Microsoft’s Satya Nadella said the company’s goal is to reach $500 billion in sales by 2030, court filings reveal

Recently, Microsoft has started arguing for the acquisition of Activision Blizzard before the Federal Trade Commission. This is where the company’s strategy claimed that it may have fallen short in the “console war” against Sony and Nintendo. Though all three control the market, Microsoft has placed itself in the third position when it comes to this perpetual console war.

Amidst this, it is being asserted that last year, Satya Nadella, the CEO of Microsoft, told his executives and board members that the company envisioned reaching $500 billion in revenue by the 2030 fiscal year. It aims to more than double its current size. This appeared in a memo that became public as part of the company’s federal court hearing in regards to its deal to take over Activision Blizzard.

Microsoft, one of the most valued firms in the world, does not usually release financial forecasts that are several years in the future. In its most recent earnings call, the company gave guidance for the present period only, which is the fiscal fourth quarter. Microsoft’s 2030 objective will be achieved, according to Nadella, in the most recent disclosure, which is part of a 15-page memo and a 21-page document that goes along with it. Nadella expressed that the company’s vision can be achieved, “by implementing an evolving strategy that is growth-oriented and consistent with our enduring mission and culture.”

Further, Nadella was seen forecasting shareholder returns. This came in the form of dividends and buybacks. In a document that dates back to June 7, 2022, Nadella expressed, “We believe this ambition and approach will help us deliver in excess of 10% annual returns to our shareholders over that timeframe.” This came weeks before the end of the fiscal year.

For the fiscal year 2022 and succeeding years, Nadella outlined a goal of “20/20,” which calls for a 20% increase in operating profitability and a corresponding 20% increase in revenue. Microsoft ended up growing its top line by 18% to $198.27 billion and its operating income by 19% in 2022.

In the memo, Nadella referred to consumer-oriented goods as Microsoft Plus. Nadella has further expressed that the Microsoft Cloud is the primary driver of growth. Microft Cloud consists of the Azure public cloud, which competes with Amazon Web Services and Google Cloud, the Microsoft 365 productivity software, and a portion of LinkedIn. In the accompanying document, Nadella stated, “Our priority is to maintain growth above the market rate to extend our lead over GCP and close the gap with AWS.

Meanwhile, the $68.7 billion acquisition of Activision by Microsoft is being fought by the Federal Trade Commission. Microsoft has asserted in its fight to acquire game publisher Activision that its Xbox has lost the console war while Sony and Nintendo continue to dominate. Microsoft has presented its case for why it has been losing the console war to its competitors since 2001 in a document that was filed in the court hearing. It was argued that the PlayStation 2 and GameCube outsold the original Xbox in terms of sales by a wide margin. Additionally, the corporation asserted in their document that the situation has remained unchanged.

These revelations line up with Microsoft’s declaration that the next console generation will debut in 2028. If and when the company buys Activision Blizzard, Call of Duty is likely to be accessible on rival gaming platforms. Sony isn’t overly thrilled with the transaction, though. Jim Ryan, the head of Sony PlayStation, stated during the same hearing that if the deal went through, the business would refrain from sharing information with the Call of Duty developers about a future PlayStation 6. It should go without saying that this might impact Call of Duty players on the PlayStation in a number of different ways.