Microsoft Gaming Division Falls Short (Nadella considered closing X-Box in 2021, gamers don't want gamepass)

Grand Conde

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In 2021, Microsoft CEO Satya Nadella faced a choice involving the company's Xbox and cloud gaming business. The company could either acquire major game studios to drive more subscriptions to its nascent Game Pass subscription service. Or it could wind down its games business entirely, Nadella told two people at the time.

Nadella took the first path, acquiring Elder Scrolls maker Bethesda Studios for $7 billion in 2021 and Call of Duty maker Activision Blizzard for $75.4 billion in the fall of 2023.
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several leading game studios have resisted Microsoft's pitch that they should put their titles on Game Pass in exchange for fees that Microsoft offers to pay to the gaming studios, according to people familiar with the discussions.

"I just think the majority of the game market doesn't really want a game pass" like the one Microsoft is offering, said Gus Zinn, a portfolio manager of the Macquarie Science and Technology Fund
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Microsoft also hoped the Activision deal would attract game developers to rent its Azure cloud servers. But Activision wasn't using Azure prior to the deal, and it still rents servers from Google Cloud and Amazon Web Services while primarily relying on its own servers for development, according to someone with direct knowledge of the situation and another person briefed on it.
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Before completing the Activision acquisition, Microsoft targeted having over 100 million Game Pass subscribers by 2030, meaning it would have to triple its current subscriber base in five years—or grow at a rate of 40% annually, which would be faster than its rate of growth every year since 2020.
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Regular_P

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Microsoft also hoped the Activision deal would attract game developers to rent its Azure cloud servers. But Activision wasn't using Azure prior to the deal, and it still rents servers from Google Cloud and Amazon Web Services while primarily relying on its own servers for development, according to someone with direct knowledge of the situation and another person briefed on it.
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That's the wildest shyt from the article. How do you buy a company for $70 billion and allow them to run on another companies' servers? Especially when the game has never been worse from a server standpoint? The epitome of mismanagement.
 
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Regular_P said:
That's the wildest shyt from the article. How do you buy a company for $70 billion and allow them to run on another companies' servers? Especially when the game has never been worse from a server standpoint? The epitome of mismanagement.
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It’s a pretty big migration with a lot of codependency on previous releases. I’m sure they will eventually move over to azure.
 
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