Could it be said that Microsoft and Xbox are considered the largest video game publishers on a global scale, as supported by some analyses?
Over the past year, there has been quite a bit of turmoil within the community of Xbox enthusiasts due to Microsoft’s transition from releasing exclusive software on Xbox consoles towards a comprehensive multiplatform approach. Previously console-exclusive games like Sea of Thieves, Grounded, and others have started appearing on Sony’s PlayStation as well, causing some concern about Xbox’s future direction. However, the company has maintained that it intends to introduce new Xbox hardware in the future, which may temporarily ease such worries. Just recently, Xbox head Phil Spencer stated his desire for Xbox hardware to excel in terms of power and unique features, a move expected to quell more serious apprehensions.
If you remain uncertain about Xbox’s approach, this recently released report from Ampere (through VGC) might change your mind. According to the analysis, Microsoft surpassed all other game publishers worldwide in December, with an estimated $465 billion spent on their products. This total includes popular games such as World of Warcraft, Call of Duty, Minecraft, and Candy Crush Saga. The report attributes a significant portion of this success to Microsoft’s multiplatform strategy, noting that 64% of the spending came from PlayStation’s ecosystem through titles like Call of Duty. Unfortunately, Ampere did not disclose how much of the spending was specifically on Xbox and PC platforms in their report.
The study acknowledges the impressive achievements of games such as Fortnite and Marvel’s Rivals during the holiday season. Yet, it raises questions about the accuracy of some data when considering the worldwide market. Ampere claims that Microsoft was leading comfortably over EA, who took the second spot. Previous assessments have often indicated Tencent as the frontrunner, attributed to their substantial home advantage and strategic investments in games like Fortnite and League of Legends. Interestingly, while Tencent received a mention for Path of Exile 2, which is showing promising results, other analyses have placed them ahead of other publishers.
It’s tricky to pinpoint specifically how Ampere monitors certain parts of the data. One possibility is that the company doesn’t include Fortnite revenues under Tencent’s control in its calculations. Regardless, this could be a significant advantage for Microsoft, given their dynamic approach to strategy that’s causing unease among their largest clients. For some time now, Xbox hardware sales have been declining quarter after quarter, leading gamers to fret about the potential exodus of developers from the platform.
As an analyst, I’m eagerly anticipating the announcement of Microsoft’s FY25 Q2 financial results today, as they could shed light on how Xbox is faring in a post-exclusive game market. Despite Xbox Game Pass offering the best value in gaming, the Xbox Series X boasting impressive power, and the Xbox Series S providing an affordable entry point into current generation gaming, it seems that consumers have been somewhat indifferent to these offerings so far.
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2025-01-29 17:13