Microsoft Gaming in the context of CEO


Microsoft Gaming in the context of CEO

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⭐ Core Definition: Microsoft Gaming

Microsoft Gaming is the video game and digital entertainment division of the American multinational technology company Microsoft, based in Redmond, Washington and established in 2022. Its five development and publishing labels consist of: Xbox Game Studios, Bethesda Softworks (publisher of ZeniMax Media), Activision, Blizzard Entertainment, and King (the latter three are publishers of Activision Blizzard). It produces the Xbox video game consoles and services, in addition to overseeing production and sales, and is led by CEO Phil Spencer, who has overseen Xbox since 2014.

Prior to 2022, Microsoft had several different video game-related product lines, including Xbox hardware, Xbox operations, and game development studios. Microsoft Gaming was created with the announcement of Microsoft's plans to acquire Activision Blizzard to unify all of Microsoft's gaming groups within a single division. With the completion of the Activision Blizzard acquisition in 2023, Microsoft became one of the largest gaming companies, the third-by revenue and the largest by employment. The company has 500 million monthly active players across all gaming platforms.

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Microsoft Gaming in the context of Microsoft

Microsoft Corporation is an American multinational technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the rise of personal computers through software like Windows, and has since expanded to Internet services, cloud computing, artificial intelligence, video gaming, and other fields. Often described as a Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies, and one of the most valuable brands globally.

Microsoft was founded by Bill Gates and Paul Allen to market BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Windows. During the 41 years from 1980 to 2021 Microsoft released 9 versions of MS-DOS with a median frequency of 2 years, and 13 versions of Windows with a median frequency of 3 years. The company's 1986 initial public offering (IPO) and subsequent rise in its share price created three billionaires and an estimated 12,000 millionaires among Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market. Steve Ballmer replaced Gates as CEO in 2000. He oversaw the then-largest of Microsoft's corporate acquisitions in Skype Technologies in 2011, an increased focus on hardware that led to its first in-house PC line, the Surface, in 2012, and the formation of Microsoft Mobile through Nokia. Since Satya Nadella took over as CEO in 2014, the company has changed focus towards cloud computing, as well as its acquisition of LinkedIn for $26.2 billion in 2016. Under Nadella's direction, the company has expanded its video gaming business to support the Xbox brand, establishing the Microsoft Gaming division in 2022 and the acquisition of Activision Blizzard for $68.7 billion in 2023.

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Microsoft Gaming in the context of Xbox

Xbox is a video gaming brand that consists of four main home video game console lines, as well as applications (video games), the streaming service Xbox Cloud Gaming, and online services such as the Xbox network and Xbox Game Pass. The brand is owned by Microsoft Gaming, a division of Microsoft.

The brand was first introduced in the United States in November 2001, with the launch of the original Xbox console. The Xbox branding was formerly, from 2012 to 2015, used as Microsoft's digital media entertainment brand replacing Zune. In 2022, Microsoft expanded its gaming business and reorganized Xbox to become part of its newly formed Microsoft Gaming division. Under Microsoft Gaming, Xbox's first-party publishers are Xbox Game Studios, ZeniMax Media (Bethesda Softworks), and Activision Blizzard (Activision, Blizzard Entertainment, and King), who own numerous studios and successful franchises.

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Microsoft Gaming in the context of Acquisition of Activision Blizzard by Microsoft

On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion. The acquisition was completed on October 13, 2023, with its total cost amounting to $75.4 billion. Under the terms of the agreement, Microsoft brought Activision Blizzard under its Microsoft Gaming business unit as a sibling division to Xbox Game Studios and ZeniMax Media. With it, Microsoft gained ownership of several franchises under Activision, Blizzard Entertainment, and King, including Call of Duty, Crash Bandicoot, Spyro, Warcraft, StarCraft, Diablo, Overwatch, and Candy Crush. As of 2023, the acquisition is the largest video game acquisition by transaction value in history.

