Phil Spencer, CEO of Microsoft’s gaming unit, arrives at a federal court in San Francisco on June 28, 2023.
In June 2023, Phil Spencer, who’s in charge of Microsoft’s gaming division, went to court in San Francisco.
The gaming marketing industry is on a remarkable growth trajectory, with millions of players worldwide. The diversity in gaming platforms, from consoles and PCs to mobile devices, has contributed to its widespread appeal.
In 2022, Microsoft’s top people thought that gaming would grow because of ads and people buying games on mobile devices. This information came out accidentally on a court website.
This happened because Microsoft is in a legal battle with the Federal Trade Commission over buying Activision Blizzard. Before this, Microsoft said they wanted to make $500 billion by 2030 and studied how their business customers used their rivals’ products.
In July, a judge named Jacqueline Scott Corley ruled for Microsoft and Activision. Since then, the companies in the case have been asking to keep some parts of the documents secret before they’re shown to the public.
On a Tuesday, the court said Microsoft had sent documents that had the May 2022 presentation, but when people saw them, they said they had private stuff in them, so the judge removed them from the public website.
The presentation talks about a new Xbox coming out in 2028. There were Xbox Series X and Series S in 2020, which were the next Xboxes after the Xbox One from 2013. There’s also stuff about the updated Series X, Series S, and a new controller coming in 2024.
The document about ads and mobile doesn’t talk about the $68.7 billion Activision deal, which they had announced before. But it looks like Activision is important to make the money they talk about in the presentation.
In the presentation, it says they’ll make $36 billion from gaming in 2030, while in 2022, they thought they’d make $18 billion. In 2022, they actually made $16.23 billion.
Phil Spencer, who leads gaming at Microsoft, said it’s not good that their plans are coming out like this, in a message on a platform called “X.”
Microsoft didn’t say anything when asked about this.
If they finish the Activision deal, Microsoft will sell more games on consoles and computers. More people might also subscribe to their Game Pass. They hope these things will make them more money by 2030.
Microsoft, a big tech company, has big ideas for how they can grow in the gaming world. Someone leaked a secret document from Microsoft, and it talks about their plans for the future of gaming. They’re really interested in two things: games on mobile phones and showing ads to gamers. In this article, we’ll explain what Microsoft wants to do with gaming based on this leaked document.
Mobile Games Get Special Attention:
The Gaming Marketing Industry: A Booming Landscape
The gaming marketing industry is on a remarkable growth trajectory, with millions of players worldwide. The diversity in gaming platforms, from consoles and PCs to mobile devices, has contributed to its widespread appeal. This expansive audience presents an immense marketing opportunity for businesses looking to engage with a global and diverse customer base.
Key Components of Gaming Marketing:
Influencer Marketing:
Influencers, often gamers themselves, have a powerful impact on the gaming community. Collaborating with gaming influencers can amplify a brand’s reach and credibility among gamers.
Esports Sponsorship:
Esports, or competitive video gaming, has soared in popularity. Sponsoring esports teams or events allows brands to align themselves with this burgeoning sector.
Social Media Marketing:
Platforms like Twitch, YouTube Gaming, and TikTok have become hubs for gaming content. Leveraging these platforms for advertising and content creation is a key part of gaming marketing.
In-Game Advertising:
Integrating advertisements into games is an effective way to reach gamers. It allows for immersive brand experiences within the gaming environment.
Content Creation:
Crafting engaging gaming-related content, such as blogs, videos, and live streams, can build a dedicated audience and foster brand loyalty.
Strategies for Success in Gaming Marketing:
Know Your Audience: Understanding the gaming community’s preferences, gaming trends, and culture is crucial for effective marketing.
Engage with Gamers
Interact with gamers through social media, forums, and gaming events. Authentic engagement helps build trust and credibility.
Utilize Influencers:
Partnering with popular gaming influencers can give your brand instant recognition within the gaming community.
Stay Updated:
The gaming industry is evolving rapidly. Staying informed about new games, platforms, and technologies is vital to remain relevant.
Create Unique Experiences:
Develop creative and interactive marketing campaigns that resonate with gamers and provide value beyond traditional advertising.
Data-Driven Approach:
Analyze data and metrics to refine marketing strategies. Insights into user behavior and preferences can lead to more effective campaigns.
People love playing games on their mobile phones, and Microsoft wants to be a part of that. The secret document doesn’t tell us exactly how they’ll do it, but it does show that Microsoft wants to spend a lot of money on mobile games. They know that many people use smartphones and tablets for gaming, and they want to be a big player in this area.
Getting Serious About Ads:
Another interesting thing Microsoft is planning is to show more ads in the gaming world. Right now, they already have some ads on Xbox game consoles. But the secret document says they want to do even more with ads in the gaming world. This might mean showing ads in games or working closely with game makers to make ads more interesting. Microsoft might also use the data to show ads that are more interesting to gamers.
Why Mobile Games and Ads?
Microsoft’s interest in mobile games and ads makes sense when you put them together. When people play games on their mobile phones, it’s a great opportunity to show them ads. As gamers spend more time playing on their mobile devices, Microsoft sees this as a way to make money by showing ads that people care about.
Also, Microsoft is keeping up with what’s happening in the gaming world. They know that gaming is changing, and it’s not just about game consoles anymore. By going into mobile games and ads, Microsoft is getting ready for the future and trying to be a big part of all kinds of gaming.
But they think they’ll make even more money from ads and mobile games. Right now, they work with Yahoo to show ads on Xbox, but it’s not everywhere.
Activision Blizzard bought King Digital Entertainment, the company that makes Candy Crush, in 2016. Because of this, they got money from people buying things in games and from ads. In 2022, King made Activision Blizzard $2.79 billion, which was 8% more than before.
