpoint by stating that the essence of the business lies not in the quantity of consoles sold but in the number of players actively participating in and enjoying the games they acquire, as well as the manner in which they choose to engage with them.{{Cite web |last=Batchelor |first=James Batchelor |date=2023-10-16 |title=So, Microsoft now owns Activision Blizzard. How will this affect the rest of the industry? |url=https://www.gamesindustry.biz/so-microsoft-now-owns-activision-blizzard-how-will-this-affect-the-rest-of-the-industry |access-date=2023-12-16 |website=GamesIndustry.biz |language=en |archive-date=December 16, 2023 |archive-url=https://web.archive.org/web/20231216030030/https://www.gamesindustry.biz/so-microsoft-now-owns-activision-blizzard-how-will-this-affect-the-rest-of-the-industry |url-status=live }}{{Cite web |last=Takahashi |first=Dean |date=2022-06-09 |title=Microsoft's Phil Spencer lays out a 20-year vision for games |url=https://venturebeat.com/games/microsofts-phil-spencer-lays-out-a-20-year-vision-for-games/ |access-date=2023-12-17 |website=VentureBeat |language=en-US |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217032823/https://venturebeat.com/games/microsofts-phil-spencer-lays-out-a-20-year-vision-for-games/ |url-status=live }}

By February 2024, Microsoft Gaming began planning to release their games on other platforms as part of a pivot in strategy to grow their franchises and compete with online game platforms like Fortnite and Roblox. Phil Spencer has stated that Xbox will continue to make exclusives and Game Pass will still be at the center of their strategy, but their goal is to expand the games with big communities.{{Cite web |last=Bailey |first=Kat |date=2024-02-15 |title=Xbox Business Update Confirms Four Exclusives Going Multi-Platform, Reveals Diablo 4 Game Pass Date |url=https://www.ign.com/articles/xbox-vision-of-the-future |access-date=2024-02-15 |website=IGN |language=en |archive-date=February 15, 2024 |archive-url=https://web.archive.org/web/20240215203218/https://www.ign.com/articles/xbox-vision-of-the-future |url-status=live }} Phil addresses the gaming industry's stagnation, acknowledging its impact on job cuts and tough decisions within companies. He emphasizes the necessity of industry growth for sustainability, advocating for a focus on expanding the player base rather than solely maximizing revenue from existing players. By prioritizing Xbox's growth through attracting new players and supporting creators, Phil aims to ensure long-term strength and success for the platform and the industry as a whole.{{Cite AV media |title=Updates on the Xbox Business {{!}} Official Xbox Podcast | date=February 15, 2024 |url=https://www.youtube.com/watch?v=KGlD9SO3rKU |via=YouTube |access-date=2024-02-15 |language=en |archive-date=February 15, 2024 |archive-url=https://web.archive.org/web/20240215204213/https://www.youtube.com/watch?v=KGlD9SO3rKU |url-status=live }}

Microsoft Gaming, as of October 2023, is the third largest video game publisher in the industry following Sony and Tencent. Microsoft Gaming owns three major video game publishers: Xbox Game Studios, ZeniMax Media (through Bethesda Softworks), and Activision Blizzard (which includes Activision, Blizzard Entertainment, and King).{{Cite web |date=2022-01-23 |title=What gaming companies does Microsoft own? |url=https://www.gamepur.com/guides/what-gaming-companies-does-microsoft-own |access-date=2023-11-14 |website=Gamepur |language=en-US |archive-date=November 14, 2023 |archive-url=https://web.archive.org/web/20231114033900/https://www.gamepur.com/guides/what-gaming-companies-does-microsoft-own |url-status=live }} In addition, Microsoft Gaming also publishes third-party games with Xbox Game Studios Publishing and helps indie video game studios to self-publish their own games with ID@Xbox.{{Cite web |date=2017-03-01 |title=Xbox Live Creators Program Lets All Users Self-Publish Games on Xbox One |url=https://www.digitaltrends.com/gaming/xbox-live-creators-program/ |access-date=2023-11-30 |website=Digital Trends |language=en |archive-date=July 18, 2024 |archive-url=https://web.archive.org/web/20240718085326/https://www.digitaltrends.com/gaming/xbox-live-creators-program/ |url-status=live }} Since Microsoft entered the video game industry in 2001, Sony has consistently been viewed as its main competitor.{{Cite web |last=Snider |first=Mike |title=Xbox and PlayStation: How Sony and Microsoft changed the way we play video games |url=https://www.usatoday.com/story/tech/2020/11/14/xbox-and-playstation-microsoft-and-sonys-history-video-games/6233775002/ |access-date=2023-11-30 |website=USA TODAY |language=en-US |archive-date=July 18, 2024 |archive-url=https://web.archive.org/web/20240718085324/https://www.usatoday.com/story/tech/2020/11/14/xbox-and-playstation-microsoft-and-sonys-history-video-games/6233775002/ |url-status=live }} But, Microsoft Gaming has stated that their main competitors are big tech companies, specifically Amazon, Google and Apple.{{Cite web |last=Shanley |first=Patrick |date=2020-02-05 |title=Xbox Head Sees Amazon, Google as "Main Competitors" |url=https://www.hollywoodreporter.com/business/digital/xbox-head-phil-spencer-says-amazon-google-are-main-competitors-1276497/ |access-date=2023-11-30 |website=The Hollywood Reporter |language=en-US |archive-date=December 4, 2023 |archive-url=https://web.archive.org/web/20231204212634/https://www.hollywoodreporter.com/business/digital/xbox-head-phil-spencer-says-amazon-google-are-main-competitors-1276497/ |url-status=live }}

Among the gaming franchises owned by Microsoft, Minecraft is the best-selling video game of all time, with 350 million units sold, while Call of Duty is the 4th best-selling video game series of all time with 500 million units across multiple installments sold and $30 billion in revenue.{{cite book |author=Mojang AB |url=https://books.google.com/books/about/Minecraft_Annual_2026.html?id=a7nv0AEACAAJ |title=Minecraft Annual 2026 |date=2025 |publisher=Farshore |access-date=April 5, 2025 |archive-url=https://web.archive.org/web/20250405083536/https://books.google.com/books/about/Minecraft_Annual_2026.html?id=a7nv0AEACAAJ |archive-date=April 5, 2025 |url-status=live |via=Google Books}}[https://www.washingtonpost.com/entertainment/video-games/2024/10/30/call-of-duty-black-ops-6-500-million-copies-sold/ At half a billion sales, Call of Duty is as good as it's ever been] "The Call of Duty series has sold more than 500 million copies to date, publisher Activision-Blizzard told The Washington Post. This elevates it to among the best-selling game franchises in history alongside “Tetris” and the Pokémon franchise, and behind Nintendo's Mario properties." October 30, 2024. Retrieved Oct 30, 2024. Microsoft CEO Satya Nadella announced that Microsoft Gaming now owns 20 franchises that have each generated over $1 billion in lifetime revenues.{{Cite web |date=2024-10-24 |title=Xbox has 20 video game franchises that have earned $1 billion |url=https://www.tweaktown.com/news/101314/xbox-has-20-video-game-franchises-that-have-earned-1-billion/index.html |access-date=2024-10-26 |website=TweakTown |language=en-US}} Candy Crush Saga alone generated $20 billion in lifetime revenue.{{Cite web |date=2023-09-27 |title=King's Candy Crush Saga hits $20bn in lifetime revenue {{!}} GamesIndustry.biz |url=https://www.gamesindustry.biz/kings-candy-crush-saga-hits-20bn-in-lifetime-revenue |archive-url=https://web.archive.org/web/20230927183216/https://www.gamesindustry.biz/kings-candy-crush-saga-hits-20bn-in-lifetime-revenue |archive-date=2023-09-27 |access-date=2023-11-14}} Following the acquisition of Activision Blizzard, Microsoft Gaming doubled the number of video game employees, studios and its revenue with the addition of Activision Blizzard to the company.{{Cite AV media |title=Phil Spencer on Activision Blizzard King + Xbox {{!}} Official Xbox Podcast | date=October 17, 2023 |url=https://www.youtube.com/watch?v=cgxuEV8xqEM |via=YouTube |access-date=2023-11-14 |language=en |archive-date=November 11, 2023 |archive-url=https://web.archive.org/web/20231111184719/https://www.youtube.com/watch?v=cgxuEV8xqEM |url-status=live }}{{Cite web |last=Ballard |first=John |date=2023-10-18 |title=Did Microsoft Waste $69 Billion on Activision Blizzard? |url=https://www.fool.com/investing/2023/10/18/microsoft-waste-69-billion-activision-blizzard/ |access-date=2023-11-14 |website=The Motley Fool |language=en |archive-date=November 8, 2023 |archive-url=https://web.archive.org/web/20231108102418/https://www.fool.com/investing/2023/10/18/microsoft-waste-69-billion-activision-blizzard/ |url-status=live }} In 2023, during an interview with Famitsu, Phil Spencer announced that, leveraging Activision Blizzard's capabilities, they are now planning to release a first-party video game every three months.{{Cite web |date=2023-10-31 |title=【VIPインタビュー】マイクロソフト フィル・スペンサー氏「Xboxとは、マルチデバイスで遊べるプレイヤーのコミュニティー」 {{!}} ゲーム・エンタメ最新情報のファミ通.com |url=https://www.famitsu.com/news/202310/31321751.html |access-date=2023-11-26 |website=ファミ通.com |language=ja |archive-date=November 26, 2023 |archive-url=https://web.archive.org/web/20231126162703/https://www.famitsu.com/news/202310/31321751.html |url-status=live }}{{Cite web |title=Microsoft Now Claims It's Actually Serious About Releasing Four First-Party Games Every Year |url=https://www.gamespot.com/articles/microsoft-now-claims-its-actually-serious-about-releasing-four-first-party-games-every-year/1100-6517226/ |access-date=2024-02-28 |website=GameSpot |language=en-US |archive-date=February 28, 2024 |archive-url=https://web.archive.org/web/20240228015526/https://www.gamespot.com/articles/microsoft-now-claims-its-actually-serious-about-releasing-four-first-party-games-every-year/1100-6517226/ |url-status=live }} Phil Spencer also talked about how creative freedom is crucial for Microsoft Gaming, emphasizing that they will not compel a video game studio to create a sequel. Microsoft Gaming will support developers in making whatever they want.{{Cite web |date=2023-05-04 |title=Phil Spencer won't force Xbox devs to make sequels, believes in creative freedom |url=https://www.tweaktown.com/news/91340/phil-spencer-wont-force-xbox-devs-to-make-sequels-believes-in-creative-freedom/index.html |access-date=2023-12-26 |website=TweakTown |language=en-US |archive-date=December 26, 2023 |archive-url=https://web.archive.org/web/20231226043657/https://www.tweaktown.com/news/91340/phil-spencer-wont-force-xbox-devs-to-make-sequels-believes-in-creative-freedom/index.html |url-status=live }}{{Cite AV media |title=Phil Spencer on Activision Blizzard King + Xbox {{!}} Official Xbox Podcast | date=October 17, 2023 |url=https://www.youtube.com/watch?v=cgxuEV8xqEM |via=YouTube |access-date=2023-12-26 |language=en |archive-date=November 11, 2023 |archive-url=https://web.archive.org/web/20231111184719/https://www.youtube.com/watch?v=cgxuEV8xqEM |url-status=live }}{{Cite web |last=Peters |first=Jay |date=2023-11-06 |title=Blizzard's president on the studio's "new era" under Xbox |url=https://www.theverge.com/2023/11/6/23949086/blizzard-president-mike-ybarra-new-era-xbox-microsoft-blizzcon-2023 |access-date=2023-12-26 |website=The Verge |language=en |archive-date=December 26, 2023 |archive-url=https://web.archive.org/web/20231226043657/https://www.theverge.com/2023/11/6/23949086/blizzard-president-mike-ybarra-new-era-xbox-microsoft-blizzcon-2023 |url-status=live }}{{Cite web |last=Williams |first=Callum |date=2020-10-18 |title=Phil Spencer Says It's Up to Rare To Make New Banjo-Kazooie and Conker Games |url=https://gamerant.com/new-banjo-kazooie-conker-games-xbox-series-x/ |access-date=2023-12-26 |website=Game Rant |language=en |archive-date=March 24, 2024 |archive-url=https://web.archive.org/web/20240324110323/https://gamerant.com/new-banjo-kazooie-conker-games-xbox-series-x/ |url-status=live }}