Following shareholder approval of the acquisition, the merger was reviewed by several national anti-trust bodies, with early approvals granted by the European Commission and China's State Administration for Market Regulation (SAMR), among others. The United States' Federal Trade Commission (FTC) and the United Kingdom's Competition and Markets Authority (CMA) issued formal challenges to the acquisition. Sony also criticized the merger, concerned that Microsoft would make the lucrative Call of Duty franchise exclusive to the Xbox platform, though Microsoft committed to non-exclusivity through 2033. The FTC withdrew its request after courts did not find their anti-trust compelling to block the merger, while Microsoft offered to offload its cloud gaming support for Activision Blizzard's games for ten years to Ubisoft to appease the CMA.

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Microsoft Gaming in the context of PlayStation 4

The PlayStation 4 (PS4) is a home video game console developed by Sony Interactive Entertainment. Announced as the successor to the PlayStation 3 in February 2013, it was launched on November 15, 2013, in North America, November 29, 2013, in Europe, South America, and Australia, and on February 22, 2014, in Japan. A console of the eighth generation, it competes with Microsoft's Xbox One and Nintendo's Wii U and Switch.

Moving away from the more complex Cell microarchitecture of its predecessor, the console features an APU from AMD built upon the x86-64 architecture, which can theoretically peak at 1.84 teraflops; AMD stated that it was the "most powerful" APU it had developed to date. The PlayStation 4 places an increased emphasis on social interaction and integration with other devices and services, including the ability to play games off-console on PlayStation Vita and other supported devices ("Remote Play"), the ability to stream gameplay online or to friends, with them controlling gameplay remotely ("Share Play"). The console's controller was also redesigned and improved over the PlayStation 3, with updated buttons and analog sticks, and an integrated touchpad among other changes. The console also supports HDR10 high-dynamic-range video and playback of 4K resolution multimedia.

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Microsoft Gaming in the context of PlayStation 5

The PlayStation 5 (PS5) is a home video game console developed by Sony Interactive Entertainment. It was announced as the successor to the PlayStation 4 in April 2019, was launched on November 12, 2020, in Australia, Japan, New Zealand, North America, and South Korea, and was released worldwide a week later. The PS5 is part of the ninth generation of video game consoles, along with Microsoft's Xbox Series X/S consoles, which were released in the same month.

The base model includes an optical disc drive compatible with Ultra HD Blu-ray discs. The Digital Edition lacks this drive, as a lower-cost model for buying games only through download. The two variants were launched simultaneously. Slimmer hardware revisions of both models replaced the original models on sale in November 2023. A PlayStation 5 Pro model was released on November 7, 2024, featuring a faster GPU, improved ray tracing, and introducing an AI-driven upscaling technology.

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Microsoft Gaming in the context of Blizzard Entertainment

Blizzard Entertainment, Inc. is an American video game developer and publisher based in Irvine, California, and a subsidiary of Activision Blizzard. Originally founded in 1991, the company is best known for producing the highly influential massively multiplayer online role-playing game World of Warcraft (2004) as well as the multi million-selling video game franchises Diablo, StarCraft, and Overwatch. The company also operates Battle.net, an online gaming service.

Founded as Silicon & Synapse, Inc. by three graduates of the University of California, Los Angeles: Michael Morhaime, Allen Adham, and Frank Pearce. The company began development of their own software in 1993, with games like Rock n' Roll Racing and The Lost Vikings, and changed its name to Chaos Studios, Inc. the same year, then to Blizzard Entertainment after being acquired by distributor Davidson & Associates in 1994; that year, the company released Warcraft: Orcs & Humans, which would receive numerous sequels and led to the highly popular World of Warcraft. By the end of the decade, Blizzard also found success with the action role-playing game Diablo (1997) and strategy game StarCraft (1998). The company became part of Vivendi Games in 1998, which would then merge with Activision in 2008, culminating in the inclusion of the Blizzard brand name in the title of the resulting holding company; Activision Blizzard became completely independent from Vivendi in 2013. Microsoft acquired Activision Blizzard in 2023, maintaining that the company will continue to operate as a separate business, while part of the larger Microsoft Gaming division; Blizzard Entertainment retains its function as the publisher of games developed by their studios.

