Xbox CEO Says There Will 'Definitely' Be Future Consoles

The executive tells Rolling Stone that cloud streaming is the priority, but so are handhelds and home consoles

[Obscure_Observer]

We are here to stay!!!

Day One!!!

Those people who were expecting Xbox to leave the console market and become a full third publisher just got their dreams crushed yet again!!!

[Einhander1972]

"Speaking about consoles, Spencer said that he loves that people are buying Xbox hardware, but notes that it isn’t a growth market.(it's shrinking for xbox) “Our biggest growth in Xbox players is on PC and cloud,” he said. “The console space all up isn’t growing , across all of them (Phil, Switch is close to being the best selling console of all time and PS5 is on track to sell 115-125m). We love those customers, but in terms of continuing to expand and grow Xbox, it’s about PC, it’s about cloud, ad it’s about making our games more available in more places.”

*my reply is in the (...)

Phil also said he wasn't going to close Arkane, CoD wouldn't cause layoffs, CoD wasn't going to cause an increase in game pass prices, they wouldn't add a new tier of game pass for CoD, they weren't going to put games on other consoles, then after they did that they weren't going to do more.

Phil says whatever he thinks people want to hear, the truth is, the console will only last as long as there are enough people to make it work. And the fact is they aren't pushing the console, they are pushing cloud, and moving towards being a publisher. Just like their ad the console is getting pushed way off to the side well outside the spotlight.

If all they need to do is sell a 20$ Firestick vs spending billions on console manufacturing to sell to you and the five other guys still on the platform then...

[Eonjay]

“Our biggest growth in Xbox players is on PC and cloud,”
This is the whole ballgame. Microsoft is going to follow the money. They are saying that according to their own internal data, they are getting most of their new 'Xbox gamers' through cloud and PC. Note: he didn't say 'players' he said 'Xbox players' (remeber that for later). The most important thing here is that Microsoft is getting most of these player from PC and cloud. Not from people who are going out and buying an Xbox (mostly because people aren't buying an Xbox). In order for their to be growth at the Xbox division, they have get new customers.

Honestly I believe that Xbox fans (and fans of the hardware wanting to see it continue) really don't care if get more and more cozy with cloud or starts making all of their games avalible on PlayStation/Switch as long as they continue to support the Xbox hardware.

As truthBombs said below as long as PlayStation and Nintendo refuse to support GamePass, there will always be a need in the console space for an Xbox. Xbox gamers should count their lucky stars that Sony and Nintendo gamers are still buying games on those platforms because that is the only thing keeping Xbox hardware around.

[Einhander1972]

Eonjay

Do you think Microsoft really cares about the fans of the ever shrinking console base (or anyone) more than they care about money?

Consoles are very expensive to make, they have traditionally used game sales to fund the cost, not only are there less console owners less MAU on the consoles that are already sold those people aren't buying the games that fund the console.

Xbox as a console only exists as long as it pays for itself. And PlayStation and Nintendo owners aren't funding the xbox console they are funding game development, they are making up for the loss Game Pass is causing.

[Eonjay]

@Einhander1972

I understand what you are saying but think about it this way:

Even if people aren't buying the Xbox in mass and even if xbox gamers are not buying games, there is one thing that Microsoft can not replace, and that it the nearly 25 million GP subscribers. These are people who are playing on console and this is still a huge part of the revenue of Xbox. Microsoft can start putting up ads that say 'diet coke is an Xbox' but suddenly getting all those people to walk away from consoles is a tall order. So, until Sony or Nintendo (or both) can accept GP on their platforms, Microsoft is going to be stuck with a bunch of subscriber who prefer consoles. Sony and Nintendo are forcing Microsoft to participate and keep consoles relevant even though they are trying like hell to do the opposite.

I can't predict how this will play out or who if any will cave first (Sony or Nintendo) and I will leave that up to the comment section to speculate.

[Einhander1972]

Eonjay

They would make more money if they convinced those people to buy a $20 Firestick instead of a $500 console they are selling at a loss and that requires a billion dollars worth of development and supply chaining and countless other costs that would be eliminated.

[crazyCoconuts]

I think both of you guys are right. If MS wants to keep GamePass around, they need a console. But they don't feel they need a "new" console anytime soon. Production costs for existing hardware will go down, and they can continue to ride that train for the next 5 years with slim versions, while releasing a stick or something to get more people to stream. I imagine most of the cost associated with the XSS/XSX is behind them so they're just riding it out.

[Obscure_Observer]

"Phil says whatever he thinks people want to hear"

Indeed. And the big irony lies in the fact that you fell for it.

