Xbox would stop making consoles if they had the choice says former VP

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Yesterday on Gamer Tag Radio, Peter Moore, a former executive at Xbox, shared his insights about the intense competition between gaming consoles, which was particularly prominent during his tenure at Microsoft. Moore played a significant role in launching both the original Xbox and the Xbox 360, but he has since moved on from the company. Moore reflected that the console wars, as they were known, have significantly cooled down, losing the “spark” or “competitive spirit” that the industry nurtured and flourished upon during his time.

The console wars have lost their “feistiness” that allowed them to grow in their early years

Over the past months and years, long-standing supporters of Microsoft gaming consoles have faced considerable concerns. In a candid discussion, Phil Spencer, CEO of Microsoft Gaming, acknowledged that Xbox missed out on the most crucial console generation. During this period, gamers established their digital libraries, which they can now transfer to new consoles. Despite Xbox’s impressive lineup of recently launched games and upcoming releases, many of these titles are not exclusive to Xbox platforms. This strategy is often employed to encourage fans to purchase specific hardware to access top-tier games. However, the critically acclaimed Indiana Jones and the Great Circle will also be available on PlayStation 5, and Forza Horizon 5 is set to make the transition as well. During the latest Xbox Developer Direct event, viewers were unable to overlook the fact that only one of the five showcased games will be exclusive.

Sales for consoles have been decreasing overall, but Xbox has managed to boost its player base on PC. The Game Pass service is playing a significant role in this growth, and with several top-tier AAA games and exciting indie titles scheduled for release soon, it’s likely that the trend will continue. Phil Spencer, head of Xbox, has mentioned their plans to expand the reach of games to other platforms, including support for the upcoming Nintendo Switch 2 later this year.

In the conversation with Moore, the ex-executive further discussed the potential rationale for the console manufacturer to exit the hardware industry, if given the chance. “If they had the option, would they manufacture hardware? Not at all. Would they be thrilled if they could transform into a multi-hundred-billion dollar entity that delivers content directly to your television, no matter what display you prefer? Definitely.” It appears Xbox has been exploring cloud gaming as an investor for some time. Although Moore is no longer associated with the company, his insights suggest that this direction may continue. The idea would be to allow users to connect a controller directly to their TV and access their collection of games or Game Pass subscription. As Moore describes it: “…dive in immediately, with zero delay or lag, you’re in… there doesn’t need to be a device between you, your controller, and your television set.” However, Moore also acknowledges that “people still value their hardware“.

In my opinion, if Xbox manages their strategy effectively over the next five years, they may well establish themselves as market leaders in the gaming industry. The landscape of video games is changing, with more emphasis on handheld devices such as the Nintendo Switch and Steam Deck that cater to users seeking portability and flexibility. If Xbox can provide both seamless accessibility and an extensive library of top-tier games at a competitive monthly price through Game Pass, they could gain a significant advantage over their rivals.

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2025-03-08 01:38