When it comes to gaming, Microsoft is not just about Xbox, the popular gaming console it introduced in 2001. Microsoft VP of Global Revenue & Business Planning Jonathan Stringfield wants brands to know that they can reach a broad ecosystem of gamers not just on its console but on mobile devices and PCs. “Consumers expect to be able to watch entertainment across platforms,” he said during a CES 2025 panel discussion. “That’s what we’re doing in the gaming space. And that’s a space that is exploding — not just in overall numbers but who those gamers are.” Continue reading CES: Microsoft Courts Brands for Its Three Gaming Platforms

During the COVID-19 pandemic, gaming enjoyed a tremendous surge in popularity — a high point that has suffered somewhat of a dip in the last year. However, gaming executives are bullish on their 2025 prospects. “During the pandemic we saw double digit growth in mobile, PC and console,” explained Sensor Tower SVP of Gaming & Entertainment Chirag Ambwani. “And now, in the last six months, we’re seeing gaming coming back to growth after that slight dip.” Better, some trends are highlighting the growing importance of gaming, suggest the experts. United Talent Agency’s Michelle Kim moderated a CES panel on Gamevertising to address the latest trends. Continue reading CES: In-Game Sponsorships, Gamified Promos Build Brands

Google DeepMind’s new Genie 2 is a large foundation world model that generates interactive 3D worlds that are being likened to video games. “Games play a key role in the world of artificial intelligence research,” says Google DeepMind, noting “their engaging nature, challenges and measurable progress make them ideal environments to safely test and advance AI capabilities.” Based on a simple prompt image, Genie 2 is capable of producing “an endless variety of action-controllable, playable 3D environments” — suitable for training and evaluating embodied agents — that can be played by a human or AI agent using keyboard and mouse inputs. Continue reading DeepMind Genie 2 Creates Worlds That Emulate Video Games

Propelled by increasing demand for artificial intelligence services, Microsoft cloud solutions, which includes the Azure platform, was the star of the quarter, bringing in $38.9 billion for 22 percent growth year-over-year. Revenue was $65.6 billion, up 16 percent, while profit increased by 11 percent, to $24.7 billion. While Microsoft financials don’t break out AI — now embedded across numerous products — Chairman and CEO Satya Nadella says AI “is on track to surpass an annual revenue run rate of $10 billion” by December 31, “making it the fastest business in our history to reach this milestone.” Continue reading AI Surges: Microsoft Quarterly Revenue Climbs to $65.6 Billion

Microsoft Xbox President Sarah Bond announced the company plans to launch a web-based mobile game store in July, creating a new rival for Google Play and Apple’s App Store. Speaking at the Bloomberg Technology Summit, Bond said the web venue was selected so a single store could serve all users in all countries, “independent of the policies of closed ecosystem stores.” Initially the focus will be on Microsoft games, opening later to other publishers. “This web-based store is the first step in our journey to building a trusted app store with its roots in gaming,” Microsoft said in a post-even statement. Continue reading Microsoft Will Introduce Web-Based Xbox Mobile Game Store

Microsoft profits were up 33 percent year-over-year to $21.9 billion in the quarter ending December 31, its fiscal Q2 for 2024. The quarterly growth was the company’s strongest in more than two years. Executives credited it to excitement about artificial intelligence services and the resulting demand for cloud services including Microsoft Azure. Earlier this month, Microsoft achieved a $2.89 trillion market valuation, overtaking Apple as the world’s most valuable public company, and this week it surged past $3 trillion. Revenue was $62 billion for the quarter, up 18 percent. Continue reading Microsoft Q2 Profits Surge 33 Percent Driven by AI and Cloud

Right on schedule and after a rocky start, Microsoft has closed the $69 billion acquisition of Activision Blizzard that regulators in the U.S. and UK had challenged. Big Tech is celebrating the move as a signal that their cash reserves can still be used to target expansion. The deal is consumer tech’s largest since AOL purchased Time Warner in a 2000 deal valued at more than twice that. Until now, Microsoft’s games unit, built around Xbox, has been a modest part of the company’s immense portfolio — representing just over 7 percent of total sales, or revenue of about $15 billion. Continue reading Microsoft Closes $69 Billion Acquisition of Activision Blizzard

