Xbox Boss Surrenders In The Great Console Wars
from the thinking-outside-the-xbox dept
For twenty years, a great war has raged. A console war, between the two great powers, Sony and Microsoft. Sure, there were other regional powers in play, such as Nintendo. And it’s true that Sony won nearly every campaign in this war, to varying degrees. But the war raged on right up until this week, when Microsoft appeared to have officially surrendered.
Over the weekend, Spencer sat down for a lengthy interview with XboxEra in which he discussed his favorite games, talked about what various Xbox studios are working on, and dished on the industry at large. And he was also honest about Xbox no longer being part of any console war, as it shifts to selling Xbox games on other consoles, like PlayStation.
“I would love to make all of the money for all of the games that we ship, right? Like, obviously we make more on our own platform,” said Spencer. “It’s one of the reasons that investing in our own platform is important. But there are people, whether it’s their libraries on a PlayStation or Nintendo, whether it’s they like the controller better, they just like the games that are there.”
“I’m not trying to move them all over to Xbox anymore,” added Spencer.
Now, I don’t expect that to mean the sudden cessation of manufacturing of current Xbox hardware. I’m not entirely sure I believe that any of this means we won’t get another generation of the console at some point, either.
But I can see that happening. And everyone can already see how Microsoft has begun to pivot away from focusing on its console, has begun a far greater foray into cloud gaming through the Xbox Game Pass platform, and it has even begun moving away from the exclusivity we wrung our hands over months ago.
Now, there are still problems to be solved in all of this. Microsoft hasn’t opened every last floodgate to make all their first-party or previously exclusive games cross-platform just yet, for instance. And there are already some very worrying signs that Game Pass itself is entering the early stages of the enshittification process. If Microsoft is going to do this, it had damned well better get it right, given the concession in sales of all that metal and plastic it’s going to relinquish.
But it sure appears as though Microsoft is going to pivot back to a combination of PC gaming and cloud-based Xbox gaming. I subscribe to Game Pass myself and, despite its other problems, the tech works quite well. I would say it actually delivers mostly on the promise of Google’s doomed Stadia product.
Elsewhere in the interview, Spencer further explained that Asia is one of Xbox’s “fastest-growing regions,” and it’s thanks in large part to Cloud Gaming via Game Pass and PC. And according to Spencer, the users driving this are players who were never going to buy an Xbox.
“We were never going to catch that person with our console,” said Spencer. “So let’s find them in a way that works, and it’s better for Indiana Jones. It’s better for Xbox.”
If Microsoft can just manage to pull of a tech product that doesn’t become simultaneously more expensive and shitty at the same time, for once, this could be really good business for the company. The console wars were over long before Xbox surrendered, after all.
And unless we finally get that Russian console that Putin demanded, and so long as Nintendo remains a more niche player, it seems like the war is over for good.
Filed Under: console wars, consoles, video games, xbox
Companies: microsoft


Comments on “Xbox Boss Surrenders In The Great Console Wars”
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Cool, the world’s still burning but, cool.
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You don’t need to let everybody else know you’re so miserable that you can’t enjoy things.
Ah yes, the first War that ended after one side spends a ton of money to buy out a bunch of the war factories of the enemy side, then…. surrenders and lets the enemy use the factories.
I’m wondering if this is a second Great Video Game Crash, a la the one in the early 1980s that toppled Atari and led to the rise of Nintendo in its wake.
My LinkedIn feed shows a lot of articles responded to by my connections, of the Southern California and Bay Area video game industries. It looks like the video game industry is in freefall. There’s been tens of thousands of layoffs, small studios closing up, and big fish like Activision Blizzard and EA canceling upcoming titles.
It sounds like Microsoft is going to be this generation’s Sega. The Saturn and Dreamcast seem like they came and went but never became the decade-defining console that the Genesis was in the late ’80s and ’90s. By the 2000s Sega retreated from consoles and seems to be an IP outfit.
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No. Home video games were a niche product back then, and early in their lifecycle; kind of a novelty, such that nobody was too put out when they went away. Kind of like how film “crashed” in some areas during the first World War, before the masses had made a habit of engaging with the medium. (And film studios have always canceled films, merged into other studios, gone bankrupt, and so on.)
A crash like that is not going to happen again. This is just your standard big-corporation bullshit. You may be right to compare it to Sega, but do note they they made some very specific fuckups: the Saturn was too expensive, and too hard to program (one of the earliest dual-CPU machines), so companies kept making Genesis games, and Sega kept expanding the Genesis (like with Sega CD and 32X). Its successor, the Dreamcast, was hyped up while the Saturn was still for sale, so who’d commit to it then? On the other hand, who was gonna wait for the Dreamcast when the PlayStation already existed and had good games, and every high school had some student who could mod the systems and burn cheap copies of discs?
