Phil Spencer: 'We'll Definitely Do More Consoles in the Future and Other Devices' - News
by William D'Angelo , posted on 01 December 2024 / 2,940 Views
Microsoft Gaming CEO Phil Spencer speaking with Rolling Stone said Xbox will release more consoles in the future.
"We’ll definitely do more consoles in the future and other devices," said Spencer.
Spencer added, "We think about hardware that can create unique value for our players or creators on our platform. We don’t need to do incremental hardware for our own benefit.
"Does a new device really give you a unique experience on screen in some way? [It’s] less like the old days, going from the original Xbox to 360; that was standard definition to high definition. Now, [it’s] harder to show the benefits."
The "other devices" is likely the long-rumored Xbox handheld. Spencer recently revealed they are working on prototypes for a handheld Xbox, however, any device is at least a few years away from release.
Spencer also recently said Xbox won't rule out releasing any game on other platforms like PlayStation and Nintendo.
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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"This PlayStation 5 is an Xbox. This Nintendo Switch is an Xbox."
"Xbox is not a place. It is a people."
Good to know they may actually make windows for a handheld or will it be like the Xbox OS whatever that is.
"We’ll definitely do more consoles in the future and other devices," said Spencer. Get ready for a Xbox Handheld, and a Firestick xbox version (for game streaming).
Microsoft is certainly taking an interesting approach atm. After having thought on it, I'm not gonna say Xbox is "doomed to fail". Curious to see how this all pans out...
Seems like they want to bet on streaming game's, to people, on devices.... where xbox users, are just subscription users, for gamepass. That is what that marketing says to me. Be that on a Smart Phone, tablet, laptop, tv... whatever. It does seem like the traditional console is taking a backseat (ei. not a focus).
PS Now was on TVs and other devices before but didn't seem to be taken up, was it because it was just an older catelogue? Part of why GP is doing well is day 1 releases which Sony wasn't willing to sacrifice the profits from (they don't have the luxury of a monopoly in another industry).
What is their target market? Those who want GP mostly already have it, those on the edge are probably like me (sub once every now and then to play £70 games for £15) or just waiting for the right release, those who aren't? Is GP on a TV going to entice people who don't game to game?
The game anywhere idea is great for those who already have GP.
I think your last sentenced summed it up perfectly. The game everywhere is for people already hardcore into gaming and most likely already have a console/PC. Their goal is to bring in new customers and man I just don't see it. People who want to play video games are doing it. There's no way they are going to get the kind of numbers they want from this but I wish them all the best and I'm interested to see how this goes either way.
I don't think it's doomed to fail, but I do think their place in the traditional console business is breathing its last breaths. They are looking to become the next Steam of sorts, and it's clear. They're no longer a dedicated console company and haven't been for years... which makes me a little sad. I use to enjoy owning all three consoles and getting to experience their unique lineups/vibe. But that's just the way it is in life. Not much remains the same, if anything.
The problem is, they also have an uphill battle competing with the Steam we already have.
What is clear is that these consoles won't have disc drives as MS is moving away from that. No way in hell, a handheld (hybrid) will have cardridges like the Switch. It will be in the ballpark of Steam Deck and Rog Alley. I guess we'll be lucky we can even download our games and not stream them only.
Supposedly Awoved and Indiana Jones, arn't getting physical releases. If they don't themselves care about disc distribution, for their own 1st party.... yeah.... any new Xbox device likely won't have a disc drive. Also its rumored its a handheld.... handhelds in general don't have those :)
I mean an Xbox handeld, like a Playstation handheld won't use a physical cardridge format as well. Thats what i am trying to say. They will have their audience (niche) and tgey will be lucky to pass other so called PC "Handheld" devices. No way in hell they'll come even close to the Switch.
They can make whatever they want. If more games are coming to PS and Nintendo platforms it's going to sell less and less, and I do think more games are coming.
It's only a matter of time until the Xbox consoles start floping Wii U levels lol.
The point is they don't care..... as long as your buying the games they make, its all good to them.
And to offset, the losses the hardware sales give, they will gain users on TV's, Firesticks, Phones/Tablets and grow on PC/Laptops.
They MUST care. Being forced to do something else is an entirely different thing. You don't give up your 30% distribution revenue because you "don't care".
They probably don't care as their revenue will just flow from Hardware sales to Software sales. Which is ultimately the best type of sales, it has much less cost involved and much less risk.
