In case you missed it, Xbox's top dogs set live a podcast yesterday, publicly announcing the company's long-rumoured intention to bring a selection of first-party games to rival consoles. After so much noise around the subject, it hardly came as a surprise, but it's still a noteworthy shift in how the platform holder will handle its in-house titles going forward. While the messaging was kept fairly vague, we can get a touch more context from a company memo, sent from Phil Spencer to staff before the podcast's debut. It's now available to read in its entirety online.
The Verge has secured a copy of the memo, which reads as follows:
Today at noon Pacific, we’ll be posting a special episode of the Official Xbox Podcast.
In this episode, Sarah Bond, Matt Booty and I will share with the community our plans for the future of Xbox. We’ll also discuss how our vision will benefit our players, creators, and the industry as a whole.
When we look at the state of our medium, we see players increasingly gaming on multiple devices, but their experience is defined by the fragmentation created by platform silos. Multi-device players have to navigate multiple identities, entitlement libraries, communities, wallets, and reward programs. Similarly, the industry’s biggest franchises increasingly ship across multiple devices, requiring creators to build and manage multiple instances of their games, leading to higher costs and fragmented communities. All of this friction creates a tremendous opportunity for us to meet the needs of multi-device players and creators.
We have a different vision for the future of gaming. A future where players have a unified experience across devices. A future where players can easily discover a vast array of games with a diverse spectrum of business models. A future where more creators are empowered to realize their creative vision, reach a global audience, unite their communities, and succeed commercially. A future where every screen is an Xbox.
This is a future where Xbox is everywhere—consistent with our promise to empower players to “play the games you want, with the people you want, anywhere you want.”
This is reportedly the first communication to Xbox employees about where the company is heading. It's also a little more direct in its language than the podcast, talking quite plainly about "a future where Xbox is everywhere", and where "every screen is an Xbox". It all seems to be in service to a scenario in which gaming becomes more unified, instead of "defined by the fragmentation created by platform silos".
Anyway, the result is that four unnamed Xbox games (to begin with) will be ported to PlayStation. These are widely thought to be Sea of Thieves, Grounded, Pentiment, and Hi-Fi Rush. Bigger games, such as Starfield and Indiana Jones and the Great Circle, aren't currently planned for ports, but haven't been ruled out, either.
[source theverge.com, via resetera.com]
Comments 66
It just sounds like they plan to stop producing consoles, and create a shop/game pass for every other platform. Otherwise, why would he say all these things about players navigating between multiple devices and wallets and stuff?
I understand the concept, but frankly I felt uncomfortable when I woke up today and next to me was Phil Spencer in a dressing gown whispering "everywhere" in my ear.
The more things change the more they stay the same. Instead of multiple platforms we would just have multiple subscription tiers from multiple publishers.
One way or another content will always be locked behind something.
We work around suits in the industry quite a bit. I don't believe anything any of them say.
And in spite of his tshirts, this guy is a suit.
Removed - inappropriate language
Sounds like MS is basically saying they want to save gaming by getting rid of everyone else but themselves. It's very good of them to offer but... no thanks.
Every screen is an Xbox? what kind of dystopian timeline did i fall into?
“We couldn’t sell consoles and subs and our parent company is tired of losing money and forced us to publish games on other platforms”.
If I can get Killer Instinct on my PS5...sure, you can call my screen an "xbox" lol
We will have exclusives! Let's put our games everywhere! Actually not all of them. Perhaps later all of them! On second thought no. We will have exclusives...but timed! But only small titles and live service games. Though this could change in the future!
I can't keep up with it.😵💫
Microsoft “every screen is an Xbox”
Microsoft “we are keeping Gamepass exclusive to Xbox”
So that means everyone has Gamepass too? This is getting weird..,
PlayStation users can feel good about an expanded library and Xbox users can feel good by calling every screen an Xbox. It’s a win/win!
So they want to release their games everywhere and are saying it’s “for the players” (and devs). Clearly they do not mean that though, otherwise they wouldn’t buy up entire multiplatform publishers and then remove games from other platforms….or maybe they are doing a 180 on that now. Time will tell.
Thank the lord for our saviour that is uncle Phil. All hail his holiness and bow to his intellect
@Pat_trick I can't stop laughing at this image that you conjured up in my mind.
If you have this mentality that Xbox is a console, I guess you could see this as Microsoft "throwing in the towel".
