Microsoft’s head honcho, Phil Spencer, has clarified in a conversation with XboxEra that their recent strategy of making games available across multiple consoles doesn’t aim to lure PlayStation or Nintendo players towards Xbox. Instead, they are content with generating income by offering their games on competing platforms like PlayStation and Nintendo.
In response to the host’s query about the company’s latest actions regarding the launch of their first-party games on PlayStation, Spencer explained that rather than trying to lure PlayStation gamers towards Xbox as a whole platform, they are instead concentrating on the income generated by multiplatform game releases.
Spencer stated, “Perhaps not my initial intention at the moment, but indeed, I’m quite fond of earning substantial profits from every game we release. It’s no secret that we make more on our own platform, which is one of the key aspects of why investing in it is crucial. However, there are individuals who prefer their libraries on PlayStation or Nintendo, or simply appreciate the controllers better, or just enjoy the games available.
I don’t want to dismiss the idea of establishing our business in new locations, or the possibility of gaining fans for our franchises there. I’m not planning on transferring everyone to Xbox. Our community has invested a lot in where we offer our games, and it’s important that we cater to that. Expanding access to our games is beneficial, as the 70% we earn from sales on other platforms helps us develop strong portfolios like the one we showcased at Dev Direct. I hope this trend of offering our games on a wider range of platforms continues throughout the year.
In essence, Spencer was discussing the conventional 70-30 distribution pattern for console game launches. This allocation typically sees 70% going towards publishers and creators, with the remaining 30% allocated to the platform’s proprietor – in this case, Sony as the owner of PlayStation. Spencer mentioned that while Xbox won’t be collecting the 30%, the 70% they do earn will continue to support game development in future projects.
Spencer additionally discussed that Microsoft has no intention of vacating the gaming console industry, similar to Sega’s actions in the early 2000s when, following the Dreamcast, they switched their focus completely to software development, producing games for various platforms instead.
Spencer expressed, ‘I aim to honor those who express their worries.’ To him, it’s essential not to disrespect anyone voicing concerns. He has a collection of games on the Xbox console and wishes to ensure he can keep playing them. Will you continue producing hardware? Can we still play the games as we used to? Do I need to rent all my games in the future? Or will I still be able to buy them?
I understand your concerns about our approach. We’ve consistently respected the choices of library owners across generations through features like back-compatibility and Play Anywhere. My intention is to carry on this tradition. You are free to purchase any game available in Game Pass, we’re not pushing a single business model on anyone. Enjoy the games as per your preference.
Spencer additionally discussed the significance of Xbox’s emphasis on PC and cloud-based gaming. He pointed out that the expansion Xbox has experienced in Asian markets isn’t due to console sales, but rather through its subscription services and games made available on PC and cloud platforms. This setup lets players try out a game without requiring specific hardware.
Spencer emphasized the importance of running a successful business while providing numerous choices for the games they offer, “In order to attract more players, we’re going to adjust our pricing and overall approach. Our strategy of adopting Windows and Cloud technology has been key to our growth, with Asia being one of our fastest expanding regions. This isn’t due to increased console sales in Asia, but rather an increase in users through cloud and PC platforms year over year. The platform that’s growing the most rapidly is Cloud, which is beneficial not only for us, but also for players like the radio host you mentioned. We couldn’t have reached that audience with our console alone, so we aim to connect with them in a way that benefits games such as Indiana Jones and Xbox.
The recently launched exclusive game from Xbox, titled “Indiana Jones and the Great Circle“, is not exclusive for long as it’s also planned for release on PlayStation 5. Previously, Xbox has made its popular title “Sea of Thieves” available on Sony’s gaming console as well.
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2025-02-17 15:21