Former Blizzard president and Xbox exec Mike Ybarra has been weighing in on the brand's new multiplatform strategy over the past few days, advising in a string of social media comments that he feels it's ultimately the right move.
Ybarra acknowledged that Xbox has taken a while to be clear on the strategy, but has since been consistent in its messaging - and told fans that although he understands they may dislike the approach that Phil Spencer and his team have adopted, he believes it's the right thing for the business and that players simply need to embrace it.
"They've been consistent, they are a Publisher now and support all platforms. It's the right strategy for them and their business. Sure it took a while for them to get clear on this (balancing selling HW/managing customers with the reality of the strategy)."
"I love that their games are on PC and PS5. I get loyal Xbox gamers are mad - but that isn't going to change anything. Embrace and move on - play on what you enjoy playing on (if you're a console only person, that probably means PS or Nintendo in the future). But you'll still have "Xbox" games there."
"PS/Nintendo should work with Xbox on some type of friends transfer system etc. Eventually that should be done to help people stay connected with their friends. We'll never see a universal gaming social platform, but I do wish we could!"
As you can see, Ybarra is also questioning whether Xbox consoles will exist in the long-term future - this is despite new hardware having been confirmed not too long ago. He guesses that Xbox may "play the long game" and just slowly move away from making major hardware as time goes on, but ultimately this is just speculation on this part.
Looking at the rest of Ybarra's responses, he's seemingly of the belief that Xbox should double-down on first-party games and Xbox Game Pass while "reducing cost everywhere else". He's not involved in Xbox's plans in any way, of course (he's the CEO of PrizePicks these days), but clearly remains passionate about the brand and the business!
Do you agree with what Ybarra is saying here? Let us know your thoughts down in the comments below.
[source x.com]
Comments 46
Wait stop the press!!
I taught getting mad changes everything I need to lay down for five minutes my core principles are in crumbles!!🤷💆🤣
Anyone who knows a thing or two about business knows it's good, the only people who think it's bad are either console warriors or children. It's crystal clear what they're doing and it's the absolute right thing for business and nothing anyone will say against it will change it. Business 101, folks.
It's a good move for the brand, very good move for it's studios so they can retain more talent.
As for the future it's up to MS to make hardware that people want. I think in general people probably want no online paywalls and open storefronts. Otherwise we as consumers can simply choose to buy a ps6 or PC. Be playing great XGS games either way!
For it’s all good as long as they release a normal under the tv powerful home console and keep GPU at the same price ish with all Xbox studios games day one.
Once the above falls then I fall with Xbox and Xbox home consoles.
Then there is the Microsoft finances. Over 50% of GPU subs are on Xbox consoles.
Is it worth another console or can they maintain GPU as it is now selling less consoles next generation. Investment against return on investment.
If you take Xbox console out of GPU then it really is not selling that well on all the other billions of devices.
I like that he called Xbox out for their communication mess throughout the last year, now I know I’m not alone in thinking that they mishandled that.
I could see them releasing an xbox only version of GP on PS/Switch as its current format simply won't fly. Either way, it's clear that we are likely going to be saying day and date on everything with newer games now that the strategy has been confirmed. If that keeps xbox around then it's no bad thing.
@OldGamer999 I’d add the need for decent third party support onto your list. Whether next gen sells 30 million, 20 million, 10 million, or 5 million units Microsoft absolutely needs to ensure that third parties support it no matter what.
It's not as if those games are on Playstation/Switch 'first' or with any 'exclusive' content/perks so I really don't see the issue. For those that 'prefer' to play on an Xbox Console, they'll still offer 'advantages' (like Game Pass and 'Day 1' releases instead of waiting 6 months or more).
I see no reason to be annoyed that other gamers also get to play Games I enjoy playing too - just because they chose a different 'box'. Why should I be mad that maybe more people will get to enjoy games I enjoyed playing?
ALL Xbox games will release on Xbox/Game Pass/PC Day 1 and Xbox is the only Console to offer Game Pass too and Play Anywhere with Direct Storage to download the 'right' version for your Hardware - Xbox or PC (inc Handheld PC's) so I can buy on 'Xbox' and play on PC's too or use GPU to play on a range of Platforms inc Xbox consoles. Doom, Indy and FH5 will cost more than a years worth of GPU on PS5 so it will be more 'expensive' to play Xbox games on Playstation and limits you to just Playstation.