Timmy's at it again
How is Nintendo a “regional player”? How is a company that’s been outselling Sony and Microsoft year over year a “niche player”? Tim’s complete lack of integrity or honesty whenever he gets a chance to bash Nintendo strikes yet again.
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Yeah, that’s not correct. There have been years where Nintendo has outpaced the other two, particularly when their console is relatively new. But it sure isn’t year after year.
The last two years, for example, Sony sold more PS5s than Nintendo sold Switches. In 2024, actually, Sony had just shy of 50% of the TOTAL MARKET SHARE for consoles.
https://www.vgchartz.com/article/462176/ps5-vs-xbox-series-xs-vs-switch-2024-worldwide-sales-comparison-charts-through-july/
And that’s in the era of the Switch, which is arguably Nintendo’s MOST successful console. Remember the Wii U?
Now, I rightfully give Nintendo a great deal of shit for their IP bullying and protectionist nonsense, not to mention their anti-customer behavior.
But the company also has carved out a very nice place for itself in the industry with slick, if not particularly powerful, hardware, great first party games, and a willingness to experiment (such as with motion controls).
But pretending they aren’t more of a niche player, particularly in North America, doesn’t make a great deal of sense to me.
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Yes, you’re right if you hyper focus on a console in it’s last full year on the market as a publisher’s lead platform vs a console that’s supposed the be in its peak. Or you can look at sales as a whole and see that Switch sold over 150 million units worldwide and that it’s on track to be the best selling console ever.
Whenever people try to justify dismissing Nintendo they always pull out statistical bullshit like this that tells me they don’t know shit about the game industry.
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“The video game company worth 15 trillion US dollars with a console that has more lifetime units than either the PS4 or PS5 is a niche player because one year the Switch didn’t outsell the PS5” is a take so bafflingly incorrect and naive that I could only have read it on Techdirt.
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That isn’t an argument that I made, so I’m not sure who this is directed at.
Nintendo is a niche/regional player. They have their area of the gaming industry carved out. This says nothing of its sales or popularity.
The sales stats I replied with were done for ONLY ONE REASON: as a reply to a comment that stated Nintendo beat Sony in sales “year after year”. That isn’t true and I demonstrated it isn’t true.
Niche does not have the negative connotation you seem to think it has. Nor does the “regional power” analogy I made in the post, which was really meant as a nod to the framing of all of this as a “console war”.
Yeesh, you Nintendo fanboys sure know how to find new and creative ways to get mad….
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I think it’s amazing that Techdirt has a gaming correspondent who is so incompetent that he makes comments like this.
It’s gaming. This is the easiest industry on the planet to do journalism on. Calling Nintendo niche is laughable for reasons I shouldn’t even have to get into. And yet you screw it up because you’re a Techdirt writer.
Remember when you guys were winning Webby awards and being talked about in the New York Times for your clever and original reporting? How far you’ve fallen…
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Point out the error.
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I don’t know that unit sales of consoles are really that great of a metric for how ‘big’ a player these.xompanies are,. especially considering they’re usually a incredibly low margin time, or even a loss leader. Instead I’d think it’s really dependent on how much the game market is worth. Best I can figure it Sony has basically half the market, and Nintendo and Xbox split the remaining half pretty evenly. Dollars wise per platform, that is.
But that also makes an interesting case where you’re counting Microsoft revenue as a part of PlayStations market share because they’re now shipping PS4 and 5 games. Then you factor in that Microsoft is also shipping Windows versions, and then they probably have an outsized influence vs. this particular metric.
So I’m not sure I would have called Nintendo niche, it’s also the smallest of the three and potentially by much more than a few percent.
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By catering to a particular kind of audience. That’s what “niche” means.
In the immortal words of my mother, “We’ll see.” Phil Spencer has a knack for saying what we want to hear, then doing something else.
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👍
2014: Oh, Microsoft is buying Minecraft to make games Xbox exclusive!
2018: Damn, Microsoft is buying Obsidian to make games Xbox exclusive!
2020: Gosh, Microsoft is buying Bethesda to make games Xbox exclusive!
2022: Shit, Microsoft is buying Activition to make games Xbox exclusive!
2025: Never mind, Microsoft has just bought theses companies to do nothing with them.
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Did you mean Mojang? Mojang is the game studio, Minecraft is the game.
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Been waiting for a new Spyro game ever since they bought Activision.
Still waiting.
“Nintendo remains a more niche player”
Good grief, what an ignorant statement.
