Microsoft executives say games are ‘somewhat resilient’ to economic weakness.

Microsoft’s head of gaming, Microsoft’s head of gaming, said on Wednesday that video games could withstand economic weakness, even if software makers expect a slow recovery in other parts of their consumer-facing business. Rising prices and interest rates have inspired investors to rush to find pockets in financial markets. It is something that can survive a downturn. Gaming remains a top priority for Microsoft, and the company is working to finalize the $68.7 billion acquisition of publisher Activision Blizzard. Alphabet and Meta Platform still derive most of their revenue from advertising. The former still relies on internet searches and the latter on social media. “There is a challenging macroeconomic environment for most consumers,” Patrick Lo, CEO of networking hardware maker Netgear, who reported a 14% decline in annual revenue on Wednesday said in a statement. Exposure to consumers will hurt sales of Windows operating system licenses, Surface PCs, and advertising on assets like Bing and LinkedIn in the current quarter, he said. During this quarter, the company expects to register more subscribers to the Xbox Game Pass service. Amy Hood, head of finance, which provides unrestricted access to hundreds of video games, told her analysts in a conference call on Tuesday. Hood said that gaming revenue will drop in the mid-teens to mid-teens ratio range, she said, due to strong growth in the quarter a year before her games were introduced. Phil Spencer, CEO of Microsoft Gaming, said at the Wall Street Journal’s WSJ Tech Live conference in Laguna Beach, CA, “It has been proven over the years that gaming is somewhat resilient to these issues in times of economic uncertainty for families.” said. Not everyone shares Spencer’s views.” The video game industry has never been ‘recession-proof,’ but it comes up every time the r-word is mentioned. Piers Harding-Rolls, Research Director, Ampere Analysis Research Associate said something similar: “After two years of massive expansion, the gaming market is poised to reverse some of its growth in 2022. performance,” he told CNBC in July. However, as evidence for his argument, Spencer can point to Microsoft’s experience with recessions. During the 2008 global financial crisis, Microsoft was able to play We’ve cut the price of the Xbox console, the Nintendo Wii, and Robbie Bach, then president of Microsoft’s Entertainment and Devices division, said, “Naturally, it was the best holiday in terms of consoles and the best year in Xbox history.” Staying at home has allowed me to play more games, including on Xbox consoles and PCs.CEO Satya Nadella said in April 2020, “We are using games to keep people connected while practicing social distancing for everyone. They’re turning their eyes.” Microsoft subsidizes adjustment costs of $100 to $200 per console and expects revenue from accessory sales and in-store purchases, said gamers, whether they want to pay $10 or $15 per month for a Game Pass subscription They can also buy the game entirely or play certain games for free. Spencer said he doesn’t think Microsoft will be able to keep the price of games constant forever, but they do offer an impressive amount of entertainment compared to other activities. “People can play video games for hundreds of hours,” he said.
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