This essay sheds light on how Microsoft became a highly profitable company, identifies the critical success factors behind Microsoft's success as a highly profitable software company, demystifies Microsoft's growth strategies for long term revenue growth, and reveals the future outlook of Microsoft in the digital era. Microsoft is a highly profitable multinational software company. Microsoft produces a copious amount of products which are not limited to just software products. In addition to producing software products, Microsoft also produces windows operating systems, windows server products, and video game consoles. Microsoft’s subsidiary, Xbox Game Studios, “formerly known as Microsoft Studios" from 2000-2001, Microsoft Game Studios from 2001-2011, and Microsoft Games from 2011-2019, publishes video games for Xbox consoles and computers. Microsoft’s subsidiary, Xbox Game Studios, has an exorbitant amount of subsidiaries that are video game development companies, such as “343 Industries, Rare, Mojang Studios, Double Fine Productions, Compulsion Games, The Coalition, Obsidian Entertainment, Playground Games, Undead Labs, inXile Entertainment, Ninja Theory, and World's Edge”. ZeniMax Media is also subsidiary of Xbox Game Studios. ZeniMax Media, the subsidiary of Xbox Game Studios, has an exorbitant amount of subsidiaries which are video game development companies, such as “Alpha Dog Games, Bethesda Softworks, Arkane Studios, id Software, Roundhouse Studios, Tango Gameworks, ZeniMax Online Studios, MachineGames”. Xbox Game Studios is able to easily publish video games for Xbox consoles and computers due to having an exorbitant amount of video game development companies of its subsidiaries which are capable of developing extraordinary video games. Rare for instance has developed video games that are apart of the Killer Instinct series, the Banjo-Kazooie series, the Conker series, the Battletoads series, The Donkey Kong Country Series, and the Perfect Dark Series. The Coalition for instance has developed video games that are apart of the Gears of War Series. Turn 10 Studios for instance has developed video games that are apart of the Forza Series. ZeniMax Media, the subsidiary of Xbox Game Studios, has an exorbitant amount of subsidiaries that are video game development companies which are also capable of developing extraordinary video games. id Software for instance has developed video games that are apart of the Quake series and the Doom series. Bethesda Game Studios for developed video games that are apart of the Fallout series and The Elder Scrolls series. MachineGames for instance has developed video games apart Wolfenstein series. Xbox Game Studios has potent competitive advantages in the video game industry, especially when you take into account its ability to expeditiously publishes video games for Xbox consoles and computers due to have an exorbitant amount of video game development companies as its subsidiaries which are capable of developing extraordinary video games. Xbox Game Studios is also at liberty to increase their library of first-party video games that are exclusive to Xbox consoles and computers. The vaster the library is of video games that are exclusive to Xbox consoles and computers, the more enticed gamers are to procure Xbox consoles. Microsoft has far more subsidiaries than Xbox Game Studios. Microsoft also has subsidiaries that do not compete in the video game industry. Some of Microsoft’s other subsidiaries encompass “LinkedIn, Skype Technologies. S.A.R.L, GitHub, RiskIQ, and Nuance Communications”. Microsoft has a sizeable target market that consist of gamers and computer users from around the world. As more and more people dabble into gaming, demand for video game products will further amplify. As computer adoption rates amplify, demand for computer software programs will further amplify. Microsoft’s prudence to compete in the computer software industry and video game industry has immensely redounded to their advantage. Xbox Game Studios’ nostalgic video game franchises continue to expand overtime with the release of new installments into their iconic video game franchises. Xbox Game Studios’ video game franchises are some of the utmost popular video game franchises. Gamers from around the world are fond of Xbox Game Studios’ video game franchises, such as the Halo franchise, the Age of Empires franchise, and the Gears of War franchise.