
Talkative Xbox executive Phil Spencer says he’s given up trying to convince PS5 owners to switch to Microsoft’s machine, as his company increasingly becomes multiformat.
“I’m not trying to move [PS5 players] over to Xbox anymore,” he told the XboxEra podcast. “We’re all so invested in where our games are, let’s just allow more people to play.”
During its attempts to acquire Activision Blizzard, Spencer told courts that every time Microsoft sold a game on the PS5, Sony would pocket 30% of the income and use it to cut deals with third-party publishers, blocking the release of those games on Xbox.
The 30% fee applies to all third-party publishers releasing their games on PlayStation, and is generally considered an industry standard for any platform holder.
As his company brings more and more games to PlayStation, Spencer was asked if he still feels the same way about effectively lining Sony’s pockets with his own company’s software.
“It’s maybe not what I was going to say [during the Activision Blizzard trial] at the time but yeah, I would love to make all of the money for all the games that we ship right now,” he explained. “Obviously we make more on our own platform, it’s one of the reasons that investing in our own platform is important.
“But there are people – whether it’s their libraries are on PlayStation or Nintendo, whether it’s that they like the controller better, they just like the games that are there – and I don’t want to then look at that and say ‘Well, there’s no way that we should be able to build a business there, find fans of our franchises there.’”
Spencer continued that the 70% it makes on other platforms ultimately will help his company to build a “great portfolio” of games.
The reality is that Xbox spent close to $100 billion buying two multiformat publishers, and with sales of its hardware torpedoing, it threatens to devalue those investments by restricting its releases to a flagging brand.
As a trillion dollar company, Microsoft may have deep pockets, but it’s not immune to the rising costs of development, and considering Game Pass has also affected full-price software sales in its ecosystem, it needs to start finding some income somewhere – even if it is only 70% of the software it sells.
[source youtube.com, via videogameschronicle.com]
Comments 58
It's because people dont trust you "Lies of P"
I'll be more interested in Xboxs summer showcase to see how may of those trailer end with a PS5 logo. I'll glady support whatever they want to bring over. 😁
I never noticed they were trying.
I think that it's overall good for the industry if the xbox dies. The Series S is an anchor.
Xbox has spent more money in Microsoft history than any other division and has not earned as much as the other divisions that is y ceo Nutella has been so heavy handed and y Phil has been seen flip flopping in his statements since Nutella has directly went against Phil initially and than u see Phil change his mind a week later
Losers mentality. PS3 started its race against X360 very poorly but it came back and was profitable, the same applies to the Nintendo 3DS. Phil Spencer is simply too incompetent.
@PushSquareUser competition is good and helps maintain a level(ish) playing field in regards to keeping costs in line (mostly) so no I personally don't see the need for the xbox to cease. The series s thing definitely as that white slab really isn't necessary and I think it was a failed experiment by Microsoft. If the xbox goes the way of the dodo which console will you push for elimination next? Nintendo?
As I said in another post - considering the vast majority of revenue on console comes from Microtransactions, and MS get 0% if they are sold on rival platforms, I really don’t understand Spencer’s strategy. He said that he prefers 70% rather than nothing, but if Xbox sales plummet further next gen and they lose that 30% of FIFA, Fortnite, and GTA6 revenue, is it still really worth it? I don’t know the numbers as well as they do, and I’m sure they’ve looked carefully, I just don’t really see it given how much revenue comes from Microtransactions.
Game Pass coming to PS5 is 50/50 at this point.
I personally don’t think Xbox not making hardware is a bad thing. I appreciate the lack of competition angle but realistically if Sony becomes complacent from a hardware perspective all of the game publishers will lose out. There will still be huge pressure on Sony to get it right with the hardware. Games themselves will still be driven by competition, and pc specs will keep Sony honest. Those fearing a monopoly are doing so unnecessarily in my opinion.
Wait, he was actually trying? 🤣
@Northern_munkey how is Xbox competition when nobody really buying the thing. the ps5 is outselling the Xbox series consoles almost 3 to 1, software sales are also in the toilet for Xbox. it’s time for Microsoft to get out of the console space and stop wasting resources fighting a battle that they’re losing badly.
I have an Xbox for backwards-compatibility, FPS Boost, and the odd game that skips PlayStation. Phil's lucky that the first F.E.A.R. game and Orange Box compel me to have the Series X.
