Xbox CEO Phil Spencer Discusses Expanding Games to PlayStation, Emphasizes Xbox Hardware Ambitions

Xbox is undergoing some exciting shifts, yet there’s still a buzz about the long-term prospects of the platform.

Since last year, Microsoft made waves by stepping away from exclusive titles just for the Xbox. We’re seeing Xbox games gradually appearing on PlayStation and Nintendo Switch. It began with Sea of Thieves, and soon Indiana Jones will join the list this Spring. I’ve reported that even legendary Xbox titles like Halo are eventually headed to PlayStation 5 and the anticipated Nintendo Switch 2. This follows Xbox CEO Phil Spencer’s remarks suggesting there are “no red lines” when it comes to making games available across platforms.

With this in mind, one can’t help but wonder why future consumers might opt for Xbox hardware. It’s a fair question, particularly given the steady decline in Xbox hardware sales year-over-year. A straightforward explanation might be the absence of exclusive games thus far, but is that really the whole picture?

A fresh interview with Xbox CEO Phil Spencer on the popular Gamertag Radio podcast (thanks to Klobrille for the heads up) aims to clear up Microsoft’s gaming vision and where Xbox is heading.

Parris Lily posed a thought-provoking question to Spencer, “If you’re bringing your games to other systems, what would keep someone wanting an Xbox when they can experience those titles elsewhere?”

Spencer emphasized the role of hardware innovation over exclusivity. “I want people to choose our hardware for the capabilities it offers, aligning with their playing preferences. Our goal is to let our hardware triumph on the strength of its capabilities,” he explained.

Spencer pointed out how the most successful games by 2025 will be those accessible everywhere, mentioning hits like Fortnite and Minecraft. “We aim to create a platform that supports creators looking to reach audience across all screens.” He reinforced earlier remarks from Xbox president Sarah Bond that Xbox is fully committed to hardware, calling it “fundamental” to their identity. “Our own hardware is intrinsic to what Xbox stands for. Let’s not ignore that our brand has ‘box’ in it. From my perspective, hardware is a pivotal part of what we do, but without restricting games to a single medium.”

With a nod towards innovation, Spencer talked about the future of Xbox hardware focusing on versatility. “Building hardware that excites customers to play, whether it’s handheld or integrated into TVs, is our aim. I spent time with our hardware team recently, appreciating their future plans. We’re learning from the likes of Steam Deck and other platforms what it means for Xbox to inhabit these spaces.”

Xbox has been diligently working to integrate its platform. “We’re not there yet, but I invest a lot of time with the team on this. I want continuous improvement. Our efforts with partners like LG on cloud technology are advancing our platform software, fostering an environment where gamers enjoy Xbox membership across any screen.”

Is Xbox’s path a daring gamble or a groundbreaking strategy?

Recently, I wrote about how Xbox Play Anywhere, rather than exclusives, keeps me investing in the brand. Not many might realize that buying an Xbox game often includes the PC version, complete with cloud saves, which is brilliant for multi-device gamers. Nonetheless, it’s uncertain how widespread this appeal is.

Spencer himself finds value in seamless gaming: “With my travel, I play on my [ASUS] ROG Ally as much as on any device. The joy is picking it up and finding ‘my games!’ In our recent Xbox Developer Direct, I stressed the importance of starting with Play Anywhere. The ease of save files transitioning to any screen I choose is increasingly vital.” It’s a sentiment I share—frequent travel makes portability essential for me. This convenience, however, may not be a universal requirement. But just like with Nintendo Switch’s dual nature of being portable or plugged-in, Xbox is tapping into something potent here. Still, execution remains crucial. Just yesterday, I highlighted disparity issues between Ninja Gaiden 2 Black’s Steam and Microsoft Store PC versions, with the former supporting NVIDIA DLSS but the latter not.

Without exclusive offerings, Microsoft’s proposition to consumers becomes more complex. “Get an Xbox because it’s the singular place for Halo” is much more straightforward than “Get an Xbox; you might play Halo on your phone one day too.” Yet, considering the fierce competition in the free-to-play arena, games like Fortnite that are playable with friends from any device become challenging to compete against unless you achieve similar ubiquity. Would the casual gamer buy an Xbox purely for the next Halo installment with so much accessible shooter content already at their fingertips? This is the conundrum Xbox is seemingly addressing. The likely answer is no.

As Spencer hinted, the spotlight may soon be on hardware innovations. Guesswork is all we have regarding the next Xbox console’s appeal, sans exclusive titles. Yet, don’t forget the Xbox 360’s triumph over the PS3 wasn’t due to exclusive games, but rather through better value and modularity. Could Xbox replicate that success? I wouldn’t dismiss the idea just yet. The upcoming roster of Xbox games appears robust, exclusives or not.