Microsoft Gaming's video game development business holds a strong position in the video game industry, regularly developing widely played titles. In certain video game genres such as first-person shooter (FPS) and role-playing games (RPG), Microsoft Gaming has held market dominance, owning popular FPS franchises like Call of Duty, Halo, Doom, Quake, Rage, and Overwatch, as well as RPG franchises such as The Elder Scrolls, Fallout, Fable, Pillars of Eternity, Wasteland, Warcraft, and Diablo.{{Cite web |last=Warren |first=Richard |date=2022-01-19 |title=After Xbox's Activision Blizzard Acquisition, It's Clear That PlayStation Needs an Exclusive FPS |url=https://gamerant.com/xbox-activision-blizzard-playstation-response-fps-needed-killzone-resistance/ |access-date=2023-11-19 |website=Game Rant |language=en |archive-date=July 18, 2024 |archive-url=https://web.archive.org/web/20240718085703/https://gamerant.com/xbox-activision-blizzard-playstation-response-fps-needed-killzone-resistance/ |url-status=live }}{{Cite web |date=2021-01-10 |title=Xbox is making big power plays for RPG dominance |url=https://www.tweaktown.com/news/77218/xbox-is-making-big-power-plays-for-rpg-dominance/index.html |access-date=2023-11-19 |website=TweakTown |language=en-US |archive-date=November 19, 2023 |archive-url=https://web.archive.org/web/20231119165946/https://www.tweaktown.com/news/77218/xbox-is-making-big-power-plays-for-rpg-dominance/index.html |url-status=live }} Starfield has become the biggest Bethesda game launch of all time.{{Cite web |last1=Bailey |first1=Kat |last2=Reilly |first2=Luke |date=2023-09-07 |title=Starfield Is Officially the Biggest Bethesda Game Launch of All Time |url=https://www.ign.com/articles/starfield-biggest-bethesda-rpg-of-all-time |access-date=2023-12-13 |website=IGN |language=en |archive-date=December 13, 2023 |archive-url=https://web.archive.org/web/20231213021232/https://www.ign.com/articles/starfield-biggest-bethesda-rpg-of-all-time |url-status=live }} Eleven of the twelve best-selling video games released in the United States in the last thirteen years were from the Call of Duty franchise. Microsoft also has a strong presence in the real-time strategy (RTS) sub-genre, platformer genre and racing game genre with popular franchises such as Age of Empires, StarCraft, Crash Bandicoot, Spyro, Banjo-Kazooie, and Forza.{{Cite web |last=Velde |first=Issy van der |date=2023-10-13 |title=Microsoft now officially owns PlayStation mascots Crash and Spyro |url=https://dotesports.com/business/news/microsoft-now-officially-owns-playstation-mascots-crash-and-spyro |access-date=2023-11-21 |website=Dot Esports |language=en-US |archive-date=November 21, 2023 |archive-url=https://web.archive.org/web/20231121052012/https://dotesports.com/business/news/microsoft-now-officially-owns-playstation-mascots-crash-and-spyro |url-status=live }}{{Cite web |last=Good |first=Owen S. |date=2021-11-04 |title=Forza Horizon 5's high-speed feast is bigger than the heartiest appetite |url=https://www.polygon.com/reviews/22762645/forza-horizon-5-review-xbox-game-pass-series-x-pc |access-date=2024-01-07 |website=Polygon |language=en-US |archive-date=March 2, 2022 |archive-url=https://web.archive.org/web/20220302112444/https://www.polygon.com/reviews/22762645/forza-horizon-5-review-xbox-game-pass-series-x-pc |url-status=live }} Microsoft Gaming holds a significant position in the multiplayer gaming, serving as one of the leading publishers of multiplayer and live-service games along with Take-Two Interactive, Electronic Arts and Tencent. Popular multiplayer titles under Microsoft Gaming's umbrella include Minecraft, Sea of Thieves, Grounded, Call of Duty: Warzone, World of Warcraft, Hearthstone, Overwatch 2, Diablo IV, The Elder Scrolls Online, Fallout 76, Halo Infinite, State of Decay 2, and many others.{{Cite news |last=Browning |first=Kellen |date=2022-01-19 |title=It's Not Complicated. Microsoft Wants Activision for Its Games. |language=en-US |work=The New York Times |url=https://www.nytimes.com/2022/01/19/technology/microsoft-activision-games.html |access-date=2023-11-19 |issn=0362-4331 |archive-date=November 19, 2023 |archive-url=https://web.archive.org/web/20231119172027/https://www.nytimes.com/2022/01/19/technology/microsoft-activision-games.html |url-status=live }}

Microsoft Gaming has had difficulties finding success in the third-person shooter (TPS) and single-player genre, finding it difficult to compete with industry leaders like Sony, Take-Two Interactive, Nintendo, Capcom, and Square Enix in this space. Despite intense efforts, the company faced difficulties in establishing itself and gaining the same level of recognition and market share as its competitors.{{Cite news |date=2013-11-17 |title=Why Xbox failed in Japan |language=en |work=Eurogamer.net |url=https://www.eurogamer.net/why-xbox-failed-in-japan |access-date=2023-11-19 |archive-date=July 1, 2022 |archive-url=https://web.archive.org/web/20220701152720/https://www.eurogamer.net/why-xbox-failed-in-japan |url-status=live }} This competitive landscape presented challenging obstacles that prompted Microsoft Gaming to re-evaluate their strategy and potentially explore other genres or approaches to improve their market position. Microsoft Gaming attempted to gain traction in the third-person single-player genre by developing titles like Gears of War, Quantum Break, and Sunset Overdrive. However, despite these efforts, the company continues to face challenges in competing successfully in this genre, struggling to match the market dominance of competitors such as Sony and Nintendo.{{Cite web |last=Cardy |first=Simon |date=2023-10-20 |title=Spider-Man 2 Proves PlayStation is Still King of Story-Driven Games |url=https://www.ign.com/articles/spider-man-2-proves-playstation-is-still-king-of-story-driven-games |access-date=2023-11-19 |website=IGN |language=en |archive-date=November 19, 2023 |archive-url=https://web.archive.org/web/20231119180246/https://www.ign.com/articles/spider-man-2-proves-playstation-is-still-king-of-story-driven-games |url-status=live }}{{Cite web |last=Tassi |first=Paul |title=Microsoft Explains Why It's Not Making Xbox Games Like 'Breath of the Wild' Or 'Horizon Zero Dawn' |url=https://www.forbes.com/sites/insertcoin/2017/04/29/microsoft-explains-why-its-not-making-xbox-games-like-breath-of-the-wild-or-horizon-zero-dawn/ |access-date=2023-11-19 |website=Forbes |language=en |archive-date=November 19, 2023 |archive-url=https://web.archive.org/web/20231119180248/https://www.forbes.com/sites/insertcoin/2017/04/29/microsoft-explains-why-its-not-making-xbox-games-like-breath-of-the-wild-or-horizon-zero-dawn/ |url-status=live }}

{{quote box

| quote = Today, big games like Fortnite and Roblox can actually be bigger than any one platform, and that really has changed the way we think about things.

