In recent developments regarding the ongoing Federal Trade Commission case against Microsoft, Phil Spencer, the head of Xbox, made a startling statement.
According to Spencer, Xbox might exit the gaming industry if there’s no significant increase in the Game Pass’ number of users on PC and cloud platforms by 2027.
Referring to a presented projection showing the estimated growth of Game Pass on different platforms, Spencer said, “I can safely say that if we do not make more progress than this off console, we would exit the gaming business.”
Interestingly, while Spencer’s claims suggest a potential retreat, leaked plans reveal Microsoft’s intention for a mid-gen console refresh. Also, a next-generation console is slated for 2028. This sends mixed signals about the extent to which Game Pass’s performance will dictate Xbox’s future.
Yet, Spencer’s urgency was evident. The chart, showcased by FTC lawyer James Weingarten, anticipated that Game Pass would breach the 100 million subscriber count between FY29 and FY30. However, Spencer opined that this target must be achieved much sooner. He emphasized, “A majority of our customers are found off of our own hardware, I would hope by earlier than 2030.”
Beyond these revelations, other intriguing details emerged from mistakenly uploaded unredacted documents outside of what we’ve already mentioned. These unveiled plans for a haptic feedback-enabled Xbox controller, presumably built to compete against the DualSense, Sony’s all-new proprietary controller for the PlayStation 5 that has since received a lot more support on other platforms. Furthermore, remasters for popular games like Fallout 3 and The Elder Scrolls IV: Oblivion were apparently in the pipeline in 2020, but their current status remains unclear.
Perhaps, more importantly, Microsoft is enjoying one of its best years yet following the success of Ghostwire: Tokyo, Hi-Fi-Rush, and yes, even Starfield.
While the internet loves to harp on Bethesda’s latest game, the numbers prove that it’s one of the most significant releases on any platform in years. It’s right up there alongside Hogwarts Legacy and Call of Duty: Modern Warfare 2 in terms of commercial success.
With Forza Motorsport coming out in October and other significant AAA exclusives in the pipeline, including sequels to Ghostwire: Tokyo, Dishonored, and DOOM, the future of the Xbox is bright, even without factoring in the Activision Blizzard acquisition.
Thus, Microsoft’s potential exit from gaming may perhaps nothing be more than a passing comment meant to downplay the platform’s growth. If nothing else, this portrayal as a vulnerable entity in gaming may be a strategic move to favor curry as it waits for the approval of its impending $70 billion buyout.
In recent years, the Game Pass has evolved into a central pivot of Microsoft’s gaming strategy. As of now, it boasts over 25 million subscribers across all platforms. However, the real challenge lies in expanding this base, especially in the PC and cloud sectors. The acquisition of Activision Blizzard could boost this ambition, contingent on the deal’s successful culmination.
However, the stakes are high. The equilibrium of the gaming world could tilt drastically if Xbox departs. A dominating Sony without substantial competition, excluding Nintendo, would reshape the console industry’s dynamics. Then again, it’s been said that the age of age consoles is witnessing a sunset. With global broadband infrastructure advancing, cloud gaming becomes an increasingly viable reality. Apple, Google, Amazon, and Netflix are poised to redefine gaming with cloud services and subscription models, marginalizing the importance of hardware.
Apple, in particular, has thrown its hat inside the console ring with the release of the iPhone 15 Pro and iPhone 15 Pro Max, which boasts native ports of current-gen titles such as Resident Evil 4 and Assassin’s Creed Mirage, among others.
Ultimately, Microsoft’s vision transcends the confines of consoles. While they intend to support console gaming in the forthcoming generations, their gaze fixates on a broader horizon. The collaboration with multiple devices, like Samsung TVs, to pre-install Game Pass represents this forward-thinking approach. The essence lies not in Xbox hardware, but in ensuring a continued subscription to access Xbox games.
As the landscape of gaming evolves, only time will tell if Xbox will stand its ground or take a different path.
