Gaming ka King Kaun?
Microsoft's Three Legged Gaming Throne
Last week, we had discussed Microsoft proposed acquisition of Activision Blizzard. Microsoft’s gaming business across mobile, PC, console and cloud provides it a strategic and competitive advantage against its industry peers.
Microsoft’s move could be analysed from two perspective- Proactive and Reactive. You could read more by clicking on the above mentioned link.
This week’s focus is on understanding Microsoft’s efforts in strengthening its platforms across hardware, software and games. Or are we missing the fourth leg of the throne?
DTW
During the Week, Microsoft announced the arrival of Android apps on Windows 11 through the Microsoft Store. This is a welcome step for many multi-platform stakeholders who would be able to access the android apps in Windows which “continues to be the backbone for innovation, a destination for gaming, creativity and exploration, and a gateway to the Metaverse.“
It is not a completely surprise move and had been expected for sometime now. After all, Android has 3 billion active devices and is the leading operating system of the world especially the emerging economies like India. In comparison, Windows has 1.4 billion active devices where Apple has an estimated 1.6 billion active devices.
Our discussion would focus on how Microsoft has created Hardware, Software and Product platforms to fuel its growth in gaming ecosystem initially through XBox as platform for game manufacturers and players. In fact just a couple of years ago, gaming enthusiast usually saw Xbox as basically just a video game console platform, but Microsoft under Satya Nadella has expanded the Xbox brand into PC gaming, mobile gaming, and, even into subscription services like Xbox Game Pass.
Hardware as Platform
According to an estimate by Jordan Sirani in a report on best-selling video game console of all time, here are the five top consoles-
PlayStation 2 (Sony) - 159 million*
Nintendo DS (Nintendo) - 154.02 million
Game Boy/Game Boy Color (Nintendo) - 118.69 million
PlayStation 4 (Sony) - 116.9 million
PlayStation (Sony) - 102.4 million
As you would realise Xbox does not figure in the list as they had a late start and its arch rivals Sony and Nintendo has build a formidable lead by having a bigger installed base amongst gaming community. This has been a lingering problem for Microsoft and hence Satya Nadella has instead focussed on cloud to bypass the traditional and new rivals.
Games as Platform
23 game studios creating Xbox games worldwide gives Microsoft a formidable heft in the marketplace and its latest acquisitions may take it to even stronger position thereby creating a virtuous upward cycle of more games getting more users and more users enticing even more game developers to develop even more games.
Their Xbox Game Pass has become “a game discovery engine,” and it is driving game sales even when it seems to be Microsoft desire to build the Netflix for video games. Selling accessories and services for game players including Gamepads, Joysticks, Gaming Keyboards, Gaming Mice, Gaming Headsets, Virtual Reality Devices etc have opened up additional revenue opportunities. Microsoft HoloLens could be game changer here but right now it seems to be an enterprise device costing $3,500 so it is far from being a regular gaming AR accessory.
Software as Platform
There is a new hybrid infrastructure now existing across work, school and life thus enabling more flexibility in where and how people are spending their time. There is increase in PC use, with a durable increase in the number of minutes spent and an increase in the number of PCs per household. Microsoft is the undisputed leader in the PC world and would like to leverage that dominance to create a seamless Xbox everywhere experience.
The newly redesigned Microsoft Store is paving the way for not only new apps but new storefronts like Amazon and Epic Games. In fact, Microsoft was seen backing Epic Games in its lawsuit against Apple as it wanted to prevent the antitrust battle between Epic and Apple from cutting off access to the popular Unreal gaming engine. I wrote about the Epic Fortnite vs Apple battle here.
To conclude, we have seen that base layer is hardware like Xbox, PlayStation, and Nintendo on console, but then we have PC distributors like Windows Store, Steam, or Epic OR on mobile like iOS and Android. And then you have the tools that developers use to make the games AND finally the game publishers.
The problem for Microsoft stems from its lack of control over the Mobile OS and the continuing dominance of Apple and Google Android in controlling user experience as they control over 99% of the relevant market. And that my dear is fourth missing leg of the Microsoft’s Gaming Throne.
OTW
Over the Weekend, a grateful nation remembered Mahatma Gandhi on his 74th death anniversary. One of my lasting memories from my school days is reading the prominently displayed Gandhi’s Talisman.
Pandemic and the resultant misery for all of us but even more harshly for the poorest of the poor should force us to revert to Gandhi’s mantra of striving for a better world for all the inhabitants of earth. The world has realised the true cost of exclusivity in the recurring covid19 outbreaks as the richer or more resourceful countries have hoarded the vaccine and a large part of the world especially Asia and Africa remain unvaccinated leading to newer breakthrough infections.
As the Philadelphia Declaration of the International Labor Organization in 1944 stated: “Poverty everywhere is a threat to prosperity everywhere”, similarly covid19 in any community/country is a threat to the entire world.
Let me leave you with an ancient prayer for all of humanity.
ॐ सर्वे भवन्तु सुखिनः May all sentient beings be at peace,
सर्वे सन्तु निरामयाः। May no one suffer from illness,
सर्वे भद्राणि पश्यन्तु May all see what is auspicious,
मा कश्चिद्दुःखभाग्भवेत। May no one suffer.
ॐ शान्तिः शान्तिः शान्तिः॥Om peace, peace, peace.
-Brihadaranyaka Upanishad (1.4.14)(probably)
I Love You
Shailendra
OTM
Opportunities through MountainSpeak are available with Pahaad Connection. Kudos to Neelesh Misra for being a pioneer in Slow Movement through his path breaking Slow Interviews, Slow Experiences and of course Slow Bazaar. We need more such experiments and it feels good that some of the early green shoots are in the vicinity of my village in Dehradun district.
Pandemic and subsequent lockdowns/ WFH set-ups have also forced us to evaluate our fast paced hurried lives and reconsider the cost-benefits of always-on status. Our friends at AAGAAS Federation at Pipalkoti, Chamoli Garhwal in Uttarakhand have pioneered community based voluntary non-profit making bio-tourism initiative to promote deliberate living.
There is more to life than simply increasing its speed.”- Mahatma Gandhi
I would also like to invite you to my own personal favourite 9-days Himalayan Trek in last week of May to “Disconnect with World and Reconnect with Self”. These self-organised Alpine Himalayan Treks have provided me along with family and friends with an opportunity to unwind and relate to each other in a more intimate manner and emerge out of it refreshed.Drop me a message if you would like to join.
Thanks for staying till the end. :)
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