who-owns-xbox

Who Owns Xbox?

Business / By / August 23, 2023

Xbox Game Studios was a spin-off (initially called Microsoft Studios) of Microsoft, created in the 2000s to develop games for Windows. Today Xbox is still owned by Microsoft, and the gaming division generated over $16 billion in revenue in 2022.

Key Highlights

  • Formation of Xbox Game Studios:
    • Xbox Game Studios, originally established as Microsoft Studios, was created in the 2000s as a subsidiary of Microsoft.
    • The studio’s primary objective was to develop and publish video games across various platforms, with a particular focus on Windows-based systems.
  • Diverse Game Portfolio:
    • Over the years, Xbox Game Studios has developed and published a wide range of games spanning different genres and styles.
    • The studio’s portfolio includes titles from action, adventure, role-playing, simulation, strategy, sports, and more.
  • Expansion to Consoles:
    • While initially focused on Windows-based gaming, Xbox Game Studios expanded its reach to include game development for Xbox consoles, starting with the original Xbox.
  • Evolution of Xbox Consoles:
    • In addition to game development, Xbox Game Studios has played a crucial role in the creation and evolution of Xbox consoles, contributing to the hardware and software innovation.
  • Integration with Xbox Live and Game Pass:
    • Xbox Game Studios’ games have been integral to the growth of Xbox Live, Microsoft’s online gaming service, enabling multiplayer and digital distribution.
    • The studio’s games are also a significant part of Xbox Game Pass, a subscription service offering access to a vast library of games.
  • Collaboration and Acquisitions:
    • Over time, Xbox Game Studios has collaborated with various external developers to create exclusive and diverse gaming experiences.
    • The studio has also acquired several game development companies, expanding its creative capabilities.
  • Financial Success:
    • Xbox Game Studios’ contribution to the gaming industry has been financially impactful, as evidenced by the division’s substantial revenue.
    • In 2022, the gaming division generated revenue exceeding $16 billion, underscoring the popularity and profitability of its gaming offerings.
  • Community and Player Engagement:
    • Xbox Game Studios’ games have cultivated a strong player community, fostering engagement through online multiplayer, social features, and content updates.
  • Continued Innovation:
    • The studio has continued to innovate by embracing new technologies, game development approaches, and evolving gameplay mechanics to captivate players.
  • Global Reach:
    • Xbox Game Studios’ games have a global reach, entertaining gamers across different regions, cultures, and demographics.

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Who Owns Microsoft

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Major shareholders comprise co-founder Bill Gates, who stepped down from the company’s board in 2020, which is why these shares are no longer publicly reported. In 2019, Gates still owned a stake of 103 million stocks, which accounted for 1.34% of the company’s ownership (worth over $23 billion in January 2023). Other individual shareholders comprise Satya Nadella, the company’s CEO, Brad Smith (former president), Jean-Philippe Courtois (EVP), and Amy Hood (former CFO).

Microsoft Financials

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In 2022, on over $198 billion in revenue, Microsoft generated over $72.7 billion. The company had over $104 billion in liquid assets (which can be easily converted into cash).

Microsoft Revenue

microsoft-revenue

Microsoft Subsidiaries

microsoft-subsidiaries
Microsoft is among the largest companies on earth, with a diversified portfolio. Owned by billionaire Bill Gates, Microsoft acquired other companies like LinkedIn, GitHub, Skype, and more over the years. Today, Microsoft is a tech empire that spans software, social media, gaming, and more.

Microsoft Revenue Per Employee

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In 2022, Microsoft generated $928,663 in revenue per employee post-mass layoffs, vs. $939,668 in 2021.

Microsoft Acquisitions

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Microsoft’s first acquisition in 1987, Forethought, was the developer of a presentation program that would later become PowerPoint. Since then, the company has made an average of six purchases every year, with fourteen of those exceeding the $1 billion mark. Today’s Microsoft business model spans various segments thanks to an acquisition strategy, which saw Microsoft involved in multiple acquisitions.

Microsoft Mission Statement

microsoft-mission-statement
Microsoft’s mission is to empower every person and every organization on the planet to achieve more. With over $110 billion in revenues in 2018, Office Products and Windows are still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.

Microsoft Business Model

microsoft-business-model
Microsoft has a diversified business model, spanning from Office to gaming (with Xbox), LinkedIn, search (with Bing), and enterprise services (with GitHub). In 2021, Microsoft made over $168 billion in revenues, of which over $52 billion came from Server products and cloud services, and $39.8 billion came from Office products and cloud services. Windows generated over $23 billion, Gaming generated over $15 billion, LinkedIn over $10 billion, and search advertising (through Bing) over $8.5 billion. 

Microsoft SWOT Analysis

microsoft-swot-analysis
Founded in 1975 by Bill Gates and Paul Allen, Microsoft is a revolutionary company in the world of personal computing. The company designs and manufactures software, hardware, operating systems, apps, and devices. Indeed, Windows and Microsoft Office are staples in billions of homes worldwide.

Microsoft Organizational Structure

microsoft-organizational-structure
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time, it also became more hierarchical while maintaining its hybrid approach between functions, engineering groups, and management.

OpenAI Organizational Structure

openai-organizational-structure
OpenAI is an artificial intelligence research laboratory that transitioned into a for-profit organization in 2019. The corporate structure is organized around two entities: OpenAI, Inc., which is a single-member Delaware LLC controlled by OpenAI non-profit, And OpenAI LP, which is a capped, for-profit organization. The OpenAI LP is governed by the board of OpenAI, Inc (the foundation), which acts as a General Partner. At the same time, Limited Partners comprise employees of the LP, some of the board members, and other investors like Reid Hoffman’s charitable foundation, Khosla Ventures, and Microsoft, the leading investor in the LP.

OpenAI Business Model

how-does-openai-make-money
OpenAI has built the foundational layer of the AI industry. With large generative models like GPT-3 and DALL-E, OpenAI offers API access to businesses that want to develop applications on top of its foundational models while being able to plug these models into their products and customize these models with proprietary data and additional AI features. On the other hand, OpenAI also released ChatGPT, developing around a freemium model. Microsoft also commercializes opener products through its commercial partnership.

OpenAI/Microsoft

openai-microsoft
OpenAI and Microsoft partnered up from a commercial standpoint. The history of the partnership started in 2016 and consolidated in 2019, with Microsoft investing a billion dollars into the partnership. It’s now taking a leap forward, with Microsoft in talks to put $10 billion into this partnership. Microsoft, through OpenAI, is developing its Azure AI Supercomputer while enhancing its Azure Enterprise Platform and integrating OpenAI’s models into its business and consumer products (GitHub, Office, Bing).

Stability AI Business Model

how-does-stability-ai-make-money
Stability AI is the entity behind Stable Diffusion. Stability makes money from our AI products and from providing AI consulting services to businesses. Stability AI monetizes Stable Diffusion via DreamStudio’s APIs. While it also releases it open-source for anyone to download and use. Stability AI also makes money via enterprise services, where its core development team offers the chance to enterprise customers to service, scale, and customize Stable Diffusion or other large generative models to their needs.

Stability AI Ecosystem

stability-ai-ecosystem

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About The Author

Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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