Why is Microsoft Buying So Many Game Developers?
Microsoft is a behemoth. The company has a hand in the computer revolution and has never lost its relevance. But beyond developing their most widely used product—the Windows operating system—Microsoft has been showing a particular interest in the world of gaming in recent years. Raising one question: why is Microsoft so interested in games?
Well, the company has had a long history in the world of video games; so strap in as we explore this very question.
A History of Hits and Misses
The year was 2001. Microsoft was about to solidify their place in the gaming industry by releasing the original Xbox console. Up to 2001, Microsoft had published and funded some games—notably the Flight Simulator series—but were behind compared to the key names in gaming at the time.
The release of the Xbox was positioned as an alternative to Sony’s dominant PlayStation, offering up more powerful hardware and a number of console exclusive games which would go on to become the most iconic games the Xbox ecosystem has to offer.
While the Xbox and Xbox 360 were great successes, Microsoft’s history in gaming was not such a simple story. It was also accompanied by a number of missteps—like the underwhelming Xbox One launch, the confusing Xbox Series launch and other OS issues such as those with Windows Vista and Windows 10, on launch.
The Acquisition Spree
Fast forward to today, and it’s clear that Microsoft has a new ambition to truly rival Sony as the king of gaming companies. This mainly comes in the form of high-profile acquisitions. In just the last few years Microsoft have purchased Bethesda (the giant behind the Elder Scrolls and Fallout franchises), Mojang (creators of Minecraft) and, most impressively, Activision Blizzard (World of Warcraft, Overwatch, Call of Duty). Together, these acquisitions have made Microsoft perhaps the single largest gaming company in the world—owning a huge portion of the most iconic gaming franchises known across the globe.
Why Buy Game Studios?
It’s hard to know exactly what is driving Microsoft’s aggressive acquisitions within the gaming industry, but there are a few things to consider.
1. Xbox Exclusives
Microsoft create their own console. Thus, it’s in their interest to have the world’s most popular games work best on their systems—if not exclusively. By acquiring studios and established franchises, Microsoft brings those games closer to their hardware ecosystem giving them the opportunity for more exclusive content in the future.
2. Cloud Gaming
While it has a bad name because of flops like Google Stadia, Microsoft have been key players in the development of cloud gaming through their platform xCloud and the Xbox Game Pass. But Microsoft know that cloud gaming may make hardware less crucial. Thus, acquiring the people who make the products—the games themselves—may help to make Microsoft’s cloud gaming solutions the most popular choice in the cloud gaming space.
3. The Metaverse?
While Xbox aren’t explicitly interested in building a metaverse platform, like companies like Facebook have been, compiling a bunch of top-tier studios under one roof would offer the opportunity for better integration if such as system was developed by Microsoft.
Imagine jumping from Elder Scrolls to Valorant to World of Warcraft in one seamless experience. It’s a crazy potential that Microsoft now has in their hands! Speaking of Valorant, you can buy Valorant points to get ahead!
What Lies Ahead for Microsoft Gaming?
Microsoft has long been one of the most important players in gaming, but these latest developments have boldly increased that importance greatly. As the custodian of many of gaming’s most influential creators, Microsoft has a lot of responsibility in shaping the gaming industry in the years to come.
Many fear that Microsoft will lean on exclusivity in the coming years—releasing some of the industry’s most anticipated games or franchises exclusively on their platforms. While this may happen, it is less likely to occur for the largest franchises out there—such as the Elder Scrolls. Besides, even if the games become Microsoft exclusives they will likely still be available on both Xbox and Windows computers.
But the biggest concerns may actually be leal ones. Particularly those surrounding regulation and antitrust or monopolistic laws. As Microsoft continues to grow and take on more and more market share Microsoft’s dominance may have a negative impact on the industry as whole—but we will have to wait and see.
A Gaming Titan
Microsoft has always been a big company when it comes to computers. But now they are one of—if not the—largest and most powerful gaming companies on the planet. Whether this translates into a new golden age of gaming or an age of monopolistic practices, we will have to wait and see.