After a generation of falling behind PlayStation and Nintendo, Xbox believes it has the chance to dominate the gaming industry in less than 10 years time.
Revealed in the company’s massive FTC hearing for its acquisition of Activision-Blizzard, Microsoft believes Xbox has the potential to become the number one revenue generator in the games industry.
According to documents acquired by TweakTown, Microsoft’s revenue generated by Xbox console sales, software sales and subscription services have already outperformed Nintendo for the past two years running. However, it also believes it can outpace Sony’s PlayStation in the near future.
"Our ambition is to reach industry leadership, as defined by global revenue, by 2030. This implies doubling our total revenue during that timeframe," Microsoft documents read.
In FY22, Microsoft’s Xbox brand raked in a total of $16.22 billion. By FY30, Microsoft believes this revenue can hit a massive $32.44 billion. If the company can effectively acquire Call of Duty publisher Activision, and keep it multiplatform, that target should be easily hit.
However, Microsoft‘s gaming brand has still fallen behind profit targets in recent years. While the company’s revenue of $16.22 billion is impressive, it missed its internal target by $780 million, even with the massive push for its Xbox Game Pass subscription service.
Microsoft’s plans to increase revenue rest wholly on the massive acquisition plans afforded by the company’s huge wealth. Following the acquisition of Zenimax Media, Xbox has made games such as Starfield, Indiana Jones and more exclusive titles on its platforms and services such as Xbox Game Pass.
While the company has suffered with a major lack of quality exclusives for the past few years — looking at you, Redfall — Microsoft is now primed to frequently deliver new, Xbox-only games for years to come.
Microsoft has still yet to acquire Activision-Blizzard due to numerous blockages from the CMA, FTC and more. The proposed deal will cost the company $68.7 billion, approximately $95 per share