Former Xbox Exec Defends Phil Spencer's Recent Decisions As Head Of Xbox

what i dont understand is they bought all these studios to make exclusive games to sell the xbox consoles and the eco system and then give up just as the games were ready. the plan might have worked but now we will never know

And that is exactly the problem.

Microsoft is treating xbox like it's nothing but a revenue stream. As a result, they don't really care about anything but making money. Exclusive content? Quality games? Release dates? They don't care. They're going to announce that Horizon 5 is going to Playstation at some point this week. Why? Because they'll make money.

Microsoft is basically just a 3rd party publisher that just so happens to produce a console. Avowed will probably end up on Playstation, as will Indiana Jones and the next Elder Scrolls. It is what it is. Not the end of the world really.

This is the problem with Phil deciding to put across the impression of being a public-facing "one of the gamers" nice guy. Yes, that might very well be the case, but sooner or later he was going to have to make business decisions - whether they're coming from him or those in Microsoft he has to answer to - that wouldn't sit well with consumers. Whether those consumers are actually right to be up in arms about any of the recent decisions made regarding the overall Xbox business is up for debate, but these seemingly necessary decisions are hurting his image among diehard Xbox fans.

Say what you will about Jim Ryan, but you always knew where you stood with him. He was running a business, pure and simple, and he never hid that.

It isn’t as if their previous strategy was working as well as intended and honestly I want to see how far the gaming agnostic approach goes as I think it benefits everyone and allows people to move away from (multiple) consoles.

That being said all companies are businesses. I don’t understand why people act surprised by this.

I don't think that was the reason to buy Activision, focusing on selling only a specific and closed hardware doesn't seem to be a great business for the future, probably having paid so much to simply increase the sales of a console, so that in 1 or 2 generations the consoles disappear or evolve to open hardware, would have been throwing money away.

I think Microsoft thinks that the companies that will manage to survive whatever happens in the industry in the next few years will be the ones with great established IPs, if we look at the most profitable games every year they are always the same: Fornite, Call of Duty, GTA, Minecraft, FIFA.... I think the purchase of Activision was intended, among others, to ensure Microsoft a place there.

I fully support the idea of a platform-agnostic environment but that ONLY works if everyone is doing it, if they aren't... well It's going to go for as well for Xbox as "buying third-party exclusives" during the start of the X1 era. Just made it possible for Sony to buy all the exclusives and extra content for less.

The "Console Wars" nonsense was exactly but this just feels like folding. We need competition between the platforms to make them better.

The leaders Sega's console business were "running a business."
The leaders of Lehman Brothers were "running a business"
Liz Holmes was "running a business".
Bernie Madoff was "running a business".

There's a lot of ways to "run a business."

While I have grown to doubt that Phil is running anything other than weekly contests, the question is otherwise what business is being run? They can run a successful publishing business. They can run a successful development studio. They can run an online service platform.

What I don't get about the Xbox hardware is, Microsoft is a platforms company. It's what they DO. How can the default platforms company not understand how to build and maintain successful platforms? How can they not understand their actions despite being good short term gains undermining their ability to have platform control? I get the "MS doesn't care about console" but MS does care about platforms. And how can they undervalue the power of being a dominant platform owner? Platforms is what they do!

PC was fine. Xbox=PC. PC=Xbox Pro we've known for years, and that's fine, because it's all Microsoft's ecosystem. Just caving and becoming a 3rd party console publisher makes little sense. I personally don't like exclusivity, and want it to be a relic of the past. I don't even mind all that. But they also need reasons to tell people is the ideal platform, and right now they have none other than "Game Pass".

@Markatron84 I personally do think Phil was genuine, and his vision is the one we were sold. The problem isn't so much that him being a public facing nice guy was a problem. It's that corporate removed him without removing him and decided to do things their way instead of his.

True that you always knew where you stood with Jim Ryan, but if we're down to debating dealing with a business that treats you like dirt, vs a business that was run by a guy that treats you as a customer until his superiors take over and decide to treat you as less than dirt....again, why are we even in this hobby?

I've said it before but the state of gaming is so bad I bought a Quest 3 and am actively giving money to Mark Zuckerberg as a preferred platform. That's how bad it's become.

@abe_hikura That's exactly. I do favor the end of exclusives, but one company just putting their games on competing platforms while the other company withholds theirs isn't ending exclusives, it's surrendering. Nintendo and Sony aren't compatible because their hardware is so differentiated. Nintendo has a cheap handheld, Sony has an expensive miniPC. So the hardware itself segments their market. Xbox doesn't have a hardware differentiation (this gen.)

It's all about Game Pass! Porting games will pay for putting games on Game Pass. I think the incentive for (new) people to own an Xbox is gone when they don't have Game Pass & see MS porting first party titles.

I read some comments on Twitter and most had the perspective from having Game Pass & saying PS owners had to pay for those games while "they" could play it for "free". Forgetting there are still Xbox players who pay for their games and don't have Game Pass.

