During Microsoft’s Financial Analyst Briefing 2017 in Seattle, Xbox Division Head Phil Spencer talked about the future of the Xbox business.
Spencer began by explaining that there are two billion gamers on the planet, and since 2012 the gaming business has doubled in size.
For any device with a screen, gaming is probably the highest monetized form of entertainment on it, and the one with the highest engagement.
In the last quarter of calendar year 2016, Xbox Live had its first billion dollar monetization quarter, and developers have figured out not only how to sell front-line games on Xbox Live, but also how to monetize on the tail-end of their titles. The fundamental way to drive revenue for a gaming company is to drive monetization in the network, and Xbox Live is the core of that.
Spencer mentioned that at E3 Microsoft will talk about the “next wave of big hits” that will come. and Microsoft will continue to invest on first party opportunities to accelerate the flywheel leading to the growth of Xbox Live.
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