More options for gamers is never a bad thing. Just because the Series S, with its cheaper price point (along with gamepass to boots), isn't for you, that doesn't mean another gamer won't benefit from it, especially those gamers who are struggling financially.
@Northern_munkey as much as I think the S really provides a challenge (at the tech-level it released at). However, I do think it provides a good head-start to develop a portable device (to understand how to run the much lower-specced machine).
Just go Phil. Your grasp exceeded your reach.
Your plan was poorly executed.
And people have lost faith in your words.
Even when you speak, you sound defeated and wonder where it all went wrong.
Just go man and keep some dignity.
Was he waving a little white flag while he said it??
Though on a serious point - Microsoft may have "deep pockets" - Xbox doesnt, and they still owe MS investors/ shareholders nearly $100bn.
@thefourfoldroot1
I think you raise a very good point - and I 100% agree they are losing customers / putting off their current user base over their putting games onto PS strategy.
Perhaps though it is even more anecdotal evidence that this has no basis in long term business strategy, but has far more to do with MS investors / shareholders wanting a more immediate return on all those billions they spent on Activision.
Activisions purchase may well be remembered as an example of "be careful what you wish for"!
@Oz_Who_Dat_Dare @Northern_munkey
I think the Series S is a great thing, from a weird point of view.
It helps to keep SOME devs ambitions in check when making next gen games.
Too much ambition and we end up with far more PS5 games that have poor/unplayable performance issues.
At this moment I'd argue Xbox's recent and upcoming output is significantly better than Playstation's. At the moment I'm playing Indiana Jones, whilst looking forward to Doom and playing Sea of Thieves online with my son, yet Xbox have made it so that I don't need an Xbox to do any of that, so I do so through PC and PS5.
Which for me is fantastic, as all I care about is playing the games I want to and get to do so at much higher quality then if they were just locked to their consoles
@LifeGirl Real talk, If it did come to PS I would sign up, you just can't ignore a deal like that.
@Ilovecoffee I think the point is having series s versions as mandatory by Xbox is holding back many multi platform games. If Devs were allowed to opt out of Series S versions ps5 and Series X would benefit more
Outside of the anglosphere, MS doesn’t really try to advertise their series consoles in a serious way. There are more gamers than just the people in the USA and UK. They have themselves to blame for conceding so many markets since the X360 era.
Well, I would give up too.
People prefer to play in a 2014 tablet than playing on an Xbox.
And I wish I was kidding, but people forget Switch managed to overtake Xbox One in three years.
That makes sense, if they couldn’t convince people to buy their console, they can at least make money by letting their games go to where people are buying. A 70% cut is still better then no sale at all
Removed - unconstructive feedback
@PushSquareUser but releasing games still on the ps4 isnt?
Removed - trolling/baiting
I'm struggling with the maths, @get2sammyb. Perhaps you can help me out?
$75.4 Billion + $8.1 Billion = $100 Billion... 🤔😉😂
@LifeGirl If they strip it back to MS only games then its a possibility, it would be interesting to see how they would price it tho. Not needed for online play, not needed for cloud saves, no third party, possibly not play anywhere?
Does that mean GP - Playstation would be £10 a month instead?
ms might have deep pockets , but xbox is just a small portion of their company , so if it comes between their other products that sell better then xbox , who do you think is getting that money? but it makes sense , ms makes products for apple and apple makes products for windows. but thats never stopped macs or pcs from being made.
@PushSquareUser well not really good for the industry if Xbox dies is it?? Without xbox playstation has no competition and without competition there'll be no development and we've all seen how bad Sony can become when they're arrogant, and if xbox dies that level of arrogance will go through the roof. So no, xbox dying will not be good for any part of the industry. You're just to short sighted to realise.
@ButterySmooth30FPS
Originally, got it for Starfield..........whoops...
But it's still worth for b/c, cause Far Cry 2, Fear, SW games
Oh and 270 hours of Stalker 2
Phil's messaging has been idiotic though
At the end of the day, 70% of a 3 times larger audience is a lot more money than 100% of a much smaller one. As a purely business decision on the software side, it makes sense; but how does the XBox hardware fare when they start loosing what distinguished them from the PS?
I remember all the Phil philating Sony fans used to do about how great he is and how transparent he is. Yes, the man who ran a brand into the ground is great. They spent enough to feed a 3rd world country on acquiring Activision, only to have to mean absolutely nothing in the end.