But if you see it as just a platform that can exist as a streaming device/app, or PC, or a console, or a game from Xbox Game Studios that either is or isn't multi-platform, then this makes a little more sense of the wording.
Xbox can "exist" everywhere in some way shape or form and still have exclusive console games.
I don't see this comment as "all our Xbox console games will be everywhere", but simply a future where Xbox division has its hand in some kind of cookie jar regardless of platform.
If every screen is an Xbox, they really need to invest on more cloud servers. Feels like anytime I try to boot up a game on x cloud there's a 15 minute wait now.
My PS5 & Switch already identify as Xboxes as one plays Psychonauts 2 and the other The Ori games.
Nintendo and PlayStation will never be an XBox, no matter how much his delusional mind thinks so.
I think it's time Xbox stood down the politician and gave the job to someone who understands that ALL Xbox needs to do is produce high-quality games. Instead of Phil whining it's too difficult and blowing wad's on major publishers.
His failure over years has led Xbox to this point: doing everything they can to stay somewhat relevent and hang on to Sony's coat-tails while finding ways to milk their audience's misguided allegiance, and spinning narratives left, right and centre.
Drives me crazy that with the resources he's had, he can't whip Microsoft Game Studios into shape when I know others absolutely could.
He just doesn't get 'it', which in turn means Xbox just doesn't get 'it'. And that is why they will continue to flounder under his leadership.
@Jerzyna97 I would agree if they didn’t say yesterday they plan for the next console to be the biggest technological leap we’ve seen.
Nah. You're ok, Phil.
I'm not entirely convinced with the direction that PlayStation seem to be taking but it's still a hell of a lot more comfortable than the confusion and frankly desperation that's coming from Xbox.
Despite years of investment and buying as much as they could, Xbox still don't have anywhere near enough games that I actually want to play
@render This is exactly what the messaging is! I see no other way to take it. Doesn’t matter how it gets dressed up, at the macro level it’s the most corporate mindset imaginable.
It’s a simple answer to what they don’t understand. Gamers game for games! It doesn’t matter what device the game is on as long as it’s well developed then all is good. Xbox seems to be straying away from that and not focusing on the core which is the games. Xbox 360 was a good console had a variety of genres and good games. Then they tried to put walls up such as always being connected online etc. then the games are similar genre shooting and racing. And now the quality of the games aren’t the best and there not interested or fun to play in my opinion. This is not going to change much but I think it’s a mistake on there part . Microsoft has a lot of money but there wasting it and not using that money to create good games. That’s just my thoughts on this haha
It feels like there is a wide difference between some of their words and some of their actions.
Will be interesting to see if this is REALLY creator led. If, for example, Bethesda want to make the next Elder Scrolls multi-platform to hit the sort of player counts they saw in the past.
I've never owned an Xbox and never will but it was nice to see Phil's smug face again, gave me E3 vibes. Shout out to Matt Booty for stoking the flames of KI. Now that's a game I'd play on PS.
@puddinggirl Careful! If you say his name 3 times he shows up on your doorstep!
The part about creators having to manage multiple instances of games and it being an opportunity for them makes it sound to me like they want Xbox to be the only platform available. The whole thing reads like a mission statement to buy up the whole industry.
@Bolverkr AGREED
@Nei But Xbox is profitable. It generated nearly $4billion in revenue for Microsoft in the last quarter.
@Nei I was going insane as I couldn't understand what Phil was saying. So thank you for the translation 😂
I have a feeling that the next generation of Xbox consoles will be digital only and Microsoft will leverage their massive AI capabilities to make development easier, faster and cheaper. This will hopefully allow devs to reduce costs and time spent whilst still delivering AAA experiences and be able to take more risks.
I also think a handheld Xbox is pretty much a given at this point. The way that the Switch has completely revolutionised handheld gaming and indirectly created a market for things like Steam Deck, shows that there's a huge appetite. Hopefully Sony are taking note and have something similar planned (I miss you PS Vita).
Plus, I'm glad to see Hi-Fi Rush (if that is one of the games released on Switch and PS5) be available to more people. I cannot stress enough how much I adore that game and its chances of getting a sequel will be massively increased if it becomes multiplatform.
