Xbox Is Officially Moving Beyond Consoles – With Microsoft’s Support

Xbox Is Officially Moving Beyond Consoles – With Microsoft’s Support

As the story goes, when Phil Spencer became head of Xbox in 2014, he got a call from newly-appointed CEO Satya Nadella. "I don't actually know a whole lot about why we're in gaming," Nadella said to him.Nadella's remark at the time ought to have been unsurprising. The Xbox One had launched the previous holiday to strong initial sales but a slowing long tail compared to its direct competitor, the PS4. This was in no small part due to its emphasis on being a general living room entertainment box rather than a gaming console, and it was exacerbated over the years by a dearth of strong first-party exclusives. There are other reasons, sure, but at the core of it all was a company, Microsoft, that didn't seem to have any idea what to do with the promising gaming division it had in Xbox.[ignvideo url=”https://www.ign.com/videos/2021/06/10/satya-nadella-and-phil-spencer-discuss-gaming-at-microsoft-xbox-update”]So Spencer, only a few weeks into his new job, spent some time puzzling out a response to his boss candidly admitting he didn't know why Microsoft even had the division Spencer had just been appointed head of. And when he called Nadella back, he had decided to go big or go home with his pitch:"If we're going to stay in the gaming space, then let's make sure we're all-in," Spencer said. "The last thing I wanted to do was run the gaming organization here as kind of an afterthought of the company and kind of half-in, half-out. Let's go fix who we are."[ignvideo url=”https://www.ign.com/videos/2020/11/24/xbox-could-be-a-smart-tv-app-within-a-year-says-phil-spencer-ign-news”]It's been seven years since that conversation, and it's now abundantly clear that Spencer's "all-in on gaming" pitch did not fall on deaf ears. In fact, Spencer appears to have been so successful in his bid that Microsoft and Xbox have unified themselves in a cross-company strategy that is primed to shed the need for a gaming box at all.Today, Nadella and Spencer have announced a number of both reflective figures and future plans cementing this. There's the obvious success of Game Pass, of course, which Xbox has consistently pointed at for years as a business model that encourages players to play more games and more genres, as well as spend more money on games. Without specific numbers its actual success can be hard to quantify, but Xbox has offered Square Enix's Outriders as a recent example of a title launched into Game Pass, that also sold very, very well on Xbox in…
Source: Xbox Is Officially Moving Beyond Consoles – With Microsoft’s Support

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