Niche doesn’t sell over 120M consoles, which I remind readers is the least powerful available of the three.
Niche isn’t responsible for record breaking revenue made from first party titles of its competitors combined, which I’ll remind readers is rarely discounted and yet continues to sell at full price.
No, niche is used by people who think they know what they’re talking about.
Anyone who owns a Switch will definitely not agree it’s niche.
For millions, it’s their console of choice and for damn good reason.
Timothy, you should take notes from them instead of lying to yourself GamePass has value.
Don’t forget it was Microsoft which introduced the fucking insulting gatekeeping fee just so you can teabag your friends in Halo.
Now you want to give them money as they gatekeep their last gen games?
You’re part of the problem, genius.
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“Anyone who owns a Switch will definitely not agree it’s niche.”
Hi. I own a Switch….
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I absolutely think my Switch is a niche console. That’s exactly why I bought it.
I don’t know why you think “niche” has to mean “not mainstream”, but they’re not mutually exclusive. Nintendo has always had its own niche in the gaming market; that’s why they’re been as popular as they are.
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Jesus Christ, thank you. The misunderstanding of language in some of these comments is, to borrow a phrase, baffling.
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If niche is used to describe the most profitable game publisher and the one of the biggest platforms by units sold in the industry then I have no idea what the word niche means.
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“then I have no idea what the word niche means.”
Outstanding, allow me to help. While the word has multiple definitions, this is the manner in which I used it:
“a specialized segment of the market for a particular kind of product or service.
“he believes he has found a niche in the market””
Nintendo has carved out a customer base for itself, quite successfully in fact, that is a non-majority percentage and one which also seeks something different from what Sony and Microsoft were producing with their consoles. This manifests in many, many ways, but here are what I think are the two best examples:
Both of those are so self-evidently the reality of Nintendo consoles vs. the others that if you disagree with THAT, then this conversation is over because you’re not dealing in reality.
Put another way, Nintendo was never at war with Sony or Microsoft. They were busy gobbling up different customers/territory than the other two. Hence, they’re a regional, niche player outside of the console wars (this was the entire point of the literally two sentences in which I mentioned them in the post).
By contrast, Nintendo ABSOLUTELY was in a console war with Sega in the 16 bit days and for a while after that. And it WON that war with the final, culminating battle being the relative flop that was the DreamCast compared with the GameCube, released a few years later, which outsold the Sega by more than a factor of two.
Are we now clear, or are you going to find a different, admittedly creative, reason to be upset?
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Their niche also includes a strong tendency toward “family friendly”.
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Oh? Because I’ve played Doom, Resident Evil, and Bioshock games on Nintendo consoles, and none of those can be described as family friendly. The fact is that Nintendo moved away from its focus on family friendly gaming a long time ago to stay relevant and retain sufficient market share to remain operational.
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Not really…
I think your examples support your point well, as does the mention of “family-friendly” below. I don’t object to your use of the term in your post.
However, you used the word as an adjective, and your provided definition is of the noun form. Wiktionary says the adjective means “Pertaining to or intended for a market niche; having specific appeal; obscure”, and they don’t emphasize that last point enough. Cambridge, by contrast, says “interesting to, aimed at, or affecting only a small number of people”, which is better.
The problem with the broader definitions is that they would make literally every product a “niche product”. Like, wheat would be a niche product, because it’s only well-suited to those people who can consume wheat without negative reactions. We also need to consider the context, which is Nintendo being a “niche player” within the larger video game market; even Microsoft and Sony are niche players in the consumer electronics market.
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Correct. You have no idea what the word means.
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Anyone who knows the definition of niche without insisting they import their own stupid baggage for the term for whatever reason would understand perfectly.
I honestly think Xbox should release one more console: a hybrid Cloud-Physical console & handheld.
Other then that, I think it’s more cause Sony has been releasing more of their exclusives on Xbox & Switch.
I doubt they’ll surrender, as deathspeed said, Phil Spencer has a knack for saying what we want to hear, then doing something else.
While it’s great to have xbox open up the ecosystem, having less competition in the console space seems like a bad thing for consumers, in the long run. Bit of a shame.
Phil you dummy the solution is to MAKE GOOD EXCLUSIVE GAMES and MAKE GOOD CONSOLES at a REASONABLE PRICE POINT and you’ve done none of that.
You had the chance to undo every bit of damage Mattrick with that AWFUL Kinect peripheral bolted to it permanently and you’ve made next to zero concessions to fix it, just kicked the can down the road.
This is that simpson’s meme with Ned Flander’s parents saying “We’ve tried nothing, and we’re all out of ideas!” Only you run a billion dollar company.