@Jerzyna97
Yet they aready confirmed the next Xbox 😂
@__jamiie Xbox is almost certainly profitable but it’s worth remembering that Revenue does not equal profit. Phil Spencer has previously stated that Xbox operates at a single digit profit margin so even if they make 12bil a year revenue (based on 4bil a quarter) the max profit they make is around 1billion assuming that single digit is 9% but it could be as low as 120mil at 1%. Either way it’s going to take a hell of a lot of good quarters to claw back what they have spent on Bethesda and ABK.
Edit: got the most basic maths wrong. 4bil rev a quarter would be 16bil a year resulting in 1.4bil profit at 9% and 160mil at 1%….long day
Basically, they release a game on PS and Nintendo, then release the sequel exclusive on Xbox. It's just one big marketing campaign.
@GeeEssEff But that purchase of $69billion doesn't just sit with Xbox because ABK was bought by Microsoft. The profit from that buyout has only just begun to generate cash for Microsoft. The money that will be generated from it over the next 12 months will be in the high billions. King alone makes three quarters of a billion each quarter from their crappy mobile games.
@Martijn87 It's a pretty good tactic TBF. I know PS/Xbox only gamers who bought a Switch purely to play Bayonetta 2+3.
@__jamiie Potentially but we don’t know the profit margin for ABK as a whole. The only info I can find was in Q2 2023 they generated 2.2billion revenue. Even if their profit margin is as high as 15% that’s only 1billion a year profit. Again cash revenue generated is not the same as profit. Revenue basically just tells us how much a company has generated in sales in a given time period and doesn’t factor in dev costs, salaries, keeping the office lights switched on, materials, distribution, ongoing support etc. Microsoft are big enough to play the long game with these acquisitions and absorb the immediate loss but realistically it could take 15, 20 maybe 30 years to pay off ABK based on the profit of the Xbox business alone unless they make some drastic changes….hence them trying out multi platform releases.
Edit: found this https://www.macrotrends.net/stocks/delisted/ATVI/Activision%20Blizzard/gross-profit
Which suggests that ABK makes around 5-6 billion a year gross profit so I was well out on my estimations. But still best case scenario if they use ABK profit to fund the purchase it will take about 10 years to pay off
It's a brave concept, but they can't compete on console sales so are looking for new ways to do so. But I don't expect Sony or Nintendo to start releasing their first party games on Xbox anytime soon.
@GeeEssEff During their interview yesterday, I picked up the language as being they are not making enough money. Tens of billions invested in the department and it's not generating anywhere near enough income. They will be making some big changes I think this year but we shall see. They need to generate profit and quick. Share holders patience only goes so far. Sony found that out this week.
@Nei That's not true. The shill I follow said Game Pass is profitable.
@__jamiie honestly generating $4 billion in revenue means squat, seeing as revenue doesn't mean profit or meaningful profit. I don't think the MS shareholders would be happy if 4 billion of revenue equated to 5 mil in profit.
@Yozora146_ I think Microsoft knows how to turn revenue into profit. The figures you've quoted are pure nonsense.
@ConsoleGamer86 oh I know, I just don't understand why else they'd make that comment 😅
@__jamiie the numbers wasn't so much a quote as a hypothetical and either way you have no way to refute the possibility, and your statement that just because its microsoft is just as nonsensical Microsoft have made bad business decions in the past the xbox arm in particular made a huge blunder with the launch of the xbox one something no doubt undoubtedly they're feeling today.
@Yozora146_ I think anyone who owns an Xbox and anyone involved with the Xbox One launch will freely admit that they messed up massively. But they still made a profit. In fact it was the most profitable Xbox generation because of digital gaming, Game Pass subscriptions, backwards compatibility games being sold etc.
Xbox has made a profit during every generation they've had a console. That's a simple fact.
Why would anyone follow Microsoft’s vision of gaming, they are third-place, the losers in gaming… They are irrelevant. What he just said was literally a word soup of buzzwords.
Their vision is simply to eliminate all competition, only to just then get the industry into a position of subscription cloud gaming with no hardware just to get your recurring payment each month.
@__jamiie They probably have made profit, but as I'd like to think I've done my homework on this, but microsoft have never released publicly how much profit (if any for that year) the xbox division makes that is a fact I believe so there's no way to confirm that. But in my opinion I do think they make profit but this shift in strategy (probably from shareholder pressure) just highlights if are they are making enough profit, to keep the shareholders happy.
Point is they'll be fine they're just looking at the long term for growth I think.