This week, Meta Platforms released Llama 2, the next generation of its open-source large language model that is free for research and commercial use. Llama 2’s pretrained and fine-tuned language models are available in sizes ranging from 7 to 70 billion parameters. Meta also named Microsoft Azure its “preferred partner for Llama 2,” offering it through the Azure AI model catalog for use with cloud-native tools that leverage content filtering and safety features. Meta says Llama 2 is “also optimized to run locally on Windows,” providing developers a seamless workflow across enterprise and consumer platforms. Continue reading Meta Unveils Llama 2 LLM with Microsoft as Preferred Partner

The Federal Trade Commission has opened a civil investigation into OpenAI to determine the extent to which its data policies are harmful to consumers as well as the potentially deleterious effects of misinformation spread through “hallucinations” by its ChatGPT chatbot. The FTC sent OpenAI dozens of questions last week in a 20-page letter instructing the company to contact FTC counsel “as soon as possible to schedule a telephonic meeting within 14 days.” The questions deal with everything from how the company trains its models to the handling of personal data. Continue reading FTC Investigates OpenAI Over Data Policies, Misinformation

The Federal Trade Commission has filed suit against Amazon, alleging the e-commerce giant surreptitiously enrolled millions of people in the $139 per year Amazon Prime program, and once subscribed made it difficult for them to cancel. “Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Lina Khan said, citing “deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically renewing Prime subscriptions.” Continue reading FTC Sues Amazon Over Deceptive Practices Involving Prime

Brands are eager to promote their products in front of the estimated 3.7 billion people worldwide who play video games. Now, rather than simply purchasing visibility, more adventuresome advertisers including PepsiCo and L’Oreal are creating games of their own. PepsiCo had a quest developed in collaboration with Y2K Games for Mountain Dew inserted into the latest edition of the publisher’s blockbuster “NBA 2K” series. L’Oréal embedded a mini game in Activision Blizzard’s “Candy Crush Saga” and saw 40,000 samples of the Prada Candy fragrance that was the reward for completing the game claimed on day one of the five-week promotion. Continue reading Brands Create Their Own Games to Expand Marketing Reach

Open-world action role-playing game “Diablo IV” has become the biggest out-of-the-gate seller in Blizzard Entertainment history, generating $666 million in global sales within the first five days of its June 6 launch. The game developer equated the record to box-office movie performance, crediting “Diablo IV” for the company’s “biggest opening week of the year.” The online game, which accommodates single or multi-players, combines a gothic atmosphere with monster-slaying. The heroes of Sanctuary, the world in which “Diablo” is set, have already played more than 276 million hours, or more than 30,000 years. Continue reading Blizzard: ‘Diablo IV’ Generates $666 Million in First Five Days

European Union regulators have approved Microsoft’s proposed $68.7 billion purchase of game company Activision Blizzard. The European Commission accepted Microsoft’s remedies for staving off antitrust concerns in the area of cloud gaming. Microsoft said it would guarantee at least 10 years of access to Activision titles on third party cloud services, which satisfied the 27-nation bloc’s executive body. The EU announced its decision just weeks after UK lawmakers blocked the acquisition, and in the U.S. Microsoft is fending off efforts by the Federal Trade Commission to cancel the deal. Continue reading EU Greenlights Microsoft Offer to Purchase Activision Blizzard

Microsoft shares jumped 9 percent on Tuesday after a strong earnings report that beat analysts’ expectations and rode a wave of enthusiasm over the company’s prospects in artificial intelligence. The rally continued on Wednesday, when shares were up by more than 7 percent even after the UK’s Competition and Markets Authority said it intends to block the software giant’s planned $68.7 billion acquisition of Activision Blizzard, citing concerns about the merger’s impact on “the growing and fast-moving” cloud gaming sector, while providing a clean bill of health in the console market. Microsoft says it will appeal the decision. Continue reading UK Blocks Microsoft-Activision Merger, Companies to Appeal

As Microsoft ushers in Kya Sainsbury-Carter to head its $18 billion digital advertising business, Bing Chat is joining her at center stage. The company has plans for generative AI to transform the category, including with paid links in chat results. Since February the company has been testing ads in Bing Chat searches. Microsoft hasn’t disclosed how many people are using the new Bing with AI chat, nor how many ads it has served. Bing Chat’s responses include footnoted links to resources amplifying the information in the chatbot’s conversational answers, but sometimes it links to paid search ads. Continue reading Microsoft’s Bing Chat Powers a New Approach to Advertising