It never bothered me that others may now end up playing some of the Games I enjoy and if anything, I think its great that now others may get the opportunity to play great games they otherwise would have to miss out on. The more 'sales' on Sony/Nintendo hardware, the more revenue for Xbox and their Studio's to make more great games - maybe even help keep staff in Jobs and prices competitive. They could 'lose' money on Hardware (as usual) but offset that with 'more' Game sales on their rivals hardware - undercut Sony and get Sony customers buying Xbox games to offset that...
Embrace it or, like every consumer has the option to do, wave their middle finger at them and not buy their stuff...
@Cakefish
Yes third party support needs to stay and again if they have already made the game the cost to port to a new Xbox isn’t going to cost too much.
Then again it’s return on investment in the end.
Every gaming device is a computer
@Medic_alert
Basically that’s the end game.
People vote with their wallets and unfortunately that is over the last decade or so that has got us here now. People voted with their wallets and purchased Sony and Nintendo consoles and games and not xbox consoles or game pass that much.
I think, depending on the financials, that next generation will probably be the last xbox console. It won't be as bad as it sounds, in ten years streaming will probably be almost indistinguishable from native, so Xbox will essentially be a storefront you play from. Sony will probably be motivated to make a Playstation 7, but we're officially at a point where the two companies have very different business models.
@Medic_alert but....why?
It is being embraced by most gamers. There are still a few that can't get out of the console war nonsense and realize that it's good for everyone. I enjoy watching Nintendo and Playstation fans get excited for the great xbox games and showcases. Xbox is in a great position.
@armondo36 because you don't have to do what some exec says and 'embrace' it.
If you don't like it then tell them where to stick it and the best way to do that is with your wallet.
For me, I won't buy the next Xbox because it looks like they are prepping to move away from dedicated hardware into a purely digital space and that's not something I want for my gaming.
I don't see how any company can balance being a platform holder with strong dedicated hardware and a 3rd party publisher so I don't want to support something that is that uncertain with my money and my game library.
@Weebleman been saying it for ages that there will be a GP with just the first party stuff in Sony/nintendo.
Sony/Nintendo would still get their cut. MS can still offer an ultimate version on their own platform
@Medic_alert all 3 companies are moving towards a digital future. And if Microsoft is as successful as they probably will be, Sony will be right behind them.
So competition isn’t good ? The only American gaming company throws in the white towel to help a different economy …
Their shareholders sure seem to agree. Selling games on multiple consoles will absolutely make you more money. If Sony starts putting games on Xbox, then I do agree that it will probably not harm Xbox sales but they have no incentive to do that now.
@armondo36 then I will move away from all of it.
But I have heard this assumption before and it only works if consumers buy into it - which i won't.
I don't agree that the others will follow. Both Nintendo and Sony are much much smaller than MS and their business model relies on being a platform holder - they don't have a trillion dollar business backing them to drop that revenue.
They could, I suppose end up just being an app on other devices but again that isn't something I'd support.
The question becomes, would this have been Xbox’s path forward if they hadn’t acquired Activision? The logic would be the same, but Microsoft’s attention to the Xbox division spiked during the acquisition. Things have changed since that time.
Ugh, I forgot about this dude. Him and Major Nelson just annoy the ever-loving crap out of me.
Everything is an Xbox except the series X|S.
In all seriousness in about 5 years the long term effects of this strategy will be laid bare…we’ll just have to find a new forum to laugh at them from.
The price of the PS6 gets higher every day.
Great, enjoying games also means to me, that I have the option of buying these on disc, which Microsoft doesn't want me to, it seems.
Where can I pre-order a physical version of South of Midnight??? 😒 Doesn't seem like it's coming.
Obscure 33 must be imported from USA on XBox, but gets a disc release here on PS5. It sucks!!!
It is a smart move for Microsoft.
Keep in mind that for all that “winning” Sony is having with hardware sales, the bloated cost of game development still forced Sony to branch out and have a PC strategy.
When the overwhelming majority of your console user base is playing Fortnite, [popular annual sports title], etc. one is kind of forced to supplement first-party development efforts by branching out said games elsewhere.
If development continues to inflate the way it is, platform exclusivity will disappear.
