Microsoft Seeks to Win Over New Players at Gamer Gathering

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
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Microsoft Seeks to Win Over New Players at Gamer Gathering

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo

Microsoft held its biggest video game stand ever at the sector trade show Gamescom in Germany on Wednesday, aiming to win over players after several rocky months of studio closures and rising fees.
"We run a business. And it's definitely true inside of Microsoft, the bar is really high for us in terms of delivery that we have to give back to the company," Xbox chief Phil Spencer said during a live event at the show.
"There is a lot of pressure on the industry. It's been growing for a long time and now people are looking for ways to grow," he added, defending the US giant's strategy.
Microsoft took fans by surprise on Tuesday when announcing that its year-end blockbuster "Indiana Jones and the Great Circle", initially meant to be an exclusive for its Xbox console, would also be made available on rival Sony's PlayStation 5 in spring 2025, said AFP.
The decision follows a shift that began in February with four of its games being made available to rival consoles, marking a strategic turning point to attract players to Xbox with exclusive titles.
The move is aimed at increasing the profitability of its games amid flagging console sales.
'Big bet'
After completing in October the $69 billion takeover of gaming publisher Activision Blizzard, maker of gaming hits such as "Call of Duty" and "Candy Crush", Microsoft has faced a series of hurdles.
The takeover resulted in cuts of 1,900 jobs in January.
Then in May, Microsoft closed four studios of publisher Bethesda, which it acquired in 2020 as part of a $7.5 billion investment.
The announcement of the upcoming release of "Call of Duty: Black Ops 6", the first in the series to be available on Microsoft's platform Game Pass, coincided with an increase in service fees.
At the end of February, the service had about 34 million users, far short of its goal of reaching 100 million clients by 2030.
The move to release Call of Duty on Game Pass is Microsoft "pushing all of their chips in", said Mat Piscatella, an analyst for market research firm Circana. "This is their big bet."
Call of Duty's performance on the platform will determine the future of the formula and its viability, he said.
"I think it's evolving as the subscription market hasn't grown at the rate that some have expected," Piscatella said.
Microsoft also announced Wednesday that the new versions of its consoles unveiled in June, which include the Xbox Series X without a Blu-ray player, will be available from October 15.



Chipmaker Analog Devices Forecasts Strong Q4 Results as Demand Recovers

Analog Devices' logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
Analog Devices' logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
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Chipmaker Analog Devices Forecasts Strong Q4 Results as Demand Recovers

Analog Devices' logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights
Analog Devices' logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights

Analog Devices forecast fourth-quarter revenue and profit above Wall Street expectations on Wednesday, as it benefits from returning demand for its chips used in consumer electronics.

A decline in surplus chip inventory across sectors, including communication, consumer and industrial, has helped chipmakers see a recovery in orders after a years-long slump.

Analog Devices' consumer segment revenue rose 3% to $316.6 million in the third quarter, compared with analysts' average estimate of $289.3 million, according to LSEG data, Reuters reported.

Shares of Wilmington, Massachusetts-based Analog Devices rose 1.3% in premarket trading after the company's third-quarter profit of $1.58 per share also beat LSEG estimates of $1.51.

The company now expects fourth-quarter revenue of $2.40 billion, plus or minus $100 million, above LSEG estimates of $2.37 billion. It also sees adjusted earnings per share of $1.63, plus or minus 10 cents, compared with estimates of $1.62.

The upbeat forecast follows strong results from rival chipmaker Texas Instruments.

However, economic and geopolitical uncertainty continues to limit the pace of recovery, Analog Devices CFO Richard Puccio said.

Revenue for the company's industrial segment, the largest in terms of revenue, came in at $1.06 billion, slightly lower than analysts' expectations of $1.07 million.

Analog Devices provides semiconductors to businesses in a variety of industries, including aerospace, automotive, communications, digital healthcare, and industrial automation among others.