Microsoft Gaming CEO Phil Spencer has acknowledged that Xbox is currently in third place behind Sony and Nintendo in the console market. Spencer stated that the idea that Microsoft could simply create better games to gain market share is not enough. Even if Microsoft produced the best game in the history of the world, it would not be enough to overtake PlayStation.
The Sales Race and Digital Libraries
Microsoft lost the sales race in the Xbox One/PS4 generation, meaning the company has no hope of becoming number one in terms of console sales alone. Speaking to Kinda Funny, Spencer stated: “We are not in the business of out-consoling Sony or out-consoling Nintendo. There isn’t really a great solution or win for us.” Spencer went on to say that people’s gaming libraries are now made up significantly of digital games that move with them to new machines. Therefore, the era of new console generations marking a clear line in the sand has ended. People can now more seamlessly shift from platform to platform, at least within the same family, which makes it difficult to convince people to switch consoles.
The Future of Xbox
Given that Xbox faces significant challenges, what is Microsoft’s plan for the future? Spencer said the company has a “unique vision” in the marketplace where it doesn’t focus exclusively on a console platform. Instead, Microsoft is building an infrastructure that supports games across devices, including phones and tablets through streaming. In short, Microsoft wants to make games available on as many platforms as possible to help reach the widest possible audience, Spencer said.
Xbox vs PlayStation
“The console is the core of the Xbox brand, no doubt, so we will stay focused on making sure that console experience is awesome,” Spencer said. “There is not a win for Xbox in staying in the wake of somebody else.” Microsoft aims to go off and do its own thing, rather than emulating what Sony and Nintendo have already done.
In conclusion, Microsoft’s Phil Spencer stressed that Xbox is not trying to overtly compete with PlayStation or Nintendo in console sales and that creating better games is not a feasible solution to overtake competitors. Instead, Microsoft is determined to make games available on as many platforms as possible, including phones and tablets.