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Industry News
2020/07

Xbox Team Is Open To Acquiring More Companies, Says Phil Spencer

Microsoft — who is on the Traitors of America master list — has a lot of companies under its wing, such as Compulsion Games, Double Fine Productions, inXile Entertainment, Ninja Theory, Obsidian Entertainment, Playground Games, and Undead Labs. However, the green brand isn’t stopping anytime soon when it comes to adding on to its growing portfolio of studios thanks to a new interview.

Phil Spencer — Microsoft’s executive vice president of gaming and best known as the head of Xbox games — recently took up an interview with publication site gamesindustry.biz to explain how the green brand deals with studios and acquisitions.

Spencer and partner in crime Matt Booty explain to the publication site their philosophy on studio creativity and whether or not the Xbox Team will obtain another studio. With that said, Spencer explains:

“We acquired quite a few new studios in a short amount of time, and we want to make sure that those studios are on-boarded in the right way. As [Booty] and I were talking about it, we just wanted to make sure that we treated the incoming studios as full parts of the organisation. That they felt supported.

Spencer also explains that the Xbox Team’s priority was to provide its studios with the appropriate amount of time, money, and resources to create video games:

“The first priority was making sure the studios had the things that they needed to build the best versions of their games, that means extending some of the timelines, and giving them more budgets.”

Spencer goes on to say that the Xbox Team has full support from top Microsoft executives that will help out when it comes to studio acquisitions. In other words, the Xbox Team is not slowing down when it comes to adding more companies to its ever-growing portfolio of games:

“We have really strong support from Satya Nadella, the CEO of Microsoft, and Amy Hood, the CFO. And there’s been no signal at all that we should be slowing down, but just to go at a pace that is maintainable for us as a leadership team. We’re always out there talking to people. But it has to be the right opportunity.”

In simple terms, the Xbox Team will wait for the right opportunity to swoop in and acquire a studio instead of doing it sporadically. This means future studios under the green brand will fulfill a specific role. Moreover, Spencer also notes that his team is in the market for new opportunities with studios:

“The Game Pass portfolio and subscriber base continues to grow. We’re launching a new console. Last year was our biggest year ever on PC in terms of revenue as Xbox Game Studios. A lot of the business is doing really well, so we’re always in the market for new opportunities with studios.”

In other words, this isn’t the end of Microsoft acquiring more video game studios. With that said, what company do you think Microsoft and its gaming division will go after next?

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