In recent years, Microsoft has increasingly directed its gaming business toward subscription services rather than the console hardware itself. A recent announcement from the company could push that strategy toward its logical conclusion, with Microsoft's games and services increasingly showing up on rival hardware.
Microsoft recently said it wants to bring the subscription service to as many screens and devices as possible, including PlayStation and Nintendo platforms. Microsoft's strategy is to take advantage of subscription services, including GamePass, which have higher profit margins than traditional retail game sales.
Xbox Chief Financial Officer Tim Stuart laid out the plan during a Wells Fargo TMT Summit call this week. Speaking about Microsoft's recent acquisition of Activision Blizzard, Stewart said the company's mission is to bring its first-party experiences and subscription services to every screen on which games can be played. He mentioned mobile devices, smart TVs and competitors such as Nintendo and PlayStation.
Microsoft's focus on GamePass leans toward a hardware-agnostic strategy, as it allows users to play games on Xbox consoles and PCs. The service also includes Xbox cloud gaming, now available via mobile devices and smart TVs. Cloud services will likely expand to more devices ahead of GamePass and Microsoft's in-house games.
Stewart isn't just referring to games developed by the company's studios, such as Halo, Forza Racing or Microsoft Flight Simulator, though. Companies acquired by Microsoft, including Mojang and Activision Blizzard, make popular games on different platforms, and Microsoft has pledged to continue supporting those games on rival hardware.
While Sony expressed concerns that its rivals in the console space might limit its successful Call of Duty series to Xbox, Microsoft pledged to continue releasing new games on PlayStation and eventually Nintendo devices. The agreement is likely to be similar to the company's approach to Minecraft, which continues to thrive across all consoles and mobile devices.
Mobile is one of the main drivers of Activision Blizzard's acquisitions, including mobile game maker King. Stewart mentioned one of King's most popular games, CandyCrush. The CFO also cited the mobile version of "Call of Duty" as an example of how Microsoft will utilize this IP.
World of Warcraft is another subscription service Stewart mentioned, and the company now owns the game and could theoretically bring it to multiple platforms.