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[Lunatic_Gamer]

Microsoft plans to make Xbox the leader in the global games industry in terms of revenues by 2030, and Xbox has already beaten Nintendo revenues for the past two years running.

California District Courts today published a wealth of documents from the FTC v Microsoft federal case exhibit list, and included in packet is a lengthy internal presentation deck from Microsoft's SLT (Senior Leadership Team) that outlines its ambitious plans for Xbox gaming.

According to the document, which was published in June 2022, Microsoft aspires to have the Xbox ecosystem become the top inter-connected video games platform by revenue by the year 2030. "Our ambition is to reach industry leadership, as defined by global revenue, by 2030. This implies doubling our total revenue during that timeframe," reads the slide deck.

Microsoft's internal targets from June 2022 imply that Xbox gaming will achieve over $32 billion revenues by 2030.

"Generating $17 billion in revenue, Xbox is one of the leaders in gaming," Microsoft CEO Satya Nadella said in the document. This value is an internal estimate--Xbox actually generated $16.22 billion in revenues throughout Fiscal Year 2022.

Microsoft also aspires to earn a total of $500 billion in revenue by FY2030. This includes all of its operating units (also called CSAs, or Customer Solutions Areas). Gaming will be a small comparative part of this total.

Our records show that Xbox beat Nintendo in total revenues throughout both calendar 2021 and 2022. This is despite the Nintendo Switch being the top-selling console. However, every Nintendo Switch is sold at a profit, whereas every Xbox console is sold at a loss.

Elsewhere in the document, Nadella outlines the growth vectors for Xbox gaming. These include continued expansion of Xbox Game Pass to capture more of the PC market as well as efforts to "build out" xCloud in an attempt to bring Xbox Game Pass to the mobile market.

Microsoft wants Xbox to 'reach industry leadership' by 2030, plans to double Xbox revenues

Microsoft aspires to make Xbox reach global games industry leadership by 2030, and double total Xbox gaming revenues across the next 7-year timeframe.

www.tweaktown.com

 

[drganon]

Not with Phil and Matt at the helm.

 

[Kdad]

Where is Tencent in all this chatter...afaik their revenues in 2022 from Gaming were similar to SONY.

 

[ChorizoPicozo]

And they wanted to sell 100M xbox ones just in North America

 

[Three]

Oh I wonder how they plan to do that? (see netflix price increases)

 

[Kdad]

And they wanted to sell 100M xbox ones just in North America

With the power of Barbie who knows!

 

[InterMusketeer]

 

[ADiTAR]

That's funny, tell another one.

Xbox is losing marketshare and mindshare as times goes on. I don't think they can right this ship.

 

[Kdad]

Buying Acti would immediate bump them by what, 8 billion a year (10 year ROI seems ridiculous but...)...so with Acti they are already 50% of the way to their increased goal. But at what cost.

 

[Artistic]

Anything is possible.

 

[Trogdor1123]

They could spend their way into this. If they heavily subsidized everything they could make it but then they would “win” in revenue and that’s about all. It would be stupid.

 

[alphachino]

 

[Nydius]

They went from 9b to 16b in 7 years but expect to double their revenue —growing another 16.22b — in the next eight years?

Yeah…

 

[Three]

That's funny, tell another one.

Xbox is losing marketshare and mindshare as times goes on. I don't think they can right this ship.

I don't think Nadella is specifically talking about the console when he mentions "Xbox ecosystem become the top inter-connected video games platform by revenue". He's referring to the whole gaming sector which is what the $16.22B was too.

 

[xiskza]

But but but... I thought they were the underdogs?? You mean they are using that as a façade to buy up multiple big publishers to achieve their goals? Say it isnt so....

 

[WoJ]

This.

 

[James Sawyer Ford]

Do they intend to acquire Sony?

 

[ADiTAR]

I don't think Nadella is specifically talking about the console when he mentions "Xbox ecosystem become the top inter-connected video games platform by revenue". He's referring to the whole gaming sector which is what the $16.22B was too.

I understand that, and that's why I added mindshare. I also don't see other publishers cutting their revenue if GamePass will be on other platforms and people stop buying their games.

 

[Three]

They went from 9b to 16b in 7 years but expect to double their revenue —growing another 16.22b — in the next eight years?

Yeah…

I can assure you they would be making way more than this. Take this with a huge pinch of salt, especially as it's a June 2022 presentation. See you in 8yrs.

 

[DeepEnigma]

Something something just a thought experiment.

 

[Nydius]

I can assure you they would be making way more than this. Take this with a huge pinch of salt, especially as it's a June 2022 presentation. See you in 8yrs.

They’re going to double their revenue in an industry that they were supposedly considering leaving during the X1 era, that Phil supposedly wanted to abandon for mobile? In a market that is going to become oversaturated with subscriptions (it’s close already) where Game Pass won’t have as much luster and will need to keep finding new ways to milk their loyal whales?

Okay sure.

Let’s pretend for a moment that I accept the hypothetical. How much are they spending to achieve this revenue? We’re only seeing one side of the equation. If they have to spend 32b to generate 32b, that’s not a victory in any sense of the word.

 

[slade]

They can easily do this by buying a few more big publishers and adding their revenue to Xbox's. Get Take Two and Ubisoft after ABK.

