Microsoft CEO: “We’re Now the Largest Gaming Publisher; The Real Competitor Is TikTok”

In a recent interview on the Technology Business Programming Network (TBPN), Microsoft CEO Satya Nadella discussed the company’s expanding role in gaming, its multiplatform strategy, and how the entertainment landscape is shifting. Nadella reaffirmed that following Microsoft’s acquisition of Activision Blizzard, the company has become the world’s largest gaming publisher by revenue and intends to be present on every platform where players are.

“Now we’re the largest publisher after the Activision acquisition, so we want to be a fantastic publisher, similar to what we did with Office. We’re going to be everywhere, on every platform,” Nadella explained. “Whether it’s consoles, PC, mobile, cloud gaming, or TV, we want to make sure games are being enjoyed by gamers everywhere.”

Nadella noted that Microsoft’s gaming vision reflects its overall strategy of universal accessibility. He also emphasized that the company aims to bridge the gap between PC and console ecosystems, suggesting that the traditional division between the two no longer makes sense.

“It’s kind of funny that people think about the console and PC as two different things. At Microsoft, we built the console because we wanted to build a better PC that could perform for games,” Nadella said. “Console delivers an unparalleled experience and pushes the system forward. I’m very much looking forward to the next console and the next era of PC gaming.”

Interestingly, Nadella pointed to TikTok and short-form video platforms as the true competition for gaming, rather than rival publishers or franchises.

“Gaming’s competition is not other gaming,” he said. “Gaming’s competition is short-form video.”

Nadella’s remark reflects the growing understanding that all forms of entertainment now compete for the same finite pool of user attention. His view echoes the words of Matt Booty, President of Xbox Game Studios, who recently told the New York Times that movies, streaming services, and social media all serve as competitors to gaming. Booty made the comment after confirming that Halo: Campaign Evolved and all future Halo titles will also be released on PlayStation consoles, signaling a major shift in Xbox’s publishing approach.

During the TBPN interview, Nadella also spoke about the importance of financial stability in fostering innovation. He emphasized that innovation requires strong margins, as profitability provides the foundation to fund long-term development.

“If we as an industry don’t continue to innovate, how we produce, what we produce, how we think about distribution and the economic model, the best way to innovate is to have good margins, because that’s how you can fund it,” Nadella stated.

However, this statement has drawn criticism given Microsoft’s recent layoffs across several departments, including its gaming divisions. The contrast between widespread job cuts and Nadella’s own 22% pay increase, bringing his annual compensation to 96.5 million dollars, has been met with frustration within the industry.

As Microsoft continues to expand its reach across platforms and redefine its gaming strategy, Nadella’s comments highlight both ambition and contradiction. The company wants to innovate and remain accessible to players everywhere while maintaining profitability and navigating the realities of a rapidly evolving market.

Will Microsoft’s multiplatform vision reshape the future of gaming, or is it spreading too wide in the race to compete for global attention?