The best sales are the ones 3rd parties make on your platform and that's totally impossible to get unless you sell hardware. Why is this narrative so popular right now? The more consoles you have in the wild, the more copies of smash hits like BG3 a 3rd party can sell on your platform for you to reap that sweet, sweet 30%.
It's very simple... if you buy a game on the XBox console or Windows store, the revenue will go to Microsoft 100%, but if you buy it on the Playstation or Switch, the revenue will go to Microsoft 70% and Sony or Nintendo 30%.
Those who are part of the Microsoft ecosystem will have the option of paying for the game pass and playing first-party games at a more affordable price, but those who are outside the ecosystem will have nothing to change. Regarding the issue of physical media, I think it makes sense for the company to link the software to the account, because that way it prevents the game from being resold or it can control which devices the game is being used on.
According to Newzoo, the gaming market is divided into:
Mobile (49%)
Console (28%)
PC (23%)
There are several customers outside of consoles, so if the goal is to maximize profits, Microsoft has never been so right. In fact, games from Activision Blizzard, Bethesda, and some of Microsoft's oldest studios make perfect sense to be released multiplatform, but Halo, Gears, and Forza could be kept exclusive to the ecosystem. Microsoft's big move would be to force users of other platforms to use a Microsoft account, so that Microsoft games purchased on the Switch and Playstation could be played on other platforms (play anywhere). In other words, if the user buys a game on the Playstation and decides to change platforms in 5 years, with the Microsoft account they could bring their library to the new platform.
Well said
They don't care about losing money...? They absolutely do, these companies only care about making more money.
If Xbox hardware keeps selling less and less they'll just stop making it, simple. And I think it's going to happen if they keep releasing their games on PS and Nintendo platforms.
But who knows. Maybe they change leadership and start caring about selling consoles again. Maybe they stop with the multiplatform releases. There's a lot of ifs and a lot can change in the next years.
Console sales are the least important thing for Microsoft. If the focus is to make money, then they should release them on as many platforms as possible. If Microsoft gets out of the console business, then it's up to Sony and Nintendo to dictate the price at which they will sell their games. I would be happy for people in my ecosystem to pay for a service, but I would be even happier for people on other platforms who only have the option of buying the game to buy it for $70. After all, it's 70% for Microsoft ($49) and 30% for Sony ($21)... $49 is almost 3 months of Game Pass Ultimate! It's a huge advantage to have Playstation and Switch users!
I have an Xbox Series X and S and primarily game on my Samsung TV via the app. They'll be fine.
Do the maths. If you lose $1 per very console sold and you sell 10m consoles, that's $10,000,000 lost. You only sell 3m consoles, you lose $3,000,000.
They are not making as many Xbox systems which means they are cutting the loses but will make back the revenue gains in more software sales.
This is why MS are a Trillion Dollar company.
Yes, even though their hardware is doing worse than ever xbox side, their renvue is up.
A large part of that is just selling Software and Services other places.
Its the future, this isnt the 90s or early 2000s anymore. Too many capable devices are out in peoples hands that can play the games. The World Population is 8.2 biillion, and only 300m buy consoles each gen.
Then you realize that they are subsidizing consoles because... then people spend money on them. By not selling hardware they cut the initial losses and sever any future revenue. Xbox doesn't own any relevant platform outside consoles and is instead growing in other platforms like consoles (PS, Switch), PC (Valve) and mobile (Google, Apple).
They are going 3rd party full steam and people don't realize. It would be almost comical if it wasn't that sad.
Ask yourself this question. Why would one of the most successful and powerful companies in the world want to go 3rd party? Well its simple, its where the money is, less losses and more growth and profits. This is why MS is one of the biggest in the world. Years from now, Xbox will be a brand name on every product where people will have access to the games and services.
If you also haven't notice, Sony is also doing the same thing but are doing it a lot slower. They are releasing more games on PC, they have some games on Xbox and just released a game on the Switch.
The moment people see the industry evolving and becoming less reliant on console exclusives, the better the industry becomes. We want better hardware not who pays out which IP to stay on platforms. They need to start selling us on the hardware features. Thats how the DvD and Blu Ray market works.
Because they are tired of being rejected by the market and increasingly upset that throwing money at it doesn't fix it either. Same way the market rejected them in the mobile space with Windows Phone and the many other endeavors that Microsoft failed at. Having all the money in the world doesn't equal to success.
So why is Sony bringing games to PC and Switch?