 

[Three]

They’re going to double their revenue in an industry that they were supposedly considering leaving during the X1 era, that Phil supposedly wanted to abandon for mobile? In a market that is going to become oversaturated with subscriptions (it’s close already) where Game Pass won’t have as much luster and will need to keep finding new ways to milk their loyal whales?

Okay sure.

That's exactly what they would do. Acquire, increase subs and slowly milk their users. Look at how much netflix was making in revenue in 2014/5 vs what it's doing now 8yrs on.

Let’s pretend for a moment that I accept the hypothetical. How much are they spending to achieve this revenue? We’re only seeing one side of the equation. If they have to spend 32b to generate 32b, that’s not a victory in any sense of the word.

They hope to make it back over years they have the market on subs and their ecosystem but I'm not saying this will certainly be a financial victory in operating income. Just that that 2030 revenue target is a lowball.

 

[reinking]

Do they intend to acquire Sony?

No. Just continue to acquire enough to squeeze Sony out of the market.

 

[James Sawyer Ford]

No. Just continue to acquire enough to squeeze Sony out of the market.

Have a hard time thinking they can achieve this goal without the Activision deal going through, plus a number of other major publishers. Although, who knows, maybe Activision would be enough. That's a huge revenue driver right now. They'd be about equal with Sony I think?

 

[93xfan]

So entering the mobile market as well…

 

[OmegaSupreme]

 

[[Sigma]]

They can easily do this by buying a few more big publishers and adding their revenue to Xbox's. Get Take Two and Ubisoft after ABK.

Exactly

 

[James Sawyer Ford]

They can easily do this by buying a few more big publishers and adding their revenue to Xbox's. Get Take Two and Ubisoft after ABK.

The regulators would eventually block such a move, especially if they already have Activision.

 

[Phase]

Obligatory "need some games first bruh"

Jokes aside, unless they buy everyone I don't see this happening. Their first party titles aren't like they were before and they haven't nailed a new big one yet. Starfield hopefully nails the landing, but they need more quality output for a long stretch if they want the throne.

 

[Deerock71]

 

[Calverz]

But but but... I thought they were the underdogs?? You mean they are using that as a façade to buy up multiple big publishers to achieve their goals? Say it isnt so....

Yes. The definition of competition lol

 

[reinking]

Have a hard time thinking they can achieve this goal without the Activision deal going through, plus a number of other major publishers.

I believe they are going to test how strong the CMA really is. I hope strong enough because I do not want to see this industry gobbled up but the way things are going the CMA is the only thing standing between MS and Activision. If it goes through, I do not believe MS is close to being done.

 

[SuperSaiyanWithDreads]

And they wanted to sell 100M xbox ones just in North America

On a serious note; if they get Activision, Sega, and whomever and keep going then I can see them hitting 360 sales again.

 

[ChorizoPicozo]

On a serious note; if they get Activision, Sega, and whomever and keep going then I can see them hitting 360 sales again.

Just look at Disney.

the thing is....buying shit doesn't required effort....but retaining the content's quality and output release schedule is the actual challenge.

MS should see a massive increase in every metric.

 

[Victor Omega]

yall... us.... gonna let Microsoft monopolize gaming.

 

[TwiztidElf]

We really have entered the propaganda dystopia haven't we.

 

[Represent.]

Buy everything, manage them all poorly, put it on a subscription service. Yay?

 

[SuperSaiyanWithDreads]

Just look at Disney.

the thing is....buying shit doesn't required effort....but retaining the content's quality and output release schedule is the actual challenge.

MS should see a massive increase in every metric.

MS will have a massive increase and this is why Sony need to defend and buy some publishers as well in order to stop Xbox from getting more games off their platform. I see this as business competition and the larger one finally opening their bag to our spend the smaller one. Sony has enough to buy what they need, but they better act fast because Microsoft ain’t playing.

 

[01011001]

 

[ChorizoPicozo]

MS will have a massive increase and this is why Sony need to defend and buy some publishers as well in order to stop Xbox from getting more games off their platform. I see this as business competition and the larger one finally opening their bag to our spend the smaller one. Sony has enough to buy what they need, but they better act fast because Microsoft ain’t playing.

sony is reacting as we speak, and they have several avenues to counterattack....in fact; sony always has shown proactiveness to secure his market leadership.

 

[SuperSaiyanWithDreads]

sony is reacting as we speak, and they have several avenues to counterattack....in fact; sony always has shown proactiveness to secure his market leadership.

And that’s good, hope to hear some announcements after Thursday

 

[Cornbread78]

Just gotta keep buying out the competition like Windows baby.

 

[Bumblebeetuna]

Crazy to me that they make more revenue than Nintendo even in third place. I guess it’s from their cut of digital stuff?

 

[CGNoire]

Microsoft plans a lot of things.

 

[solidus12]

And they wanted to sell 100M xbox ones just in North America

It was 200M Xbox one FYI.

 

[cash_longfellow]

Good luck.

 

[Raven77]

Look I'm not a video game expert or anything, but I would think to become the top video game company in the world you would need to actually release video games.

But again, I'm not going to pretend like I'm some expert.

 

[In Cold Blood]

Goals sound good.
Any buisness not wanting to be the best in their industry is a worry.

 

[solidus12]

I thought Xbox was already the market leader?

Spoiler

Yikes