I guess you have to see it like:

In 2020 Sony paid for 1 year timed exclusivity for Deathloop and Ghostwire (and potentially Starfield if they had more time).

But now it’s Xbox getting games like Starfield, Hi-Fi Rush and Indiana Jones first.

Still a better position to be in. But yea I don’t agree with the decisions at all. Microsoft threw in Xbox’s towel for them.

I actually think more people (especially those with larger platforms) should have pushed back on it.

@abe_hikura All companies will do it, the difference is timing.

I think Xbox needs to open its platform as soon as possible and is doing it in a big way, Playstation is in an intermediate point where it is releasing games on PC (and some on Xbox or Switch) and Nintendo, well, it's going for a long time.

Each company has its own context and Xbox has one here where they need changes as soon as possible, so they are ahead of the rest as much as they can. But going first is not always good, we saw it at the launch of Xbox One with the always connected to the internet, they were right, today it is the norm, but that was not yet the time.

Time will tell if making Xbox an open platform in 2024 is a good decision or not, but what I am sure is that every company that makes consoles will eventually do it.

I've heard Xbox stans go on ad-nauseum about how bad and anti-consumer software exclusivity is for ages, and how they're such a nice, good company because they want you to be able to play their games across a range of devices.

Well, here you go, the logical end result of that. Microsoft is a third-party publisher with a console option. The only actual draw to their platform is an unsustainable subscription service that is escalating in price now that the corpos want to see returns on their considerable investments in the gaming sector sooner than later, regardless of what that ends up doing to the brand's ability to compete in the home console space.

Or, more likely, they've realized the people who were managing the brand don't know how to run a successful console gaming business and have decided to fundamentally alter the trajectory of the Xbox brand.

It's going to be incredibly funny once people start inevitably waxing nostalgic about the comparatively brighter days of the early Xbox One era.

Series x pro for gamescom opening night reveal, release October 2024.

It looks like the business is running him.

From a financial standpoint it makes the absolute most sense to reach the biggest audience you can with your ips in order to generate the most revenue. And the money is in the software, not hardware. Hasn’t been for years for Xbox or Sony.

This also makes the most sense on untested ips, as it’s easier to recoup your expenses having that larger audience rather than banking that half your install base will buy it. Even tried and true IPs can struggle to hit numbers like that while being exclusive to a console.

I say let ‘em cook and do what they do. They know better than any of us on how to improve brand recognition, increase profit margins, and turn that into good products for us to consume.

That said, we’re definitely into some weird times, far removed from the structure of ways gone by. My biggest fear is moving into a Netflix-esque cloud only future. Which I’m sure will happen, just not sure when.

@HarryPuta It doesn’t feel good to be considered an afterthought. You buy PlayStation you’re Sony’s priority. You buy Switch you’re Nintendo’s priority. You buy Steam Deck you’re Valve’s priority. You buy Xbox… well, Microsoft promises to remember that you exist long enough to raise the price of Game Pass every year and keep squeezing evermore adverts onto the dashboard. Splendid.

That's an explanation, not a defense.

"What are you doing over your wife's body?"

"Shooting her in the face"

Oh, ok

This is what uncle phil wants. If you still don’t believe it’s him calling the shots and think he’s not making any of these decisions I don’t know what to say to you at this point.

I’ll say it again , Phil’s biggest achievement is making fans believe he was a gamer, he’s just a corporate stooge like the rest.

I swear some people don't understand how businesses work. Since the Xbox One generation, the wider audience has picked Playstation as the defacto brand and Xbox has been in a distant second place.
This is their 'adapt or perish' moment where they are worrying less about shifting hardware (that battle is long lost) and are now focusing on boosting game pass numbers and selling their software to as many audiences as possible.
Do I miss the 360 era where we had a suite of killer exclusives? Of course, but I love Xbox and, if this is the necessary step for the brand to keep going, I'm OK with that.

Okay, sure, they're not running any business I'm interested in though. That's why the last game I recall purchasing from this was Halo 5 Guardians from nearly a decade ago.

And to be clear, that isn't because of Gamepass. I buy tons of third party games that are on Gamepass.

I have zero interest in a console market dominated by a single OEM, read Sony. We've seen how godawful they've been when they've had had sgiinficisnt leads. Going to be insufferable when they have no hardware competition.

The number of people that are too young to remember this are justflat our ignore it are baffling.

Thankfully that's where PC comes in to play.

Microsoft will gets its money selling software everywhere, but Xbox is dead, it’s a double spit that the day Black Myth Wukong skips or didn’t prioritize Xbox for whatever reason also a new big first-party game gets announced for PlayStation (and even like a hyped ‘one more thing’ kind of announcement) mere months after releasing on Xbox.

Just ignoring the fact that games aren’t exclusive anymore the optics of that announcement are terrible for Xbox fans who are yet again treated like third-class citizens, more games will keep skipping the platform as less people choose Xbox as it’s the console with less games with no exclusives. Gigantic f*ck up that sadly seems irreversible right now.

