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Console wars aren’t over yet — but Xbox is shifting its strategy against Sony and Nintendo

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Phil Spencer, head of Xbox at Microsoft. (Microsoft Photo) The console wars aren’t over, but they’ve mutated into a new phase. That’s my takeaway after
The console wars aren’t over, but they’ve mutated into a new phase.
That’s my takeaway after Microsoft revealed a new chapter for its Xbox business as it both competes with and supports its biggest rivals.
A new episode of the Official Xbox Podcast dropped Thursday as a response to several rumors from last week.
According to anonymous leakers, Microsoft had explored the possibility of bringing several of its biggest first-party games, such as the forthcoming Indiana Jones and the Great Circle, to rival platforms such as the PlayStation 5. That, in turn, fueled rumors that Microsoft planned to turn Xbox into a third-party game publisher and sunset the Xbox console.
As of today, that explicitly isn’t happening. Instead, we got a rare look at the current usage numbers behind Xbox, as well as a glimpse at a new spin on an old strategy for Xbox’s publishing division. The PS5 or Switch aren’t straight-up competitors for Xbox anymore so much as they’re other spokes in its “play anywhere” plan.
Today’s podcast featured Xbox head Phil Spencer, Xbox president Sarah Bond, and head of Xbox Game Studios Matt Booty, with Xbox broadcast director Tina Amini as host. The 22-minute podcast wasn’t as seismic or revelatory as fans or analysts expected, but did offer some insights into exactly what Xbox has planned.
Specifically, it’s more of the same. Spencer said that while Xbox does plan to bring four unidentified first-party games to the PlayStation 5 and Nintendo Switch, it is “not a change to our fundamental strategy.” Instead, it’s an attempt to expand the overall Xbox audience by offering some of its games to users on other platforms.
“We’re always looking to learn as a leadership team, and to grow,” Spencer said. “This is an interesting point in time to use what the other platforms have right now to help grow our franchises, so we’re gonna do that.”
Under this strategy, these four game releases are explicitly meant as trial balloons. They can expand the games’ audiences in order to make more money for Xbox, which can be reinvested in the platform. Ideally, as per Bond and Spencer, it might also attract users from other consoles into checking out Xbox, which doesn’t require those consumers to actually buy a physical Xbox.
Spencer deliberately didn’t name the Xbox games that are planned to go cross-platform. He did note that all four games were older releases. Analysts have suggested, based on data-mining and recent leaks, that the four games headed to PS5 and Switch might be Rare’s Sea of Thieves; Obsidian’s Grounded and Pentiment; and Tango Gameworks’ Hi-Fi Rush.

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