Approximately a year ago, Xbox unveiled their strategy to make more of their games accessible on PlayStation 5 and Nintendo Switch. This move has enabled a broader range of players to enjoy Xbox-produced titles such as Sea of Thieves and Grounded. However, it’s not all positive; this decision has sparked debates among fans about whether it benefits the Xbox brand, and if it could potentially signal Microsoft’s exit from console gaming. In a recent conversation with the XboxEra podcast, Xbox leader Phil Spencer underscored that their focus has moved beyond the console rivalries of yesteryears.
Spencer mentioned that he’s no longer pushing for a complete transition to Xbox. Instead, they want to make it easier for more people to enjoy games where they are currently invested. He acknowledged that the 70% revenue share from other platforms helps them develop impressive portfolios, as demonstrated at Developer Direct, and he expects this trend to continue throughout the year.
Spencer’s point revolves around the fact that Microsoft retains only 70% of the profit from a game sold on PS5, as Sony takes 30%. In other words, Microsoft earns less money when it sells a game on PlayStation 5 compared to when it’s sold on Xbox One or Xbox Series X. The question is whether this reduced income is justified; games like “Grounded” and “Sea of Thieves” are doing well on PS5, and these sales likely won’t impact profits on Xbox because the games were already available there for some time. However, when it comes to newer titles such as “Indiana Jones and the Great Circle,” the situation becomes more intricate.
There’s been chatter about a potential new Xbox device being worked on by Microsoft, implying they aren’t planning to leave the console market any time soon. But what really has people talking is whether Microsoft is potentially discouraging consumers from purchasing an Xbox. At the moment, Spencer is prioritizing maximizing profits for Microsoft, which they can then reinvest in game development. Spencer himself mentioned that Xbox hosted a successful Developer Direct in January, and the company has a robust 2025 lineup; games like “Avowed” and “Doom: The Dark Ages” are expected to perform well regardless of the platform they’re released on.
Although the absence of exclusive games might lead gamers to opt for a PS5 or Nintendo Switch 2, Phil Spencer remains optimistic that there are reasons to choose Xbox platforms for playing Xbox games. In an interview with XboxEra, he emphasized that there are aspects that the company can’t leverage on competitor’s systems. Specifically, he referred to cloud gaming and suggested hints about Xbox Game Pass. Although some ardent Xbox fans might not appreciate it, the company is using its game sales on Nintendo and PlayStation to boost their investment in development.
We have unique capabilities on open platforms like clouds that aren’t available on closed ones. However, our primary focus is on creating outstanding games. Our strategy enables us to develop large-scale games while simultaneously optimizing for our native hardware, platform, and services.
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2025-02-16 17:39