Who Owns Xbox?
Xbox is owned by Microsoft Corporation, a publicly traded American multinational technology company (NASDAQ: MSFT) headquartered in Redmond, Washington. In fiscal year 2025 (ended June 30, 2025), Xbox gaming revenue increased 9%, driven by 16% growth in Xbox content and services including the impact of the Activision Blizzard acquisition and Xbox Game Pass. Game Pass revenue is nearing $5 billion annually. Xbox hardware revenue declined 25% as the console market shifted toward services. Microsoft became the top publisher on PlayStation in Q4 FY2025.
Parent Company
Microsoft Corporation
Founded
2001
Status
Publicly Traded
Headquarters
Redmond, Washington, USA
Who Owns Xbox?
- Parent Company: Microsoft Corporation
- Ownership Type: Wholly owned
- Company Type: Publicly Traded
- Stock Ticker: NASDAQ: MSFT
| Brand | Parent Company | Ownership Type |
|---|---|---|
| Xbox | Microsoft Corporation | Wholly owned |
History of Xbox
- Founded: 2001
- Founders: Microsoft (internal development)
Xbox was introduced by Microsoft in 2001 as the company's first entry into the video game console market, challenging Sony's PlayStation and Nintendo's dominance. The original Xbox console was developed in direct response to Sony's PlayStation 2 success, with Microsoft recognizing gaming as critical to home entertainment.
The Xbox brand name was derived from "DirectX Box," referencing Microsoft's DirectX graphics technology that powered the console. The original Xbox featured an Intel processor and built-in hard drive, innovations that differentiated it from competitors.
Xbox 360, launched in 2005, became one of the most successful gaming consoles ever sold, establishing Xbox as a major gaming platform. Xbox One (2013) focused on entertainment integration, while Xbox Series X and Series S (2020) emphasized performance and value.
Microsoft's gaming strategy expanded significantly with acquisitions of Bethesda (2021) and Activision Blizzard (2023), adding major game franchises to Xbox's portfolio and Game Pass subscription service. In fiscal year 2025, Xbox gaming revenue grew 9% to reflect the full-year impact of Activision Blizzard, with Xbox content and services up 16%. Game Pass revenue is nearing $5 billion annually. Microsoft became the top publisher on PlayStation in Q4 FY2025, reflecting its strategy of releasing first-party games across multiple platforms.
About Microsoft Corporation
Microsoft operates through three primary business segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.
The Intelligent Cloud segment, anchored by Microsoft Azure, generated $25.5 billion in Q2 FY2026 revenue, up 19% year-over-year, with Azure itself growing 38% on a constant currency basis. Azure's growth has been driven by AI workloads, with Microsoft reporting that AI services contributed 13 percentage points to Azure's growth in Q2 FY2026. The cloud segment surpassed $40.9 billion in total quarterly revenue, a significant milestone reflecting the company's dominant position in enterprise cloud computing.
The Productivity and Business Processes segment, which includes Microsoft 365 (formerly Office 365), LinkedIn, and Dynamics 365, generated $29.4 billion in Q2 FY2026 revenue, up 14% year-over-year. Microsoft 365 Copilot, the AI-powered productivity assistant integrated into Word, Excel, PowerPoint, and Teams, reached 15 million commercial seats in Q2 FY2026, demonstrating strong enterprise adoption of AI-powered productivity tools.
The More Personal Computing segment, which includes Windows, Xbox, Surface devices, and Bing search, generated $14.7 billion in Q2 FY2026 revenue, up 4% year-over-year. Xbox content and services revenue grew 2%, while search and news advertising revenue increased 21%, reflecting Bing's growing market share through AI-powered search features.
Microsoft returned $12.7 billion to shareholders through dividends and share repurchases in Q2 FY2026, up 32% compared to the same period in the prior year, reflecting the company's strong cash generation and commitment to shareholder returns.
- Founded: 1975
- Headquarters: Redmond, Washington, USA
- Company Type: Publicly Traded
- Stock: NASDAQ: MSFT
Where Is Xbox Made / Based?
- Headquarters: Redmond, Washington, USA
- Manufacturing / Operations: United States, China, Mexico, Hungary
Brands Owned by Microsoft Corporation
- GitHub - Web-based platform for software development and version control using Git, widel...
- LinkedIn - American professional networking platform founded in 2002, owned by Microsoft Co...
- Microsoft Teams - Unified communication and collaboration platform developed by Microsoft for work...
- Minecraft - Best-selling sandbox video game of all time with over 300 million copies sold ac...
- Outlook - Microsoft's personal information manager and email client application for indivi...
- Skype - Video calling and messaging platform, one of the pioneering VoIP services, now i...
- Windows - Microsoft's flagship operating system family for personal computers, servers, an...
Xbox Ownership: Pros & Cons
Advantages
- +Strong financial backing from Microsoft's corporate resources
- +Extensive game library through first-party studios and Game Pass
- +Advanced hardware development with Microsoft's engineering expertise
- +Integration with Windows and Microsoft ecosystem services
- +Continuous innovation in cloud gaming and subscription services
Considerations
- -Intense competition from Sony PlayStation and Nintendo Switch
- -High development costs for console hardware and exclusive games
- -Dependency on Microsoft's broader corporate strategy and priorities
- -Limited market share in some regions compared to competitors
- -Complex management of diverse game development studios
Frequently Asked Questions About Xbox
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