Microsoft and Xbox have made billions on Halo, but a huge $1.8b chunk of that hasn’t even come from the games

Microsoft and Xbox have made billions on Halo, but a huge .8b chunk of that hasn’t even come from the games

What you need to know

  • Halo is one of Microsoft’s longest-running game franchises, and has played a huge role in the success of its Xbox gaming divisions since both Halo: Combat Evolved and the first Xbox console launched in 2001.
  • Since its inception, Halo as grossed over $6 billion, with that number potentially as high as $10 billion according to details on a Microsoft LinkedIn profile.
  • However, in a new article, Xbox head of consumer products John Friend has stated that nearly $2 billion of that revenue hasn’t even come from the video games.
  • Specifically, $1.8 billion has come from Halo merchandise and multimedia, including its many different toys, collectibles, apparel items, novels, comics, and more.
  • Friend’s comments also suggest that Microsoft may license newly acquired franchises like World of Warcraft and Diablo in similar ways, though he stressed that the firm will evaluate properties on a case-by-case basis to determine the best approaches.

When you think of Microsoft’s massive sci-fi franchise Halo, I’m willing to bet that all the incredibly successful Xbox games from the past 20+ years come to mind. After all, the original Halo: Combat Evolved is responsible for putting Xbox on the map when it launched alongside Microsoft’s first console in late 2001, and its many sequels (both mainline entries and spinoffs) have continued to be some of the biggest first-party titles offered to players across the Xbox 360, Xbox One, and Xbox Series X|S generations. Indeed, if Xbox has a flagship series, it’s Halo — even if it hasn’t really felt like one in the wake of the rocky performance of Halo Infinite.

With history and popularity like that, it’s not terribly surprising that Halo has made over $6 billion (and possibly even $10 billion, according to the LinkedIn profile of Microsoft senior business manager Lillian Lehmann) and has become one of the largest gaming franchises ever since its inception. What did give me pause, though, is that a huge $1.8 billion chunk of that revenue hasn’t even come from the video games at all. Instead, it’s flowed in from purchases of Halo merchandise, including the series’ apparel items, toys, collectibles, novels, graphic novels, comics, and films.

This news comes from an article published as part of the September issue of License Global magazine, in which Xbox’s head of consumer products John Friend discusses Microsoft’s “brand licensing strategies connecting iconic video game franchises with the world’s most diverse fan base.” Friend points out that for smaller properties like Obsidian Entertainment’s 2022 adventure game Pentiment, the firm has to be more selective with licensing opportunities. With something as big as Halo, though, Microsoft and Xbox can — and have — gone significantly further.

2001’s Halo: Combat Evolved is responsible for a significant portion of Xbox’s early success.

“I often use the phrase ‘no matching luggage,’ 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,” Friend explains. “We have an incredibly broad and exciting portfolio to work with, but we’ve got to be smart.”

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