- Microsoft is closely monitoring Xbox after the recent buyouts of Activision Blizzard and Bethesda Softworks.
- The company has reportedly set very challenging revenue and profit targets for its gaming division.
- The third-party push and recent Game Pass price hikes may have been a direct result of these new targets.
Xbox has recently spent nearly $100 billion on acquisitions to strengthen its first-party offering. The bulk of this $100 billion was spent on Activision and Bethesda, with the former costing $70 billion alone.
As per new reports, Microsoft is closely monitoring Xbox’s progress following these investments. It is said that the company is now facing the crushing weight of incredibly challenging profit and revenue targets.
Why it matters: Microsoft’s gaming division has not been in the best shape for many years, so these new mergers have only accelerated the need for key improvements to the business.
The latest report comes from Bloomberg. Discussing the gaming giant’s future, the report states that anonymous sources revealed more strict revenue and profit goals.
While no additional details have been confirmed, Xbox’s latest moves add up when considering greater scrutiny from the higher-ups at Microsoft. The third-party push, Game Pass price hikes, and recent layoffs were likely an attempt to maximize revenue and profits.
This is also why the gaming giant is attempting to capture the handheld and mobile gaming markets. Speaking to Bloomberg, Xbox president Sarah Bond confirmed that working for the company can present various challenges.
Bond also discussed the recently rumored handheld and stated that it should serve as yet another means of introducing people to the greater Xbox ecosystem.
I want people to think no matter who you are, you can come to Xbox.
-Sarah Bond
This report does not come as much of a surprise since Phil Spencer previously pointed out that most of his decisions were very business-driven. If nothing else, the report suggests that this is the clear path forward for this company.
The recent financial earnings reports have been quite encouraging in terms of revenue, but Microsoft is unlikely to be satisfied just yet. Following the $70 billion merger, the bar is set higher than ever, and it remains to be seen how Xbox will attempt to deliver on these expectations.
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[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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