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With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low

Copilot in Outlook will generate personalized themes for you to customize the app

Microsoft will raise the price of its 365 Suite to include AI capabilities

Death Stranding Director’s Cut is now Xbox X|S at a huge discount

Outlook will let users create custom account icons so they can tell their accounts apart easier

Microsoft has a hit on its hands with Xbox Game Pass, and analysts are starting to notice

3 min. read

Published onOctober 31, 2018

published onOctober 31, 2018

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Back in 2013 whenMicrosoft unveiled its Xbox Oneand the promise of an always connected and primarily digital gaming experience, the company was roundly mocked and panned for its seemingly overreaching ambitions.

At the time Microsoft proposed its online gaming distribution platform, companies such as Gamestop and other ambitious 3rd party studios looking to make a similar play denounced the company’s pitch.

Fast forward a few years, a couple of fundamental user-focused business strategies and advancements in the company’s cloud infrastructure and Microsoft seems to be revisiting a reality in which the Xbox platformevolves into a more digital gaming experienceto a much more receptive audience.

While Microsoft’s Xbox Game Pass isn’t quite the cloud-based initiative proposed during the Xbox One unveiling, or like Sony’s actual cloud-based solution with PS Now, its implementation does offer Microsoft a platform expansion that should worry competitors.

The launch of Xbox Game Pass has been a relative success for the company asMicrosoft chalked up a 44% growth in its gaming revenues annually.The growth of the Xbox division helped add an additional 9% or $2.74 billion to the company’s bottom line, making it the third fastest growing sector in Microsoft’s portfolio.

Microsoft’s Xbox One hardware hasn’t been flying off the shelves in any noticeable way as of late thus isolating the gains in Xbox revenue to software related initiatives such as an increase in Xbox Live and Game Pass subscribers.

What this means is, that Microsoft isn’t going to be walking away from Xbox Game Pass anytime soon, and in fact, is already strategizing ways to expand the ecosystem.

Over the past year, Microsoft has continued to blur the line between where it wants its gamers to enjoy their gaming experiences as it pitches both Windows PCs and Xbox’s as destinations. Microsoft’s gaming obfuscation can be viewed as a shrewd business strategy that’s leveraging its presence in both PC and console ecosystems, but the reality is that on-demand entertainment services are a trend that is crossing over into the casual gaming experience.

According toa report from the Motley Foolthat uses a Newzoo survey to canvass the number of subscription gamers that exist today the data shows an increase in EA Access and Xbox Game Pass subscribers. EA Access garners 15% of family gamers subscriptions while Game Pass is a close second with 14%.

While Microsoft undoubtedly plans to use its upcoming Project xCloud platform to further entrench itself in digital and cloud gaming platforms, EA is looking to launch stave off the competition with its recently reported cloud service for Origin Acess.

Electronic Arts is also reportedly developing a new cloud service for Origin Access. That integration would allow subscribers to choose between downloading or streaming games, allow EA to expand the Origin Access ecosystem to tablets and smartphones, and possibly merge the two Access platforms on the Xbox One.

As both Microsoft and EA continue their strategic business tango with one another, companies such as Valve are left in the middle to fret about Microsoft or EA pulling their games from Steam to prioritize their very similar distribution platforms.

Whatever the outcome, investors are finally beginning to perk up at the potential of Microsoft’s digital gaming ecosystem as well as competitors taking notice of pervasive expansion happening within the confines of Microsoft’s Xbox platform.

Kareem Anderson

Networking & Security Specialist

Kareem is a journalist from the bay area, now living in Florida. His passion for technology and content creation drives are unmatched, driving him to create well-researched articles and incredible YouTube videos.

He is always on the lookout for everything new about Microsoft, focusing on making easy-to-understand content and breaking down complex topics related to networking, Azure, cloud computing, and security.

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Kareem Anderson

Networking & Security Specialist

He is a journalist from the bay area, now living in Florida. He breaks down complex topics related to networking, Azure, cloud computing, and security

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low#

Copilot in Outlook will generate personalized themes for you to customize the app#

Microsoft will raise the price of its 365 Suite to include AI capabilities#

Death Stranding Director’s Cut is now Xbox X|S at a huge discount#

Outlook will let users create custom account icons so they can tell their accounts apart easier#

Microsoft has a hit on its hands with Xbox Game Pass, and analysts are starting to notice#