Xbox: Gaming Evolved

For years, gaming has been recognized as one of the fastest-growing and most influential forms of entertainment, a powerful fan-driver and a pop-culture powerhouse. Yet, it has surged to unprecedented levels of engagement in recent times. Today, the gaming industry commands a global audience of over 3 billion people, eclipsing the film and television industries combined in reach and influence. This remarkable growth highlights a fundamental shift in our understanding of what gaming represents. No longer is it just a niche hobby or a pastime for a select group; it has become an integral part of modern life, blending seamlessly into the broader cultural fabric.

The Power of Gaming

Gaming is now larger than North American sports and has outpaced the combined reach of music and movies. This extraordinary expansion underscores how deeply embedded gaming has become in our daily lives. The beauty of gaming lies in its diversity and inclusivity. It is a competition, relaxation and connection platform that unites individuals across various communities and interests. Whether through casual play, competitive eSports or collaborative experiences, gaming offers something for everyone, breaking down barriers and fostering a sense of global camaraderie. The previous designation of “gamers” as a consumer subset regularly engaged in video game content is no longer accurate, as nearly all of us are gamers, be it casual or active, and as Xbox so aptly puts it, when everybody plays, we all win.

Related:Gaming Keeps Growing

As the industry evolves, companies like Xbox are at the forefront of this transformation, striving to ensure that gaming is accessible everywhere. With groundbreaking titles and innovative platforms, the future of gaming looks exceptionally bright.

“We’ve hit a real tipping point,” says John Friend, head, Xbox Gaming Consumer Products. “Gaming has clearly been one the fastest growing and largest forms of entertainment and pop culture in the world for several years, but the recognition of that has changed in recent years. There are at least 3 billion people around the world playing games regularly. Gaming is larger than film and television combined. The audience base is broad, and I get frustrated sometimes when people say, ‘Okay, well, how do you talk to gamers?’ Gamers are everybody. That’s the reality. The engagement stats are larger than those of North American sports. It’s also deep; by that, I mean it brings together many different communities in many ways. People use gaming to compete, enjoy, relax, connect with family and meet new people. I think Xbox is in a unique position within the gaming ecosystem. Internally, we’re ensuring that Xbox is available where, when and how fans choose to play.”

Related:Xbox to Present Brand Licensing Europe Opening Day Keynote

The Wand Company Pip Boy replica

Intellectual Property at Play

With “Call of Duty: Black Ops 6,” the newest entry in the Call of Duty franchise set for launch on Oct. 25, countless titles welcoming millions of players daily and a constantly evolving platform for fans to immerse themselves in, Xbox is a pioneering gaming and intellectual property brand. However, with a market of billions, brand licensing becomes a far more complex narrative when matching franchises to fans and communities to consumer products.

“I often use the phrase ‘no matching luggage,’” adds Friend. “Meaning that it’s important to assess a franchise and a community based on who they are and what that franchise is and make sure that you’re designing a program that’s additive to fans and building fandom, both for that group and for that franchise. We have an incredibly broad and exciting portfolio to work with, but we’ve got to be smart.”

Franchises, stories, characters, gameplay mechanics and intellectual property sit at the heart of the engagement, time spent and sheer joy video games provide fans. Still, with such a broad swath of audience types, preferences and combinations available, the art of brand licensing boils down to a far more bespoke approach than most may think – especially when combining the appeal of triple-A games with the legacy and heritage most titles now wield thanks to the growth of gaming over time.

Related:The Transformation of Mobile Gaming

“World of Warcraft” x McFarlane Toys

“We have these massive, fantastic franchises ranging from ‘World of Warcraft’ –celebrating its 20th anniversary this year – to ‘Halo,’ ‘Call of Duty,’ to ‘StarCraft’ and much more,” says Friend. “We’re building plans for the 25th anniversary of ‘Halo’ and Xbox—we have such a rich heritage and history, and these communities have been active for so long, you have to celebrate that. However, in other cases, these newer gems are focused on specific audiences. I’ll give you one small example. Obsidian, one of the Xbox Game Studios, put out a game called ‘Pentiment,’ a focused, unique game targeted to a relatively small group of people. Still, it got that broad audience exposure on Game Pass. People found it and loved it. As a result, we’ve done a couple of vinyl releases for ‘Pentiment,’ which keep selling out because there’s such deep fandom for those who love that game. It’s not the scale of ‘Call of Duty,’ so, as a team and as a company, we have to be nimble and thoughtful enough that we can do the right things for ‘Call of Duty’ fans and the right things for ‘Pentiment’ fans and not just apply the same formula for both.”

