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Microsoft's games business grew by 64% last quarter – GameDaily.biz

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This week’s financial report and first-party games showcase emphasizes that Xbox Game Pass has become the priority for the tech giant.

This week, Microsoft released its financial report for its fourth quarter 2020 earnings period, and the numbers show a sharp rise in revenue. In total, the tech giant brought in $38 billion for the quarter, representing a 13% increase over the same period last year. In particular, the company’s gaming segment grew by an impressive 64%, totaling $1.3 billion in revenue for the quarter. 

It was Xbox content and services that did most of the heavy lifting here; Xbox hardware revenue increased by a sizable 49%. Meanwhile, Xbox Game Pass reportedly saw record engagement amid the COVID-19 pandemic, proving once again where Microsoft’s true strength in the gaming sector lies.

“I think that content and services is a real strength for Microsoft,” David Cole, owner of analytics provider DFC Intelligence, told GameDaily. “Xbox Game Pass is a pretty killer subscription service in terms of content, and a great deal has been invested in that. Also the PC side of content services saw some major releases like Minecraft Dungeons and Sea of Thieves. What it says to me is that Microsoft may have a future beyond game hardware.”

Historically, the second quarter of the calendar year is a lull in terms of games revenue, but 2020 is far from a typical year, and not just because of the pandemic. This year also marks the end of the current generation of console platforms, a period that has, in the past, been marked by below average game and hardware sales. 

For Piers Harding-Rolls, research director of games at Ampere Analysis, Microsoft’s financial boost is the product of unprecedented market conditions.

“I think it will be rare to find a games company that doesn’t post strong results,” Harding-Rolls told GameDaily. “Microsoft not only saw substantial games content and services revenue growth, but even its Xbox hardware revenue was up 49% year-on-year at a time when it is meant to be in decline as we head into a new cycle. Hence the sell-out and shortages of Xbox One consoles across retail.”

Also this week, Microsoft hosted a showcase of next-gen first-party games, a presentation that emphasized the company’s dedication to creating an ecosystem for the Xbox brand. Almost every single game highlighted will be available on Xbox Game Pass, which is a subscription that is available on PC, illustrating that Microsoft’s priorities lie with services rather than hardware. 

“The real attraction with Game Pass is the quality of the games,” Cole said in a report. “Every Xbox Game Studio title is available on Game Pass at launch. This includes AAA titles like Halo Infinite, Forza and the new Fable (as well as the original Fable games). There is also a nice selection of third-party titles. For example, Bungie’s Destiny 2 will be coming to Game Pass this fall.”

Considering that gaming and gaming services helped bring about Microsoft’s 13% increase in revenue for the quarter, it’s not surprising to see the company emphasize Xbox Game Pass. At only $5 a month, Cole said it’s one of the best values in all of games. 

It’s also important to note that its xCloud streaming service also figures heavily into Microsoft’s roadmap; when it launches this fall, consumers can bundle their Game Pass and xCloud subscriptions together for $15 a month.

“The beauty of Game Pass is it is not a game streaming service. However, for those that cannot afford high-end hardware it can include a streaming service when xCloud launches this fall,” Cole said. “With Game Pass, users download the games they want directly to the hard drive/storage of whatever hardware device they are using. Subscribers can play those games as long as they have a subscription. Subscribers can download as many games as they want.”

Game Pass is already a certified mega-hit service, with a reported 10 million subscribers as of April. This puts it well ahead of Sony’s PlayStation Now streaming service, which only has a reported 2.2 million subscribers.

Between the impressive financial performance and the emphasis on Game Pass in its showcase event, Microsoft’s intentions for the next generation of gaming are clear: services over hardware. In fact, consumers won’t even need to own an Xbox system to play the company’s lineup of first-party games. As we move ever closer to the launch of the new consoles, it will be interesting to see how Microsoft’s vision pans out.

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Sam, the Editor-in-Chief of GameDaily.biz, is a former freelance game reporter. He’s been seen at IGN, PCGamesN, PCGamer, Unwinnable, and many more. When not writing about games, he is most likely taking care of his two dogs or pretending to know a lot about artisan coffee. Get in touch with Sam by emailing him at sam.desatoff@gamedaily.biz or follow him on Twitter.

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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