In spite of Xbox undergoing what will be one the hardest strategic pivots in gaming history, under the stewardship of one of the most valuable companies in the world, the venerable gaming brand can’t sell (or settle on) a cohesive, long term vision to save its life. Paired against the backdrop of few Xbox first party releases, Microsoft in 2024 has found itself in a PR vacuum.
In its wake, there has been a drip feed of negative or otherwise confounding news stories. The year started off with the Xbox “business update” in February, where Microsoft heads hemmed and hawed about the reasoning behind four of its exclusives heading to Switch and PS5. In May, Microsoft shuttered multiple game studios including Tango Gameworks, with unclear reasons from studio chief Matt Booty. July saw price hikes on Game Pass and a new “standard” tier that removed day one games, the defining feature of the service. Then, in August, as part of Gamescom, Xbox showcased previews of their flagship holiday game Indiana Jones and the Great Circle, only to reveal the game would also be heading to PS5 next spring.
The consensus view across the Xbox faithful and larger enthusiast gaming community hasn’t been positive, with some considering recent actions a betrayal. I find a lot of this anger misguided, deriving from a dated console warrior mentality that champions exclusives to prove one platform is somehow better than others.
Yet Xbox’s externally facing strategy is confusing, if not flat out contradictory. Much of the speculation on the brand’s future (including multiple posts here) is justifiable. Why talk about building high quality, original games like Hi-Fi Rush, only to shut the studio down? Why promote day one games as a defining feature of your flagship subscription service, Game Pass, only to introduce new tiers that don’t offer this feature at all? Why are first games like Starfield and Avowed only on Xbox and PC, while Doom: The Dark Ages and Indiana Jones are also making the leap to PlayStation? Why promote new ways to access Xbox Cloud Gaming through partnerships with Amazon and Samsung hardware, without meaningful upgrades in the service for years?
Cynically, there may be no vision. Infighting and indecisiveness between Xbox corporate veterans and new directives from the top echelons of Microsoft make a cohesive strategy impossible. Yet I suspect Xbox leadership including Phil Spencer and Sarah Bond does have a radical (by 2024 console standards) plan but is afraid of angering the diehard Xbox customer base. Their guarded PR fails to reassure Xbox’s existing audience and makes a weak case for why individuals should continue to support the brand.
If Xbox wants to go the distance as a proper ecosystem – native hardware, Microsoft digital store, Game Pass – and not just a third party publisher, it’s overdue for the brand to publicly clarify an easy to digest vision of the future. That requires a commitment beyond the half measures taken today towards a future that’s unafraid to break from the past.
It starts by championing their upcoming first party lineup – not just in PR marketing hawking individual titles, but by making a selling point that connects the variety and quantity of output at the high budget level. At this point, with Bethesda and Activision Blizzard, Microsoft have the kind of war chest that could stagger out multiple large releases in a way no other studio group could. (Regarding quality, it’s a fools errand to go toe-to-toe with their peers at Sony and Nintendo today, especially after stumbles like Redfall. Reputation is only built up over time.)
A strong first party makes a compelling case for Game Pass, even with the recent price increase. Game Pass, in turn, presents a competitive edge to stay within the Xbox ecosystem. You can pay us $70 on PS5, or come over to and get the game and hundreds more for $20 a month on Xbox.
But Game Pass alone isn’t enough, as evidenced by the subscriber base plateauing and hardware sales plummeting. Leaning on stock Windows PCs to be the future of the brand won’t cut it; Xbox needs additional “console like” product to ensure an accessible way into the Xbox ecosystem. That’s why Microsoft needs to produce innovative hardware, the kind that’s appealing on its own, with a feature set distinguishable from offerings by Sony and Nintendo. The pitch is straightforward: instead of being locked into a single console with the other ecosystems, with Xbox, you’d have the flexibility to pick the hardware that suits your needs and budget.
An Xbox-branded hybrid PC console feels like the right start. This would be a living room friendly gaming PC that boots into a familiar Xbox UI. Existing Xbox console games just work, and power users can install other popular stores like Steam for PC gaming on the same device. There are also rumors of an Xbox handheld, and if there’s anyone who can elevate a mostly so-so base of portable gaming PCs, it’s Microsoft.
Beyond portable and hybrid PC offerings, Xbox should double down on investments in Xbox Cloud Gaming. We’re not yet at a reality where console/PC level game streaming has broken mainstream, but Microsoft has the infrastructure and R&D to potentially succeed here. Executed well, it also provides a low cost of entry for a new audience: pick your mobile platform or hardware dongle of choice, and with a controller you’re ready to go. Today Xbox Cloud Gaming lags behind alternatives like GForce Now, but with the right investment, Microsoft could entice a new audience. At a minimum, Xbox needs a cheaper, cloud only Game Pass plan, less latency for action oriented gameplay, and access to your purchased library.
Xbox should get ahead of the news cycle on the Switch 2 by announcing more detailed hardware and cloud plans soon, even if the changes are a year or more away. Something like the 2016 “Project Scorpio” tease – where Xbox talked up what would eventually develop into the Xbox One X – would be effective. Put some talking heads online to talk vaguely around what’s coming, or add a teaser trailer at the Game Awards this December.
And while staking a public, more comprehensive view on the future has its own risks for Xbox – a pivot later on would be especially damaging – it’s a far better alternative to inaction and dancing around the subject. Brand loyalists are already eying alternatives. Sony and Nintendo are looking stronger than ever, while PC gaming on Stream only grows in popularity. Xbox has a narrow window of opportunity here; for the sake of healthy competition and innovation, I hope they take it.