I’ll admit though. Maybe this was Phil’s job the whole time. I remember 20 years ago when I worked for the now defunct Washington Mutual Bank. We had a CEO come in and worked for 13 days. They needed up selling to Chase Bank and the 26-days-on-the-job CEO walked away with a 26 million dollar bonus package. I think something similar to this is ultimate what they wanted Phil to do.
I've been here for all of them and I can only remember two generations that were competitive. Usually one machine blows the other(s) out. Probably why Nintendo switched demographics after the Gamecube struggled against the PS2.
At the end of the day Xbox and PlayStation are just formats. And just as the world didn't need Betamax and VHS, we don't need Xbox and PlayStation.
I've always thought the Xbox was a technically superior system, but aside from a small handful of titles over the years, there was not a lot I was interested in that I couldn't get on a playstation. I did purchase the original Xbox, but there were maybe 3 games on it that i enjoyed that I couldn't get on PS. Not worth it. I'm really glad though that Xbox has decided to bring it's games over. I've really enjoyed Sea of Thieves, and am looking forward to Forza and Flight Simulator.
@PushSquareUser YES! Series S is what has been holding back this gen more than anything. (From the third-party perspective)
Obviously they bought Bethesda and ABK thinking lots of people would switch, but they didn’t and it likely angered the shareholders. So not surprised.
@Jay767 Sony are outselling Xbox 3:1 because they are competition...
If there were no competition for Sony, Sony don't have to worry about having the best hardware, about attracting the best talent or making the best games. In that case the industry can stagnate - why work to release a new console when you're the only console on the market? Why cut deals with CPU/GPU manufacturers to make bespoke chips that are better than anyone else's? Why work to push technology with things like creating the fastest SSD?
If there is no competition, you don't have to worry about making the best console or games. You don't even have to worry about innovative features to differentiate your console from your rivals, like the haptip triggers on the DualSense, because whatever you put out is the only option.
Competition is what drives industry. Sony need competition because that is what drives them to make the best console and games possible.
@Rich33 @Oz_Who_Dat_Dare I can't really argue both your points as both are valid but to me personally the series s was a dud. I wanted a higher tech leap than that and it was never on my radar. Neither was the series x to be honest. Had my fingers burnt with the 360 and I'm just not ever buying an xbox again. PlayStation all the way for me.
@Jay767 I was at work so couldn't reply but by the time I got home @ZeroSum explained it better and more eloquently than I could be bothered to.
I think Microsoft should get rid of Gamepass because that's what's really hurting them they got enough game publishes now where they don't need gamepass anymore because gamepass is the reason they got to put their games on other consoles
@CallMeDuraSouka How could I forget Far Cry?! I have 2, 3, 4, Classic, Instincts: Predator, and Primal on Xbox. Along with the F.E.A.R. trilogy, Oblivion, Fallout 3/New Vegas, Dishonored/Death of the Outsider/2, and Prey.
They never recovered from Xbox One and they knew it when they ended up having to release the XSX a console that Xbox One should have been (with the tech we had at the time). Instead it's team of idiots with Don Mattrick at the helm a man who apparently wanted the Xbox division buried did just that. TV TV TV but no gamers wanted a more powerful box to continue the 360 run to be able to play their 360 games still and original Xbox.
Now they only way to stay relevant as a Brand was too pay big money for publishers/Devs to become 1 big one and get games on other systems.
We need competition in the console hardware space.
We currently lack it in the PC space and this has resulted in appalling outcomes for consumers.
The 5080 offering costing >£1000 for a 12% performance boost over a 4080 for example.
When previously back in the 00's and 2010's you were looking at £500 for a 35% boost over the prior model.
In the console space, we've already seen what Sony try to pull when they think they have a monopoly. The PS3 launch price being the prime example.
Those of you grumbling about the cost of the PS5 Pro ain't seen nothing yet.
The problem is, it's no good MS or another manufacturer putting forward a viable alternative when many PS gamers seem to have a religious zealotry towards the ecosystem, and wouldn't switch if an alternative was half the price and had double the games/power.
Hence why MS were doomed once the PS4 generation was lost. They were never going to switch.
Much as PC is not a good market at the moment, I'm glad that I for one have that alternative, where as most of you are going to be at the mercy of Sony.
@Northern_munkey
100% agree there, as someone who upgraded to Pro on day of launch, series S was definitely not for me either lol!