| source = —Matt Booty on online game platforms

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Microsoft Gaming has stated that its acquisition of Activision Blizzard reflects a strategic effort to tap into the growing Metaverse trend in the gaming industry.{{Cite web |last=Peters |first=Jay |date=2022-02-19 |title=Read exactly how Microsoft's $68.7 billion deal for Activision Blizzard came together |url=https://www.theverge.com/22941636/microsoft-activision-blizzard-acquisition-sec-filing-came-together |access-date=2023-12-12 |website=The Verge |language=en |archive-date=June 29, 2023 |archive-url=https://web.archive.org/web/20230629011041/https://www.theverge.com/22941636/microsoft-activision-blizzard-acquisition-sec-filing-came-together |url-status=live }} For Microsoft, the Metaverse concept involves creating online game platforms where users can interact, similar to popular games like Grand Theft Auto V, Fortnite, and Roblox.{{Cite web |date=2023-12-11 |title=Former Fortnite Loremaster Shares Early Metaverse Ambitions |url=https://www.yahoo.com/lifestyle/former-fortnite-loremaster-shares-early-141848523.html |access-date=2023-12-12 |website=Yahoo Life |language=en-US |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033039/https://www.yahoo.com/lifestyle/former-fortnite-loremaster-shares-early-141848523.html |url-status=live }} Microsoft aims to incorporate strong social features and effective monetization strategies within games like Call of Duty, Minecraft and World of Warcraft to establish a competitive presence in the evolving landscape of virtual environments. According to Microsoft, this acquisition is not solely about expanding Microsoft's gaming portfolio but also about leveraging Activision Blizzard's established franchises to enhance the overall gaming experience.{{Cite web |last=Quah |first=Nicholas |date=2022-01-19 |title=It's All About the Metaverse |url=https://www.vulture.com/2022/01/microsoft-activision-blizzard-metaverse.html |access-date=2023-12-12 |website=Vulture |language=en |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033039/https://www.vulture.com/2022/01/microsoft-activision-blizzard-metaverse.html |url-status=live }}{{Cite news |last=Needleman |first=Sarah E. |date=2022-01-20 |title=What the Metaverse Has to Do With Microsoft's Deal for Activision Blizzard |language=en-US |work=Wall Street Journal |url=https://www.wsj.com/articles/what-the-metaverse-has-to-do-with-microsofts-deal-for-activision-11642674603 |access-date=2023-12-17 |issn=0099-9660 |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217032959/https://www.wsj.com/articles/what-the-metaverse-has-to-do-with-microsofts-deal-for-activision-11642674603 |url-status=live }} The move aligns with industry trends where companies are exploring ways to create immersive and interconnected virtual worlds, combining social interactions with in-game purchases.{{Cite news |last1=Barbaro |first1=Michael |last2=Guillemette |first2=Daniel |last3=Bonja |first3=Rachelle |last4=Krupke |first4=Eric |last5=Ploeg |first5=Luke Vander |last6=Benoist |first6=Mike |last7=Chow |first7=Lisa |last8=Powell |first8=Dan |last9=Lozano |first9=Marion |date=2022-01-20 |title=Microsoft and the Metaverse |language=en-US |work=The New York Times |url=https://www.nytimes.com/2022/01/20/podcasts/the-daily/metaverse-microsoft-activision-blizzard.html |access-date=2023-12-12 |issn=0362-4331 |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033039/https://www.nytimes.com/2022/01/20/podcasts/the-daily/metaverse-microsoft-activision-blizzard.html |url-status=live }} Microsoft has been observing the success of other Metaverse games. The company strategically positioning itself in the Metaverse trend, evident in its efforts to strengthen its gaming portfolio and explore opportunities for social interactions and monetization strategies within virtual environments.{{Cite web |date=2022-01-19 |title=What Microsoft's plans to buy Activision Blizzard means for the next version of the internet |url=https://www.weforum.org/agenda/2022/01/microsoft-buy-activision-blizzard-metaverse/ |access-date=2023-12-12 |website=World Economic Forum |language=en}} Microsoft's strategic positioning through acquisition of Activision Blizzard to play a significant role in shaping the future of gaming by integrating Metaverse elements into its gaming ecosystem.{{Cite web |last1=Frew |first1=Matthew |last2=Tzanidis |first2=Theo |date=2022-01-21 |title=How Microsoft's Activision Blizzard takeover will drive metaverse gaming into the mass market |url=http://theconversation.com/how-microsofts-activision-blizzard-takeover-will-drive-metaverse-gaming-into-the-mass-market-175453 |access-date=2023-12-12 |website=The Conversation |language=en-US |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033040/http://theconversation.com/how-microsofts-activision-blizzard-takeover-will-drive-metaverse-gaming-into-the-mass-market-175453 |url-status=live }} Microsoft Gaming plans to remain competitive in the evolving digital entertainment landscape.{{Cite web |title=Activision Blizzard deal positions Microsoft for the metaverse {{!}} TechTarget |url=https://www.techtarget.com/searchunifiedcommunications/news/252512262/Activision-Blizzard-deal-positions-Microsoft-for-the-metaverse |access-date=2023-12-12 |website=Unified Communications |language=en}}

Phil Spencer emphasized that for the Xbox brand to remain relevant, it must establish its presence on mobile, PC, and console platforms simultaneously.{{Cite news |date=2023-08-23 |title=Xbox must have mobile presence if it's going to thrive, Phil Spencer says |language=en |work=Eurogamer.net |url=https://www.eurogamer.net/xbox-must-have-mobile-presence-if-its-going-to-thrive-phil-spencer-says |access-date=2023-12-14 |archive-date=December 14, 2023 |archive-url=https://web.archive.org/web/20231214143534/https://www.eurogamer.net/xbox-must-have-mobile-presence-if-its-going-to-thrive-phil-spencer-says |url-status=live }} With the acquisition of Activision Blizzard, Microsoft Gaming has become a significant player in the mobile gaming industry.{{Cite web |last=Webster |first=Andrew |date=2022-01-18 |title=Microsoft's Activision acquisition would instantly make it a force in mobile gaming |url=https://www.theverge.com/2022/1/18/22889457/microsoft-activision-blizzard-acquisition-mobile-gaming-candy-crush |access-date=2023-12-18 |website=The Verge |language=en |archive-date=December 18, 2023 |archive-url=https://web.archive.org/web/20231218034154/https://www.theverge.com/2022/1/18/22889457/microsoft-activision-blizzard-acquisition-mobile-gaming-candy-crush |url-status=live }} As of 2024, Microsoft Gaming was the third-biggest mobile game developer in the world in terms of revenue.{{Cite web |last=Batchelor |first=James |date=2024-12-20 |title=GamesIndustry.biz presents… The Year In Numbers 2024 |url=https://www.gamesindustry.biz/gamesindustrybiz-presents-the-year-in-numbers-2024 |access-date=2025-03-04 |website=GamesIndustry.biz |language=en}} It owns one of the largest mobile game developers and publishers, King, and publishes popular mobile games such as Candy Crush Saga, Call of Duty: Mobile, Fallout Shelter, Diablo Immortal, and Call of Duty: Warzone Mobile.{{Cite web |last=Lowry |first=Brendan |date=2022-01-19 |title=Microsoft's Activision acquisition finally gives it a mobile gaming foothold |url=https://www.windowscentral.com/microsofts-activision-acquisition-gives-it-play-mobile-market |access-date=2023-11-14 |website=Windows Central |language=en}} Phil Spencer has reiterated multiple times that Microsoft Gaming desires to launch a new storefront in the mobile game industry to rival Apple and Google and break the mobile duopoly.{{Cite web |last=Patel |first=Nilay |date=2020-11-24 |title=Microsoft's Phil Spencer on launching the new Xbox and the future of games |url=https://www.theverge.com/21611412/microsoft-phil-spencer-interview-xbox-series-x-launch-decoder-podcast |access-date=2023-11-19 |website=The Verge |language=en |archive-date=November 24, 2020 |archive-url=https://web.archive.org/web/20201124210535/https://www.theverge.com/21611412/microsoft-phil-spencer-interview-xbox-series-x-launch-decoder-podcast |url-status=live }} In 2023, Bloomberg reported that Microsoft Gaming is in talks with video game publishers for a partnership to launch a mobile store aimed at competing with Google Play and App Store in the mobile gaming market.{{Cite news |date=2023-11-30 |title=Xbox Talking to Partners for Mobile Store, CEO Spencer Says |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2023-11-30/xbox-talking-to-partners-for-mobile-store-ceo-spencer-says |access-date=2023-11-30 |archive-date=November 30, 2023 |archive-url=https://web.archive.org/web/20231130221441/https://www.bloomberg.com/news/articles/2023-11-30/xbox-talking-to-partners-for-mobile-store-ceo-spencer-says |url-status=live }} In 2024, Sarah Bond announced that Microsoft Gaming would be launching its own mobile game store in July of that year, starting with a web-based version before expanding further. The store will initially showcase its first-party portfolio, featuring popular titles such as Candy Crush Saga and Minecraft. Subsequently, it will welcome other publishers to join.{{Cite web |title=Microsoft Plans Mobile Game Store, Vying With Apple, Google |url=https://www.bloomberg.com/news/articles/2024-05-09/microsoft-to-launch-mobile-game-store-vying-with-apple-google |access-date=2024-05-09 |website=www.bloomberg.com |archive-date=May 10, 2024 |archive-url=https://web.archive.org/web/20240510204423/https://www.bloomberg.com/news/articles/2024-05-09/microsoft-to-launch-mobile-game-store-vying-with-apple-google |url-status=live }}

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| footer = Xbox Series X on the left side and Xbox Series S on the right side – Microsoft Gaming's latest gaming consoles

