Microsoft’s Phil Spencer Says Gaming Can Outlast Economic Uncertainty

Microsoft Gaming CEO Phil Spencer reportedly said on Wednesday that despite the software company’s expectations for a slower recovery in other consumer-facing areas of the business, video games could withstand economic uncertainty.

Although earlier this week executives claimed that Microsoft’s exposure to consumers will impact sales of Windows operating-system licenses, Surface PCs, and advertising on websites like Bing and LinkedIn in the current quarter, Microsoft is more diversified than those businesses.

Apparently, Investors have been prompted by rising prices and interest rates to seek out areas of the financial markets that will remain robust throughout a downturn. Microsoft continues to place a high priority on gaming and is now attempting to finalize its USD 68.7 billion takeover of video game company Activision Blizzard.

During a recession, other aspects of technology can be in danger. The majority of Alphabet and Meta Platforms’ income still comes from advertising; the former still relies on internet search, while the latter does so through social media.

According to Amy Hood, the business’s finance director, on a conference call on Tuesday, the company anticipates adding more users to its Xbox Game Pass subscription, which offers unlimited access to hundreds of video games.

Because of the first-party game introductions and great growth in the previous quarter, Hood predicted that gaming revenue would decrease by a low to mid-teens percentage point.

Spencer remarked it has been demonstrated over the years that families can still play video games during tough economic circumstances.

When the coronavirus first appeared in 2020, there was a temporary recession, but this encouraged people to stay at home and play more video games on their PCs and Xbox consoles.

CEO Satya Nadella stated in April 2020 that people all over the world are using gaming to maintain human connection while engaging in social distance.

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