Microsoft's Quest for the Next Big Thing in China

The Xbox Series X/S has been a remarkable success for Microsoft, but the company's software lineup remains a concern. Despite its impressive hardware and services ecosystem, the lack of exclusive titles is a major weakness. Microsoft has been acquiring publishers and building its first-party studios, but the results have yet to materialize. The company's recent financial reports show a decline in software revenues, which is a worrying trend. Microsoft is now looking to China to find the next big thing, but this approach may be misguided. The company's failure to sign Genshin Impact was a significant blow, and trying to replicate its success may not be the best strategy. Instead, Microsoft should focus on improving its ability to recognize and nurture potential successes. The company's history of missing out on major hits, such as Grand Theft Auto 3, serves as a reminder that it's essential to learn from past mistakes and adapt its decision-making processes. By doing so, Microsoft can increase its chances of finding the next big thing and staying ahead of the competition.