![]() ![]() How many times have we heard that it's user numbers and engagement that matter, not revenues - often from companies that are either on the road to ruin, or which will ultimately be forced to completely debase their products and services in a desperate wild goose chase after profitability some years down the line? Those old enough to have been through a few boom and bust cycles with online ventures over the past quarter-century might have an instinctive wince reaction to that statement. It's a safe bet that the revenues from Halo Infinite are the lowest in the series' history - but for Microsoft, that barely matters compared to the raw number of players and the extent of engagement It's probably a safe bet that the actual revenues from the launch of Halo Infinite are the lowest in the series' history, given how few players will have needed or wanted to buy the $60 standalone product - but for the purposes of the future Microsoft is trying to build and the role it needs its first-party games to play, that barely matters compared to the raw number of players the game has been able to reach and the extent of engagement with Game Pass it has been able to drive. That statement needs about a dozen qualifications and footnotes attached to it, of course there's no credible direct comparison that we can make between the player numbers for previous Halo titles, which launched solely as full-price packaged or digital download games, and the player numbers for a game whose multiplayer component is free-to-play and whose single-player campaign is available at no additional cost to those 25 million Game Pass subscribers. The launch of Halo Infinite broke series records, albeit with some caveats, thanks to Game Pass In light of that enormous investment - and the equally enormous challenge it's designed to overcome - the company would be justified in feeling very, very good about the news this week that Halo Infinite has reached 20 million players in the months since its launch, making it the biggest ever launch for a Halo game. For comparison, Netflix's global spend on content last year was somewhere shy of $17 billion, and only c.$5 billion of that was spent on original content creation it's an apples to oranges comparison since Microsoft's acquisitions and investments are a multi-year project, of course, but the general assessment that Microsoft is now spending significantly more on content than Netflix is a fair one. That's easily the largest investment any company has ever made in the gaming space (even if the lion's share of that is the cost of the ABK acquisition), and a clear sign of just how seriously Microsoft takes the task of getting high-quality content onto the Xbox platform generally and Game Pass more specifically. Once you factor in all of the company's other various investments in first-party studios and the costs associated with actually integrating its two publisher acquisitions, Microsoft's investment in getting its first-party publishing pipeline up to speed in this generation will likely be within a stone's throw of $100 billion. That's what last year's acquisition of Zenimax / Bethesda was about, and to a large extent it's what this year's vastly larger - in every sense - acquisition of Activision Blizzard King is about. ![]() The general assessment that Microsoft is now spending significantly more on content than Netflix is a fair one There's just one missing ingredient, and it's the single biggest challenge for Microsoft in the coming years: it needs the high-profile exclusive games that will actually tip consumers over and get them to buy into this ecosystem. The resuscitation of Microsoft's ambitions in the games sector after the missteps and failures of the Xbox One era have all revolved around one seriously ambitious goal: reshaping the industry's business models to move away from fixed hardware platforms and generations, and towards a vision of an evolving software and services platform that spans various kinds of hardware and systems.Ä«etween the expansion into a service platform spanning Xbox consoles (the hardware itself now fragmented into two distinct performance tiers, making it easier to expand even further in future) and PC platforms, and the creation of the Game Pass service, which now boasts 25 million subscribers and a hugely impressive back catalogue of games, most of the framework for achieving that goal is in place. ![]()
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