Microsoft and Xbox have made billions on Halo, but a huge $1.8b chunk of that hasn't even come from the games

What you need to know

Halo is one of Microsoft’s longest-running game franchises, and has played a huge role in the success of its Xbox gaming divisions since both Halo: Combat Evolved and the first Xbox console launched in 2001.
Since its inception, Halo as grossed over $6 billion, with that number potentially as high as $10 billion according to details on a Microsoft LinkedIn profile.
However, in a new article, Xbox head of consumer products John Friend has stated that nearly $2 billion of that revenue hasn’t even come from the video games.
Specifically, $1.8 billion has come from Halo merchandise and multimedia, including its many different toys, collectibles, apparel items, novels, comics, and more.
Friend’s comments also suggest that Microsoft may license newly acquired franchises like World of Warcraft and Diablo in similar ways, though he stressed that the firm will evaluate properties on a case-by-case basis to determine the best approaches.

As a long-time fan of Halo, I must say that this piece of news has truly blown my mind! Growing up, I remember saving every penny to grab the latest Halo merchandise, from action figures to novels. It’s astounding to learn that over $1.8 billion in revenue comes from these very items!

When you contemplate Microsoft’s expansive science fiction series Halo, it’s likely that numerous popular Xbox games from over two decades spring to your mind. This is because the debut of the original Halo: Combat Evolved coincided with the launch of Microsoft’s first console in late 2001, significantly boosting Xbox’s reputation. Over the years, its subsequent sequels (including main titles and spin-offs) have consistently been among the most significant exclusive games presented to players on Xbox 360, Xbox One, and Xbox Series X|S platforms. In essence, if there’s a defining series for Xbox, it’s Halo, although its recent release Halo Infinite may not have met expectations as smoothly as past installments.

It’s hardly shocking that, given its rich history and widespread appeal, the Halo franchise has generated an estimated earnings of over $6 billion (potentially even reaching $10 billion, as suggested by Microsoft senior business manager Lillian Lehmann on LinkedIn). What left me pondering, though, was the revelation that a whopping $1.8 billion from this revenue doesn’t stem from video game sales alone. Instead, it comes primarily from merchandise purchases related to the Halo series, such as apparel, toys, collectibles, books, graphic novels, comics, and films.

The information in this report originates from an article featured in the September issue of License Global magazine. In this piece, Xbox’s head of consumer products, John Friend, delves into Microsoft’s strategies for brand licensing that link legendary video game series with a globally varied fanbase. Friend emphasizes that for lesser-known properties like Obsidian Entertainment’s 2022 title Pentiment, Microsoft must be more selective when it comes to licensing possibilities. However, with massive franchises such as Halo, Microsoft and Xbox have the ability — and history of doing so — to venture much further in terms of brand licensing.

Microsoft and Xbox have made billions on Halo, but a huge $1.8b chunk of that hasn't even come from the games

When referring to franchises and communities, it’s crucial to evaluate them based on their unique identities and ensure the programs we create enhance fan engagement and grow fandom for both the group and the franchise. In other words, I frequently emphasize the importance of a ‘proper luggage fit,’ meaning that the program should complement the essence of the franchise and resonate with its fans. We have an extensive and thrilling collection to manage, so it’s essential that we approach our work intelligently.

For Halo, it’s evident that, aside from the debatable and eventually cancelled Halo TV series, attempts to cash in on its worldwide fame through a vast array of multimedia have proven highly successful. The ever-growing collection of numerous novels, appealing to fans yearning for tales outside of Master Chief’s viewpoint, has been well received. Additionally, an assortment of Halo action figures, LEGO-style Mega model kits, tabletop board games, fashion lines, and other merchandise have been developed and sold throughout the years. It’s expected that more merchandise will be released in 2026, as Microsoft is planning to commemorate the 25th anniversary of both Xbox and Halo that year.

friend stated, “Our franchises are enormous and amazing, spanning from World of Warcraft, which is celebrating its 20th anniversary this year, to Halo, Call of Duty, StarCraft, and many others. We’re crafting strategies for the 25th anniversary of Halo and Xbox, as we have such a deep-rooted legacy and history, and these communities have been vibrant for such a long time that it’s essential to honor their milestones.

Microsoft and Xbox have made billions on Halo, but a huge $1.8b chunk of that hasn't even come from the games

Microsoft’s Halo is no longer the sole focus of their expanding and transforming Xbox strategy; instead, they seem poised to apply a similar approach to other popular franchises like Doom, Fallout, Diablo, World of Warcraft, which are now under Microsoft’s ownership due to recent major acquisitions. It’s worth noting that Call of Duty: Black Ops 6 will soon have a Fashion UK clothing and accessories line, limited edition YooTooz figures inspired by Zombies, themed KontrolFreek Performance Thumbsticks and Thumbgrips for game controllers, as well as a range of peripherals from Corsair in a multi-year partnership with Call of Duty. Additionally, there are indications that Xbox aims to delve into augmented reality (AR) and virtual reality (VR), creating immersive events and experiences. However, given the history of these technologies struggling to gain mainstream popularity, it’s questionable whether we’ll see significant developments in this area.

One way to rephrase the given text in a natural and easy-to-read manner could be: “Microsoft and Xbox are committed to assessing each of their properties individually, licensing them only when it’s suitable. As my friend puts it, ‘It’s crucial for us to be smart about our focus and recognize the unique nature of our diverse portfolios. Our strategies and approaches won’t always be consistent across every franchise or studio. This means we must remain open to being thoughtful and recognizing that what works for World of Warcraft might not work for StarCraft or Diablo. We have a great deal of flexibility, and we aim to listen to our fans to better enhance their experience.’

This article primarily explores multimedia elements outside of Halo and other well-known Microsoft franchises. However, if you’ve never experienced the games that initially catapulted them to global fame, Xbox Game Pass offers an affordable solution. With a subscription to Xbox Game Pass Ultimate, you can access most of the company’s first-party games and all console exclusives for both Xbox and PC. Alternatively, there are separate options for PC and Xbox players with PC Game Pass and Xbox Game Pass Standard respectively.

2024-09-20 21:09

Microsoft and Xbox have made billions on Halo, but a huge $1.8b chunk of that hasn’t even come from the games

What you need to know

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