@ZeroSum
I agree with all you have said (#41), and well put, but I do think Sony have competition at least for next gen - themselves.
I dont agree with some others negative opinions on hardware this gen - I think Sony have really been trying to make their hardware as good as it can be to hit the pricepoints, and think they have done an excellent job all told in this regard, particularly as cooling systems have become more important.
But PS6 is going to have issues - Tech is just not getting much cheaper over time, and I think PS6 is both going to be more expensive than people want, and less powerful than people want - even if Sony try their absolute best.
Just my opinion, but those people not happy with Pro (I really like mine for the record), are going to be very, very disappointed.
I think that that will create some form of competition in that its going to be more difficult for them getting people to upgrade to PS6. Obviously there is the point of do they care as long as you are in their ecosystem, but they dont want PS6 to be the worst selling PS console in history.
Beyond PS6 is a different story maybe...
How many more times can Phil say the same thing slightly differently before it stops becoming newsworthy?
It's not about switching. Myself and plently others had both 360 and PS3, Xbox one and PS4, it's just there was virtually no point in wasting £450 on a XSX, and now even less so. If consoles were still £200 then we'd see more and more people owning both, but at this price point it's very hard to justify owning both (for most people)
@Cornpop76 i hate to tell you but there hasn't been a competition with hardware in over 20 years. people acted like there was one , and it was played up like there was one. but no ones come close to playstation with them selling over 400 million consoles. as far as the ps5 pro , im pretty happy with mine. people want advancements in hardware but you have to pay for it. the true competition is between software with studios trying to sell copies of games.
@Cornpop76 Most PS players are not religiously tied to PlayStation, they are just anti-xbox. Replace the xbox with something made by steam or sega or any other company and they'd be interested. The hardware problems with the 360 and the nonsense MS pulled with the Xbox one just put people off the brand.
I still keep my Xbox around for Xbox One games or back compat or CD app or whatever else. On PC eh. On Xbox yeah I look at the apps on the Windows Store and different use case on an Xbox, I see more reason to. It's locked down might as well work with whatever is there.
Windows Store apps work but I can just go for other open source ones if I don't use the free good enough apps on the PC. On Xbox I see way more reason to where Switch/PS have the bare minimum. If I don't see other music apps and don't care for Spotify. I'm going to an Xbox or using my Phone alongside my Switch/PS4 like I do my retro consoles without those apps or a local storage of another device.
Quick Resume has a benefit but it's not enough.
Money between different platforms is understandable, their default console/loyalty, etc. But eh I barely used a Wii/DS, now I use Nintendo consoles/bought Wii U, 3DS and Switch and DS/Wii games I missed out on and more. But I'm a collector now.
Those that went digital don't want more digital stretched across and I get that. I think it every time I look at Switch/PS4/Vita and wallet cards but I balance it out.
I use whatever console I have for whatever copies of games I see in physical stores, the rest is PS4, Vita (get around to PS3 at some point) and Switch digital compared to Wii U/3DS digital.
If a see a copy I use it on that console. I don't mind.
They don't offer COD OG Xbox games, I got the PS2 versions instead. They put the first few on PC that's fine, but I'm playing console entries so PS2 it was.
@FuzzieGinge88 if and when Xbox leaves the console market makes room for another.
@PushSquareUser
I have a feeling this attitude will change when we all see what direction Sony goes when it becomes the only option for high-end console gaming. I prefer PlayStation to Xbox, but the latter giving up is most definitely not a good thing.
XBOX CEO gave a Pikachu shocked face for realizing his effort to convince audiences to buy XBOX machines when he literally keep giving away their XBOX games to other consoles and expecting money will comes to XBOX.
I was thinking that XBOX CEO is a clown, thirsty for attention with dumb decisions.
@Jay767 there’s little wonder people aren’t buying Xboxes, there isn’t any stock ( at least in the UK ). Smythes is the only place with All Access, they haven’t had an XSX in stock since well before Christmas with no ETA of a restock, same with Argos, Curry’s, EE Shop, and even Amazon. MS have no one to blame but themselves for the lack of hardware sales. There’s little wonder they’re releasing games for PS5….
That presentation for the Xbone back in 2013 really did them in. I can't even imagine how many gamers who were happy with their 360 that gen said "f this" and went with PS4 and never looked back. I know at least one of them lol.
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