The documents published online by the FTC as part of Microsoft’s acquisition of Activision will cause a lot of ink to flow. It is a good part of the Xbox strategy which is now revealed in broad daylight and after the revelations of the new Xbox consoles, it is on the 2030 strategy that we are now focusing.
Xbox 2030 strategy: the numbers
The documents that Xboxygen was able to consult are rather very complete and follow the revelations of the new Xbox Series X without reader, new Xbox Series S and new controller with haptic feedback.
Like any large company, Microsoft must set ambitions for the future, and we now know Xbox’s objectives by 2030, i.e. the results to be achieved in the next seven years.
Global goals set by Xbox to be achieved in 2030
- Xbox is expected to reach 100 million Xbox Game Pass subscribers in 2030. Today, the number of subscribers is estimated to be between 35 and 40 million users.
- Xbox is expected to generate $35.7 billion in revenue in 2030, broken down as follows:
- 16.9 billion from sales
- $7.8 billion from Game Pass subscriptions
- $2.6 billion from mobile transactions
- $1.4 billion from advertising
We did the exercise of distributing these revenues to realize that 20% of Xbox revenues will ultimately come from Xbox Game Pass subscriptions, which is more than console sales, which should represent 20% of revenues.
Xbox 2030 strategy: consoles and accessories
Xbox is banking its strategy on expanding its audience. It therefore needs to reach different audiences with various needs, which is why the brand is increasing the number of points of contact to reach players. Xbox recalls that “the console business is the foundation” and the key indicator of the brand which will continue to generate the majority of revenues.
Microsoft adds that this strategy must, however, be accompanied by new points of contact outside the console universe as well as an improvement in the general experience of consumers with the brand. Personalization and customization are also listed as key success factors, as is reducing the impact of the carbon tax.
Xbox has segmented its 2030 strategy into three parts, each divided into devices and accessories. Here are the details and the level of progress over time.
Xbox strategy at the launch of Xbox Series X|S
Devices
- Low-end / Mid PC
- Consoles
- High-end / Mid PC
Accessories
- Accessoires Designed for Xbox
- Helmets
- Core handcuffs
- Elite controller
Xbox strategy today
Devices
- Low-end / Mid PC
- Consoles
- High-end / Mid PC
- Browsers (new)
- Android and iOS mobiles (new)
- Smart TVs (new)
- Streaming via key/box (new)
- Cloud device (new)
- Cloud Blade (new)
Accessories
- Accessoires Designed for Xbox
- Helmets
- Core handcuffs
- Elite controller
- Sustainability (new)
- Accessibility (new)
Xbox strategy tomorrow (by 2030)
Devices
- Low-end / Mid PC
- Consoles
- High-end / Mid PC
- Browsers
- Mobiles Android et iOS
- Smart TVs
- Streaming via key/box
- Cloud device
- Cloud Blade
- Portable (new)
Accessories
- Accessoires Designed for Xbox
- Helmets
- Core handcuffs
- Premium Controller (new)
- Elite controller
- One-handed controller (new)
- Mobile controller (new)
- Keyboard and mouse (new)
- Sustainability (new)
- Accessibility (new)
Xbox 2030 strategy: the growth of Cloud and PC for Game Pass
We know Xbox on consoles and the brand will continue its investments in this area. But the strongest growth is expected in Cloud Gaming and the PC market.
To reach the more than 100 million Xbox Game Pass subscribers, Microsoft will therefore have to get more people to adopt its subscriptions, which involves diversifying devices and uses.
Finally, the last interesting information that we were able to unearth in the documents concerns the pyramid of objectives set by Xbox. It is interesting to see that Microsoft, at the time of writing the document, has already validated the financing of certain ideas, but that others have yet to be approved. And still others are not intended to be supported by Microsoft directly, but rather by third-party Xbox partners.
Needs already funded
- Xbox Design Lab / manette mid-gen (code Igraine)
- SW Security – QCOM DAWN module (code Mousatee)
- Core Controller (code Sebille)
- Mid-generation consoles (Ellewood/Brooklin code)
- 1.5 COS wireless headphones (Parkview code)
- Study of 10th generation consoles
- Cloud Console (code Keystone)
Needs not yet funded/lack of resources
- Expansion du portefeuille audio (code Waterloo / Mills)
- Progress in repairability/durability
- New cloud server blade
- Accessibility portfolio
- PC Accessories
- Console customization via XDL (Uther code)
- Manette Xbox de luxe (code Zarasai)
- New Elite controller (Actium code)
Needs identified, but not within the internal scope of Xbox
- Console portable
- Mobile handcuffs
- Remote
- Headphones
This is the complete Xbox strategy imagined by the brand between now and 2030. In itself, nothing very surprising when you have been following the brand’s ambitions for years, but a confirmation of the means implemented to achieve it.
This information is official, and follows a leak from the FTC which probably should not have published the details provided by Microsoft as part of its Activision/Blizzard investigation. However, we must keep in mind that business is not fixed in time and that things can still evolve.
New needs will emerge by 2030 and others will certainly be postponed or put aside depending on the situation. We know for example that Project Keystone, the mini-Chromecast for playing in the Cloud, was confirmed by the boss of Xbox as being an accessory on which the brand was working, but that he did not imagine it arriving for several years , ultimately preferring to work on an Xbox Game Pass application for TVs.
As usual, stay tuned to Xboxygen to discover the details and decryptions of Xbox strategy and upcoming games.