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Microsoft entered the home video game console market in 2001 with release of the first-generation Xbox. It since has manufactured three successive systems, as of 2023, as part of the Xbox brand. Microsoft's latest gaming hardware, the Xbox Series X and Xbox Series S, were released in November 2020. The Series X is a high-performance console with powerful hardware for native 4K gaming, while the Series S offers a more affordable option with a focus on digital gaming at lower resolutions.{{Cite web |last=Porter |first=Jon |date=2020-09-14 |title=Xbox Series X and S: everything you need to know about the next gen of Xbox |url=https://www.theverge.com/21432635/xbox-series-x-s-release-date-news-price-features-specs-hardware-games |access-date=2023-11-15 |website=The Verge |language=en |archive-date=November 15, 2023 |archive-url=https://web.archive.org/web/20231115180709/https://www.theverge.com/21432635/xbox-series-x-s-release-date-news-price-features-specs-hardware-games |url-status=live }} Xbox Series X/S consoles sold 21 million units in total by 2023.{{Cite web |title=Xbox Series X/S Has Sold 21 Million Units, Xbox One at 58 Million, as Per Microsoft Brazil Presentation |url=https://gamingbolt.com/xbox-series-x-s-has-sold-21-million-units-xbox-one-at-58-million-as-per-microsoft-brazil-presentation |access-date=2023-11-14 |website=GamingBolt |language=en-US |archive-date=June 30, 2023 |archive-url=https://web.archive.org/web/20230630182859/https://gamingbolt.com/xbox-series-x-s-has-sold-21-million-units-xbox-one-at-58-million-as-per-microsoft-brazil-presentation |url-status=live }} Phil Spencer emphasized that Microsoft Gaming is selling consoles at a loss, losing $200 per unit sold. However, Microsoft Gaming is compensating for this loss by taking a 30% cut from sales of third-party games on its platform.{{Cite web |title=Microsoft Loses Up to $200 on Every Xbox Console Sold |url=https://www.pcmag.com/news/microsoft-loses-up-to-200-on-every-xbox-console-sold |access-date=2023-12-16 |website=PCMAG |date=November 2022 |language=en |archive-date=December 16, 2023 |archive-url=https://web.archive.org/web/20231216035817/https://www.pcmag.com/news/microsoft-loses-up-to-200-on-every-xbox-console-sold |url-status=live }}{{Cite web |date=2022-10-31 |title=Microsoft Loses Between $100-$200 On Every Xbox It Sells |url=https://kotaku.com/xbox-series-x-s-phil-spencer-loss-200-raising-prices-1849725059 |access-date=2023-12-17 |website=Kotaku |language=en |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217010024/https://kotaku.com/xbox-series-x-s-phil-spencer-loss-200-raising-prices-1849725059 |url-status=live }}

Microsoft and Sony have been longstanding rivals in the console hardware market since 2001. The competition reached a peak during the seventh console generation, with the Xbox 360 emerging as the primary competitor to Sony's PlayStation 3 (PS3). In the subsequent generation, Sony's PlayStation 4 (PS4) outperformed Microsoft's Xbox One, selling twice as many consoles.{{Cite news |date=2022-08-14 |title=PS4 sold "twice as many" units as Xbox One, new court papers show |language=en |work=Eurogamer.net |url=https://www.eurogamer.net/ps4-sold-twice-as-many-units-as-xbox-one-new-court-papers-show |access-date=2023-11-19 |archive-date=December 29, 2023 |archive-url=https://web.archive.org/web/20231229201844/https://www.eurogamer.net/ps4-sold-twice-as-many-units-as-xbox-one-new-court-papers-show |url-status=live }} During the eighth generation of gaming consoles, the PlayStation 4 sold 117 million units, the Nintendo Switch sold 133 million units, and the Xbox One sold 58 million units. Sony's success is attributed to its exclusive game catalog and marketing techniques. Microsoft initially prioritized multimedia features over gaming capabilities; Sony has managed to exploit the perceptual gap. PlayStation 4 and Nintendo Switch have surpassed Xbox One due to their design and large portfolio of first-party games.{{Cite web |last=Warren |first=Tom |date=2022-08-15 |title=Microsoft finally admits Xbox One sales were less than half of the PS4 |url=https://www.theverge.com/2022/8/15/23306068/microsoft-xbox-one-sales-lifetime-versus-ps4-sales |access-date=2023-11-19 |website=The Verge |language=en |archive-date=February 7, 2023 |archive-url=https://web.archive.org/web/20230207093825/https://www.theverge.com/2022/8/15/23306068/microsoft-xbox-one-sales-lifetime-versus-ps4-sales |url-status=live }}{{Cite web |last=rawmeatcowboy |date=2023-02-28 |title=New report shows market share and more between Nintendo, Sony and Microsoft |url=https://gonintendo.com/contents/16868-new-report-shows-market-share-and-more-between-nintendo-sony-and-microsoft |access-date=2023-11-19 |website=GoNintendo |language=en |archive-date=November 21, 2023 |archive-url=https://web.archive.org/web/20231121031300/https://gonintendo.com/contents/16868-new-report-shows-market-share-and-more-between-nintendo-sony-and-microsoft |url-status=live }} In 2017, Xbox began rethinking its tactics and placing more emphasis on exclusive content and gaming-focused methods to better compete in the market. The Xbox Series X/S consoles continued to face challenges in competing against the Nintendo Switch and PlayStation 5 (PS5).{{Cite web |last=Shirey |first=J. Brodie |date=2023-07-27 |title=PS5 Console Sales Way Ahead of Xbox |url=https://gamerant.com/ps5-console-sales-xbox-numbers-comparison/ |access-date=2023-11-19 |website=Game Rant |language=en |archive-date=September 20, 2023 |archive-url=https://web.archive.org/web/20230920040637/https://gamerant.com/ps5-console-sales-xbox-numbers-comparison/ |url-status=live }}

The console gaming market is defined as the combined total of console hardware, console game content, and console subscriptions. As of 2023, with a 45% market share in PlayStation system hardware, games, and services, Sony remains the worldwide industry leader, followed by Nintendo with a 27.7% market share and Microsoft with a 27.3% market share.{{Cite web |last=rawmeatcowboy |date=2023-02-28 |title=New report shows market share and more between Nintendo, Sony and Microsoft |url=https://gonintendo.com/contents/16868-new-report-shows-market-share-and-more-between-nintendo-sony-and-microsoft |access-date=2023-12-23 |website=GoNintendo |language=en |archive-date=November 21, 2023 |archive-url=https://web.archive.org/web/20231121031300/https://gonintendo.com/contents/16868-new-report-shows-market-share-and-more-between-nintendo-sony-and-microsoft |url-status=live }} Sony has a 70% share of the global high-end console market, while Microsoft has a 30% market share as of 2023.{{Cite web |date=2023-02-21 |title=PlayStation has a 70% share of the global console market versus Xbox's 30%, Microsoft claims |url=https://www.videogameschronicle.com/news/playstation-has-a-70-share-of-the-global-console-market-versus-xboxs-30-microsoft-claims/ |access-date=2023-11-19 |website=VGC |language=en-GB |archive-date=November 19, 2023 |archive-url=https://web.archive.org/web/20231119185634/https://www.videogameschronicle.com/news/playstation-has-a-70-share-of-the-global-console-market-versus-xboxs-30-microsoft-claims/ |url-status=live }}

At a bilateral trade discussion between the United States and Japan, United States senator Maria Cantwell from Washington raised concerns regarding what she perceived as a dominant market position held by PlayStation.{{Cite web |author1=Jez Corden |date=2023-03-23 |title=During trade talks with Japan, a U.S. senator called out PlayStation's 'monopoly,' defending Xbox |url=https://www.windowscentral.com/gaming/xbox/during-trade-talks-with-japan-a-us-senator-called-out-playstations-monopoly-defending-xbox |access-date=2023-12-22 |website=Windows Central |language=en |archive-date=December 22, 2023 |archive-url=https://web.archive.org/web/20231222212827/https://www.windowscentral.com/gaming/xbox/during-trade-talks-with-japan-a-us-senator-called-out-playstations-monopoly-defending-xbox |url-status=live }} The senator specifically highlighted the perceived monopoly by PlayStation and expressed support for Xbox as a competitive alternative. During a Senate Finance Committee hearing featuring U.S. Trade Representative Katherine Tai, Senator Cantwell highlighted concerns about high-end game market in Japan, asserting that PlayStation holds a 98% monopoly in this sector in Japan. Cantwell expressed disapproval of what was characterized as Sony's anti-competitive behavior facilitated by exclusive deals and payments to game publishers. The senator further criticized Japan Fair Trade Commission for purportedly neglecting to investigate Sony's conduct, referring to it as "exclusionary." Cantwell sought insights into how Japan aimed to establish a "level playing field" in response to these perceived issues.{{Cite web |title=POLITICO Pro: Cantwell calls out Sony's gaming 'monopoly' in exchange with U.S. Trade Rep Tai |url=https://subscriber.politicopro.com/article/2023/03/cantwell-calls-out-sonys-gaming-monopoly-in-exchange-with-us-trade-rep-tai-00088607 |access-date=2023-12-22 |website=subscriber.politicopro.com |language=en |archive-date=December 22, 2023 |archive-url=https://web.archive.org/web/20231222212829/https://subscriber.politicopro.com/article/2023/03/cantwell-calls-out-sonys-gaming-monopoly-in-exchange-with-us-trade-rep-tai-00088607 |url-status=live }}

Microsoft Gaming manages numerous software services, including Xbox Game Pass, Xbox Cloud Gaming, Xbox Network, Microsoft Store, and Battle.net. The Xbox Network experienced substantial growth, with 120 million monthly active players as of December 2022, marking a notable increase from 46 million at the beginning of 2016.{{Cite web |date=2023-01-25 |title=Xbox Surpasses 120M Monthly Active Users, As Game Pass Reaches 'New Highs' |url=https://www.purexbox.com/news/2023/01/xbox-surpasses-120m-monthly-active-users-as-game-pass-reaches-new-highs |access-date=2023-12-17 |website=Pure Xbox |language=en-GB |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217065005/https://www.purexbox.com/news/2023/01/xbox-surpasses-120m-monthly-active-users-as-game-pass-reaches-new-highs |url-status=live }}{{Cite web |last=Staff |first=G. R. |date=2016-04-21 |title=Microsoft Reports Xbox Live User Base is Over 46 Million |url=https://gamerant.com/microsoft-xbox-live-user-base-size-460/ |access-date=2023-12-17 |website=Game Rant |language=en |archive-date=January 1, 2023 |archive-url=https://web.archive.org/web/20230101035310/https://gamerant.com/microsoft-xbox-live-user-base-size-460/ |url-status=live }} By July 30, 2024, the number of monthly active players had reached 500 million following the acquisition of Activision Blizzard.{{Cite web |title=Microsoft Gaming Marks 500 Million Monthly Players, Notes Fallout TV Show's Impact On Game Pass |url=https://www.gamespot.com/articles/microsoft-gaming-marks-500-million-monthly-players-notes-fallout-tv-shows-impact-on-game-pass/1100-6525422/ |access-date=2024-08-03 |website=GameSpot |language=en-US}}

