Microsoft 2021

Abstract

In the early 2000s, Microsoft entered the gaming industry with its first console the Xbox. The success of the videogame market threatens Microsoft’s activities as a segment of PC buyers are passionate gamers. The convenience of the gaming console and its cheap price compared to PC led Microsoft to make such a move. This new arrival was not original. Indeed Microsoft’s strategy was simple : improving what the competitors did. In terms of hardware, Microsoft used its expertise and produced the most performant video console ever. However, its achievement was not enough to challenge Sony or Nintendo, the biggest players in the gaming industry. After years, Xbox succeed to reach millions of players however the new generation (PlayStation 5 and the Xbox Series X/S) seems to repeat the previous one. Indeed, Sony sold twice more PS4 than Xbox One. How Xbox can change the situation and reach new players ? Through a new business model. Indeed Xbox developed a brand new service called “Game Pass”. This service offers a range of games via a subscription model. Often called “the Netflix of videogame”, the Game Pass is a successful service that allows Xbox to make more money with less consoles. However, the technology that use Microsoft to develop its Game Pass – the cloud computing – is also used by other companies like Google and Amazon which are currently trying to enter the gaming industry. Indeed, both already developed their service and could threaten the new Microsoft’s strategy. So what Xbox should do in order to remain competitive in such a difficult market ?

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