Microsoft and Xbox have changed their strategy. While Xbox long focused on attracting players to its own platform, it is now about offering games where the players are - including on the PS5. In an interview with XboxEra, Phil Spencer spoke openly about this change and why Xbox is now publishing games for Sony's console.
From exclusivity to reach
In the past, Microsoft pursued an aggressive exclusivity strategy. Spencer himself said during an FTC hearing in 2023 that every purchase of an Xbox game in the PlayStation Store helps to strengthen Sony's ecosystem - after all, Sony collects 30 % from every transaction. But now he takes a more pragmatic view. Xbox may earn less on third-party platforms than on its own, but 70 % revenue share is better than no business at all.
"I'd like to earn all the money for all the games we're shipping now", Spencer admits. "Of course we earn more on our own platform. But there are many players who prefer PlayStation or Nintendo, be it because of their library, the controller or the exclusive titles. Why should we ignore them?"
More games, more players, more revenue
For Spencer, it is clear that trying to persuade PS5 users to switch to Xbox is no longer a realistic strategy. Instead, he is focusing on making the Xbox franchises known on as many platforms as possible.
"I'm not trying to move them all to Xbox anymore. We're all so invested in our games - so let's just get more people playing." explains Spencer. "And yes, the 70 % we earn on other platforms helps us build great portfolios."
This strategy is also reflected in the transparency that Xbox has recently adopted. While Nintendo and PlayStation often only show their own platform logos in their presentations and only confirm multiplatform releases later, Xbox relies on openness. At the Developer Direct, PlayStation logos were shown directly instead of concealing them.
"I just want to be transparent with people", says Spencer. "If we appear on the Switch or PlayStation, then we'll say so. We want people to know where they can get our games."
All of this is in line with a complete reboot for Xboxwill play a subordinate role in the hardware.
Open platforms, but with a focus on proprietary hardware
Despite opening up to other platforms, Spencer is adamant that the Xbox is and remains the best platform for Xbox games. Nevertheless, he recognizes that there are limitations. "There are things we can't do on closed platforms like PlayStation that are possible on open platforms or in the cloud."
Ultimately, for Spencer, it's about making games more accessible - no matter where. "Maybe that's not the strategy that everyone else is pursuing, but for me, games are the focus. And the more people who can play, the better."
The question remains as to how long Sony can maintain this strategy and when the market will force the Japanese to rethink. Industry experts assume that a rethink will soon begin on PlayStation as well.
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