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Discussion: Will Microsoft turn to third parties? Predictions for the future of the Xbox brand
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The gaming community, whether Xbox or PlayStation, is eagerly 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 record straight and answer many questions that concern the Xbox community, especially after the leaks about the launch of platform exclusives on a competing platform like PlayStation, and the poor commercial performance of Xbox devices, according to numerous reports.
Given the commercial performance of the Xbox Series devices, "which fell short of the American giant's ambitions compared to its competitors," leaks about the launch of Xbox exclusives on PlayStation raise questions about the company's future. What are the implications of this move? What will happen to the Xbox platforms?
Will Xbox exclusives be released on PlayStation?
With all the recent reports and leaks from people familiar with industry news, they all point to a path that points back to the beginning of indicators of the emergence of radical changes in Microsoft's strategy, which it had planned from the beginning. In the past, the company focused on using its exclusives as 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 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've heard many statements and commercials on more than one occasion that Xbox games will be on all screens, with the Game Pass service and cloud streaming, and they were raising the slogan of playing anywhere, and this, if it exists, indicates that the Redmond giant's plans are basically... Not dependent on traditional competition, and 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 corridors 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?
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 may not achieve large profits.
Second, the Game Pass service will become highly profitable and could even contribute to growing Xbox's user base. This will motivate gamers to purchase the company's platforms and Xbox Live Gold subscriptions, and it will also encourage developers to publish their games on the service. However, the obstacle to this is Game Pass's user base, which has not reached the company's target of 100 million subscribers.
Our expectations for the future of the company
Microsoft faces two main options for dealing with its loyal players and media pressure, and there may be two or more possibilities on the table, especially in light of the challenges the company faces.
First possibility: It could be avoiding risking future Xbox device sales and satisfying its user base by striking a balance between profiting from the Game Pass service while maintaining its brand equity by releasing games for a temporary period on its platforms and then issuing these exclusives to competing platforms. This will increase profits and ensure the continuity of the service. 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: 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 profit from sales of exclusive games on other platforms.
Either way, we can see that the fate of the company's gaming business is just around the corner, and it remains to be seen how this decision will affect the future of Xbox, but whatever the outcome, it will certainly have a major 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.