Quick overview:
The gaming industry is currently one of the strongest players on the global market with potential for the future. This strong performance promises rosy future prospects for investors and encourages them to enter the industry. Microsoft was one of the first companies to venture into the market. The tech giant began making acquisitions and developing its own games console back in the 1990s.
Development of the gaming industry into a billion-dollar business
Card, dice and board games dominated the gaming culture of many regions of the world for centuries. However, the idea of combining machines and gaming in the 19th century drastically changed gaming culture. First, mechanical slot machines came onto the market. Then simple video games such as Tennis for Two were invented. But the hardware was still underdeveloped and difficult to access for the average citizen. This situation changed in the 1990s. Computers and the internet were now accessible to the masses, which visibly accelerated the production of new gaming products.
Innovative games flooded the market, while the classics were rapidly digitized. Two of the most successful digital integrations were poker and chess. Digital poker rooms emerged, which to this day offer their customers a broad spectrum of knowledge, ranging from poker rules to the latest news from the player scene, in addition to gameplay. Chess servers were developed for chess fans, bringing together players from all over the world on the Internet. These still exist today and promise users a comprehensive range of training programs, live streams and tournament organizations.
The new market for computer and video games, on the other hand, has grown to incredible dimensions over the years. Today, there are countless gaming products, services and genres on the market. In 2022 alone, mobile games generated an annual turnover of around 91.8 billion US dollars and accounted for 50 percent of the global gaming market. Console games took second place with global sales of USD 52.2 billion, while PC games came in third with USD 36.5 billion. Behind these immense sums are successful hardware and software companies that continuously invest in technical innovations. Tech giant Microsoft is one of the most important names.
Microsoft's path to market leadership
Microsoft was founded in 1975 by Bill Gates together with Paul Allen and Monte Davidoff. It entered the market as a software company with a focus on operating systems and the aim of increasing the accessibility of complex technologies for people. Ten years after its foundation, Microsoft introduced the first graphical user interface for its MS-DOS environment under the name Microsoft Windows 1.0. In 1989, Windows 2.11 was released, which already included Microsoft Word. The 1990s were decisive years of growth, when the computer and the Internet made their way into normal households. The final breakthrough came in 1995 with the release of Windows 95, which also enabled a simple connection to the Internet via Internet Explorer. The operating system Windows and the office software package Office became the market leader in the personal computer sector.
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The Windows manufacturer in the gaming business
The 1990s also saw Microsoft's entry into the gaming industry. The tech giant bought up promising developer studios such as Aces Game Studio, Bungie and Ensemble Studios one after the other. In addition, the entertainment program was spiced up by Windows . The 1995 version already included the games Solitaire, Minesweeper, FreeCell, Hearts and MS Flight Simulator, the rights to which had already been bought up in the 1980s. This was followed in 1997 by the release of the real-time strategy game Age of Empires by Ensemble Studios. At the same time, the Windows manufacturer was working meticulously on a company-owned games console, which was finally released in 2001 under the name Xbox.
Growth through acquisitions and investments in the Xbox have proven to be successful business strategies for Microsoft in the gaming sector. The most important deals in recent years have been concluded with the successful studios Mojang and Bethesda Softworks. In 2022, Microsoft's interest in Activision Blizzard, the market leader for computer and video games, caused real chaos in the gaming industry. Despite difficulties with international regulatory authorities and protesting gamers' associations, the purchase was finally sealed on October 13, 2023.
In recent years, investment in the Xbox has not only been focused on improving the hardware and updating the associated user interface. The focus is primarily on expanding the Internet offerings for the games console. One of the most important products is the Xbox Network, which provides a multiplayer system for gaming as well as downloads of games, demos and trailers. The subscription service Xbox Game Pass is also an important factor. This was launched in 2017 and promises its users a wide range of different games for a monthly subscription price.
Since the 1990s, Microsoft has been investing in the growing gaming industry and trying to expand its global reach. Through spectacular acquisitions and clever investment in the company's own Xbox, the success-spoiled Windows manufacturer seems to have achieved its goal. Today, it is an important competitor for other gaming giants such as Nintendo and Sony in the billion-dollar games business.
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