End of life products, GAAS and specifically asked by the holder of the IP (exactly the same as MLB the show). You can consider the first party games published on PC as a marketing attempt because they are not selling at all.
Right.. what about Horizon Remastered hitting PCs and PS5 at the same time and Horizon Lego released on Switch, PC and PS5 simultaneously, guess they don't count right? So by your logic, all the 1st party Sony games that have hit or hitting other platforms is considered marketing but Xbox games hitting other platforms is considered them going full 3rd party?
Seems to be some sort of double standard mentality here.
The truth is, Sony and MS are already 3rd party publishers, you literally don't need either platform to play their games as they are all on or coming to PC/Steam. Thats what 3rd party publishers do. Only Nintendo remain as a 1st party only publisher.
It's not that they don't count, it's understanding the context. "A 3rd party makes games of all platforms" is so broad that everyone qualifies, even Nintendo since they publish games for Android/iOS. You have to understand this "going full 3rd party" as a failure to maintain their status of holding a platform because Xbox is going down the drain.
Not all Xbox games are on all platforms hence they are no different to Sony in this case. They have more games on more platforms sure, but more does not equal All.
Heck there are still Xbox games not on PC, like Halo 5.
The funny part about your post is you are desperate in trying to console war with "Xbox is going down the drain" shows a weakness.
For the Record, Xbox is making more money than they ever have and are planning on increasing their profit margins. That's not going down the drain, that's called running a well oiled buisness.
Running a well oiled 3rd party business. Xbox still hasn't recovered the FY22 levels of revenue without ABK so I honestly don't know what kind of copium you're high on.
Unfortunately you need to understand and accept that ABK is MS now and it all counts. Sony count Bungie and Destiny's revenue so stop with the double standards.
That excuse won't fly anymore. Microsoft expects Xbox revenue to drop in "high single digits" this quarter ABK included. Mainly because of hardware as nobody wants to buy that console.
Good luck in these trying times, you are going to need it to stay sane.
Don't let facts get in the way of your feelings bud. ABK and Bethesda are MS, everything counts.
Good luck on your console warring.
It's not me who's patrolling this site doing damage control.
Sad truth be told,
you make your money with offering the software/platform, not the hardware.
Look at Apple, their closed ecosystem allowed them to make massive profits.
Android-Phone manufactures however dont, because everything goes to Google.
This is just one example, but also valid for many other industries.
I believe Microsoft is trying to do exactly that. Gamepass is supposed to be the platform and hardware is offered by others. In Sony's case, if they dont go the same way as Microsoft, then multiplatform realeases are eventualy going to hurt them. Closed systems do work, but they require... work (lol).
The gamepass strategy merely means that microsoft wants to essentially leech off of others creativity.
I definitely think they will eventually get out of the gaming hardware market. I guess they are gonna try out a portable system before they do that, but in general I'd say their plan is to make Game Pass their entire product sometime next decade (maybe one more console and one try at a handheld system) and just be a software platform service that can run on everything. And doing so will kind of force them out of the hardware market since there wouldn't be much of a reason for people to buy an Xbox system when all their games can be played on any platform for a monthly fee.
I'm all for that. Outside of the 360 their systems have never been particularly popular. As a Nintendo gamer it'd be cool to one day be able to access a whole library of games for a monthly fee that aren't on the system. I'd probably do it like I do movie/show streaming services, just pick it up for a couple months a year when I feel like playing some of those games.
Given that they own CoD, that pretty much guarantees tens of millions of Playstation gamers would buy Game Pass once they have gone fully to Game Pass as their product. Ya gotta think that was the long term game plan behind buying Activision Blizzard, to make Game Pass a must have product for tons of non-Xbox gamers by eventually making it the only place to be able to play CoD.
Why would they stop selling options? People really fail buisness class.
I guess you should of just released the S model then.
What's the point with advertising campaigns saying everything is an Xbox ?
"everything is an Xbox" This is a typo, right? Or is Microsoft actually running with this line??
its not "everything is a xbox", but "this is a xbox" and it shows TVs, Firesticks, Laptops, tablets, smart phones, ect ect ect. It's turning xbox into a service thing, thats on multiple devices.
The endgoal is streaming to devices, and having xbox useres all be subscription users that pay for gamepass.
oooh. I see what you're saying. I thought he was trying to say "everything is on Xbox". That makes a lot more sense...