Microsoft created Xbox Game Pass in 2017. Xbox Game Pass is a subscription service that offers a vast library of games for a monthly fee. This includes a mix of first-party titles, third-party games, and titles available across PC and console platforms. The service has been praised for its value and has become a significant part of Microsoft's gaming strategy.{{Cite web |last=Warren |first=Tom |date=2022-10-26 |title=Microsoft says Xbox Game Pass is profitable as it sees subscription growth slow |url=https://www.theverge.com/2022/10/26/23425029/microsoft-xbox-game-pass-profitable-revenues |access-date=2023-11-14 |website=The Verge |language=en |archive-date=November 14, 2023 |archive-url=https://web.archive.org/web/20231114031600/https://www.theverge.com/2022/10/26/23425029/microsoft-xbox-game-pass-profitable-revenues |url-status=live }} In 2022, Microsoft announces Xbox Game Pass surpassed 25 million subscribers.{{Cite web |last=Warren |first=Tom |date=2022-01-18 |title=Microsoft's Xbox Game Pass service grows to 25 million subscribers |url=https://www.theverge.com/2022/1/18/22406059/xbox-game-pass-subscribers-25-million-microsoft-activision |access-date=2023-11-14 |website=The Verge |language=en |archive-date=January 18, 2022 |archive-url=https://web.archive.org/web/20220118140831/https://www.theverge.com/2022/1/18/22406059/xbox-game-pass-subscribers-25-million-microsoft-activision |url-status=live }} Microsoft Gaming is investing over $1 billion in the gaming market annually to expand the Game Pass library by bringing in third-party games.{{Cite web |author1=Jez Corden |date=2023-12-01 |title="We have no plans to bring Xbox Game Pass to PlayStation or Nintendo." Xbox CEO Phil Spencer on console hardware, the future of Activision-Blizzard, and much more |url=https://www.windowscentral.com/gaming/phil-spencer-jez-corden-xbox-interview-2023 |access-date=2023-12-01 |website=Windows Central |language=en |archive-date=December 1, 2023 |archive-url=https://web.archive.org/web/20231201222437/https://www.windowscentral.com/gaming/phil-spencer-jez-corden-xbox-interview-2023 |url-status=live }} By February 15, 2024, the number of Xbox Game Pass subscribers reached 34 million.

Microsoft Gaming launched Xbox Cloud Gaming for Xbox Game Pass Ultimate subscribers on September 15, 2020. Xbox Cloud Gaming is Microsoft's cloud gaming service designed to allow users to play high-quality video games via streaming on a variety of devices. The service uses cloud technology to enable gaming on devices such as smartphones, tablets and PCs without the need for high-end hardware.

Microsoft Gaming oversees the management and licensing of its gaming franchises to external production studios. The division has expressed that these partnerships are aimed at bringing the beloved gaming universes to a wider audience through the medium of television.

Licensed completed works or those in production include the following: the Halo television series, produced by Showtime Networks and released in 2022;{{Cite web |last=Littleton |first=Cynthia |date=2022-06-21 |title=The 'Halo' Effect: Paramount+ Series Brings Global Audience to Streamer |url=https://variety.com/2022/tv/news/halo-paramount-343-industries-microsoft-tv-1235300209/ |access-date=2023-11-28 |website=Variety |language=en-US |archive-date=November 27, 2022 |archive-url=https://web.archive.org/web/20221127060909/https://variety.com/2022/tv/news/halo-paramount-343-industries-microsoft-tv-1235300209/ |url-status=live }} the Fallout television series, produced by Amazon MGM Studios and released in 2024;{{Cite web |last=Lealos |first=Shawn S. |date=2023-07-03 |title=The Minecraft Movie: When Production Starts, Story & Everything We Know |url=https://screenrant.com/the-minecraft-movie-when-production-starts-story-everything-we-know/ |access-date=2023-11-28 |website=ScreenRant |language=en}} the Minecraft feature film, produced by Warner Bros. with a release in 2025;{{Cite web |date=2023-04-05 |title=Jason Momoa's 'Minecraft' Books April 2025 Release Date in Theaters |url=https://www.hollywoodreporter.com/movies/movie-news/minecraft-april-2025-release-theaters-1235368050/ |access-date=2023-05-12 |website=The Hollywood Reporter |archive-date=April 5, 2023 |archive-url=https://web.archive.org/web/20230405204710/https://www.hollywoodreporter.com/movies/movie-news/minecraft-april-2025-release-theaters-1235368050/ |url-status=live }} the Minecraft animated television series, to be produced by WildBrain;{{cite web|url=https://www.eurogamer.net/minecraft-animated-series-announced-for-netflix|title=Minecraft animated series announced for Netflix|website=Eurogamer.net|date=2024-05-30|access-date=2024-05-31}} the Gears of War live-action feature film as well as its adult animated spin-off series, to be produced by Netflix;{{cite web|url=https://www.hollywoodreporter.com/movies/movie-news/gears-of-war-franchise-feature-film-animated-series-adaptations-netflix-1235256913/|title='Gears of War' Video Game Franchise to Get Feature Film, Animated Series Adaptations at Netflix (Exclusive)|last=Kit|first=Borys|website=The Hollywood Reporter|date=November 7, 2022|access-date=November 7, 2022|archive-date=November 7, 2022|archive-url=https://web.archive.org/web/20221107190203/https://www.hollywoodreporter.com/movies/movie-news/gears-of-war-franchise-feature-film-animated-series-adaptations-netflix-1235256913/|url-status=live}} the Grounded animated television series, to be produced by Bardel Entertainment;{{Cite web |last=Roth |first=Emma |date=2022-07-19 |title=Xbox's "Grounded" is getting an animated TV adaption |url=https://www.theverge.com/2022/7/19/23269840/xbox-grounded-animated-tv-show |access-date=2024-05-29 |website=The Verge |language=en |archive-date=May 29, 2024 |archive-url=https://web.archive.org/web/20240529204014/https://www.theverge.com/2022/7/19/23269840/xbox-grounded-animated-tv-show |url-status=live }} and others.

Fallout television series became Amazon Prime Video's most successful series since The Lord of the Rings: The Rings of Power, attracting 65 million viewers.{{Cite news |last=published |first=Christopher Livingston |date=2024-04-29 |title=That's rad: with 65 million viewers, the Fallout show is Amazon's biggest hit since The Rings of Power |url=https://www.pcgamer.com/movies-tv/thats-rad-with-65-million-viewers-the-fallout-show-is-amazons-biggest-hit-since-the-rings-of-power/ |access-date=2025-04-16 |work=PC Gamer |language=en}} A Minecraft Movie debuted with a domestic opening weekend of $157 million from 4,269 theaters, surpassing previous records for video game adaptations. Its global opening totaled $301 million, positioning it as one of the most successful video game-based film launches to date.{{Cite web |last=Fuster |first=Jeremy |date=2025-04-06 |title='A Minecraft Movie' Sets Video Game Box Office Record With $157 Million Opening |url=https://www.thewrap.com/minecraft-video-game-box-office-record/ |access-date=2025-04-16 |website=TheWrap |language=en-US}}

File:Xbox fair stand Gamescom 2019 (48605721741).jpg |300x300px]]

In terms of international engagement, Microsoft Gaming has actively participated in key gaming expos worldwide. The company has been a notable presence at events such as E3 and Summer Game Fest in the United States, Gamescom in Germany, Paris Games Week in France, the Tokyo Game Show in Japan, and CCXP in Brazil.{{Cite web |title=Multiplatform |url=https://multiplatform.com/news/xbox-announced-its-attendance-at-gamescome-2023/ |access-date=2023-12-12 |website=multiplatform.com}}{{Cite web |author1=Alexander Cope |date=2023-07-04 |title=Xbox is set to attend the 'biggest ever' Tokyo Game Show |url=https://www.windowscentral.com/gaming/xbox/xbox-is-set-to-attend-the-biggest-ever-tokyo-game-show |access-date=2023-12-12 |website=Windows Central |language=en |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033039/https://www.windowscentral.com/gaming/xbox/xbox-is-set-to-attend-the-biggest-ever-tokyo-game-show |url-status=live }}{{cite web|title=Xbox à la Paris Games Week 2023 : tout ce que vous devez savoir|url=https://news.xbox.com/fr-fr/2023/10/25/xbox-a-la-paris-games-week-2023-tout-ce-que-vous-devez-savoir/|website=Xbox Wire|date=October 25, 2023|access-date=December 12, 2023|archive-date=December 12, 2023|archive-url=https://web.archive.org/web/20231212190046/https://news.xbox.com/fr-fr/2023/10/25/xbox-a-la-paris-games-week-2023-tout-ce-que-vous-devez-savoir/|url-status=live}} The company organizes major gaming conventions such as BlizzCon and QuakeCon, and also have other shows, including Developers Direct, Xbox Partner Preview, Xbox Games Showcase, Inside Xbox and Xbox X0.{{cite web|title=X019: all the news from Microsoft's big Xbox event|first=Cameron|last=Faulkner|url=https://www.theverge.com/2019/11/14/20965398/microsoft-xbox-event-x019-news-xcloud-game-pass-updates|date=November 14, 2019|access-date=December 12, 2023|archive-date=December 10, 2023|archive-url=https://web.archive.org/web/20231210120626/https://www.theverge.com/2019/11/14/20965398/microsoft-xbox-event-x019-news-xcloud-game-pass-updates|url-status=live}}

Phil Spencer emphasized that participating in large gaming expos and maintaining transparency is essential to connect with their business partners, fans, consumers and various gaming communities, showcase their latest innovations, and engage with fans on a global scale.{{Cite web |date=2022-03-14 |title=Phil Spencer 'Enjoys The Transparency' Xbox Has With Its Fanbase |url=https://www.purexbox.com/news/2022/03/phil-spencer-enjoys-the-transparency-xbox-has-with-its-fanbase |access-date=2023-12-12 |website=Pure Xbox |language=en-GB |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033039/https://www.purexbox.com/news/2022/03/phil-spencer-enjoys-the-transparency-xbox-has-with-its-fanbase |url-status=live }} Following the troubled launch of Redfall, Phil Spencer, in an interview with Kinda Funny Games, has apologized to the fans and pledged to provide a more robust roadmap for releasing high-quality games.{{Cite news |author1=Andy Chalk |date=2023-05-04 |title=Phil Spencer apologizes for Redfall's 'disappointing' launch but promises to keep working on it |language=en |work=PC Gamer |url=https://www.pcgamer.com/phil-spencer-apologizes-for-redfalls-disappointing-launch-but-promises-to-keep-working-on-it/ |access-date=2023-12-13}}{{Cite AV media |title=Phil Spencer Interview: Redfall Reviews, Activision Deal - Kinda Funny Xcast Ep. 137 | date=May 4, 2023 |url=https://www.youtube.com/watch?v=yKwfEQ1eEyM |via=YouTube |access-date=2023-12-17 |language=en |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217034930/https://www.youtube.com/watch?v=yKwfEQ1eEyM |url-status=live }}

