According to reports, Microsoft had contemplated closing the Xbox entirely before purchasing ZeniMax and Activision Blizzard in 2021.
As a dedicated enthusiast, I can share that, as per reports from The Information, our esteemed CEO, Satya Nadella, faced a significant decision back in 2021: either to retire Xbox or to boost Game Pass subscriptions by acquiring additional studios. Opting for the latter path, he splurged a whopping $7 billion on ZeniMax in 2021 and later, in 2023, sealed an even more monumental deal worth $75.4 billion for Activision Blizzard.
Some well-known studios haven’t seemed to be influenced by Xbox Game Pass, a situation that might not align with Microsoft’s projected goals. Before buying Activision Blizzard, it was said that Microsoft aimed to reach 100 million Game Pass subscribers by the year 2030, implying a tripling of its current user base in just five years. However, for the past two years, Microsoft has allegedly fallen short of meeting its internal growth targets for Xbox Game Pass.
It’s said that along with the Activision acquisition, Microsoft was planning on letting other developers lease their Azure server solutions as well. Interestingly, despite the acquisition, it appears that Activision continues to rent servers from Google Cloud and Amazon Web Services for their operations, rather than adopting Azure.
Following the debut of Xbox Series X|S, Microsoft has experienced a mix of highs and lows, such as shutting down four of their own ZeniMax studios and reducing staff last year. Although numerous developers contribute content to Game Pass, Take-Two CEO Strauss Zelnick stated in 2022 that it’s illogical to publish new titles on the service on their release day.
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2025-01-15 17:08