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Microsoft CEO Announces Plans to Expand Gaming Division After Activision Blizzard Merger

Microsoft to focus on consoles through 2030, plans to develop own mobile app shop, and expects gaming division revenue growth to exceed 45% in the next quarter.

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Overview

  • Microsoft's CEO Satya Nadella has announced plans to expand the company's gaming division, highlighting gaming as one of the three pillars of the brand alongside developer tools and proprietary software.
  • Following the $69 billion merger with Activision Blizzard, Microsoft has positioned itself as the second-largest publisher by revenue, after Tencent, and plans to double its efforts as a game producer and publisher.
  • The company plans to focus on consoles through 2030, hinting at the development of new Xbox Series S and Series X consoles with improved specifications.
  • In addition to a focus on consoles, Microsoft also plans to develop its own mobile app shop, possibly to challenge other major players like Google and Apple.
  • Despite a reported 7 percent decline in Xbox sales, the company expects a significant increase in gaming division revenue, with predictions of growth exceeding 45% in the next quarter, largely credited to the inclusion of Activision Blizzard.