You were throwing a party celebrating his "no red lines" comment just a few days ago. Feeling good thinking that Phi´s manipulative statements would turn your dreams of Xbox leaving the console market to become a full third party publisher to Playstation into a reality... Smh.

Sweet promises, bitter reality is all you got. Your dreams getting merciless crushed!

"They would make more money if they convinced those people to buy a $20 Firestick instead of a $500 console they are selling at a loss and that requires a billion dollars worth of development and supply chaining and countless other costs that would be eliminated."

You can´t say I didn´t warn you:

"Both Sony and Nintendo *needs* their console to sell well to keep their business alive. MS do not!

MS has the luxury to keep and continue with the console business just to be a torn on both Nintendo and Playstation´s side."

https://n4g.com/news/263852...

And here we are.

It´s over for you, friend. Time for you to just move on and enjoy your Playstation. We aren´t going nowhere.

[Lightning77]

As always you take things outta context by not giving the full quote. Because your extreme fanboyism can't take it.

"In regard to whether the company’s emphasis on cloud streaming and anywhere devices means that the they’ll cease developing new home consoles, Spencer had a definitive answer.

“We’ll definitely do more consoles in the future, and other devices.”

This is the third time they mentioned making new hardware. Twice by Sarah Bond and now Spencer.

You wonder why I insult you. You spread misinformation, lies or take things outta context I come after you. If you didn't so those things, I wouldn't comes after you? See how that works? I know you're super slow but see the pattern here?

Don't start crying again because I'm not letting you half quote things. Gas lighting, putting words on your mouth or whatever whiny thing you say.

[Reaper22_]

You just a hater of anything Microsoft or xbox. They have a right to make and sell their product if that's what they chose. If you don't like what they bring to the table then don't buy it. Xbox has millions of fans that enjoy what they are doing.They aren't perfect but they are definitely stepping up with the games.

[ABizzel1]

I doubt they’ll give up the console market immediately, but I definitely think they’re giving up the high-end console race and will continue down the path of a Series S like console considering the sales ratio, and look to other kinds of GamePass access devices like a FireStick / maybe a handheld / more Smart TV having direct access etc…

They’re not spending billions on hardware that struggles to move 50 million units, as the Series consoles combined are tracking…..(worse if they cut this gen early and launch in 2026 as rumored).

[Averyashimself]

I may be uneducated but I believe that microsoft is playing the long game (knowing that PC will overtake XB).

[Agent75]

I actually do think Phil Spencer is not all there and lives in the Land of Cuckoo. For years, he's told plenty of fibs and seems clueless when it comes to Xbox. I for one won't be spending my money on the next Xbox console due to lack of games.

[crazyCoconuts]

He also says there are diminishing returns on power now - pretty much rules out pushing more power unless there's something transformational going on. That rules out a XSX Pro and, if you think about it, rules out a new generation coming out in the next few years as well. In a prior interview he made it clear they're not going to release a $1000 console, so Sarah Bond's amazing leap in hardware can't be an uber console.
So what's left? Definitely a streaming stick, maybe slim versions of existing consoles, maybe a handheld (but I doubt it).
With Phil you gotta read between the lines imo.

[Knushwood Butt]

Power Your Dreams.

[MrDead]

"Those people who were expecting Xbox to leave the console market and become a full third publisher just got their dreams crushed yet again!!!"

Remember when you used to be excited for games? It's a very different message coming from you now,.

Xbox isn't even MS's lead sales platform, Xbox is becoming more and more irrelevant to and should be sold to a company that wants to grow the gaming industry not consolidate it for a streaming service that has only benefited a handful of select extremely wealthy people at the cost of thousands of jobs.

Let pray that other platforms can keep the sales MS needs or it's even more mass layoffs.

[thesoftware730]

MrDead

"Remember when you used to be excited for games? It's a very different message coming from you now,."

You say that, then talk about,

Hardware(which is the main topic)
The industry
Streaming
Wealthy people
Other platforms
and then layoffs

Everything except games lol. What's even funnier is that he does talk about MS games, all the time, but that is not the thread topic we are on right now.

What's funnier than the last funny is that no matter what the topic is, I see you run through the same broken record comment about consolidation, industry...bah, blah blah.

[Elda]

Again...who are "We" You own MS/XB??

[Obscure_Observer]

Don´t worry. Not you.

You said many times that you regret your SX purchase and that´s your first and last Xbox console. So I´m not even sure why you´re here in the first place, but whatever.

[__y2jb]

Xbox are $80bn in the red and will never make a profit in our lifetime.

They have humiliated themselves and gone third party to try (and fail) to turn things around.