Responsible for the Xbox Gaming Consumer Products initiatives for Activision Blizzard King (ABK), Bethesda and teen-to-adult titles on Game Pass, Friend and his team are stewards of some of the most iconic franchises known the world over, combining the fandom of “Call of Duty,” “Diablo,” “DOOM,” “Fable,” “Fallout,” “Gears of War,” “Halo,” “The Outer Worlds,” “World of Warcraft” and “The Elder Scrolls” series (to name a few) with countless communities and consumer products connected to each franchise.

“Halo” x Culture Kings

Connecting Fans with Franchises

The military science fiction franchise, “Halo,” celebrating its 25th anniversary in 2026, has grossed over $6 billion since its first game launch, “Halo: Combat Evolved,” in 2001. The latest title, “Halo Infinite,” was released in late 2021, becoming the biggest launch in franchise history. The “Halo” franchise developed into novels, graphic novels, comic books, short films, animated films, feature films and most recently, the critically acclaimed live-action Paramount+ Original “Halo” TV series, which was ranked at 94% on Rotten Tomatoes. Over $1.8 billion has been spent on “Halo” merchandise, proving the power of connecting fans with key titles and franchises.

Halo has an exciting lineup of global and regional collaborations landing this year and beyond. Jazwares Vault is offering exclusive action figures throughout 2024. TOMY introduced collectible Halo plushies featuring a 15-inch Master Chief and Master Chief Helmet, released on Feb. 9. This summer, Fisher-Price launched a special-edition Little People Collector set with iconic “Halo 3” characters via Amazon; Mattel released the MEGA Halo Guilty Spark with lights and sounds via Amazon along with building toy sets from the “Halo Infinite” series; Youtooz Collectibles released its Halo range; and the Culture Kings x Halo collaboration launched nostalgic tees in the U.S., Canada and ANZ markets, with sales surpassing previous collaboration launches. This fall, Gel Blaster will launch its “Halo”-themed gameplay globally for ages 14 and up; Mantic Games is introducing “Halo: Flashpoint,” a tactical miniatures game for two players; Dark Horse Comics has two exclusive products including “The Making of Halo the Series” book and an already sold-out Halo 2 Master Chief PVC statue; and Hallmark will debut a Master Chief keepsake ornament from “Halo: Combat Evolved” for this holiday season. Simon & Schuster’s Gallery Books will release “Halo: Empty Throne,” an original novel, in February 2025.

“Call of Duty Zombies” x YouTooz

Another case study is the upcoming installment, “Call of Duty: Black Ops 6,” an action thriller set in the early 1990s where players face a shadowy force infiltrating the U.S. government. Forced to go rogue for the first time, players will experience a mind-bending narrative; “Call of Duty: Black Ops 6” introduces innovations like omnimovement, allowing players to sprint, slide and dive in any direction, enhancing the action hero experience across all game modes. The game also features the return of Classic Prestige, Theater Mode and the popular Round-Based Zombies mode, ensuring there’s something for everyone. The game boasts advanced graphics, dynamic weather effects and a robust multiplayer experience with new maps and modes, solidifying its place as a cutting-edge entry in the iconic series.

Highlights of the upcoming consumer products for “Call of Duty,” which will span all major categories, include a “Black Ops 6” apparel and accessories line which will launch this fall at ASDA from Fashion UK. Each will come with in-game content included. For fall 2024 and spring 2025, Yootooz will launch a limited-edition collectible vinyl figure line that celebrates the iconic characters and themes from the “Call of Duty” franchise that includes, from Zombies mode, a blood-spattered Mystery Box teddy, the Pack-A-Punch machine, and fan favorite Jugger-Nog Machine. From KontrolFreek, Performance Thumbsticks include the “Deadshot Edition” featuring a special Deadshot Daiquiri collectors can--replicating the one in the game--and a matching digital in-game weapons charm. KontrolFreek will also be launching “Black Ops 6” Performance Thumbgrips that will include digital content in game; and Corsair is the “Black Ops 6” official peripherals partner with an elite product line that includes a desk mat, mouse, PC Tower, Controllers, Elgato Stream Deck and Wave Mic.

“Halo: Infinite”

Another key focus for Xbox is the upcoming launch of “Diablo IV: Vessel of Hatred.” The multiple award- winning Diablo video game franchise is set in the dark fantasy world of Sanctuary, where players battle against demonic forces led by the Prime Evils: Diablo, Mephisto and Baal. The series begins in the town of Tristram, where players team up in fights against various monsters and demons, descending into the depths to defeat Diablo. First published in 1996, the launch of “Diablo IV” in June 2023 was particularly successful, generating more than $666 million in sales within its first five days and 276 million hours played within a week of launch. “Diablo IV: Vessel of Hatred,” coming Oct. 8, is the game’s first expansion.

