Microsoft announced today that it will spend $9.5 billion on entertainment and video content for the first quarter of 2020, including a major boost to the Xbox One console, as part of a push to diversify its video content offerings.
“We will continue to invest in new ways to deliver more entertainment experiences to our audiences,” Microsoft CFO Brad Smith said in a statement.
“This includes bringing more live events to the TV and online platforms and delivering more compelling, compelling video content to the web.”
Microsoft is currently spending $8.6 billion on the Xbox console, which includes $1.6 million in investment in the Xbox Live service and $5 million in the Kinect unit.
In a statement, Microsoft noted that it is “continuing to invest heavily in the future of gaming.”
Microsoft also noted that the $9 billion investment will create 3,000 direct jobs and 1,500 indirect jobs in the U.S. Microsoft is also spending $3.5 million this quarter on the gaming studio and the acquisition of Zynga, which was spun off from its parent company Zyngas.
Microsoft said it will begin selling its $19.99 Xbox One streaming device in the second half of the year.
Microsoft also said that the company will invest in gaming in general and in the entertainment industry specifically in the third quarter.
Microsoft said it plans to create 100,000 new jobs in its entertainment and media business in the first half of 2020.
Microsoft’s total spending on entertainment content this year is projected to reach $50 billion, according to a study by Forrester Research.
Microsoft also reported earnings for the fourth quarter, which ended on Sept. 30.
The company reported a net loss of $3 billion.
In the latest quarter, the company reported net profit of $2.5 $1 billion, or 52 cents per share.