Their console sales are abysmal and getting worse.

The entire industry is laughing at them and just how bad they have run that business.

So yeah, chin up boy.

[Reaper22_]

Lol..Xbox has been profitable for years. Sony sells way more consoles but when it comes to profit and wealth Sony can't compete and they know it. Just look at what they tried to do to stop Microsoft from purchasing Activision. Shame on them. It backfired and now microsoft is the biggest publisher out there.

[__y2jb]

Xbox stopped reporting their financial numbers during Xbox one when it would have shown the world how bad they were doing. They still do this because things have gotten way way worse.

All that said, they have $80bn profit (note profit not turnover) to make before they can make a penny. So yeah, no profit within our lifetime, guaranteed.

[S2Killinit]

Stay where? Stay streaming?

[RedDevils]

Just another Dreamcast.

[Reaper22_]

Or walkman.

[StormSnooper]

@obscure
Just because they release a console doesn’t mean they aren’t winding down console business. I don’t think anyone doubts that there will be another Xbox. The question is, how relevant it would be with MS practically moving on out of consoles. They can’t just stop releasing consoles, but less and less people will want to buy their consoles. It’s like cooking a frog in a frying pan.

[Elda]

LMAO! You really need to seek professional psychiatric help. You're always saying "we" as if you're in some XB cult or as if you own XB. Your fangirlism is completely out of control.

[InUrFoxHole]

@obscure
Same. I'm day 1 but the people who think MS aren't here to stay, console wise are only basing that off of MS's inconsistent and confusing messaging. You can't count on MS for excellent MP games and taking 2 steps back for every step forward. MS has always been MS's worse enemy. Gotta be objective man.

[Sonyslave3]

Once that ten years contract is up oh boy

[Einhander1972]

Indiana Jones isn't part of that deal and it's coming to PS5...

https://n4g.com/news/263889...

[Call of Duty]"Almost 75% of the game's sales came on PlayStation platforms, with 15% on PC and just under 11% on Xbox."

So PlayStation sold 3x more copies than PC and xbox combined.

Yeah, in 10 years it's more likely that everything including Halo is going to be on PlayStation.

[Michiel1989]

in the uk yeah

Also this narrative that when Phil says something that fits your story he's the most truthful man on earth but when it's the opposite he's just a liar. Easy pickings

[Reaper22_]

The majority of the money is going to Microsoft either way and thats the bottom line. Microsoft was smart to buy activision. And Sony was smart to accept the deal because they know they need and want COD on their console. A win for them and a even bigger win for Microsoft because out of those 3 paltforms they own 2. I'm sure Microsoft wants Sony to keep buying the game while they keep it on their gamepass service which will continue to make money by having gamers continue their subscriptions.

And lastly you are inaccurate with the 75% of sales on playtation. 75% of the full price purchases came from playstation not 75% of the sales. But like i said before it's still a win for Microsoft. They are bringing in lots of money from playstation as well. I'm sure that's exactly what they want and predicted because the majority don't care as long as the game is good which it is. Money is money. Playstation, PC or xbox. It doesn't matter.

[crazyCoconuts]

If they were going that direction, they would be lining up a whole battery of games as exclusives. Why would they give away all their crown jewels now just so they can claw them back in 10 years? They're going the opposite direction obviously.

[Kekewei]

So you guys slogan "Just wait for next year" is about to be changed to " just wait 10 years later"?

[StormSnooper]

By then there will be a competitor that would take its share. Franchises don’t remain as relevant forever. Look at halo.

[Christopher]

Why does the media choose the most known and boring bit of news to advertise in the title of an interview with a lot more being discussed?

[darthv72]

Oh come on now... this is no worse than the 'videogamer.com' articles.

[Christopher]

I don't disagree. But I still want better.

[Obscure_Observer]

Probably because the new (dumb) marketing piece from MS this week was a hot topic and sparked a lot of controversy among Xbox gamers on social media getting a lot of people worried on whether Xbox would continue to make Xbox consoles or not.

I swear, no company deserves Aaron Greenberg. Smdh.

[Christopher]

100% facts on that last sentence.

[Petebloodyonion]

Cause it makes ppl click on the said link?

[Christopher]

Opposite for me until I saw it was an interview. Otherwise, why would I click to see them say the same thing? Are you folk just clicking on the same news over and over?

[Petebloodyonion]

Honestly, I believe the interview title serves as Phil Spencer's direct response to the recurring claims that 'Xbox is dead' and to reassure Xbox users in light of the recent advertisements. Moreover, I agree that the rest of the interview is far more interesting, particularly with Microsoft's repeated claims that the Series X will not be their final console.