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Microsoft Gaming in the context of King (company)

King.com Limited is a Swedish video game developer and publisher that specialises in social games. Since 2016, it is one of 3 publishing businesses of Activision Blizzard. Headquartered in Stockholm and London, and incorporated in St. Julian's, Malta, King rose to prominence after releasing the cross-platform title Candy Crush Saga in 2012. It is considered as one of the most financially successful games utilising the freemium model. King was acquired by Activision Blizzard in February 2016 for US$5.9 billion, and operates as its own entity within that company. King is led by Todd Green, who holds the position of President. Gerhard Florin took over Melvyn Morris's role as chairman in November 2014. As of 2017, King employs 2,000 people.

In October 2023, Microsoft acquired parent company Activision Blizzard, maintaining that the company will continue to operate as a separate business. While part of the larger Microsoft Gaming division, King retains its function as the publisher of games developed by themselves.

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Microsoft Gaming in the context of Sledgehammer Games

Sledgehammer Games, Inc. is an American video game developer company formed in 2009 by Glen Schofield and Michael Condrey. The pair formerly worked at EA Redwood Shores and are responsible for the creation of Dead Space. The company is based in Foster City, California. The studio has developed and co-developed various video games in the Call of Duty series. The company is owned by Activision.

In 2024, Sledgehammer Games closed its office in California, and employees were to be working from home until the end of that year. In that year, thirty percent of employees were also laid off as part of a restructuring within Microsoft Gaming.

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Microsoft Gaming in the context of Ninth generation of video game consoles

The ninth generation of video game consoles began in November 2020 with the releases of Microsoft's Xbox Series X and Series S console family and Sony's PlayStation 5.

Compared to the eighth-gen Xbox One and PlayStation 4, the new consoles add faster computation and graphics processors, support for real-time ray tracing graphics, output for 4K resolution, and in some cases, 8K resolution, with rendering speeds targeting 60 frames per second (FPS) or higher. Internally, both console families introduced new internal solid-state drive (SSD) systems to be used as high-throughput memory and storage systems for games to reduce or eliminate loading times and support in-game streaming. The Xbox Series S and the PlayStation 5 Digital Edition lack an optical drive while retaining support for online distribution and storing games on external USB devices.

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Microsoft Gaming in the context of List of largest video game companies by revenue

This is a listing of largest video game publishers and developers ranked by reported revenue. Sony Interactive Entertainment is the world's largest video game company, followed by Tencent and Microsoft Gaming.

Of the 83 largest video game companies, 18 are based in the United States, 14 in the European Union, 12 in China, 12 in Japan, 12 in South Korea, and 15 in others.

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Microsoft Gaming in the context of Xbox Live

The Xbox network, formerly known and commonly referred to as Xbox Live, is an online multiplayer gaming and digital media delivery service created and operated by Microsoft Gaming for the Xbox brand. It was first made available to the original Xbox console on November 15, 2002. An updated version of the service, adding the Xbox Live Marketplace, became available with the Xbox 360 console launch in November 2005, and a further enhanced version was released in 2013 with the Xbox One. The service is used on the latest Xbox Series X and Series S and, in addition to a Microsoft account, is the account for Xbox ecosystem; accounts can store games and other content.

The service was extended in 2007 across the Windows platform, named Games for Windows – Live, now defunct, which made most aspects of the system available on Windows computers. The Microsoft Store and Xbox app are now used to cross over the Xbox ecosystem into PC gaming, in addition to handhelds and mobile phones as part of the Play Anywhere initiative. Microsoft's former mobile operating system, Windows Phone, included full Xbox Live functionality until it was discontinued. The service shut down for the original Xbox on April 15, 2010, and original Xbox Games are now only playable online through Insignia, an unofficial Xbox Live replacement service, or through local area network (LAN) tunneling applications.

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Microsoft Gaming in the context of Xbox Cloud Gaming

Xbox Cloud Gaming, also simply known as Xbox Cloud, is a cloud gaming service as part of Xbox offered by Microsoft Gaming. Initially released in beta testing in November 2019, the service later launched for subscribers of Xbox Game Pass Ultimate on September 15, 2020. Xbox Game Pass cloud gaming is provided to subscribers at no additional cost. Xbox Cloud Gaming operates by linking the device to a remote server in the cloud.

