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Microsoft wants Xbox to 'reach industry leadership' by 2030, plans to double Xbox revenues
- Thread starter Lunatic_Gamer
- Start date
- News Business Platform
StereoVsn
Gold Member
To a normal gaming company yes. To MS with a plan of half a TRILLION of revenue by then and huge profits from cloud and office/other subs, not so much.
I mean right there in FTC releases they admitted that the goal is to kill off competition and they can easily spend their way to that unless anti-trust rulings stop them. We have been through this song and dance with MS before on their previous anti-teuat shenanigans.
Freelance Yakuza
Member
And when the bad games arrive people will say that they are good enough for gamepass/I'm getting "free" on gp/there a tons of games with 40 or 50 metascore that I love
DenchDeckard
Moderated wildly
Through mobile, I can see it. Console gaming is nothing in the grand scheme and historical evidence shows it is pretty stagnant. Plus, its full of too many end users that have a serious allegiance to their preferred piece of plastic.
Not happening through console at all.
It will be mobile.
Not happening through console at all.
It will be mobile.
Heisenberg007
Gold Journalism
Will that really be an achievement if all they're doing is buying other companies and merging their revenue into Xbox's financial statements?
GigaBowser
The bear of bad news
and I wants to be a linebacker in college and only 225 pounds again
Heisenberg007
Gold Journalism
Their last year recorded $27 billion. Their projection is for more than $30 billion for the next year or two, already. So by 2025 at best.
nowhat
Member
WTH is "Xbox development pipeline"? Thus far it seems to be "do whatever you want, we don't fucking care".on Housemarque:
Panajev2001a
GAF's Pleasant Genius
Wait, I thought they were small, needed people to help them buy Activision - Blizzard and make it all exclusive over time just to survive… now they boast about driving much more revenue than Nintendo in one of Nintendo’s best years.
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
… feels like Good Guy Phil was lying again… this looks like the “thought experiment” never stopped…Panajev2001a
GAF's Pleasant Genius
Almost as if they wanted to “Spend Sony out of business”…
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mansoor1980
Member
want or................
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Mr Reasonable
Completely Unreasonable
I don't see why Microsoft couldn't significantly improve their fortunes in gaming. I'm personally surprised at how much Starfield has cut through, and while that game appears to be a particularly significant title in video games, I'm surprised that with that and off the back of Xbox's recent showcase that nobody can imagine a situation where Xbox is releasing games that people want to play, and want to play enough that they would consider buying their hardware.
It's not without precedent either, look at the journey Nintendo were on with the WiiU before they released the Switch, the difference is huge. From releasing a system that a lot of people thought was very disappointing (I'm one of them - it's the only Nintendo system I've skipped since the N64) to the success of the Switch.
If Starfield reviews well, Xbox sales will increase, no doubt. If the next couple of exclusives review well that'll bring more people in, etc.
As to whether that'll be enough to double revenue, no idea, but I don't see it as unreasonable that Microsoft could increase revenue significantly, given that they're currently working with so few well reviewed AAA exclusives.
It's not without precedent either, look at the journey Nintendo were on with the WiiU before they released the Switch, the difference is huge. From releasing a system that a lot of people thought was very disappointing (I'm one of them - it's the only Nintendo system I've skipped since the N64) to the success of the Switch.
If Starfield reviews well, Xbox sales will increase, no doubt. If the next couple of exclusives review well that'll bring more people in, etc.
As to whether that'll be enough to double revenue, no idea, but I don't see it as unreasonable that Microsoft could increase revenue significantly, given that they're currently working with so few well reviewed AAA exclusives.
intheinbetween
Member
Unlikely, though do not underestimate this projection coming from Microsoft
Ar¢tos
Member
They'll buy every 3rd party publisher by bypassing regulators via shell companies, like shills are suggesting, because because nobody in the world is clever enough to see through that.
mrmustard
Banned
Although that's all some fanboys care about, i don't think that Xbox hardware sales are a long term goal of Microsoft. Otherwise there wouldn't be day1 pc ports or xCloud and they wouldn't have used Series X for their server farms instead of selling them. I wouldn't be surprised if we won't see another Xbox after the next gen.
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Barakov
Member
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.
Mr Reasonable
Completely Unreasonable
Whatever the model, the point is that I don't see why people can't imagine a situation where Microsoft improve their fortunes in video games.
