![]() ![]() ![]() There are a couple of reasons why Microsoft is putting so much emphasis on and investment in gaming. Is that why Microsoft is putting an increasing focus on gaming? So gaming is this incredible social force because it can enable shared achievement-not individual achievement or celebrating something that your friends can “like” or ”share.” And that social experience combines with a technical base that is unlike anything else. You have to be able to scale your workload up and down. You have to host billions of events simultaneously, in real time. You have to be able to render a realistic world. You can actually do something together.Īnd then, on top of it, the technical components that you need to enable that connection actually test every limit of tech. You think about games like hide and seek or tag-they’re very basic, right? But they have been with humanity since the dawn of time.Īnd the gaming industry is unique and special because it’s the only entertainment medium in the world where you can connect with someone you have never met you don’t necessarily speak their same language, you’re not in the same time zone, you don’t have the same abilities-and you can achieve something with them. If you can experience something through play, it creates camaraderie. Why do playing and gaming matter in the world? Insights from the discussion shed useful light on the potent digital ecosystems powering today’s increasingly borderless economy-and draw lessons from gaming that go well beyond the industry itself. To learn about the relatively new division and its ecosystem approach (including Game Pass membership and an array of game development solutions, which address gamers and game creators, respectively), McKinsey executive editor Lang Davison sat down with GEO head Sarah Bond, Microsoft’s corporate vice president for game creator experience and ecosystem at Xbox. In support of the strategic shift, Microsoft formed its Gaming Ecosystem Organization (GEO) in 2020, which looks after the needs of game creators across all of Microsoft’s software and services, including Xbox, Azure, and Microsoft 365. Investments in cloud gaming, the Game Pass subscription service, and cross-platform play have enabled this ecosystem to develop, with an eye toward helping gamers participate anywhere, anytime, on any device. Rather than divest, Microsoft doubled down and recently shifted from a console-centric approach toward a “ubiquitous global gaming ecosystem” focused not just on gamers but on game developers and publishers. When Satya Nadella took the helm at Microsoft in 2014, some Wall Street analysts urged the new CEO to sell the company’s gaming business, which it had entered with the launch of the first Xbox console in 2001. ![]()
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