Microsoft Bets on Starfield: A Game-Changer for Xbox Video Game Sales

June 12, 2023: Microsoft pins hope on Starfield, a highly anticipated space adventure video game, to boost Xbox sales. In the 24th century, players will embark on a cosmic journey, battling pirates, exploring alien moons, constructing outposts, and repairing starships. After a prolonged development period, Microsoft unveiled detailed gameplay at an event in Los Angeles.

The release of Starfield holds immense significance for Xbox, as it aims to captivate gamers with a title that rivals Nintendo’s latest Zelda game and PlayStation’s upcoming Spider-Man 2. Market researcher Circana’s game industry analyst, Mat Piscatella, suggests that Starfield has the potential to match or surpass the popularity of games on competing platforms, highlighting the impressive track record of its developer, Bethesda Softworks, known for renowned series like Doom, Elder Scrolls, and Fallout. Starfield marks Bethesda’s first new universe in over 25 years.

The anticipation surrounding Starfield is amplified by Microsoft’s acquisition of Bethesda’s parent company, ZeniMax Media, for $7.5 billion in 2021. The game has been in development for quite some time, with Bethesda filing a trademark for the Starfield name a decade ago and teasing a trailer in 2018.

However, Starfield finds itself entangled in Microsoft’s proposed acquisition of Activision Blizzard, the creator of Call of Duty. Sony has raised concerns about potential antitrust issues and exclusivity, fearing that Microsoft might restrict access to Activision’s popular games on Xbox. While PlayStation has a range of exclusive titles, Sony has objected to British and European antitrust regulators, citing Microsoft’s plans to make ZeniMax games, including Starfield and Redfall, exclusive to Xbox. British and U.S. antitrust authorities scrutinize the Activision deal, although they have not explicitly mentioned Starfield as a concern. The acquisition has received approval from regulators representing the European Union and other countries.

Microsoft’s efforts to finalize the Activision deal coincide with a lull in game sales following a peak during the COVID-19 pandemic. Consumer spending on video games and hardware in the U.S. dropped by 5% to $4.1 billion in April compared to the previous year. However, the decline in game revenue was partially offset by a 7% growth in hardware sales, driven by the popularity of PlayStation 5 and Nintendo Switch. This April marked the best console sales performance since the pandemic-induced surge in 2020.

In summary, the launch of Starfield represents a pivotal moment for Microsoft and Xbox as they seek to reinvigorate sales and rival other gaming platforms. The game’s potential success, coupled with the ongoing Activision acquisition, will shape the competitive landscape of the gaming industry and test Microsoft’s ability to deliver exclusive and compelling experiences to its players.