Recently, Microsoft CEO Satya Nadella (Satya Nadella) and Xbox market chief Phil Spencer (Phil Spencer) gave interviews to discuss the need to buy more game studios, how to continue to succeed, and to focus on the TikTok short video service acquisition negotiations.
Regarding the Tiktok agreement, Nadella said: “This is certainly not a contract that I am familiar with, and it is certainly not a transaction that I am able to engage in bidding. Since then, this agreement has clearly changed a lot.”
Microsoft has long been recognized as a titan of enterprise applications, running most personal computers in the world and developing technologies and methods behind the scenes. But the company has also invested over $10 billion on purchasing several of the world’s most successful video game production studios. For Nadella, all this is about software ‘s potential.
Though Nadella is not a gamer himself, in the video game business, he has made a huge gamble. He agreed to invest $2.5 billion on purchasing Minecraft developer Mojang shortly after he was announced as CEO in 2014. In 2018, he subsequently purchased five more studios, including role-playing game maker Obsidian, which uses the “The Actual Planet” space adventure title and is notable for the iconic “South Park:” South Park: The Stick of Truth. “In 2019, Microsoft acquired Double Fine, the maker of the Psychonauts adventure game.”
The expectation that digital gaming will be a crucial technology in the next 10 years is what drove Nadella to make these choices, and gamers using Microsoft products expect that the company will create similar games produced by its acquired subsidiary.
Nadella said in an interview after Microsoft announced the purchase of the digital gaming company ZeniMax Media (which operates many industry-leading game production studios) for US$ 7.5 billion in cash, “You can’t wake up in the morning and instantly declare,” Let me create a game studio, “which needs brand funding so that we can serve a wider audience.”
This is why Microsoft is considering adding more video game studios in the future, Nadella said, and why it wants to invest in streaming programs for Xbox Game Transfer. “Phil Spencer, head of Xbox, has said:” Content is our platform’s most important component, and we will continue to invest. This has expanded our innovative organization’s scale.
The purchase of Microsoft highlights the most dramatic direction the company is trying to build its Xbox name. These acquisitions also provide more games for the firm, enabling it to play a part in an increasingly successful game-driven industry.
From the post-apocalyptic suspense game “The Last of Us” to the treasure search game “Uncharted” to the fighting game “God of War” series, rival Sony is remembered for releasing exclusive titles. “Marvel’s Spider-Man: Miles Morales” (Marvel’s Spider-Man: Miles Morales), along with the $500 PlayStation 5, will be released in November.
“At the same time, the Xbox team is better known for its” Halo “and” Gears Of War “game shows, and the” Forza “(Forza) racing game, but with the introduction of the $500 Xbox Series X, these will not become the priority. In a note to investors, Cowen analysts wrote:” Microsoft does not need to make a major content or IP purchase now.
Figure: The first title for Xbox Series X and Xbox Series S will be Microsoft’s forthcoming “Halo: Infinity”
Although Microsoft can own many popular games, some gamers claim the company needs to boost its quality of gaming, especially compared to Sony. In 2018, the gaming website Polygon wrote: “Look at the list of exclusive games from the two companies in 2018, and you can find that the results are horrible, at least for Xbox fans.”
In the interview, Spencer said players would see a big change brought on by Bethesda Studios, and pointed out that the titles of the latter would also appear when they go on sale through the Microsoft Xbox Game Pass subscription program. They can also be provided by the XCloud video game subscription service from Microsoft, which encourages individuals to play games on the Internet, close to the way they watch Netflix shows.
Spencer also said that Bethesda would run in a semi-independent manner to allow the games that initially brought it success to continue growing. “It has to do with the atmosphere of these teams, they don’t have to be just the same as us,” he said.
This is why Microsoft’s support will continue to be enjoyed by game developers. Nadella said: “We will continue to search at businesses that have priorities, missions and ethos in common with us.” He pointed out that the Xbox team had been collaborating closely with Bethesda since the first Xbox was released in 2001. “In relevant locations, we will still strive to achieve disorderly progress.”
Bethesda is not the only purchase of popular goods that Microsoft has taken part in in the last few months. The firm is also vying for TikTok, a short video application. Nadella said that ByteDance, the parent company of TikTok, had approached Microsoft to try to establish a wholly-owned Microsoft venture. In the end, though, enterprise software provider Oracle and distributor Wal-Mart effectively purchased stakes of a new company called TikTok Global.
Nadella said, “This is certainly not a deal I’m familiar with, and I’m probably not willing to pay on a sale. This agreement has clearly changed a lot since then.” But Nadella said that if the purchase was won by Microsoft Secured, which he thinks is part of the company ‘s attempts to grow its tech sector. He said: “I don’t wake up dreaming about being someone else every day. I proceed with this every day:’ How do I do better stuff that do naturally be done?'”
That’s why Nadella wanted to purchase TikTok, and the initial purpose was to buy Bethesda as well.