[anast]

Streaming consoles

[Petebloodyonion]

Damn!
Phil Spencer must really hate DreamcastGuy if he still can't allow Xbox to die at least once.

[darthv72]

That DC guy is 100% douche

[Agent75]

Only rated the Xbox 360. The last straw was the Xbox Series X. One of the biggest scams in gaming history all down to Phil Spencer.

[DefenderOfDoom2]

When "The Choice is Yours" by Black Sheep was released, i was producing on a P1 radio station here in Massachusetts called Zoo 94.5 and Djing in nightclubs back then . I told the Program Director to play " The Choice is Yours" and he did and the track became the most requested track for the next 3 months and now is a hip hop classic.

[JagX22]

With this dudes track record; why would anybody believe him?

[Chevalier]

Remember when this guy played Crackdown 3 then Redfall and the fans believed him when he said these games were good? Lmao

[Michiel1989]

remember when you all believe pr talk as truth? what is he supposed to say "nah didn't like it don't buy it". You would run your company even harder into the ground than they've done so far.

[YourMommySpoils]

Pheeeeew, for a moment I thought it was the end of the world and the PS6 was never coming.

[goken]

Virtual console maybe?
I hope not, Not a Xbox fan by any stretch. But some competition for playstation is necessary

[derek]

Philip Spencer says alot of things from time to time.

[Elda]

I don't believe it. At this time he just can not say they're discontinuing to make consoles down the road. Their path is slowly becoming 3rd party publishers & developers. They may release another generation of consoles, after that imo the gig is up. Action speaks louder than words.

[P_Bomb]

They still need consoles to push Game Pass.

[gold_drake]

mkay

[jwillj2k4]

Whatever he says they do the opposite

[DivineHand125]

If that console is walled off in the Xbox ecosystem then there is NO incentive to buy it.

[Hedstrom]

The next console could maybe sell a whooping 10 million consoles!

[gunnerforlife]

1 more Gen and they're gone To cloud only, they're only saying this so people don't stop buying their Boxes! What's the point of buying a console when you know they'll stop selling it soon.

[RhinoGamer88]

What a great gig Phil and his gamer bros leadership have. #failup #layoffs #deadconsole

[343_Guilty_Spark]

Ain’t going nowhere sucka

[LoveSpuds]

Never believe a word out of his mouth personally.

Here's what we know though. R&D, engineering, manufacturing, storage transport and everything else involved in bringing a console to market will cost hundreds of millions, if not more.

MS don't care about customers, it's purely about profit margins and they are not interested in breaking even or even profits in the 10s of million range, they want very high returns before anything is considered worthwhile.

Investing all of those costs for the sake of 35 - 45 million consoles sold is not going to interest MS. Having their reputation damaged as the narrative for a decade or more has been how much they struggle against the competition, is not desirable. Each iteration of console selling less than the last is definitely an issue.

I have no doubt that MS will move away from making consoles at some point, as soon as they are satisfied that they can maintain Gamepass on other ecosystems or as a mainstream streaming service etc.

Look at the promises made when they were in other competitive markets like mobile phones and MP3 players. If the return on investments aren't big enough, they will eventually cut their loses. Gamepass and publishing games as a 3rd party is making them money, selling the least amount of consoles compared to the competition each generation isn't.

[CrimsonWing69]

Great, but if all your games are coming to PlayStation I won’t spend a dime on your consoles. Wish you all the best!

[StormSnooper]

Where is the PS5Pro competitor?

[MaximusPrime_]

Woo hoo. Great news
More sequels to Halo, Forza, GoW! More remastered Halo, Forza, GoW! More remake Halo, Forza, GoW! A brand new doorstop!

[SoloZelot90]

My dear Phil. You only receive new players when they enter your ecosystem. No matter the word salad you use it will always be the Xbox consoles that shows interest in Xbox. People playing your games on PC aren't Xbox players. They are PC players. The same goes for playstation.

So if your console growth has stopped then yeah. Your console is dead.

All this clown is talking about is increasing software sales by increasing reach which eliminates the exclusivity incentive on Xbox consoles making it less of a growth area. In other words ..yeah they're dedicated to publishing their games in more places in order to increase software sales...they dknt care about hardware anymore.

[InUrFoxHole]

Great 👍🏽! Now address the lack of consistency in solid software.

[343_Guilty_Spark]

They’ve had a great year but your going to say the purchased the games. So what

[InUrFoxHole]

Wtf did you just attempt to say?

[Agent75]

Dear, Phil, remember that an Xbox console needs games. Regards.