It's been a tough few months in the Xbox camp. The incredible weight of the Xbox-Activision merger has dominated the press cycle for Microsoft's gaming efforts in recent months, and a lot of the news flowing out of the deal has been generally negative. The UK CMA and U.S. FTC are working together to try and block the deal, which could result in a $3 billion dollar write-down for Microsoft Gaming if the merger falls through. Microsoft has also been hammered by PlayStation, its chief competitor, in console sales in most markets almost every month, with Xbox console supplies constrained and desirability questionable.
Nobody denies the value of Xbox Game Pass, which provides access to all of Microsoft's games on a Netflix-like subscription basis. However, Microsoft hasn't given an update on its growth for quite a long time, which could indicate that it is, in fact, not growing. Everything begins and ends with the core platform, despite Microsoft's attempts to diversify out to cloud and PC. Without high-quality games, none of this works, and Microsoft repeatedly draws question marks about its ability to deliver the types of experiences that might help the platform grow.
