Microsoft is Reshaping the Xbox Brand at the Expense of Console Owners

This concern extends beyond just the consumer level. There's a growing worry that if Xbox console sales continue to decline, third-party developers may be less inclined to prioritize the platform. Games like Black Myth: Wukong and Baldur's Gate 3 have already chosen to focus on PS5 over Xbox, leading some to fear that an "Xbox last" mentality could become increasingly common.

Microsoft itself has acknowledged the challenges facing its hardware division as it reported a staggering 40% year-over-year decrease in Xbox console sales during a recent quarterly earnings call.

However, it's not all doom and gloom for Team Green. Xbox CEO Phil Spencer recently addressed some of these concerns in an interview with Microsoft's Xbox On channel, outlining the thinking behind the company's current strategy and why fans shouldn't expect a major course correction anytime soon.

He pointed to the success of titles like Sea of Thieves, which has consistently ranked in the PS5's top 10 best-selling games since its release on the platform.

While this flexibility may frustrate fans who crave consistency, it could put the Xbox in a position to thrive in an increasingly platform-agnostic gaming landscape.

In that world, Microsoft's bet on bringing some of its most popular titles, with more, such as Starfield and even Halo, possibly coming over to the PlayStation, could put it in a much better position than it is now, where it has played catch-up for over a decade after the fumbled release of Xbox One in 2013.

Viewed from this perspective, it makes sense why Sony fought so hard against Microsoft's purchase of Activision Blizzard, one of the largest video game companies in the world. With the acquisition, Microsoft gained access to a library of games that even Sony is struggling to compete against. And, while it's clear now that Microsoft is slowly pivoting away from making its games exclusive to the Xbox platform, the decision to become more of a publisher, akin to how Microsoft never made it big as a hardware manufacturer, could prove more lucrative in the future.

Of course, the inverse is also true. Going all-in on its popular gaming subscription service, the Game Pass, and publishing route means that it's far easier for gamers to move on over to a different platform, specifically the PlayStation, when the time comes.

With many casual players still sticking to last-gen consoles such as the Xbox One, we might have to wait until the next console generation arrives to truly see the lasting impact of Microsoft's multi-platform approach on its console playerbase.

But, for now, you can't fault current Xbox owners for feeling slighted by missing out on some of today's most popular games, with Microsoft doing absolutely nothing but resending older statements that pretty much say everything about their priorities at the moment.