If you think Sony is gonna sit back & watch Microsoft expand to a multiplatform strategy while still being a platform holder. Think again. They'll be studying there PSN figures, watching for Microsoft's financial reports etc. They'll adapt accordingly or be left behind.
There PC strategy was the first step. They are now pushing day & date. They have mobile, cloud as another. When PS6 comes out. Then what happens when the previous avenue has no growth.

@cragis0001 but with MS prioritising GP/play anywhere. What audience would Sony actually have by releasing on Xbox?

By the time you take several million off the total, for those who own multiple consoles or a PC. Take a huge chunk more from people who wouldn’t want the game. Those who wait for a sale or only have Xbox for GP.

What’s left? Is it financially worth it? Hell they aren’t even doing it with w**k games like Concord.

Plus then Sony would HAVE to make it work on a series S which is an issue they don’t have with PS. It’s a lot trickier for Sony to release on Xbox than the other way round.

@Savage_Joe Its right up there with Mike Ybarra leaving MS for Blizzard, Bigging MS up during the buyout then leaving Blizz as soon as the ink was dry on him being a MS employee again.

@cragis0001 PS will not release on Xbox unless they can ofset the extra dev costs on potential sales, something its much easier for Xbox to do as PS has the better sales, a single console and players used to buying games.

Phil Spencer isn’t making any decisions though, let’s be honest here. Hes not running a business. He is not even a leader. He is a puppet now.
And a pretty poor one at that.

Isn’t it odd PlayStation and Nintendo have hands out waiting for Xbox free gifts and Phil is just running with his pants down . Very funny Xbox became the only American console to need others to stay alive smh Phil needs to step down respectfully as he’s weakened the brand just as fast as he built it up .

@K1LLEGAL so when Xbox puts halo and gears on ps will Xbox get god of war or Spider-Man ??? That will never happen

@Dm9982 branding is just as important keeping integrity moving forward . There will be a how Xbox crumbled story with Phil on the cover in 10 years … the only American company can’t stay alive without giving everything to competition with no return . It’s sad at this point and we still have no clear direction or roadmap . Maybe if Phil worried about AAA games and not indie crap you can play on a phone Xbox wouldn’t be in this state

@PsBoxSwitchOwner Yes Microsoft priority is Games Pass. But Microsoft revenue when it comes to software which includes games has grown each quarter even without ABK. So even though Xbox is a smaller community they spend cash. I like many use the money Games Pass saves me to buy 3rd party games not in the service but also buy season passes & the odd microtransaction for games I play within the service to support the devs.
What audience would Sony cater for? The same that Microsoft are aiming for I guess. People who won't buy a Playstation/Xbox for a handful of titles. Diehards. Casual gamers that will play popular GaaS/ multiplayer titles.
The Last of Us: Factions & Concords failure. Plus add Sea of Thieves success could make Sony aware of how important it is to look after there GaaS successes like Helldivers 2. So who's to say in time we won't see IOS/Android, Xbox & Switch 2 ports.
I can't see the Series S being a problem if there happy to make Switch titles. But also with Microsoft next gen system releasing in 2026.

@Ilyn but do Playstation have better sales. The bulk of the Playstation 5 sales are made of casuals playing EA Soccer, Fortnite, COD, Minecraft & Roblox. Only Helldivers 2 has been a major hit to be fair this year. But other high hitters like Final Fantasy 7 Rebirth, Gran Blue Fantasy & Stellar Blade have shifted 1-3 million units each. With 60 million+ consoles in the wild. That's not great.
You need to give Sony's franchises more credit. The like of the Last of Us, Horizon, Spiderman Helldivers plus more would sell well on Xbox. Id buy several even though I own them on Playstation 5.

@cragis0001 its not the franchises I am trying to put down, I agree the cinematic playstation games would review as well on Xbox as they did on PS despite people calling them "Sad Dads" or "Walking Simulators". What I was questioning is how many would buy them new when Xbox consoles are selling at half the volume of the PS5.

If we take your numbers and half them is it really worth the extra work making a game run on 2 sku's of the series brand for 0.5 - 1.5 million extra sales. Where as the flip side makes more sense, if it was viable to make a game for 28 million consoles then porting it to the bigger market will more than likely turn a profit.

@Markatron84 jim ryan was terrible , even worse than phil

@nomither6 never hid the fact though, did he?

@Ilyn people didn't think Xbox games like Sea of Thieves would sell well on Playstation because fanboys say Xbox games suck & Rare hasn't made a good game since there Nintendo days. But a 7 year old Xbox One game is selling as well as brand new titles on PS5.
I think it depends on Microsofts future plans. As Playstation games apart from a select few aren't gonna hit Xbox anytime soon. One area that could help is Nvidia's Geforce now integration, there future handheld plan & allowing all games in a users library rather than just Games Pass titles to be played via cloud. If they can get the later to work. It could grow the community enough to make it worthwhile for Sony. As we have already seen expansion to smart TVs, Amazon Firesticks for Games Pass.

@Markatron84 true