Xbox Boss Is Not Too Worried About Console Sales

Xbox CEO Phil Spencer isn’t too focused on “pacifying” rivals, claiming there are no easy solutions to the gaming giant’s woes. Spencer got a clear picture of the state and direction of Xbox in an interview with Kinda Funny, which unfortunately came after a series of setbacks for the company.

Microsoft has had a tough few weeks. As skepticism about Redfall mounted, third-quarter earnings showed a 30% drop in console sales despite a 3% rise in revenue from content and services, no doubt driven by Xbox Game Pass. Microsoft says this is largely due to how well its consoles performed last year, and the decline is inevitable. But questions surrounding the Xbox Series X/S were swamped by the UK’s Competition and Markets Authority announcing it would block Microsoft’s acquisition of Activision Blizzard, citing the company’s possible control over the cloud gaming space. Finally, Redfall, Microsoft’s most important first-party release in over a year, has been thoroughly blasted by critics and gamers alike.

Phil Spencer called the Kinda Funny Xcast podcast a few days later and was asked if he thought Xbox was losing touch with the “console side” when it came to developing a multi-platform approach. Spencer assured the host that the Xbox console experience was a top priority, but he continued to reschedule the discussion. “We have a different vision” was key to Spencer’s message that the Xbox “isn’t trying to comfort Sony.or Nintendo.” Spencer was surprisingly candid in acknowledging that Xbox doesn’t have a perfect solution, especially since it’s “the console market.” third place”.

But Spencer didn’t stop there, opting to counter the claim that if the Xbox had just “built great games,” the company could miraculously turn console market share around. Blaming the current situation on the loss of the Xbox One generation, he claims most gamers build up their digital libraries and effectively lock themselves into a specific gaming ecosystem. Spencer believes that the vast majority of people who go into retail stores to buy a console are already invested in any system they buy, and popular cross-generational titles like Fortnite and FIFA will only reinforce that.

Spencer also pointed to anticompetitive deals made by other companies that hurt Xbox’s ability to grow its brand. He may be referring to reports that Sony has blocked the release of Xbox Game Pass on its PlayStation platform, as well as Sony’s frequent exclusivity contracts with third-party developers. Anticompetitive activity in the industry has been brought into focus by Microsoft’s acquisition of Activision Blizzard, as Sony’s main argument against the deal was that control of Call of Duty would be anticompetitive and bad for consumers.

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