@__jamiie you keep stating “Microsoft has made a profit” while consistently demonstrating you have no idea of the difference between profit and revenue. Evidence the profit and people will take you seriously
@Yozora146_ But “it’s a simple fact” Jesus Christ I hope this guy isn’t in charge of any finances where he works
So in other words they can no longer compete with PlayStation in the hardware market so may as well cash in with software sales on the competitors hardware. I totally understand where they're coming from, but saying it's for the benefit of gamers everywhere is just B.S. It's simply a way for them to make money off their games because they don't sell enough consoles to make their games profitable anymore.
@__jamiie @lacerz surely you know profit and revenue are 2 entirely different terms and do not mean the same thing?
@FuzzieGinge88
Are you talking EBITDA or net earnings? And there are multiple types of profit. Once again, net, but then there’s also gross and operating. I work mostly in ops, but have to factor them all in. Sorry, you were just really vague in your comment…you should go work for Xbox!
Although the question being begged is why tag me when I didn’t make a comment on financials? People…
@GeeEssEff
Microsoft gross profit for the twelve months ending September 30, 2023 was $151.597B, a 9.36% increase year-over-year. Microsoft annual gross profit for 2023 was $146.052B, a 7.69% increase from 2022. Microsoft annual gross profit for 2022 was $135.62B, a 17.06% increase from 2021.
Will people take me seriously now?
Anything else you'd like to say when presented with facts?
@FuzzieGinge88 Yes I do know the difference between revenue and profit. But thanks for asking.
Microsoft gross profit for the twelve months ending September 30, 2023 was $151.597B, a 9.36% increase year-over-year. Microsoft annual gross profit for 2023 was $146.052B, a 7.69% increase from 2022. Microsoft annual gross profit for 2022 was $135.62B, a 17.06% increase from 2021.
If those numbers get too complicated then please let me know and I'll explain them for you.
It's funny how they play with words. Come on, Microsoft, you're becoming a 3rd party publisher, simple as that, no need to write a poem about it.
I got absolutely nothing out of that. Nobody can say so much with so little substance like Phil Spencer.
I'm an old fashioned kinda guy. I want to sit in front of my TV and play whatever game I'm playing. I want to be at work and look forward to going back home and playing again. I don't want to get in my car and have to see Halo on my windscreen.
@__jamiie Sorry I meant Xbox profit. We all know MS is profitable. Im also sure Xbox IS profitable, what I’m suggesting is that it’s probably nowhere near as profitable as you think which is why they never publish profit figures. “Single digit profit margin” straight out of the horses mouth. You keep throwing massive revenue figures out to sugggest ABK will pay for itself in like 12 months or something. I am interested to know why you think that
@GeeEssEff Even if one takes that 5-6 billion revenue,that was an independent third party Activision that sold on most platforms it regarded profitable,(eg: Ported Crash onto Switch but not COD)...going forward putting games like Diablo IV or presumably COD on Gamepass without the payments like Sony (& in the 360 era Xbox), paid for content & any games beyond COD being exclusive would see that revenue take a hit!
Not to mention the likes of $1 upgrades of Gold memberships etc.,where Microsoft parent company has been subsidising Gamepass, you'd imagine it'd take a while to pay for itself.🤔
@render Yep,much like that hypocritical Gamer Phil statement of not seeing any benefit of Helldivers 2 not being on Xbox,yet was quite comfortable spending billions on Zenimax & Activision & taking future releases off rival platforms very much reeks of the "All your bases belong to us,mwhahaha!" mentality with this memo! 🙄😂
@Jayslow same here didn't use to be so bad but seems soon as star field dropped it went 💩 even said an hour before 🤣😂😭I dont really use it but for the weekly challenges I occasionally did to just load the game up needed to play
@Nei
this! you say it in a small sentence that takes Phil 20 pages, but honoring yourself is also worth a lot. Especially as an American company.
The arrogance of that man is just unbearable
@Pat_trick this is my favourite comment on this site, ever.
@Johnnycide Thanks! Just doing my best to contribute to society and the meme machine that Phil Spencer is!
"The name of the game is the game." - Peter Main (90s Nintendo VP of S&M (Sales and Marketing, you pervs))
Man, Phil Spencer’s blatant fakeness and disingenuousness will never stop making me feel a little gaggy. He really tries to act like him and Xbox are Jesus of the video game industry.
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