News

Discussion: Will Microsoft turn to third parties? Predictions for the future of the Xbox brand

Advertisement

The gaming community, whether Xbox or PlayStation, is eagerly and cautiously awaiting what Microsoft will reveal on tonight's Xbox podcast, where Microsoft will share its latest events and strategic vision for the future of its brand.

This event is of great importance, as it will put the dots on the letters and answer many questions that concern the Xbox community, especially after the leaks about the launch of platform exclusives on a competing platform such as PlayStation, and the poor commercial performance of Xbox devices, according to what many reports have reported.

Given this commercial performance of the Xbox Series devices, “which did not meet the ambitions of the American giant in relation to its competitors”, the leaks about the launch of Xbox exclusives on PlayStation raise questions about the future of the company. What are the implications of this step? What will happen to the Xbox platforms?

Will Xbox exclusives be released on PlayStation?

With all the reports and leaks that have come out recently from people familiar with industry news, they all point to a path that goes back to the beginning of indicators of the emergence of radical changes in Microsoft's strategy that it had planned from the beginning. In the past, the company was focused on making its exclusives an advantage to attract... Players to its platform. But now, Microsoft seems to realize that expanding access to its games can be more profitable and sustainable.

The impact of Microsoft turning to third parties

If the rumors are true, this decision could have a major impact on the future of Xbox. On the one hand, it could lead to an increase in game sales and Xbox Game Pass subscriptions. But on the other hand, it could reduce the appeal of Xbox consoles, especially if other exclusive features are not offered.

This decision likely comes at a time when Xbox is suffering from poor business performance, as Microsoft's CFO has stated that the Xbox Series

Microsoft's future with Xbox platforms and their exclusive games

A few hours separate us from this fog, as Microsoft will finally reveal its strategy for the future of the brand tonight, and the Xbox podcast will be broadcast today, Thursday, February 15, and the head of the company's gaming sector will be present. Phil Spencer, Sarah Bond and Matty BottiAnd of course, as long as these big, well-known company names are present, it definitely means we're going to get some very important information.

The company is expected to provide more details about its plans to launch its exclusives on PlayStation, as well as new features to attract players, and it is almost certain that the company will invest in other platforms, starting of course with Hi-Fi Rush and Sea of Thieves.

Microsoft becomes an outsourcing company!

We have heard many statements and commercial announcements on more than one occasion that Xbox games will be on all screens, counting on the Game Pass service and cloud streaming, and they were raising the slogan of playing anywhere, and this, if it is, indicates that the plans of the Redmond giant are basically ... It does not depend on traditional competition, and the proof of this is that Spencer himself confirmed, after the court hearings and the justification for the acquisition of Activision Blizzard, that Microsoft cannot compete with Sony with the current model.

New rumors point to an internal meeting held in the halls of Microsoft, where Xbox leaders discussed the future of the platform, during which the head of the gaming sector reassured employees about the company's plans to launch new Xbox devices, as she spoke. Sara Bond Head of Xbox Game Studios, on the future of the company's gaming division and, of course, his presence confirms Microsoft's commitment to game development and its continued interest.

Is Game Pass unprofitable?

MicrosoftXbox

We have already discussed this issue on more than one occasion, and we can now formulate the answer in two parts, the first of which is that the service may not be directly profitable, as it may cover its operating costs, but it may not achieve large profits.

Second, the Game Pass service will become highly profitable, and could even help grow Xbox's user base. This will motivate gamers to buy the company's platforms and Xbox Live Gold subscriptions, and it will also encourage developers to publish their games on the service, but the obstacle to this is Game Pass' user base. It has not reached the 100 million subscribers the company was aiming for.

Our expectations for the future of the company

Microsoft faces two main options for dealing with its loyal players and media pressure, and there could be two or more possibilities on the table, especially in light of the challenges the company faces.

First possibility: It could be not risking future sales of Xbox devices and satisfying its user base by finding a balance between making a profit from the Game Pass service and at the same time maintaining the value of its brand, releasing games for a temporary period on its platforms and then issuing these exclusives to competing platforms. To make more profits and ensure the continuity of the service. Here everyone will be happy.

But the question remains: will Sony agree to offer these games on the PlayStation platform for the price of US$$ 70 after they were made available for free on Game Pass?!

Second possibility: What is somewhat unlikely, Microsoft could officially announce a radical change in its strategy, switching to a third-party company “in one form or another”, continuing to support current consoles and making more profits from sales of exclusive games on other platforms.

Either way, we can see that the fate of the company's gaming sector is just around the corner, and it remains to be seen how this decision will affect the future of Xbox, but whatever the results, it will certainly have a big impact on the video game industry.

It remains to be seen what Microsoft will present in this podcast… and how it will convince the Xbox community of its vision for the future of its brand.