Xbox's Reverse Midas Touch Threatens Gaming Giant
The recent underperformance of Call Of Duty: Black Ops 7 has exposed what many industry observers are calling Microsoft's 'reverse Midas touch' - a worrying pattern where even the most successful franchises seem to struggle under their stewardship. This year's Call Of Duty release has underperformed to a concerning degree, raising fundamental questions about Microsoft's gaming strategy just two years after their monumental $75.4 billion acquisition of Activision Blizzard.
A History of Unfulfilled Promises
When Microsoft completed what remains the gaming industry's largest ever acquisition in 2023, they made several bold commitments that have largely failed to materialise. The company claimed they were purchasing Activision Blizzard primarily for mobile publisher King, promised to bring more games to Nintendo Switch, and assured regulators they wouldn't raise prices. None of these promises have been kept.
No Activision Blizzard games have appeared on Switch, King continues operating exactly as before the acquisition, and game prices have increased significantly since the deal closed. The US official who attempted to block the acquisition has essentially been proven correct in their warnings about market consolidation and consumer impact.
The Broader Pattern of Struggle
Microsoft's challenges extend far beyond the Call Of Duty franchise. The company hasn't had a game nominated for Game of the Year at The Game Awards for 15 years, despite owning what amounts to half the games industry through their extensive studio acquisitions. Their Xbox Series X console sales have been declining, even as they've made their games available on multiple platforms.
The highly anticipated Starfield failed to meet expectations despite internal Microsoft confidence, and the decision to place Call Of Duty on Game Pass appears to have made no positive impact on its commercial performance. The subscription service, while theoretically sound, hasn't captured the mainstream interest Microsoft anticipated.
Consequences and Potential Outcomes
If Call Of Duty's performance continues to decline, the implications could be severe. Hundreds of developers face potential job losses given Microsoft's track record of layoffs, and the company may never recoup their massive $75.4 billion investment. The situation becomes particularly precarious if next year's Call Of Duty title also underperforms.
This brewing disaster could force Microsoft to reconsider their entire gaming division. Options might include selling off Xbox as a complete entity or breaking up their acquired publishers and developers to sell them separately. The scale of such an operation would be unprecedented in modern gaming history, potentially causing industry-wide disruption affecting countless developers and consumers.
While it's tempting to criticise Microsoft executives for their strategic missteps, the real victims of any major restructuring would be the talented developers facing unemployment and the gaming community dealing with the fallout. The Call Of Duty: Black Ops 7 situation represents more than just one underperforming game - it signals a potential turning point for one of gaming's largest players with consequences that could reshape the entire industry landscape.
