December 3rd 2023.
It's a hot topic of debate: would the gaming industry be better off if Xbox gave up on consoles? A reader recently suggested that abandoning the hardware business would be more profitable for Microsoft and benefit the industry as a whole.
Generally, PlayStation fans may be more sensitive to criticism than Xbox fans, but neither group likes to hear anything negative about their favorite company. The problem with Xbox fans, however, is that they often misinterpret criticism of Microsoft's corporate tactics as an attack on the Xbox brand and its products.
Recently, there has been a lot of controversy over Microsoft's purchase of ZeniMax Media for an eye-watering $69 billion. While it's not Microsoft's job to be a charity, it's hard to ignore the fact that this money could have been used for more productive purposes. Now, Microsoft owns the biggest gaming publisher in the West, and the lowest-selling console.
Interestingly, no matter how much money Microsoft has pumped into the Xbox business, there has been little improvement in sales. Microsoft has been surprised by this, and their recent announcement about a 'change of strategy' suggests that they know something needs to be done.
Game Pass hasn't been as successful as Microsoft had hoped either, and it's clear that the key to success in the console market is making great games. Unfortunately, it's too late for Microsoft to beat Sony this generation, as too many people are already deeply embedded in the PlayStation ecosystem.
The truth is that Xbox will never be bigger than PlayStation or Nintendo, and I think Phil Spencer is aware of this. PlayStation fans may view this as a victory, but I honestly believe it would be best for everyone if Microsoft left the hardware business. Some have compared this situation to Sega and the Dreamcast, but the two cases are very different - Sega stopped making hardware because they were broke, whereas Microsoft is the biggest company in the world.
If Microsoft can continue to make Call of Duty and other games available on multiple platforms, then they'll still make a lot of money. Furthermore, if they also make Bethesda games available on other consoles, then they'll make even more.
Ultimately, Microsoft can be bigger than any other Western publisher has ever been. This may seem unsavory to some, but I think it's preferable to Microsoft trying to undermine their competitors by making games exclusive to their own platforms. Everyone will be happier if Microsoft focuses on creating great games and releasing them on all platforms, rather than wasting their resources on pointless hardware wars. Microsoft's recent comments suggest that they agree, and I hope that's the direction they go in.
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