Microsoft Gaming has faced criticism from video game journalists and industry observers regarding its strategic acquisitions. The company's move to acquire major gaming publishers, including the notable purchase of ZeniMax Media and Activision Blizzard, has sparked debates about potential monopolistic tendencies.{{Cite news |last=MacDonald |first=Keza |date=2022-01-19 |title=Monopoly money: is Microsoft's acquisition of Activision Blizzard good for gaming? |language=en-GB |work=The Guardian |url=https://www.theguardian.com/games/2022/jan/19/monopoly-money-is-microsofts-acquisition-of-activision-blizzard-good-for-gaming |access-date=2023-12-12 |issn=0261-3077}}{{Cite web |last=Chan |first=Anson |date=2021-04-06 |title=Growing Xbox: What a Gaming Monopoly Could Look Like |url=https://techraptor.net/gaming/opinions/microsoft-discord-monopoly |access-date=2023-12-17 |website=TechRaptor |language=en}} Critics argue that such acquisitions may concentrate too much power within Microsoft, raising concerns about healthy competition within the gaming industry. Various Video game journalists have criticized Microsoft Gaming of attempting to create a monopoly by acquiring two significant gaming publishers.{{Cite web |date=2022-01-18 |title=Microsoft's Activision Blizzard purchase is a disaster for gaming |url=https://www.digitaltrends.com/gaming/microsoft-activison-blizzard-monopoly/ |access-date=2023-12-12 |website=Digital Trends |language=en |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033039/https://www.digitaltrends.com/gaming/microsoft-activison-blizzard-monopoly/ |url-status=live }}{{Cite web |date=2022-07-19 |title=The Monopoly Game: How Consolidation Jeopardizes Content Independence in Gaming |url=https://amt-lab.org/blog/2022/7/the-monopoly-game-how-consolidation-jeopardizes-artistic-independence-in-gaming |access-date=2023-12-12 |website=AMT Lab @ CMU |language=en-US |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212033040/https://amt-lab.org/blog/2022/7/the-monopoly-game-how-consolidation-jeopardizes-artistic-independence-in-gaming |url-status=live }} The concern centers around the potential impact on market competition, with skeptics worrying that the consolidation of major titles under one umbrella might limit choices for gamers and stifle innovation.{{Cite web |last=Tedder |first=Michael |date=2022-01-18 |title=Microsoft Purchases Activision Blizzard; Plans To Dominates The Metaverse |url=https://www.thestreet.com/investing/microsoft-wants-to-be-the-disney-of-video-games-metaverse |access-date=2023-12-12 |website=TheStreet |language=en-us |archive-date=January 20, 2022 |archive-url=https://web.archive.org/web/20220120130519/https://www.thestreet.com/investing/microsoft-wants-to-be-the-disney-of-video-games-metaverse |url-status=live }}

There has been controversy surrounding Microsoft's mismanagement of their gaming studios. Following the failed launch of Halo Infinite and Redfall, critics have started to criticize Microsoft for this issue.{{Cite web |author1=Jennifer Young |date=2023-06-01 |title=New report reveals more from inside Redfall's troubled development |url=https://www.windowscentral.com/gaming/xbox/new-report-reveals-more-from-inside-redfalls-troubled-development |access-date=2023-12-12 |website=Windows Central |language=en |archive-date=December 12, 2023 |archive-url=https://web.archive.org/web/20231212125720/https://www.windowscentral.com/gaming/xbox/new-report-reveals-more-from-inside-redfalls-troubled-development |url-status=live }}{{Cite news |author1=Ted Litchfield |date=2023-01-19 |title=Former Halo Infinite dev criticizes studio leadership, says layoffs 'shouldn't have happened' |language=en |work=PC Gamer |url=https://www.pcgamer.com/former-halo-infinite-dev-criticizes-studio-leadership-says-layoffs-shouldnt-have-happened/ |access-date=2023-12-17 |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217023137/https://www.pcgamer.com/former-halo-infinite-dev-criticizes-studio-leadership-says-layoffs-shouldnt-have-happened/ |url-status=live }} There have been reports about Everwild and Perfect Dark also being in development hell.{{Cite web |title=Everwild rebooted |url=https://www.bing.com:9943/search?q=Everwild+rebooted&FORM=AWRE |access-date=2023-12-12 |website=Bing |language=en}}{{Cite web |title=Perfect Dark in development hell |url=https://www.bing.com:9943/search?q=Perfect+Dark++in+development+hell&qs=n&form=QBRE&sp=-1&lq=0&pq=perfect+dark++in+development+hell&sc=1-33&sk=&cvid=3C32DB7AC7EF4F9E91A87136D53AC4D4&ghsh=0&ghacc=0&ghpl= |access-date=2023-12-12 |website=Bing |language=en}} Most of the criticism was directed at Matt Booty, President of Game Content and Studios, for his past management of Xbox Game Studios division.{{Cite web |author1=Miles Dompier |date=2023-06-13 |title=Matt Booty of Xbox Game Studios addresses Redfall's launch and fan expectations |url=https://www.windowscentral.com/gaming/matt-booty-of-xbox-game-studios-addresses-redfalls-launch-and-fan-expectations |access-date=2023-12-12 |website=Windows Central |language=en}}

Microsoft Gaming has faced criticism on multiple occasions for video game layoffs. In 2022, 343 Industries lost over 60 employees due to layoffs, leading to public criticism from several former 343 Industries employees regarding Microsoft's leadership and management policies.{{Cite web |last=updated |first=Brendan Lowry last |date=2023-01-19 |title=Former 343i devs respond to Microsoft layoffs: 'They set Halo up for failure' (Update) |url=https://www.windowscentral.com/gaming/former-343i-devs-respond-to-microsoft-layoffs-they-set-halo-up-for-failure |access-date=2024-01-27 |website=Windows Central |language=en |archive-date=January 27, 2024 |archive-url=https://web.archive.org/web/20240127015637/https://www.windowscentral.com/gaming/former-343i-devs-respond-to-microsoft-layoffs-they-set-halo-up-for-failure |url-status=live }} In 2024, Microsoft Gaming underwent another round of layoffs, with Microsoft laying off 1,900 employees. Additionally, during this time, Microsoft canceled Blizzard Entertainment's new game Project Odyssey, which also garnered criticism from fans and journalists.{{Cite web |date=2024-01-26 |title=Report: Microsoft Cancels Blizzard's Survival Game Amid Layoffs |url=https://kotaku.com/xbox-activision-blizzard-odyssey-survival-game-cancel-1851200488 |access-date=2024-01-27 |website=Kotaku |language=en |archive-date=January 27, 2024 |archive-url=https://web.archive.org/web/20240127015637/https://kotaku.com/xbox-activision-blizzard-odyssey-survival-game-cancel-1851200488 |url-status=live }} FTC expressed concern that Microsoft's layoffs seemed inconsistent with past claims of preserving operational autonomy post-Activision Blizzard acquisition.{{Cite web |date=2024-02-08 |title=FTC complains about Microsoft's decision to cut Activision Blizzard jobs in court filing |url=https://www.videogameschronicle.com/news/ftc-complains-about-microsofts-decision-to-cut-activision-blizzard-jobs-in-court-filing/ |access-date=2024-02-08 |website=VGC |language=en-GB |archive-date=February 8, 2024 |archive-url=https://web.archive.org/web/20240208105000/https://www.videogameschronicle.com/news/ftc-complains-about-microsofts-decision-to-cut-activision-blizzard-jobs-in-court-filing/ |url-status=live }} Microsoft, in a statement, claimed that Activision Blizzard had already been planning to eliminate a significant number of jobs while still operating independently, and that these layoffs are unrelated to the merger.{{Cite web |date=2024-02-08 |title=Microsoft replies to the FTC's complaint about layoffs, says Activision was already planning job cuts |url=https://www.videogameschronicle.com/news/microsoft-replies-to-the-ftcs-complaint-about-layoffs-says-activision-was-already-planning-job-cuts/ |access-date=2024-02-08 |website=VGC |language=en-GB |archive-date=February 8, 2024 |archive-url=https://web.archive.org/web/20240208183004/https://www.videogameschronicle.com/news/microsoft-replies-to-the-ftcs-complaint-about-layoffs-says-activision-was-already-planning-job-cuts/ |url-status=live }}

After several studio closures, multiple Microsoft employees and video game journalists criticized Microsoft for its decision. Dinga Bakaba, the studio head of Arkane Lyon, publicly criticized Microsoft Gaming executives for their decision to close several studios. He emphasized the importance of taking care of artists and entertainers in the video game industry, highlighting that their role is to create value for corporations.{{Cite web |date=2024-05-07 |title='A f***ing gut stab': Arkane boss criticises Microsoft execs for studio closures |url=https://www.videogameschronicle.com/news/a-fing-gut-stab-arkane-boss-criticises-microsoft-execs-for-studio-closures/ |access-date=2024-05-07 |website=VGC |language=en-GB |archive-date=May 7, 2024 |archive-url=https://web.archive.org/web/20240507203700/https://www.videogameschronicle.com/news/a-fing-gut-stab-arkane-boss-criticises-microsoft-execs-for-studio-closures/ |url-status=live }} Booty was also criticized for comments he made during a town hall meeting with employees following the closures, in which he stated that Microsoft needed “smaller games that give us prestige and awards,” which many saw as hypocritical as one of the studios that Microsoft closed, Tango Gameworks, was behind the critically acclaimed and award-winning game Hi-Fi Rush.{{Cite web |last=Parrish |first=Ash |date=2024-05-08 |title=Microsoft says it needs games like Hi-Fi Rush the day after killing its studio |url=https://www.theverge.com/2024/5/8/24152137/xbox-hi-fi-rush-tango-gameworks-matt-booty |access-date=2024-05-10 |website=The Verge |language=en}}

