In a recent interview with German media company Axel Springer, Microsoft CEO Satya Nadella outlined the company's ambitious plans for the future, particularly in the gaming industry. According to Gizmodo, Nadella confirmed that Microsoft, now the second-largest publisher by revenue following its $69 billion merger with Activision Blizzard, will be focusing on becoming both a game producer and publisher.

Nadella emphasized the increasing popularity of gaming, stating, "The amount of time people allocate to gaming is going up and Gen Z is going to do more of that." He also highlighted the radical changes occurring in the gaming landscape, with games being made and delivered through various platforms such as mobile devices, consoles, PCs, and cloud gaming.

The Microsoft CEO's remarks shed light on the significance of the Activision Blizzard merger, which faced scrutiny from regulatory bodies including the U.S. Federal Trade Commission. Despite the intervention, Microsoft's plans to continue investing in consoles until 2030 remain intact. A new Xbox Series S and Series X, equipped with improved specs and new controllers, are expected to be released as part of the company's hardware initiatives.

While Microsoft focuses on expanding its gaming empire, the development of complementary software may take some time to fully materialize. Call of Duty and other major franchises may not be available on Xbox Game Pass until next year, according to Microsoft Gaming CEO Phil Spencer. Moreover, Microsoft is reportedly considering the creation of its own mobile app shop to compete with industry giants like Google and Apple in the mobile gaming market.

Nadella, who assumed the role of Microsoft CEO in 2014, has overseen several significant shifts in the company's direction. One of the notable areas of focus is AI, which he described as the "biggest shift" for Microsoft. The company's multi-billion dollar partnership with OpenAI remains a central pillar of their future strategy. Nadella expressed concerns about increased competition in the AI space, highlighting the advantages of a controlled market with fewer players. However, he also supported regulations to protect creators and ensure responsible AI development.

Despite Microsoft's recent successes, Nadella expressed regret over the company's decision to exit the mobile phone market in 2017. He acknowledged that there could have been inventive ways to reinvent the category of computing, bridging the gap between PCs, tablets, and phones. The CEO acknowledged that this was one of the most challenging decisions he made during his tenure.

As Microsoft doubles down on its gaming endeavors and explores new avenues for growth, the company faces both exciting opportunities and potential challenges. With lucrative acquisitions and a strong focus on emerging technologies, it is clear that Microsoft is positioning itself to remain a dominant force in the ever-evolving gaming industry.