@TheEstablishment totally just ask sega
I really wish they would not do that.... Oh well
This defeatist attitude isn’t helping matters either, they’re still making consoles regardless, also you don’t have to worry about what a company does like you’re a shareholder
If Xbox earns 100% on Xbox hardware, and only 70% on PlayStation hardware, but with PS5 outselling Xbox X|S in the range of 2 to 1. It's obvious Microsoft can't ignore launching games on PS5. If you sell $1 on Xbox and $2 on PS5 = $1.4, you still more than double console gaming revenue by selling on PS5. Not to mention adding in Nintendo switch.
In my books it should be obvious that Microsoft strategy of ditching exclusives is the right one. I really don't see what the issue is. Microsoft's whole existence is basically due to selling software that ran on other companies hardware, I can't say I am getting worked up about whether or not Microsoft makes console hardware forever.
Well thanks to an inept PR team for Xbox, this certainly has been entertaining!!
Watching a the Xbox diehards always shift the posts has been eye rolling good times!.
Last 20 years have been a blast watching the console wars
@Crecca Your comments makes no sense. Sega was almost a billion dollars in debt at the time, so much so that their president gifted the company a few hundred million while on his death bed to try to stay alive. The Xbox brand is profitable, making more money now than it ever has. The Sega argument makes literally no sense, kiddo.
Moving multi-platform is good for Xbox as a publisher, but unless Sony and Nintendo do the same then it puts the hardware side at a disadvantage. There's no real difference between an Xbox and PlayStation console now.
So unless Microsoft can make the console itself a better choice through value for money then they'll be pushed out of the hardware game.
There's this strange belief that it's all or nothing for Xbox. Microsoft's ambitions are just beyond the what the console market offers. They don't want the 150 million console sales peak. They wanted a stake in the wider entertainment and consumer industry that rivaled Apple's iPhone (which only launched in 2007 and has since blown every console at the water) or Amazon's recent efforts (Fire TVs have also outsold each individual console). They haven't seen the growth they wanted in the console market as a whole and within the market they've seen only a certain subset switching between platforms. This doesn't mean the business is failing. In fact they've consistently posted record revenues even before Zenimax and ABK and settled into about 15 billion USD in revenue (more than even Nintendo at the time and again this is before all their multiplatform plans and purchasing Zenimax and ABK) with a 16 billion peak during the lock down when gaming was booming.
Whats happening now is Xbox is evolving as it looks around the gaming industry and sees that growth isn't tied to a singular box. This doesn't mean they stop making hardware. I don't see why they would when console gamers continue to prove more valuable and more sticky than ever. Series console sales really aren't even bad. They just aren't the massive uptick from Xbox One people wanted. After four years they sold about 25 to 30 million and this is on top of all the Xbox One gamers still spending money in all the biggest games and even new releases because this is the longest last gen has been supported yet. Exclusives really aren't driving console sales like people pretend they are. Take Nintendo for example. The GameCube and WiiU had the exclusives and still sold pitifully. The WiiU literally sold less than 15 million in 5 years. The Nintendo Switch won on innovation and marketing. Playstation continues to win on marketing and not pricing their base console at literally twice as much as their main competition (why the PS3 had such poor sales). Xbox hardware is fine and can still grow alongside Xbox as a publisher. Even if it stays stagnant 20 to 30 million sales every 5 years (if Xbox does what they said and shortens the time between generations since the meaning of a gaming generation isn't there anymore) is perfectly sustainable especially if last gen continues to be sticky and heavily supported.
As a gaming company Xbox is a green behemoth pulling in at minimum 20 billion USD in yearly revenue now. Are we really going to sit and complain that they aren't doing infinitely better or hoarding games from other gamers to infinitely force more console hardware adoption? Like I don't get the anger at games being more available. It's also not just Xbox. Playstation themselves aren't following suit (well actually they were forced to with MLB the Show which also says a lot), but more and more of their third party partners are with many publicly stating that not supporting Xbox and all platforms day one is a mistake. Look at the latest state of play. Nintendo isn't, but Nintendo is also trying to patent game mechanics right now because they are so terrified of losing their control over their exclusive IP. They also control costs and most importantly don't care about infinite growth like Microsoft shareholders do. Let's also look back at Sony. How are they doing? I feel like all we've been hearing about are the cancelations and failed live service projects. They refuse to even consistently support PC same day and their margins are suffering for it. The vast majority of PS5 sales continue to be upgrades. They aren't growing their consumer base while development and production costs continue to skyrocket. I'm really curious what Sony's next move is as they've just completely revamped the PS leadership.