MS says TV's are Xbox's. Phones are Xbox's. Laptops are Xbox's
So not everything is an Xbox. Gotcha.
Basically it feels like the endgame, is google stadia (game streaming) anywhere.... and the future of xbox is gamepass, everywhere. The stand here, seems to be the console doesn't matter, and likely will matter less and less in the future (if its around then).
Phil also went on about Play Anywhere being across all Xbox games. So a one time purchase for a game you can play on Console, PC, and Mobile. Since he went on that cloud streaming your owned games is about to release.
So a combo of Play Anywhere and Game Pass is a nice one/two punch for Xbox’s business model going forward. Console will still be for those that want that traditional convenience compared to PC or mobile.
I even feel they have given up on their initial vision for gamepass - they now also just see that as an option they offer, but will focus more on traditional game by game sales again to bring in ze big bucks. Console is an option they offer as long as they deem the size of the fanbase makes sense, gamepass is an option they offer as long as the stable revenue stream makes sense, but the big push is the software publisher side of things with the "play anywhere" account as the carrot and hook. Put all their Xbox published games on everything, and as long as a lot of people buy them, then they don't care where you buy them and where you play them.
Only in the US I guess. I wondered what people were on about.
Xbox consoles aren't going anywhere. Console players are the bulk of Game Pass subs and gaming revenue for them. It's about having the option like their Surface devices. If they can release a console and hit about 30-50 million sales, while selling more games and Game Pass on other platforms, it's a winning formula. People need to get over the fact the traditional console market with exclusives has gone away. There is not an increase in console sales across all platforms for 3 generations, so the focus is with software and services on more devices now. It's really the best way to go. Nobody should have to buy 3-4 devices to play all the games they want.
I'm not so sure it's a winning formula IMO. If it's such a winning formula then why aren't Sony and Nintendo following their lead? Why is their revenue flat (without the abk purchase) and projected to be flat again next quarter? Why did they change plans in the middle of the gen because we know this wasn't their initial plan and we know in 2020 Nadella sent an email to Phil very concerned that they were falling behind in console sales. They've missed all their GP projections as well except for the early ones.
I will agree that this is their best option at this point. The console market isn't growing and MS being at the bottom of it is really hurting them. They have more studios then the top two companies and have the worst performing platform. This is not a good position to be in if you want to have exclusives. It only makes sense for them to start releasing everywhere else.
Sony is following suit or else they wouldn't be putting all their games on PC and certain games like Lego Horizon on other consoles. The floodgates is open and their is only one direction they can go. Nintendo is the only one still sticking with the traditional exclusive releases because 1st party games are what people buy their console for. Xbox, Playstation, PC, steamdeck, phones, etc. primary revenue is from 3rd party games. Most people who buy a playstation are doing is for games like Fortnite, CoD, Fifa, GTA, etc. Xbox has been putting games on PC for years now and other games on consoles since Minecraft. They were always heading this direction, but the ABK deal accelerated it. Saying Xbox sales are flat is exactly my point. Now adding ABK plus putting everything on all devices will boost revenue while still supporting the console market going forward.
"Sony is following". Keep telling yourself whatever you want to make yourself feel better. MS is now calling laptops, phones and handhelds and VR headsets an Xbox. If they aren't willing to defend the Xbox console, why are you?
Xbox will exit the Race (for consoles and handhelds with physical games). Even I can make a console that outsells the Xbox🤣😂. I am here with you.
But one thing i have to add. Like smroadkill said, also Sony is putting their games on PC. Not day one but the gaps between PS5 and PC release gets smaller every year. I think its super sad but no game is save from PS/Xbox and NS's main enemy PC. I would (if i was in charge of Ms or Sony) never ever release anytging on PC, before that i would take a loss, just for the honor. I would show people games they can only play on our system. No PC (Xbox/ PS- depending who's CEO i would be) and also no Nintendo version (no matter how powerful it is!!). I would be ready to charge 100$ for a game (standard edition) to get the costs in. PC support is high betrayl!! This is the reason Nintendo will stay as the last man standing. They will realise, they'll have the only system supporting physical media and having real exclusive games! They will do what they want! Ports, remakes, Kids games, Adult games, everything. Like in the 90s it will be: Get N or Get Out!! Thats the thing people can be worried about. You can bet your balls on that! Nintendo isn't going multiplattform anytime soon, especially not PC!! This is why its a big mistake of Sony going multi with PC and MS as well!!
yes!
We trust you Phil lol.
Essay Pro