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.
My time and energy spent on cutting edge, AAA gaming has plateaued. Four years into a console generation, the graphics, audio, and gameplay of most games I play are indistinguishable from the experience six years ago. Over 2024, I only spent a fraction of my gaming time with Hellblade II and Star Wars Jedi: Survivor, the two games that taxed my Xbox Series X this year. The rest of my play has been with small indie games (e.g., Balatro, Dungeons of Hinterberg, Star Trucker) or evergreen GAAS like Fortnite and EA FC that are generally playable on 2013-era console hardware, my aging MacBook Air, or even my smartphone.
I used to rationalize my shift away from tech heavy gaming as a personal outlier. As my tastes moved from mega AAA twitch action games and RPGs toward the quirkier indie space, my hardware needs lessened accordingly. Alternatively, one could argue high end hardware is “held back” by many new games still releasing on last gen consoles. But the more I look, the more I suspect I’m part of a trend towards smaller, less graphically intense games derived from indie studios.
When I listen to enthusiast gaming podcasts, among a crowd that may play hundreds of games a year and spends thousands on gaming hardware, the conversation focuses heavily on the PC indie space (e.g., Lethal Company, Phasmophobia) and small niche titles on the console. Across Reddit, ResetEra, and other gaming-focused social media, discussion for a tiny retro poker strategy game like Balatro may run as long as a big budget Black Myth: Wukong or Dragon’s Dogma 2.
Senua’s Saga: Hellblade II (HB2) is one of the most fascinating games of the year. At its core, it’s a linear “walking simulator” like Everyone’s Gone to the Rapture, made with AAA levels of polish. Creative dissonance between initial expectations and the final product has fueled a polarized reaction to the game across reviews and social media.
A debate over HB2 felt inevitable with how fundamental gameplay is to most games and how strongly HB2 deemphasizes traditional gameplay mechanics. Pick any title at the top of sales charts; gameplay elements are almost always pivotal to their success. Elden Ring has best-in-class action RPG controls. Fortnite allows high degrees of player customization while providing many game variations, from battle royale shooters to Lego building and car racing. The Last of Us is best known for its post-apocalyptic storyline but is also lauded for its stealth action combat.
However, HB2 takes a deliberate approach by limiting gameplay options to focus on characters, setting, and mood. The majority of HB2’s runtime is spent guiding the protagonist Senua through an environment, allowing players to absorb the scenery and engage with the dialogue. There are no fail conditions or choices, just a linear journey from point A to B lasting about six to eight hours. While combat battles and puzzles exist, the action is straightforward (some argue outdated), repetitive, and easily skippable.
According to The Verge, Microsoft is debating on whether to add the new Call of Duty on Game Pass. It’s a no-brainer: COD would easily be Game Pass’s most high-profile title, giving a potential injection to growth to its otherwise plateaued subscriber base.
Opting out COD from Game Pass will effectively end the service as Xbox’s final differentiator against PlayStation, Nintendo, and Steam. A case by case treatment of “our games will come to Game Pass day one” will annoy existing subscribers. Nor is there any clear criteria – budget, branding, genre – to distinguish what enters Game Pass day one in a way that’s satisfactory to both Microsoft corporate or the Xbox player base. Even with clear messaging, in losing some day and date first party titles, a weakened Game Pass no longer properly distinguishes itself from PS5’s competing PlayStation Plus service.
Admittedly, corporate accounting will provide insight that I can’t speculate on. Maybe Microsoft ran the numbers, and a game of COD’s stature on Game Pass is simply too big of a sales revenue hit to ever swallow. Perhaps Game Pass’s long-term fiscal sustainability is long past the expiration point, and this is just the first in a line of walkbacks to slow the burn rate down.
It’s sadly easy to become numb to the news of more layoffs in the gaming industry, given its frequency over recent months. But Microsoft’s shutdown of four Bethesda studios stands out for its blatant reversal of Xbox’s purported post acquisition, Game Pass-centric future. The about face erodes trust in the Xbox brand and questions whether there’s any coherent first party strategy.
The shuttering of Tango Gameworks was particularly galling. The studio’s latest release, Hi-Fi Rush, exemplified the independence, creativity, and high quality that Xbox leadership claimed their first studios should aim for. Hi-Fi was a critical darling, landing on many critics’ top 10 lists, won a BAFTA, and was Xbox’s highest first party game of 2023 on OpenCritic. It also was a creative risk for Tango Gameworks, a bright, colorful throwback to the Dreamcast era for a studio that built its reputation on survival horror games.
Hi-Fi’s excellence also leveled up the value of Game Pass, Xbox’s greatest differentiator against the competition. It’s a draw for the service on its merit and the kind of high quality gem that can serve as an effective gap between some major AAA releases on Game Pass to minimize customer churn.
Fortnite is a gaming success story that is paradoxically underreported, underrated, and misunderstood by the many new games as a service (GaaS) that try to emulate its feature set. Mainstream hype about Fortnite (e.g., billion dollar Disney investments, musical collaborations with Lady Gaga) obscures a primary reason the game continues to crush virtually every would be competitor in its path: it nails its fundamentals beautifully.