In 2022, an investigation conducted by Kotaku revealed concerns about the studio environment at Undead Labs, suggesting the presence of sexism within the company. The studio's new leader, Philip Holt, who succeeded Strain, and the then-Head of HR, Anne Schlosser, were both implicated in fostering this problematic culture. Following a Microsoft HR investigation, Schlosser was subsequently removed from her role. Despite her departure, the persisting toxic work environment led to a significant turnover of experienced staff. The amalgamation of these issues, coupled with a lack of a clear design direction, resulted in substantial delays in the development of State of Decay 3.{{Cite web |author1=Jordan Gerblick |date=2022-03-31 |title=Staff allege toxic culture and mismanagement at State of Decay 3 studio |url=https://www.gamesradar.com/staff-allege-toxic-culture-and-mismanagement-at-state-of-decay-3-studio/ |access-date=2023-12-17 |website=gamesradar |language=en |archive-date=December 17, 2023 |archive-url=https://web.archive.org/web/20231217023137/https://www.gamesradar.com/staff-allege-toxic-culture-and-mismanagement-at-state-of-decay-3-studio/ |url-status=live }} Employees also pointed fingers at Microsoft for not promptly addressing reports of abuse, claiming that the company fell short of its diversity, equity, and inclusion objectives.{{Cite web |date=2022-03-31 |title=Allegations Of Sexism, Bullying, And Burnout: Inside The Microsoft Studio Behind State Of Decay 3 |url=https://kotaku.com/state-of-decay-3-xbox-series-x-s-sexism-microsoft-undea-1848728682 |access-date=2023-12-13 |website=Kotaku |language=en |archive-date=December 4, 2023 |archive-url=https://web.archive.org/web/20231204160704/https://kotaku.com/state-of-decay-3-xbox-series-x-s-sexism-microsoft-undea-1848728682 |url-status=live }} There have also been concerns about whether Microsoft will address the toxic work environment at Activision Blizzard following the acquisition.{{Cite news |last=Sumagaysay |first=Levi |title=Can Microsoft acquisition cure Activision's toxic workplace? |url=https://www.marketwatch.com/story/can-microsoft-acquisition-cure-activision-blizzards-toxic-workplace-11642783364 |access-date=2023-12-16 |website=MarketWatch |language=EN-US |archive-date=December 16, 2023 |archive-url=https://web.archive.org/web/20231216023741/https://www.marketwatch.com/story/can-microsoft-acquisition-cure-activision-blizzards-toxic-workplace-11642783364 |url-status=live }} Microsoft pledged to address the toxic workplace environment at Activision Blizzard after the acquisition.{{Cite web |last=O'Brien |first=Sara Ashley |date=2022-01-27 |title=Microsoft makes a big bet that it can fix Activision Blizzard's troubled culture {{!}} CNN Business |url=https://www.cnn.com/2022/01/27/tech/activision-blizzard-microsoft-workplace-culture/index.html |access-date=2023-12-13 |website=CNN |language=en |archive-date=December 13, 2023 |archive-url=https://web.archive.org/web/20231213014619/https://www.cnn.com/2022/01/27/tech/activision-blizzard-microsoft-workplace-culture/index.html |url-status=live }} On December 16, 2023, Activision Blizzard agreed to pay approximately $54 million to settle discrimination claims brought by the California Civil Rights Department on behalf of women employed by the company. Activision Blizzard also agreed to take steps to ensure “fair pay and promotion practices” at the company.{{Cite web |date=2023-12-16 |title=Activision Blizzard to pay $54 million to settle California state workplace discrimination claims |url=https://apnews.com/article/activision-blizzard-discrimination-settlement-d3df8190658262a5c4e22c8a63997eb4 |access-date=2024-03-09 |website=AP News |language=en |archive-date=March 9, 2024 |archive-url=https://web.archive.org/web/20240309220610/https://apnews.com/article/activision-blizzard-discrimination-settlement-d3df8190658262a5c4e22c8a63997eb4 |url-status=live }}

On December 5, 2023, 300 quality assurance (QA) workers at ZeniMax Media announced that they were organizing a union.{{Cite web |last=Parrish |first=Ash |date=2022-12-05 |title=Around 300 QA workers at Microsoft-owned ZeniMax are organizing a union |url=https://www.theverge.com/2022/12/5/23495139/microsoft-union-zenimax-bethesda-cwa |access-date=2024-03-09 |website=The Verge |language=en |archive-date=March 9, 2024 |archive-url=https://web.archive.org/web/20240309011622/https://www.theverge.com/2022/12/5/23495139/microsoft-union-zenimax-bethesda-cwa |url-status=live }} In June 2023, Microsoft and the Communication Workers of America (CWA) announced a labor neutrality agreement.{{Cite web |title=microsoft let activision blizzard employees to unionize |url=https://www.bing.com:9943/search?q=microsoft+let+activision+blizzard+employees+to+unionize&FORM=AWRE |access-date=2023-12-17 |website=Bing |language=en}} This agreement enabled Activision Blizzard employees to freely establish a union, and Microsoft committed to recognizing and accepting that union.{{Cite web |last=Carpenter |first=Nicole |date=2022-06-13 |title=Tech is notoriously anti-union. Microsoft is taking a different approach — neutrality |url=https://www.polygon.com/23166217/microsoft-labor-union-neutrality-agreement-code-cwa-raven-software |access-date=2023-12-17 |website=Polygon |language=en-US |archive-date=November 28, 2023 |archive-url=https://web.archive.org/web/20231128140700/https://www.polygon.com/23166217/microsoft-labor-union-neutrality-agreement-code-cwa-raven-software |url-status=live }} 600 Activision QA employees became members of the Communication Workers of America on March 8, 2024, making it the largest game developer union in North America.{{Cite web |last=Carpenter |first=Nicole |date=2024-03-08 |title=600 Activision QA workers unionize, Microsoft voluntarily recognizes |url=https://www.polygon.com/24093254/activision-qa-600-workers-union-microsoft |access-date=2024-03-09 |website=Polygon |language=en-US |archive-date=March 9, 2024 |archive-url=https://web.archive.org/web/20240309003530/https://www.polygon.com/24093254/activision-qa-600-workers-union-microsoft |url-status=live }}

The decision to distribute various first-party Xbox titles on non-Xbox consoles, particularly its direct competitor the PlayStation 5, has been a subject of continued scrutiny since rumors first emerged of the initiative taking place internally at Microsoft in early 2024. Certain commentators have remarked upon the potential for games reaching platforms with more matured install bases and more players such as the PlayStation 5 or Nintendo Switch, to benefit Microsoft financially with regards to simultaneously providing sufficient returns for funding future game development, as well as avoiding cost-cutting measures such as job layoffs, the likes of which the company had engaged with throughout 2024 with its gaming division.{{Cite web |last=Xbox |first=Pure |date=2024-02-05 |title=Reaction: We're Conflicted About Xbox Exclusives Potentially Going To PS5 |url=https://www.purexbox.com/features/reaction-were-conflicted-about-xbox-exclusives-potentially-going-to-ps5 |access-date=2024-08-27 |website=Pure Xbox |language=en-GB}} Speculating on the strategy, Digital Foundry editor Richard Leadbetter wrote on Eurogamer that with the acquisition of previous third-party publishers such as Bethesda Softworks and Activision Blizzard, Microsoft Gaming was already setting themselves up as "one of the largest multi-platform publishers on the market" with their established presence on PlayStation and Nintendo consoles in addition to Microsoft's ownership of Minecraft, and that attempts to limit Xbox's addressable audience to their traditional consoles and PC was becoming increasingly unsustainable by making such developers forfeit the release of said games on other consoles.{{Cite web |last=Leadbetter |first=Richard |date=2024-02-19 |title=DF Weekly: a multi-platform future seems inevitable for Microsoft and Sony |url=https://www.eurogamer.net/digitalfoundry-2024-df-weekly-a-multi-platform-future-seems-inevitable-for-microsoft-and-sony |access-date=2024-08-27 |website=Eurogamer.net |language=en}} Oli Welsh from Polygon reciprocated the speculation, also adding that in the ninth generation of video game consoles, the Xbox Series X/S already occupied a "distant third place" in hardware sales when compared to either of its competing platforms, and wasn't able to recapture the market share and financial viability Microsoft had previously enjoyed during the Xbox 360 generation, meaning distributing their portfolio to the "tens of millions of customers" on PlayStation and Nintendo consoles was an approach to software that could prove itself more successful due to the franchises under their umbrella they could exploit. Furthermore, he cited the acquisition of Activision Blizzard as an event that possibly reoriented Xbox's necessity for increased profits and the need to expand audiences beyond Xbox consoles and PC, particularly with retaining the strongly amassed playerbases for franchises such as Call of Duty, Diablo and Overwatch among others, as opposed to limiting their reach by extending console exclusivity towards them.{{Cite web |last=Welsh |first=Oli |date=2024-02-07 |title=Why are we surprised that Xbox might have a multiplatform plan? |url=https://www.polygon.com/24064964/xbox-consoles-multiplatform-third-party-hi-fi-rush-starfield-indiana-jones |access-date=2024-08-27 |website=Polygon |language=en-US}} Reporting on the strategic pivot for The Verge in February 2024, Microsoft content editor Tom Warren surmised that Xbox's plan to branch out beyond their standard three-tier console and PC and cloud gaming model to other platforms was an indicator of a lack of engagement with their content and services, particularly with regards to slowing Game Pass subscriptions and the need for the company to pursue other revenue streams such as mobile. He cited unmet growth estimates for the Xbox division during the 2022 and 2023 fiscal years, and a shift to marketing PC Game Pass as opposed to the console service, but still noted that extending their content to consoles such as PlayStation 5 and Nintendo Switch were not going to help their "embiggening ambitions" for making Xbox widely adopted from a hardware and software standpoint.{{Cite web |last=Warren |first=Tom |date=2024-02-12 |title=Microsoft prepares to take Xbox everywhere |url=https://www.theverge.com/2024/2/12/24067370/microsoft-xbox-playstation-switch-games-future-hardware |access-date=2024-08-29 |website=The Verge |language=en}}

