Microsoft’s strategy shift: Xbox games on PlayStation, Nintendo

Four games that were once exclusive to the Xbox console will now be accessible on the PS5 and Nintendo Switch, reflecting the company’s emphasis on its software offerings

Microsoft has announced that four previously exclusive Xbox games will be available on PlayStation and Nintendo consoles. Additionally, it was hinted that details about the next version of the Xbox console will be revealed before the end of 2024.

During a video podcast with other Xbox executives, Phil Spencer, CEO of Microsoft’s gaming division, did not disclose the specific titles but mentioned that they are each over a year old. Two are live-service games and two are smaller titles, with multiplayer pirate adventure Sea of Thieves and musical action game Hi-Fi Rush being potential candidates. It was confirmed that last year’s space game Starfield and the upcoming Indiana Jones game will remain exclusive to Xbox.

This move represents a significant strategic shift, moving away from a focus on hardware sales such as the Xbox and towards increasing the sales of first-party games. Microsoft consoles have faced challenges against PlayStations since the original Xbox debuted in 2001. The PlayStation 2, which remains the best-selling games console of all time, outsold the Xbox by 155 million units to 25 million. The Xbox 360, launched in 2005, initially outperformed the PlayStation 3 before falling behind once more. The introduction of the Xbox One in 2013 saw the company alter its strategy and attempt to promote the machine as a digital-first multimedia device. This move alienated core gaming fans and provided a significant boost to the PlayStation 4. By the end of that generation, PS4 consoles had sold more than 117 million units, while the Xbox One managed 58.6 million.

In 2017, Microsoft shifted strategies once more, introducing its Game Pass subscription service. This service offers Xbox owners access to hundreds of games for a set monthly fee, a model inspired by streaming TV platforms. The service has since expanded to 34 million subscribers. Most first-party Xbox games have been launched on this service, which was later expanded to include PC users two years later.

In an effort to bolster its gaming business, Microsoft has embarked on a significant acquisition spree. This includes the purchase of Minecraft creator Mojang in 2014 for $2.5 billion, Elder Scrolls and Fallout studio Bethesda as part of Zenimax Media for $7.5 billion in 2020, and Call of Duty and Candy Crush publisher Activision Blizzard King for $68.7 billion in 2023, along with several other smaller studios. The acquisition of Activision Blizzard was the largest deal in the history of the games industry. Sarah Bond, the president of Xbox, announced on Friday that some of Activision Blizzard’s games will soon be available on Game Pass, starting with Diablo IV on 28 March. Throughout the process of acquiring Activision Blizzard, which involved months of legal and regulatory negotiations, Microsoft committed to keeping the company’s most popular games, such as Call of Duty, accessible on other consoles.

Bond reaffirmed that Microsoft has no plans to leave the console market, dispelling rumors that had been circulating for the past month. “There are some exciting hardware releases planned for this holiday season that we will be unveiling,” she stated.