Microsoft’s decision to release some previously Xbox exclusive games on rival platforms like PlayStation and Nintendo Switch is a strategic move aimed at growing its gaming business and driving profitability. It is not as some console warriors would have you believe a capitulation or a betrayal of their customer base. Lets explore….
Expanding Reach and Audience
Microsoft has struggled to gain significant market share against Sony’s PlayStation and Nintendo’s Switch consoles. By bringing select Xbox games to these rival platforms, Microsoft can tap into their larger install bases and potentially attract new players to its franchises. At least this is the theory. This broader reach could help justify investing in sequels and further development of these game series. As Phil Spencer outlines in the interview below they see launching games multiplatform as a way to grow the franchises they have, which can only be good for Xbox as a publisher.
The counter to this is that exlcusives sell consoles, so by publishing your games on rival platforms you lessen the need for anyone to invest their leisure time and money in your platform, which eventually erodes your platform entirely and you become just another (albeit perhaps the largest) games publisher. Microsoft might like that from a business point of view but they need to take a larger view of the industry. Also by negating their own hardware platform they leave money on the table, which, as we have seen across all of their other efforts, they are usually unwilling to do (Windows phone aside. yes I still miss my windows phones)
Adapting to Industry Trends
As game development costs escalate and the gaming market’s growth slows, publishers are incentivised to maximize their audience across multiple platforms. Maintaining hardware exclusivity becomes less viable, especially for live-service and older catalog titles that can benefit from a wider player base. Of course the alternative is make cheaper games but given the trend towards graphical fidelity and realism I dont see this as a viable path forward. There may be other efficiencies Microsoft will try to make with its consolidation efforts but this will inevitably lead to other job losses within the industry.
It is worth remembering that Microsoft isnt alone in this. Sony have been pushing more and more of their games to (eventually) release on PC, which does nothing to incetivise those players to adopt the PlayStation as their “home” gaming device. Indeed expecting PC players to abandone the rigs they have spent thousands of dollars on (those LEDs arent cheap) really is a fools erand.
Leveraging Multi-Platform Acquisitions
Microsoft’s acquisitions of companies like Mojang (Minecraft), Bethesda (The Elder Scrolls, Fallout), and Activision Blizzard (Call of Duty) have expanded its portfolio with franchises that already have a multi-platform presence. This foundation makes it easier to extend select first-party titles to other consoles and it may be that Microsoft sees this as a marketing exercise in itself. As players on other platforms begin to play more and more Xbox games Microsoft could be counting on them to come to the conclusion that they’d be better off on Xbox, and more importantly Game Pass
Potential Titles and Exceptions
While older live-service games like Sea of Thieves and Grounded are prime candidates for multi-platform releases, it’s unlikely that major Xbox system-sellers like Halo will follow suit anytime soon. However, even multiplayer components of flagship franchises could potentially make the jump in the future. Having said this there have been rumblings recently about Halo being remastered in Unreal Engine and potentially coming to all consoles when it is released. However this happening is likely still years away with the entire game needing to be migrated, remastered and reworked for modern audiences.
Future of Xbox Consoles
Despite this multi-platform strategy, Xbox consoles remain a crucial part of Microsoft’s gaming business, generating revenue from hardware sales, first-party games, and Game Pass subscriptions. While cloud gaming has yet to significantly disrupt the market, Microsoft is unlikely to abandon its console business in the medium term, as it would leave a substantial gap in its gaming revenue.
“New” hardware was also announced during the Xbox Summer Showcase which leads me to believe that Microsoft are very much “all in” on hardware.
Combine this with the persistent rumours that Xbox will be releasing a handheld console before the end of the year, and that, as I speculated here, that new power efficient chips from Intel and Arm make mobile games devices ever more likely, Xbox would be crazy to abandon their own hardware in favour of games publishing.
In summary, Microsoft’s multi-platform approach is a strategic move to grow its gaming business by reaching wider audiences, adapting to industry trends, and leveraging its multi-platform acquisitions. Downturns in the economy over the last 12 months and an over expansion of developer teams has led to a “natural” (in capitalist terms at least) correction with layoffs and studio closures being the cost of doing business and the natural conclusion of a round of consolidation.
However, the company is expected to maintain a strong focus on its Xbox console business while selectively releasing certain titles on rival platforms
Twice the bits 
Leave a reply to Project Keystone patent shows cancelled Xbox console – Twice the bits Cancel reply