One approach to connecting fans with franchises such as Halo, Diablo IV and Call of Duty is real-time fan commerce, which is all about finding moment-to-moment interactions that matter in a gaming franchise. “I’m based in the studio that makes Halo, so Halo often comes to mind as an easy example,” adds Friend. “Complete Season 5 of ‘Halo Infinite,’ and you get the opportunity to buy something special that’s relevant to that season but also showcases, frankly, that you’re a badass, that you did it, that you completed everything right, you beat that boss, or that you and your crew completed the mission. Then, we have an opportunity to integrate with the games differently and meet fans where they are. We can tailor consumer products and programs to what fans want and not just think about the specific game of the month, but it’s a bit of a balancing act.”

Another example of real-time fan commerce and the balance of heritage and newness is the upcoming title, “DOOM: The Dark Ages.” This edition of the iconic franchise heralds the return of the unstoppable DOOM Slayer in this upcoming single-player dark fantasy action first-person-shooter from id Software. A brand with no shortage of heritage, DOOM is considered one of the founders of the modern video games movement. With a new title previewed at Xbox Games Showcase in June, fans are rallying behind the franchise in anticipation and allowing Xbox to create moments to help fans celebrate through licensed consumer products.

Helping Friend and the team to ideate, collaborate and build long-lasting partnerships that bring those memorable moments to life are global agents and gaming specialists worldwide, including Beanstalk (Xbox brand, Xbox Game Studios – EMEA), Merchantwise (ABK for EMEA and APAC as well as ABK, Xbox and Xbox Game Studios for Australia and New Zealand), Tycoon (Xbox brand, Xbox Game Studios – Latin America) and Lotus (Xbox brand, Xbox Game Studios – Brazil).

“The truth is, we’ve got a great team and brilliant people working on this,” says Friend. “It’s fun because there’s also some great discussions and debates about prioritizing and focusing our time. I think it’s important to make sure we’re smart about our focus and understand our distinct and diverse portfolios. The strategy and approach will not always be the same for every franchise. It’s not always going to be the same for every studio. That means we must be open to being thoughtful and thinking that what works for ‘World of Warcraft’ may not work for ‘StarCraft’ or ‘Diablo.’ We have a lot of flexibility and just listen to fans to understand how to be additive to their experience.”

"Diablo IV: Vessel of Hatred"

For Friend, the future of gaming engagement is only growing, and the brand licensing model is what brings fans together with franchises. But, with such monumental growth across the global player base and the gaming space regarding demand, overnight hits, continued franchise success, multi-generational play and the individual consumer reasoning for play, intellectual property, immersive storytelling and brand strategy will drive that demand further.

“I think one of the things I’m excited about is this notion of immersive events and experiences,” says Friend. “The world of AR, VR and how those technologies are evolving and how that allows us to create more immersive and engaging consumer experiences. And that’s something where I think we’ve just started to scratch the surface. If you think about AR and VR, we’re seeing more and more that these technologies are becoming more accessible, more affordable and more integrated into the gaming experience. And that’s super exciting because it opens up new ways for fans to interact with the games, interact with the IP and experience it in impossible ways. And so, for us, like thinking about how we integrate those technologies into our consumer products and gaming experiences, that’s top of mind for me and my team.”

As gaming expands its global influence, it represents more than just entertainment – it is a movement shaping culture and community worldwide. With over 3 billion players engaging across platforms and genres, gaming’s power to connect and inspire is unparalleled. For companies like Xbox, which stands at the forefront of this industry, the challenge and opportunity lie in leveraging this momentum to foster even deeper connections between fans and their favorite titles. The strategic art of brand licensing offers fans unique ways to express their passion through innovative consumer products that resonate with their gaming experiences.

In a rapidly evolving market where AR, VR and AI are reshaping how we interact with digital worlds, the potential for deeper, more personalized gaming experiences is clear. Xbox’s commitment to integrating these technologies into both gameplay and consumer products signifies a future where fans are not just participants but active creators in their gaming narratives.

“Gaming is no longer just a pastime; it’s an integral part of our lives that transcends traditional entertainment boundaries,” says Friend. “As we look forward to what the future holds, our goal is to continue pushing the boundaries of what’s possible, ensuring that every player, regardless of their background, feels a part of this incredible journey.”

The first Xbox was launched in 2001 with the slogan, “Games will never be the same,” and today, Xbox continues to redefine the game, one player, one story and one experience at a time.

Xbox will be at Brand Licensing Europe 2024 and will deliver a keynote address, shedding light on the company’s strategies to harness gaming’s transformative potential and its commitment to bringing innovative consumer experiences to life.

This story was taken from the September 2024 issue of License Global. Read the full issue here …