There's all this doomsaying and even all this praising when the reality is that Xbox is just fine. Okay, better than fine (especially financially), but even their "evolution" hasn't actually materialized yet. Like as someone who likes the idea of the "this is an Xbox" campaign, it was ridiculously premature. If Xbox can properly invest in themselves (really if Microsoft can properly invest in them) then they can build a ubiquitous gaming empire across Xbox Consoles, PC, Cloud, and Mobile while also dominating as a publisher across all platforms and storefronts (we've already seen Xbox first party topping PS charts from Sea of Thieves to COD). If Microsoft doesn't properly invest then... well things will remain as they are which is still better than okay. Again, like really how much better do we want Xbox to be doing at this point? I thought people were mad when billion dollar corporations made billions more. I love my Series S and X, love my Game Pass, love Xbox Play Anywhere, and I love Xbox's first party lineup. Xbox can be better, but I really have no issue with them keeping their current pace and size with this strategy.
@TheEstablishment I always find this hilarious. "Xbox is becoming Sega" or "it worked for Sega" like lmao no. Xbox is "dying" as it sells 25 to 30 million at the halfway mark. Sega near the end of its time as console manufacturer struggled to sell 10 million units and it failed to hit 30 million in 4 years far before that (heck we're really downplaying that as a sales Milestone, every other Nintendo home console has failed to hit that). As a gaming business it's even more night and day. Pre Zenimax and ABK Xbox revenue was like 15 billion USD yearly on average. Now it's 20 billion. The highest number I found where searching for Sega was around 3 - 4 billion USD.
It is completely up to Microsoft if they see hardware as a detriment and go the route of tencent (which is a comparison that actually makes some sense), but that won't be because Xbox isn't profitable or dying or any such nonsense. It'll be because Microsoft shareholders want infinite amounts of more money and the reality is that the console market is not providing that. The fact that Nintendo makes quite a bit in billions less than Xbox (and have for a while now) despite selling like 3 times as much hardware (comparing the Xbox One lifetime sales to Nintendo Switch) does say a lot and bode worse for hardware than any multiplatform moves. It isn't that Xbox isn't making money, it's that Microsoft is a trillion dollar publicly traded company and their shareholders demand more. Now, I think it'd be ridiculous for Microsoft to cut a majorly profitable arm of the Xbox business and that current numbers show that Xbox can sustain hardware (and make insane amounts of money from gamers on Xbox hardware) while also growing outside of proprietary hardware. But Microsoft shareholders are the real threat to Xbox. I'm not kidding when I say the success of Nintendo's current hardware wouldn't satisfy them. It's always a question of why Microsoft is investing in this market where the peak consumer sales success is around 150 million in a 6 to 8 year lifetime. That said I'd say Xbox is probably the most stable inside Microsoft that it has ever been and it has been getting the most support and investment ever.
Very sensible move for Microsoft considering the position they are in. They have around 20,000 developers and 30+ studios now, that's too many mouths to feed for a console that has sold around 32 million.
More important developers want their art to be played by as many people as possible. If they want to hold onto their best devs they will want to keep them happy.
This strategy will make Microsoft a lot more money in the long run.
It'll certainly be easier on my wallet not buying the next xbox
Mike Ybarra: if you're a console gamer going forward you'll be on either Sony or Nintendo. Hopefully they let Xbox users migrate their friends lists.
The usual suspects who just read the headline: of course Xbox 's new strategy is the right one! Anyone who knows anything about business knows here comes Xbox 's big comeback!!
Like come on guys, it's not that much reading.
he doesn’t even work at xbox anymore so it’s his opinion, he doesn’t have a say in microsoft’s strategy, i think people are starting to realize this console war business is unnecessary
this is just speculation on his part, doesn’t mean he knows the future
@VoidPunk are you sold on the narrative?
@Kaloudz and it’s not helping that the media is basically playing up the narrative
@donv2135 Could not agree more bud. It's everywhere.
@TheEstablishment I think the comparison is fair they are making similar business decisions accept they have an unlimited bank account. Also don't call people kiddo if you don't know how old they are it makes you come off like a supreme douche.
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