Microsoft is rapidly advancing in the gaming industry through its brand Xbox, aiming to solidify its position as a market leader. Recently, Xbox has experienced significant traction and player growth as a result of consistent efforts from Phil Spencer and the team.
While Sony’s PlayStation has dominated the gaming console market for years, Xbox is now making bold moves to compete closely with PlayStation. To expand its player base globally, Microsoft has been on a shopping spree, acquiring established gaming studios to be part of the Xbox umbrella. Notable acquisitions in recent years include Ninja Theory and ZeniMax (the parent company of Bethesda).
Microsoft’s next acquisition, Activision Blizzard, is set to be one of the biggest video game studio deals of all time, with a price tag of $68.7 billion. The merger with Activision will undoubtedly boost Xbox on all gaming fronts, including PC, Console, Mobile, and Cloud markets.
And it looks like Microsoft already has post-merger projections for player base growth. The documents from the European Regulator who were investigating the Microsoft Activision deal reveal Microsoft’s expectation to reach 3 billion players across PC, Consoles, Mobile Devices, and Cloud by 2030.
Today, 3 billion consumers play games, a number that the Notifying Party expects to reach by 2030.”
The document also mentions that mobile gaming has become the highest in terms of revenue. Therefore, the well-established mobile division of Activision, King, will undoubtedly give Microsoft/Xbox a significant boost to penetrate that market more effectively. Phil Spencer has also emphasized multiple times that the primary interest of Microsoft is the mobile gaming advantage that Xbox will gain after acquiring Activision.
How Large the Gaming Industry Be By 2030?
According to the reputable German-based analyst company, Statista, the global video game industry is booming, with revenue projected to reach US$384.90 billion in 2023. The market is expected to grow at an annual rate of 7.89%, reaching a market volume of US$521.60 billion by 2027.
Mobile games hold the largest market share, with a volume of US$286.50 billion in 2023. The average revenue per user (ARPU) in the video games market is expected to be US$142.50 in 2023.
The number of users is estimated to reach 3.10 billion by 2027, with user penetration increasing from 35.2% in 2023 to 39.0% in 2027. So, at this pace, the global video games market, including mobile gaming, will reach around 6 billion players by 2030. If Microsoft wants to capture 3 billion, that’s 50% of the entire market, which is quite ambitious.
But who knows what the dynamics of growth for Xbox will be after having a publisher like Activision Blizzard King by its side? As cloud gaming also has huge potential in the future, it wouldn’t be surprising if Microsoft manages to achieve its goals. Out of all the current dominant gaming companies, Microsoft’s Xbox is the one heavily investing in the cloud gaming sector.
What are your thoughts about this news? Let’s discuss this in the comments section below.