You’ve probably wondered who owns Xbox and PlayStation. But what exactly is Microsoft’s involvement in both? Here’s the scoop on the company’s history, origins, and acquisitions. If you’re interested in buying either of these companies, keep reading! You’ll discover the company’s history, what makes its games so popular, and more. But how do you know which one is better?
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Microsoft
In 2013, the launch of Microsoft’s new Xbox One console was met with criticism for the company’s waning interest in video games. But the company vowed to focus on games in the future and now has a hold on the top names, franchises, and developers in the industry. The Xbox Game Pass library now boasts over 100 games, enabling gamers to play more of them at any time. This is an excellent sign for game fans and Microsoft’s future.
The acquisition of Activision will provide Microsoft with exclusive rights to popular games such as Call of Duty and Diablo, as well as Overwatch and Warcraft. It will also give the Xbox a strong hand in acquiring two PlayStation exclusives, Crash Bandicoot and Spyro the Dragon, which were once exclusive to the PlayStation. The move could also help Microsoft increase its share of the global video game market, enabling it to compete with Nintendo and Sony.
Origins
Microsoft and Sony created two of the best-selling video game consoles in history, the Xbox and PlayStation. They were released in 1994 and 2001, respectively. Though they didn’t ‘invent’ the video game console, they were the first to succeed in selling over 100 million units. Their initial consoles were known as DirectX Box and were designed to run Windows 2000. Microsoft wanted to give Windows developers an easy way to build games on the Xbox.
The PlayStation was released in Japan on February 22, 2000, while the Xbox debuted in North America on November 15, 2001. It was released with backwards compatibility with the PlayStation 1 and could play DVDs. By March 2001, the PlayStation 2 sold 10.6 million units worldwide. The Xbox, which debuted on November 15, 2001, had more features and was a more powerful version of the PlayStation 2. Microsoft’s Xbox sold over a million units in its first week of sale, but it struggled outside of the North American market. By March 2002, Xbox sales worldwide totaled twenty-four million units.
History
Microsoft’s hardware division was already developing strong PC game studios when the time came to launch the Xbox. Bill Gates, then Microsoft’s CEO, wanted to make PC-quality games more accessible to people who wanted to play them. The Xbox’s development team, known as Bungie, came up with Halo: Combat Evolved, a game that launched the Xbox in 2001. Halo was a multiplayer shooter game starring the Master Chief.
Both PlayStation and Xbox were wildly popular when they were first introduced, and they became competitors again when the PlayStation 3 was released. The PlayStation 3 had a high initial price tag, but the Xbox was more than twice as expensive. Microsoft marketed the Xbox 360 to young people. The Xbox was a hit in Japan, where it became the fastest-selling game console until the release of the PlayStation 4. Eventually, the Playstation outsold the Xbox in North America by over 5 to 1.
Acquisitions
It is important to note that both Sony and Xbox are continuously seeking acquisitions of developers and game studios. Both companies are looking to bolster their first-party studios and expand their game portfolios. However, while Sony may not need to make additional acquisitions to compete with the Xbox, Microsoft’s Phil Spencer is known for buying game studios to expand its brand. Sony Interactive Entertainment CEO Jim Ryan recently discussed the plans for further acquisitions.
For one, the acquisition of Bethesda adds depth to the Xbox Game Pass subscription service. Sony’s recent acquisitions are more targeted, including the development of the Housemarque studio. However, a lot of critics will say that the acquisition strategy of both companies is the same – and this is unfortunate. Microsoft is likely using Xbox’s massive player base as a leverage to attract additional exclusives.
Successes
After a long battle between Sony and Nintendo over the gaming console market, Sony managed to triumph over both competitors with its PlayStation 4 and Xbox One. In a single year, Sony sold over 112 million Playstation 4 consoles, while Microsoft sold nearly 48 million Xbox One consoles. Nintendo, on the other hand, sold 62 million Switch consoles when it was released in 2017.
Sony and Microsoft initially had similar approaches to their game consoles. Sony was planning to do more of the same, but the market was flooded with competition. However, Microsoft decided to look at the problem from a different angle and has drastically reorganized its gaming division. The new approach has resulted in a much more targeted strategy. Sony is still on the right track, though. Its new strategy is more focused and centered on the ‘console’ segment, where Sony has more experience and is able to focus on its strengths.
Future plans
The future plans of Xbox and Playstation are not completely clear yet, but Microsoft and Sony are moving toward a subscription service with more content. Microsoft announced in January that it would reach 18 million subscribers to its Game Pass service, while Sony has not stated this yet. According to the report, Sony has already begun looking outside of the PlayStation console to reach a wider audience with its games. It has already released games such as Days Gone and Horizon Zero Dawn on PC.
Microsoft is in a weird position when it comes to the future of Xbox, as the company has been fumbling with the Xbox Series X and S. But the company is acknowledging that the future of the Xbox and Playstation lies in its ecosystem, which is the way to reach billions of gamers. Microsoft has been investing heavily in cloud gaming and PC gaming, while PlayStation is dragging its heels on the next generation.