Every time I boot up Fortnite, I have enormous flexibility to play how I want. Within its multiplayer shooter core, there’s an immense variety of skins and other customization options. The artistry isn’t always for me, but the cosmetics set a consistently high quality bar. When I start a multiplayer match, I can chase the XP goals I’m in the mood for, whether combat-focused, exploration, or a mini battle pass narrative story. Skill based match making strikes a good balance; I can challenge myself by purposefully landing in frenzied hot zones or begin a match far away from the action to take things at a slower pace.
Fortnite also respects my money and time. Its battle pass doles out decent, reasonably varied rewards at a faster clip than most of the competition. Even half finished, I end up earning enough V-bucks to allow me to buy a future battle pass at a reduced rate. The time to kill is reasonably high compared to other popular shooters like Call of Duty or Apex Legends, which gives me a competitive opportunity to react and fight back against better players. Matches rarely last longer than twenty minutes.
Watching Grounded II, a documentary on the making of The Last of Us: Part II, revealed unexpected parallels with my career. Making video games differs from shipping web apps, but the doc highlighted common challenges in navigating developers through hard deadlines, decision making, and resource management. I walked away from the experience with a newfound appreciation for how engineering managers can help ship great products.
Naughty Dog, the studio behind TLOU2, didn’t share my optimistic view on EMs. For most of its history, the studio went against industry trends by rarely hiring producers (dedicated roles to manage the project’s timeline and resource needs) or people managers. Department leads served as both individual contributors and quasi-managers. Naughty Dog leadership argued the producers and managers were a “crutch”, bureaucratic red tape that slowed down productivity and stifled creativity. Boasts around flat studio hierarchy appear as an aside in the documentary’s opening act.
During last week’s business update, Microsoft leadership reaffirmed two differentiators for the Xbox ecosystem: Game Pass (every first party game coming day one) and platform accessibility (cross-play, cross-save, cloud streaming). Yet I don’t see either feature today as a compelling reason for net new gamers beyond the PC and console core – Xbox’s stated long term growth target – to jump in with Xbox. They are features with huge potential but are stuck today in alpha mode.
Game Pass unquestionably has a lot of great games, but most of the library encompasses small, under the radar indie titles or older catalog hits. Microsoft puts all its first party titles on the service, but none have the marquee prestige and popularity of franchises popularized on rival systems from Sony and Nintendo. Furthermore, I find the onboarding process on Game Pass intimidating for newcomers. There’s a bewildering number of choices, and the Game Pass app’s recommendation system is limited and simplistic; there’s no sense of individual game length or difficulty to guide new players.
Recent news suggests Microsoft will shift Xbox to a multiplatform release strategy; existing and future first party games, including Starfield, Indiana Jones, and Gears of War will be ported to PS5 and Nintendo Switch. While we won’t know the whole story until a “business update” next week, I expect the change to be extensive, with many if not most top tier titles available soon on PSN and the Nintendo Store. In the face of lagging sales and stalled Game Pass subscriptions, the corporation is making a big bet that will attempt to thread a needle: keep an Xbox ecosystem sustainable – digital purchases on the Microsoft Store, lively Xbox Live network, Game Pass subscribers – while going multiplatform with in house studio games to generate additional revenue.
It’s a risk; no gaming company has succeeded as such an extensive third party publisher and simultaneous platform holder. Executed poorly, the plan could push the Xbox ecosystem into an eventual death spiral: gamers shift away from Xbox with its lack of exclusives, the install base drops, so other publishers stop porting games to Xbox, which leads to fewer players, until eventually Microsoft pulls the plug. Xbox hardware and accessories are dead, the digital library goes kaput, and Microsoft becomes a pure third party publisher like Sega.
Many professional critics consider 2023 one of the best years in gaming we’ve had in a long time. OpenCritic underlines this opinion; more games than average this year landed a coveted score of 85 or higher. But I was left mildly underwhelmed by what I played.
“Keeping up” as a modern console gamer is a challenge, with time available as my main hurdle. Many of the most acclaimed games this year – Baldur’s Gate 3, Zelda: Tears of the Kingdom, Cyberpunk 2077: Phantom Liberty – are massive action adventure RPGs. They demand at least thirty-plus hours of my time to complete and are challenging to dip in and out of casually. Multiplayer experiences like Call of Duty or Halo Infinite still have a steep learning curve to play competitively. I never felt like I had the focus (or reflexes) to play matches without being repeatedly ripped apart.
The big budget games I did invest time into this year almost universally underperformed. Forza Motorsport is excellent when I’m racing on the track, but the overall single player experience lacks personality, and I’ve encountered many game breaking bugs and crashes. Starfield has gorgeous production and audio design, and I had a blast running through the game’s many faction quests. But eventually, character progression felt meaningless, with exploration that felt like a total afterthought. Diablo IV, as I’ve written about previously, had a great gameplay hook but suffered from a lack of variety and forgettable narrative. Call of Duty: Warzone’s DMZ mode was a mid-year multiplayer favorite, but Activision effectively killed it off.
Stumbles aside, my favorite game experiences this year, as in 2022, remained shorter. You can easily wrap up three of the five listed here in twelve hours or less. Another has daily puzzles that routinely take me under five minutes to complete. All have been a blast to play and are accessible enough to recommend to almost anyone.