Xbox chief Phil Spencer is not too focused on "outconsoling" competitors, claiming that there is not a simple solution for the gaming giant's woes. Spencer came clean about the state and direction of Xbox during an interview with Kinda Funny, unfortunately scheduled to take place just after a string of setbacks for the company.

Microsoft has had a rough time in recent weeks. As skepticism towards Redfall grew, Q3 earnings revealed that although revenue from content and services was up by three percent, no doubt driven by Xbox Game Pass, console sales decreased by thirty. Microsoft says that this is mostly explained by how well its consoles performed last year and that a drop was inevitable. But questions surrounding the Xbox Series X/S were drowned out by the UK Competitions and Market Authority's announcement that it would be blocking Microsoft's acquisition of Activision Blizzard, citing the potential control that the corporation would have over the cloud gaming sector. And finally, Microsoft's most significant first-party release in over a year, Redfall, was thoroughly lambasted by reviewers and players.

Phil Spencer called into the Kinda Funny Xcast podcast a few days later and was asked if he believed that Xbox was losing touch with the "console side" as it developed a multi-platform approach. Spencer assured the host that the Xbox console experience was a priority but went on to reframe the discussion. "We have a different vision" was the crux of Spencer's message, and that Xbox is "not in the business of outconsoling Sony... or Nintendo." In a surprisingly frank admission, Spencer claimed that there is not a perfect solution for Xbox, especially as it is "third in the console marketplace."

But Spencer did not stop there, instead opting to push back on the rhetoric that if Xbox simply "builds great games," the company could miraculously turn console market share upside down. He blamed the present situation on losing the Xbox One generation, the point at which he claims the majority of gamers built their digital libraries and effectively locked themselves into a specific gaming ecosystem. Spencer believes that the vast majority of people entering retail stores for consoles are already invested in whatever system they purchase, which is only further entrenched by popular cross-generational games such as Fortnite and FIFA.

Spencer also gestured at anticompetitive deals struck by other companies that harm Xbox's ability to develop its brand. He was likely referring to reports that Sony blocked the release of Xbox Game Pass on its PlayStation platforms, as well as the exclusivity contracts that Sony frequently agrees upon with third-party developers. Anticompetitive activity within the industry has been thrust into the spotlight thanks to Microsoft's acquisition of Activision Blizzard, as Sony's primary argument against the deal is that control of Call of Duty would be anticompetitive and negative for consumers.

Phil Spencer:

-Different vision, won't "outconsole Sony & Nintendo"
-"We lost the worst generation to lose (XB1), where everybody built their digital library of games"
-"There's no world where Starfield is 11/10 and people start selling their PS5s"

Via: https://t.co/YvNmT0jY7P pic.twitter.com/gfQHgrHcqw

— Shinobi602 (@shinobi602) May 4, 2023

Posted: May 07, 2023 12:48 pm
Related Forum: Xbox Forum

Source: https://gamerant.com/xbox-boss-console-sales-not-concerned/