Xbox Struggling To Meet Revenue Expectations After Activision Buyout

Expert Verified By

Microsoft Wants More From Xbox After Spending $70 Billion!

Story Highlight
  • 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.

Xbox Controller
Xbox Is The Biggest Gaming Publisher Right Now

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

Phil Spencer Xbox
Phil Spencer Was Behind These Major Acquisitions In Recent Years

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.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Ghost of Yotei Praised By Multiple High-Profile Japanese Devs

Ghost of Yotei seems to have earned praise from various Japanese developers for its gameplay and authentic portrayal of Japan.

OpenAI Partners With AMD To Buy Chips Worth Billions of Dollars

OpenAI and AMD have come together to enhance the world's current AI compute capabilities with a massive deal worth billions of dollars.

Assassin’s Creed Mirage Valley of Memory Free DLC Offers 6+ Hours of New Gameplay

Assassin's Creed Mirage is getting a free DLC titled 'Valley of Memory', set to release later this year on November 18th.

Black Ops 7 Beta Struggles on Steam – Player Count Nearly 5x Lower Than Battlefield 6 Beta

According to SteamDB, Black Ops 7 beta player count only topped at about 100K players, compared to Battlefield 6 beta's over 500K.

Activision Claims 97% Of Black Ops 7 Cheaters Are Banned Within 30 Minutes

97% of Call of Duty: Black Ops 7 cheaters were banned within 30 minutes of signing in, while only 1% made it into the game.