Microsoft's CEO Talks Focus on Gaming; Xbox One Expected to Help Generate 1.7 to 2 Billion in FY2015

By Giuseppe Nelva

July 22, 2014

Microsoft’s Q4 2014 earnings call for investors has just ended and Microsoft’s CEO Satya Nadella made a few remarks on the plans for the Xbox brand going forward, talking about the renewed focus on gaming and on inesting where the company has the best chances to make an actual impact.

I wanna make a few comments on Xbox. It’s important to us to have a core that’s thriving. It’s equally important to play smart, bold bets in other areas where we have the ability to add value and have impact. That’s what we’re doing with Xbox. We made the decision to manage Xbox to maximize enterprise value with a focus on gaming.

Gaming is the largest digital life category in a mobile first, cloud first world. It’s also the place where our past success revered brand and passionate fanbase present us a special opportunity. With our decision to specifically focus on gaming we expect to close Xbox entertainment studios and streamline our investment in music and video.

We will invest in our core console gaming and Xbox live with a view towards the broader PC and mobile opportunities.

Corporate Vice President Amy Hood also spelled Microsoft’s predictions for Fiscal Year 2015 (which started on July 1st and will end on June 30th 2015) for the newly formed computing and gaming sector:

In computing and gaming hardware we expect revenues to be 1.7 to 2 billion dollars.This reflects the continuous ramp of Surface Pro 3 and Xbox One, as both products are introduced into new markets in Q1.

It’ll be interesting to see what kind of impact the release of Xbox One will make as it’ll launch in several new markets, mostly focusing around September. The Xbox One has struggled just a bit at the outset of this generation, but Microsoft seems determined to rectify that initial uphill start.

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Giuseppe Nelva

Hailing from sunny (not as much as people think) Italy and long standing gamer since the age of Mattel Intellivision and Sinclair ZX Spectrum. Definitely a multi-platform gamer, he still holds the old dear PC nearest to his heart, while not disregarding any console on the market. RPGs (of any nationality) and MMORPGs are his daily bread, but he enjoys almost every other genre, prominently racing simulators, action and sandbox games. He is also one of the few surviving fans of the flight simulator genre on Earth.

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