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veterangamerUK
Member
As the saying goes, turnover is vanity but profit is sanity
Correct. Nintendo is more profitable than it's competition since most of its revenue comes from first party games.
Riky
$MSFT
"We’re about — call it 10% of Microsoft’s revenue right now. So Microsoft doesn’t sink or swim based on Xbox’s success today. So it allows us to take some longer-term views of what our success looks like. We run a profitable business inside of the company and that’s important. We do that today."
Profitable today.
www.polygon.com
Profitable today.
Why the head of Xbox isn’t worried about AI, Netflix or the future
Phil Spencer talks with Polygon about the future of living games, Xbox’s huge 2024, AI, and more
www.polygon.com
Woopah
Member
I'm not sure how MS do it, but there is a difference in how Sony and Nintendo count digital revenues.
If someone buys a digital game on PlayStation, Sony counts the full price as revenue. If someone buys a full game from the eShop, Nintendo only counts their cut as revenue.
Both are logical, it just comes down to preference of the Finance department.
For Nintendo would this not just be profit at that point and not revenue?
This 30 billions revenue estimate by 2030 must surely be subject to the approval of ABK. Because without that plus the new restrictions on what they can buy in future (due to the CMA ruling) this estimate is in serious jeapardy. Starting to understand why they threatened the UK and called the FTC unconstitutional.
Tsaki
Member
Well yeah, if they can buy the biggest publishers, boom, Double Revenue achieved over night. It's pretty easy actually for Xbox if they don't have regulators in the way. Just give another $70 billion to EA and you are there. It's not like the Xbox division has to work with the money they make and try to do strategic planning with their limited resources. Just get your hands at the Azure pocket and problem solved.
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UltimaKilo
Gold Member
I bet. The board of Directors are probably putting on the pressure.
ToTTenTranz
Banned
They're probably counting with the revenue coming from $80B worth of publisher acquisitions.
I.e. it's not the current Xbox Studios that will start making more money through more frequent and higher quality game releases. They already lost hope on that front.
I.e. it's not the current Xbox Studios that will start making more money through more frequent and higher quality game releases. They already lost hope on that front.
John Wick
Member
By stifling competition and out spending their rivals. Watch Nintendo and a few other comoanies act completely differently when they realise MS are out for their lunch money as well.
I Love Rock 'n' Roll
Member
In Europe and Japan, not a single chance. The Xbox brand is both unknown and dommage to a non return point.
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John Wick
Member
They won't be able to go after Take Two or EA if they manage to close ABK.
Fabieter
Member
If there is no monopolistic behaviour after buying two of the biggest pubs in the world than there is no reason to not go foe more.
John Wick
Member
They are struggling to get ABK done and you think they'll be allowed to buy EA or Take Two after?
Good luck with that because it ain't happening.
DeltaPolarBear
Member
It is because MS is not interested in videogames or making/selling them. That is all there is to it. You can't improve in something unless you are interested. Xbox just wants to take over, but without actually being the best. Because being the best is too much hard work. Xbox can't succeed unless they are interested in gaming, and they never were interested in gaming. They were interested in taking over the living room, that was the only reason Xbox was created.
Woopah
Member
For Sony and Nintendo first party games it will all be revenue. Its how they account for third party games which is different
crackajack
Member
Maybe not for Japan, but Starfield will imho be the first interesting test if finally adding something to the mostly tamed Halo, Gears, Forza blockbuster trio will change something. Skyrim and Fallout are IPs that sold well and this will either move some numbers or just generate stubborn FU MS gamers. If that fails, okay then it's not gonna explode like they expect- their goasl seems imho even reasonable, without AB- but if that's the starting point for actually getting their shit together I have no idea how someone can doubt that MS will not grow substantially, again even without AB. Some exclusives and better selling hw immediately moves sales of some third partys also onto their platform. The question that interests me is; will they make Sony's pie smaller or actually grow the market.
TheThreadsThatBindUs
Member
I mean for third party games if revenue is the cut they get then it is just profit rather than revenue.
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V1LÆM
Gold Member
a multi-trillion dollar company with a point to prove? be careful what you wish for.
and some people want to see microsoft fail. their failure would destroy the industry. or at least the console market.
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Sanepar
Member
Tbh they failure will not make a big diff. They are irrelevant outside us and uk. And even in us and uk they are 3rd place.
Fabieter
Member
They mostly struggle because of cod which EA lacks something similar. They would have problems getting t2 because of gta tho.