Microsoft executives are gearing up for the future growth of the gaming industry, with a focus on advertising and mobile purchases. This revelation came to light after a Microsoft presentation was mistakenly published on a court website, which is part of the ongoing battle with the Federal Trade Commission over the pending Activision Blizzard acquisition.
Previous documents highlight Microsoft’s ambitious goal of achieving $500 billion in total revenue by 2030, as well as their analysis of rival products used by corporate clients. Both Microsoft and Activision were able to request redactions to the documents before their release to the public.
In the leaked presentation, it was revealed that Microsoft has plans to release a new Xbox console in 2028, along with updated versions of the Xbox Series X and Series S in 2024. Although the presentation does not explicitly mention the Activision deal, it is widely believed to be instrumental in achieving the projected revenue.
The gaming industry is expected to witness significant growth, with gaming revenue predicted to double to $36 billion in the 2030 fiscal year, compared to the forecasted $18 billion for 2022.
The news of Microsoft’s plans being made public in this manner has left the company’s gaming CEO, Phil Spencer, disappointed. He had hoped to keep these plans under wraps.
The Activision deal has the potential to expand sales of transactions across consoles and PCs, and could attract more subscribers to the Game Pass library. Microsoft also sees advertising and mobile transactions as nascent categories with faster growth prospects. The company aims to increase advertising revenue from $100 million in fiscal 2022 to $1.4 billion in fiscal 2030. Additionally, they expect revenue from mobile transactions to reach $2.6 billion, compared to none in fiscal 2022.
Microsoft is working towards finalizing the Activision transaction by October 18th and is proposing to divest the cloud streaming rights to Ubisoft. The United Kingdom’s Competition and Markets Authority is currently evaluating this new proposal for the deal.
In related news, Microsoft’s latest gaming venture, Bethesda’s highly anticipated game “Starfield,” launched today, marking a new milestone for the company’s gaming division.
Overall, Microsoft’s executives are strategically aligning themselves for future growth in the gaming industry, with a strong focus on advertising and mobile purchases, while the pending Activision Blizzard acquisition is seen as a pivotal move in achieving their revenue goals.
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