In contrast, criticism has been directed at Microsoft Gaming for such a strategy deincentivizing the value proposition of an Xbox console both as a competing hardware platform, as well as an intrinsic device in their ecosystem to facilitate software and services. Windows Central editor Jez Corden derided the move as an extension of Microsoft's wider history of devaluing other in-house hardware projects such as the Surface line and Windows Phone, namely in that potentially moving premier first-party franchises outside Xbox platforms threatened to eliminate any reason for investing in Xbox hardware, while simultaneously empowering their competitors, and stagnating their acquisition of users for both their console, and associated services such as Xbox Game Pass and Xbox Cloud Gaming.{{Cite web |last=Corden |first=Jez |date=2024-05-15 |title=Microsoft's quest for short-term $$$ is doing long-term damage to Windows, Surface, Xbox, and beyond |url=https://www.windowscentral.com/microsoft/microsofts-quest-for-short-term-dollardollardollar-is-doing-long-term-damage-to-windows-surface-xbox-and-beyond |access-date=2024-08-27 |website=Windows Central |language=en}} He also anticipated that Xbox transitioning towards a third-party publishing model would leave PlayStation without any substantial competition in the premium console space, allowing them to exercise their control over the gaming market by taking larger profits from third-party games on their consoles and promoting platform consolidation for consumers and developers.{{Cite web |last=Corden |first=Jez |date=2024-01-17 |title=Why Xbox customers are right to be angry about Microsoft putting more 'exclusive' games on Nintendo or PlayStation |url=https://www.windowscentral.com/gaming/xbox/why-xbox-customers-are-right-to-be-angry-about-microsoft-putting-more-exclusive-games-on-nintendo-or-playstation |access-date=2024-08-27 |website=Windows Central |language=en}} Writing for Medium, Zack Daniels similarly expressed disillusionment towards Xbox's plans, commenting that such action taking place would also undermine their prior affirmed stances on game exclusivity that were reiterated throughout the Xbox One and Xbox Series X/S console cycles, particularly with regards to securing games such as Starfield and Senua's Saga: Hellblade II as marquee console exclusives for driving hardware and service engagement.{{Cite web |last=Daniels |first=Zack |date=February 5, 2024 |title=Xbox Games Might Be Going Multiplatform, But Why? |url=https://medium.com/@ZackkWrites/xbox-games-might-be-going-multiplatform-but-why |access-date=2024-08-27 |website=Medium |language=en}} Former Blizzard Entertainment CEO Mike Ybarra responded to a fan inquiry on Twitter / X regarding the differing approaches to platform exclusivity between Sony Interactive Entertainment and Microsoft Gaming in light of their strategic pivot and Phil Spencer's comments about industry shifts in game distribution, suggesting that console exclusive games were to remain the key factor in a successful games platform, and that platform holders like Microsoft were pushing a "narrative that fits for them."{{Cite web |last=Barker |first=Sammy |date=2024-08-31 |title=Failing Manufacturers Are Pushing the Narrative That Consoles Are Dying, Says Ex-Xbox Exec |url=https://www.pushsquare.com/news/2024/08/failing-manufacturers-are-pushing-the-narrative-that-consoles-are-dying-says-ex-xbox-exec |access-date=2024-08-31 |website=Push Square |language=en-GB}}

The announcement of the MachineGames title Indiana Jones and the Great Circle (2024) launching on PlayStation 5 after a period of timed exclusivity on Xbox Series X/S and PC was met with particularly divisive reactions due to its original confirmation as an Xbox console exclusive,{{Cite news |date=2024-01-18 |title=Indiana Jones and the Great Circle reveal shows globe-trotting escapades, spiders and a Game Pass promise |url=https://www.eurogamer.net/indiana-jones-and-the-great-circle-reveal-shows-globe-trotting-escapades-spiders-and-a-game-pass-promise |access-date=2024-08-27 |work=Eurogamer.net |language=en}} as Microsoft Gaming had amended the contract terms with IP holder Lucasfilm to initially exclude a PlayStation 5 release after their acquisition of MachineGames alongside other Bethesda studios in 2021.{{Cite web |last=Warren |first=Tom |date=2023-06-22 |title=Bethesda's Indiana Jones game is exclusive to Xbox and PC |url=https://www.theverge.com/2023/6/22/23770141/bethesda-indiana-jones-game-xbox-pc-exclusive |access-date=2024-08-27 |website=The Verge |language=en}} Ben Kerry from Pure Xbox wrote that announcing a PlayStation 5 version of an Xbox first-party game that had been marketed as exclusive up to that point removed any interest in potential new customers investing in Xbox's hardware platform or ecosystem, and remarked that there wasn't much initiative within Microsoft to promote Indiana Jones as an Xbox-associated game first and foremost outside its attachment to Game Pass.{{Cite web |last=Kerry |first=Ben |date=2024-08-21 |title=Reaction: Indiana Jones And The Great Circle's PS5 Announcement Marks A Bold Step For Xbox |url=https://www.purexbox.com/features/reaction-indiana-jones-and-the-great-circles-ps5-announcement-marks-a-bold-step-for-xbox |access-date=2024-08-27 |website=Pure Xbox |language=en-GB}} GamesIndustry contributing editor Rob Fahey weighed in on the decision, noting the non-traditional way in which the exclusivity margins were detailed by confirming an additional platform before the launch of the game on its target hardware, and concluding that Microsoft informing the public of the game's limited window of exclusivity before the game's release significantly dampens the prospect of the title faring financially well on its primary systems, while hypothesizing that Microsoft did not care about such effects occurring to Xbox console sales during The Great Circle's launch, as it illustrated a more affirmed transition period towards third-party publishing from the onset.{{Cite web |last=Fahey |first=Rob |date=2024-08-23 |title=Xbox wades cautiously into a multiplatform future {{!}} Opinion |url=https://www.gamesindustry.biz/xbox-wades-cautiously-into-a-multiplatform-future-opinion |access-date=2024-08-27 |website=GamesIndustry.biz |language=en}} Following up on Windows Central, Jez Corden critiqued the move by describing it as "a masterclass in bad product marketing", framing Microsoft's way of providing potentially impactful news to Xbox customers as dismantling the goodwill the company had fought to recuperate following the launch reception of Xbox One in 2013, and lamenting that it gave off the impression the Xbox console was "on the lowest rung of Microsoft's priority list."{{Cite web |last=Corden |first=Jez |date=2024-08-21 |title=Phil Spencer: "We have more Xbox console players than ever," as fans question Microsoft's multi-platform strategy |url=https://www.windowscentral.com/gaming/xbox/phil-spencer-we-have-more-xbox-console-players-than-ever-as-fans-question-microsofts-multi-platform-strategy |access-date=2024-08-27 |website=Windows Central |language=en}}

{{Main|List of Microsoft Gaming studios}}

Microsoft Gaming has a major global presence and studios located across the world. Globally, Microsoft owns 40 studios and employs over 20,100 people.{{Cite web |last=Obedkov |first=Evgeny |date=2023-10-20 |title=40 studios to rule them all: inside Microsoft Gaming divisions post-Activision Blizzard deal |url=https://gameworldobserver.com/2023/10/20/xbox-studios-list-microsoft-gaming-activision-blizzard-bethesda |access-date=2023-11-20 |website=Game World Observer |language=en-US |archive-date=November 21, 2023 |archive-url=https://web.archive.org/web/20231121082211/https://gameworldobserver.com/2023/10/20/xbox-studios-list-microsoft-gaming-activision-blizzard-bethesda |url-status=live }} While the majority of Microsoft's gaming activities are based in the United States, the company has strategically expanded its reach internationally. This global approach allows Microsoft to collaborate with diverse talent and develop a wide range of gaming experiences for a global audience. In addition to the United States, Microsoft has established and acquired studios in various countries such as United Kingdom, Canada, Sweden, France, Spain, Mexico, Germany, Poland, China, Japan, Ireland, Malta, and Australia, contributing to the company's status as a key player in the worldwide gaming industry.{{Cite news |last=Colp |first=Tyler |date=2022-01-18 |title=Every game and studio Microsoft now owns |language=en |work=PC Gamer |url=https://www.pcgamer.com/every-game-and-studio-microsoft-now-owns/ |access-date=2023-11-20 |archive-date=November 14, 2023 |archive-url=https://web.archive.org/web/20231114021403/https://www.pcgamer.com/every-game-and-studio-microsoft-now-owns/ |url-status=live }} In the United Kingdom alone, Microsoft Gaming owns four video game development studios and employs over 1,000 people. Playground Games, Rare, Ninja Theory, and King are among the studios owned by Microsoft in the UK.{{Citation |title=Exclusive: Sarah Bond Talks What's Coming Up For Xbox in 2023 | date=March 31, 2023 |url=https://www.youtube.com/watch?v=Otc_jaFOS1E |access-date=2023-11-19 |language=en |archive-date=December 4, 2023 |archive-url=https://web.archive.org/web/20231204231117/https://www.youtube.com/watch?v=Otc_jaFOS1E |url-status=live }} In Canada, Microsoft Gaming owns five video game studios, including The Coalition and Beenox, making it one of the largest video game employers in the country, alongside Electronic Arts and Ubisoft.{{Cite web |last=Corden |first=Jez |date=2016-07-01 |title=Oh, Canada: The best video game companies to know about |url=https://www.windowscentral.com/here-are-top-canadian-video-game-companies |access-date=2023-11-21 |website=Windows Central |language=en |archive-date=November 21, 2023 |archive-url=https://web.archive.org/web/20231121185051/https://www.windowscentral.com/here-are-top-canadian-video-game-companies |url-status=live }}

• Games for Windows
• List of mergers and acquisitions by Microsoft
• Microsoft Casual Games
• Video games in the United States

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{{Microsoft}}

{{Microsoft game products}}

Category:American companies established in 2022

Category:Companies based in Redmond, Washington

Gaming

Category:Video game companies based in Washington (state)

Category:Video game companies established in 2022