Microsoft CEO Makes Rare Comments About Xbox’s Future

For much of recent gaming history, we’ve been embroiled in a three-way console war between Nintendo, Sony, and Microsoft. But as Xbox increasingly pivots away from console exclusives, many gamers are saying the console wars are effectively over. Halo heading to PlayStation for the first time seems to solidify this shift in the gaming landscape. But what does that mean for the future of Xbox? In a recent interview, Microsoft’s CEO, Satya Nadella, dug into the details.

On October 28th, Nadella appeared live in an interview with Technology Business Programming Network, more commonly known as TBPN. As part of a larger conversation about Microsoft’s business model, he shared some rare insight into what’s next for Microsoft’s gaming division. Nadella has been the CEO of Microsoft since 2014, and has been with the company for many years prior to taking on the leadership role. Now, he is looking ahead to the future of Xbox, and it’s looking very PC-focused.

Microsoft CEO Plans to Give Its Gaming Division the Office Treatment

When asked about the next steps for Microsoft’s gaming division, Nadella was surprisingly forthcoming. He shared some key thoughts on the strategy for Xbox going forward, including where he sees its biggest competition. Before we dig into some deeper analysis about what all of this could mean for Xbox gamers, here’s a quick summary of the main takeaways:

• Sees the future focus of gaming as Windows/PC, especially looking into innovating with systems and revisiting the PC vs. console dynamic
• Wants Xbox to be a fantastic publisher, viewing Xbox games through a similar lens to Microsoft Office, with games on all platforms
• Did mention a next console for Xbox, even with PC and multiplatform focus
• Cites gaming’s biggest competition as short-form video, not other games

So, what do these comments actually mean? Reading between the lines, it looks like Microsoft will be focusing on games, not consoles, going forward. Although Nadella did explicitly say he’s looking forward to the next console, much of what he has to say focuses on PC and multiplatform approaches. Let’s dig into what his comments likely mean for the next few years at Xbox.

Microsoft CEO Says Gaming’s Biggest Competition is Short-Form Video, Not Other Games

From the sounds of it, Xbox will be looking to publish games that players will buy across PC, other consoles, mobile, and more. This makes sense with the Xbox Play Anywhere model and services like Stream Your Own Game, which lets you play owned games across multiple platforms, including TVs and mobile. They want Xbox games to be as ubiquitous as the Microsoft Office suite, which is installed on PCs and phones in offices around the world.

One of the more interesting comments that the Microsoft CEO made is about innovation. Specifically, Nadella notes that gaming’s biggest competition isn’t necessarily other games. Instead, it’s short-form video platforms like TikTok, which are increasingly eating into the attention economy. Just what gaming innovation to compete with short-form video might look like is an open question, but it’s certainly an interesting perspective. Perhaps this means we can expect Microsoft to experiment with shorter games or faster-paced mechanics? Or maybe it’s a move towards more mobile games, which are often designed to be digested in smaller bites, much like a TikTok video?

From the sounds of it, we can expect Xbox to keep publishing games, but without console exclusivity and trying to push consumers to Xbox consoles. At least for now, it does sound like a next-gen Xbox is in the works after the somewhat bizarrely branded ROG Xbox Ally released earlier this year. But it might be more of a gaming PC than a console, as Nadella seems interested in breaking down the delineation between the two. Until Xbox actually announces its next-gen plans for consoles, all we really know is that the company will stay in the gaming business. However, it seems likely it will function more as a major game publisher than a true contender in the so-called console wars.

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