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Contributed Papers

Contributed Paper Session II-5 #2

Subevent of Contributed Paper Session II-5

Phillips 221

Eastern Time (US & Canada)

Starts at: 2025-03-01 10:20AM

Ends at: 2025-03-01 10:35AM

Gaming in Flux: Identifying and Mitigating Risks for Microsoft's Xbox Brand

Sikem Nkwawir ⟨snkwawir@my.apsu.edu⟩

Abstract:

This paper examines the potential risks and advantages of Microsoft’s strategic shift away from console development towards software development and the growth of Xbox Game Pass. Microsoft's recent announcement of releasing Xbox exclusives on rival consoles has sparked speculation about their future direction in the gaming industry. The study utilizes a multidimensional approach, combining data from sources such as Kaggle, news outlets, and legal proceedings to analyze the landscape of the video game and video streaming industries. The risks identified include potential losses in console and software sales, customer reluctance to subscribe to the platform on rival consoles, and the possibility of cloud gaming platforms failing all in relation to their potential losses. While the risk of console sales is considered low due to historical trends and Microsoft's console pricing strategy, the risk associated with software sales is more uncertain due to the fact that Microsoft makes money from third-party sales on their hardware. The risk of crossover appeal is considered low, as Microsoft already supports games on other consoles through acquisitions and now holds some of the most successful franchises in history. The risk of cloud gaming failing is also deemed low, given the industry’s transition to digital and cloud-based gaming and Microsoft’s unique advantage in the industry. Considering these risks and opportunities, it is recommended that Microsoft seriously consider focusing on Game Pass and leaving the console space to leverage cross-platform availability and tap into a wider customer base.

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