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Microsoft Gaming in the context of Xbox Game Pass

The Xbox Game Pass is a subscription service as part of Xbox and offered by Microsoft Gaming. Launched on June 1, 2017, the service allows users to download and play video games via video game consoles, Microsoft Windows, Android, iOS, iPadOS, web browsers, smart televisions, and cloud. Game Pass contains a rotating library of games, with the games remaining accessible as long as the user has an active subscription. Game Pass subscribers also receive discounts on purchases of games from the service's library and their respective downloadable content (DLC).

The service consists of two products; the flagship Xbox Game Pass for the Xbox One and Series X/S, and PC Game Pass for PCs running under Microsoft's Windows brand exclusive to the Windows 10 and Windows 11. Xbox Game Pass and PC Game Pass are available as separate subscription products. A premium tier known as Game Pass Ultimate includes access to both services, in addition to Xbox Cloud Gaming, an on-demand cloud gaming available on console, PC, and mobile platforms, and Xbox Game Pass Essential subscription benefits.

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Microsoft Gaming in the context of Xbox Game Studios

Xbox Game Studios (previously known as Microsoft Studios, Microsoft Game Studios, and Microsoft Games) is an American video game publisher based in Redmond, Washington. It was established in March 2000, spun out from an internal Games Group, for the development and publishing of video games for Microsoft Windows. It has since expanded to include games and other interactive entertainment for the namesake Xbox platforms, other desktop operating systems, Windows Mobile and other mobile platforms, web-based portals, and other game consoles.

Xbox Game Studios, alongside ZeniMax Media and Activision Blizzard, are part of the Microsoft Gaming division led by Phil Spencer, who is chief executive officer of the division.

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Microsoft Gaming in the context of ZeniMax Media

ZeniMax Media Inc. is an American video game holding company based in Rockville, Maryland. The company was founded in 1999 by Christopher Weaver and Robert A. Altman as the parent company for Weaver's video game publisher Bethesda Softworks. The company additionally owns the development studios Bethesda Game Studios (The Elder Scrolls, Fallout, and Starfield), id Software (Doom, Quake, and Rage), Arkane Studios (Dishonored, Prey, and Redfall), MachineGames (Wolfenstein), and ZeniMax Online Studios (The Elder Scrolls Online). Microsoft acquired ZeniMax Media for $8.1 billion in March 2021 and operates it under the Microsoft Gaming division.

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Microsoft Gaming in the context of Bethesda Softworks

Bethesda Softworks LLC is an American video game publisher based in Rockville, Maryland. The company was founded by Christopher Weaver in 1986 as a division of Media Technology Limited. In 1999, it became a subsidiary of ZeniMax Media. In its first 15 years, it was a video game developer and self-published its titles. In 2001, Bethesda spun off its in-house development team into Bethesda Game Studios, leaving Bethesda Softworks to focus on publishing operations.

In March 2021, Microsoft acquired Bethesda's parent company ZeniMax Media, maintaining that the company will continue to operate as a separate business. Part of the Microsoft Gaming division, Bethesda Softworks retains its function as the publisher of games developed by the different studios under ZeniMax Media.

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Microsoft Gaming in the context of Microsoft Corporation

Microsoft Corporation is an American multinational technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the rise of personal computers through software like Windows, and has since expanded to Internet services, cloud computing, artificial intelligence, video gaming, and other fields. Often described as a Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies, and one of the most valuable brands globally.

Founded by Bill Gates and Paul Allen to market BASIC interpreters for the Altair 8800, Microsoft rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Windows. During the 41 years from 1980 to 2021 Microsoft released 9 versions of MS-DOS with a median frequency of 2 years, and 13 versions of Windows with a median frequency of 3 years. The company's 1986 initial public offering (IPO) and subsequent rise in its share price created three billionaires and an estimated 12,000 millionaires among Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market. Steve Ballmer replaced Gates as CEO in 2000. He oversaw the then-largest of Microsoft's corporate acquisitions in Skype Technologies in 2011, an increased focus on hardware that led to its first in-house PC line, the Surface, in 2012, and the formation of Microsoft Mobile through Nokia. Since Satya Nadella took over as CEO in 2014, the company has changed focus towards cloud computing, as well as its acquisition of LinkedIn for $26.2 billion in 2016. Under Nadella's direction, the company has expanded its video gaming business to support the Xbox brand, establishing the Microsoft Gaming division in 2022 and the acquisition of Activision Blizzard for $68.7 billion in 2023.

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