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Satya Nadella, the CEO of Microsoft's parent company, recently discussed the company's vision for the future of gaming, emphasizing their commitment to "take the joy of gaming everywhere" and to redefine what it means to be an Xbox fan. Reflecting on one of Xbox’s latest advertisements, Nadella highlighted how it aligns with the company’s long-term business strategy.
Since its debut in 2017, Xbox has made substantial progress with its subscription service, Game Pass. Over the years, Game Pass has seen significant growth, not just in its library but also in its user base, with over 33 million paying subscribers as of late 2023. Starting in 2024, Xbox Game Pass Ultimate subscribers are receiving major AAA titles, such as Call of Duty: Black Ops 6 and Indiana Jones and the Great Circle, on their release day. Along with game access, Ultimate subscribers benefit from Xbox Cloud Gaming, a beta feature that enables them to stream games directly, without the need for downloads. By combining Game Pass and Xbox Cloud Gaming, Microsoft has opened up multiple avenues for gamers to access Xbox titles, a strategy clearly emphasized in the company’s new “This is an Xbox” marketing campaign.
During Microsoft’s 2024 Annual Shareholder Meeting, Nadella further outlined the company’s evolving strategy for its gaming division. He revealed that Microsoft’s new approach includes marketing any device capable of running Xbox Game Pass or Xbox Cloud Gaming as an “Xbox” in its own right. The essence of this shift is to offer gamers the ability to experience Xbox across all their devices, thereby redefining the notion of being an Xbox fan. Nadella also mentioned the success of Call of Duty: Black Ops 6's release, calling it “fantastic to see” and reinforcing that Microsoft’s plans for Activision’s IPs are now fully realized.
Looking to the future, Nadella shared his vision of Microsoft’s gaming strategy, highlighting the potential to drive innovation across AI, cloud technology, console, and PC gaming. The goal is to create the best games that can be enjoyed by players around the world. While this shift toward Game Pass and away from solely focusing on console hardware has raised concerns among some fans, Microsoft Gaming CEO Phil Spencer addressed these worries in November, reassuring fans that the company remains committed to its console business.
Meanwhile, Xbox is continuing to enhance key aspects of its vision, such as Xbox Cloud Gaming. Recently, the Xbox Insider program rolled out a feature that allows users to stream non-Game Pass titles on consoles they already own, with plans to integrate this functionality more broadly in the future.
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