[Business Insider] "With the next Xbox, Microsoft has a 4-part strategy to end the console wars once and for all"

Neat · Jan 18, 2020

This holiday season, both Sony and Microsoft plan to launch new, so-called next-generation versions of the PlayStation and the Xbox.

These days, the "console wars" are a head-to-head between Sony's PlayStation and Microsoft's Xbox. But in 2020, it looks as if Microsoft is shifting its business strategy in a way that might end them for good.

1. Microsoft doesn't mind if you don't buy its new Xbox console, as long as you buy the game.

Do you want to play games on an Xbox? A PC? Your phone? Microsoft wants to reach you there — ideally across all three.

To that end, Xbox has major initiatives across all three platforms: a new game console (Xbox Series X), a cloud gaming service (Project xCloud), and a Netflix-like gaming service (Game Pass).

"That remains core to what we're trying to do," the Xbox leader Phil Spencer told Business Insider in an interview last June. "To allow creators to reach the customers that they want, allow players to play the games that they want with the people they want to play with, anywhere they want. And it fits right into the opportunity ahead."

It's part of a broader effort at Microsoft to bring Xbox games to as many people as possible — even if those people don't buy a new Xbox console. To that end, all first-party Xbox games across the next two years will also head to Xbox One.

2. The new Xbox is just the latest box, not a whole new ecosystem.

The next Xbox console will play Xbox One games. It will also play all the original Xbox and Xbox 360 games that already work on the Xbox One. It will also work with all the current Xbox One accessories, from gamepads to fight sticks.

"The original Xbox games and Xbox 360 games that are backward-compatible now on your Xbox One, those will play. Your Xbox One games will play, your accessories will play," Spencer said last June.

This is an important precedent that was set with the Xbox One, and it's continuing with the next generation of Xbox consoles: Your digital game library carries forward, like app purchases on smartphones or movie purchases on Amazon Prime. It establishes your Xbox library as a continuing digital platform, something no game console maker has done thus far.

The compatibility actually stretches further — games with large existing communities will continue to grow those communities on the next Xbox.

"I don't want to announce anything about what another game team is doing," Spencer said, "But I think what we would say at the highest level is if you talk about these games that have such massive communities today, a lot of those developers and studios are going to want to think about how they grow their community — not how they take it to zero and try to rebuild it."

3. Going forward, it's just "Xbox."

The Xbox Series X is part of the fourth generation of Xbox consoles from Microsoft, following the original Xbox, the Xbox 360, and the Xbox One generations. It's a real murderer's row of bizarre names.

The Series X, however, isn't a whole new line of Xbox consoles — it's just the name of the latest in the Xbox console brand.

"The name we're carrying forward to the next generation is simply Xbox," a Microsoft representative told Business Insider in December.

It's a small branding change, but it clarifies Microsoft's position with its console line: You can expect your Xbox digital library to work on Xbox devices, similar to Apple's approach with the iPhone.

You might get an iPhone 11 Pro, or you might get an iPhone 8 — they all run the same stuff, albeit in varying degrees of fidelity. Such is the case with the Xbox brand going forward.

4. With Game Pass, Microsoft could win the race to create the first major "Netflix of gaming" service.

Thus far, no company has had success with a comparable service for gaming. There are a few services that offer streamed video games, like Google Stadia and PlayStation Now, but neither has really taken off.

Microsoft, however, has had wild success with Game Pass — an instant library-type service where each game must be downloaded to your console before playing.

With Project xCloud, Microsoft may be the first to actually succeed with a subscription-based video game streaming service with an instant library, à la Netflix, that pairs Game Pass' vast library and existing subscriber base with an option to stream games as well.

"I want it to be about choice, but I do think the strength that we've already seen in the last two years with Game Pass is an important component of this," Spencer said when asked about the business model for xCloud.

"There's paying for access, and then there's paying for a library of games," he said. "And the Game Pass component is really critical, because you want to have access to hundreds of games that you can go play. That is more your Netflix-type example."

And there you have it. Nothing new in this Business Insider article of course, but I think it does a good job in tying together and contextualizing Microsoft's statements and decisions over the last several months, and provides a good case for them in winning back some marketshare next gen. "Ending" console wars is subject to debate but it's hard not to feel like they're in a better position now than they were a few years ago, and there are reasons to be hopeful. Of course, this mentions nothing about the games themselves, and with their recent acquisitions, I expect them to have a sizable amount of quality first party software that they can release at a steady clip, so that their release calendars don't look empty and dry for most of the year.

More at the link:
https://www.businessinsider.com/playstation-xbox-console-wars-end-microsoft-sony-2020-1

G_Zero · Jan 18, 2020

It's a small branding change, but it clarifies Microsoft's position with its console line: You can expect your Xbox digital library to work on Xbox devices, similar to Apple's approach with the iPhone.

You might get an iPhone 11 Pro, or you might get an iPhone 8 — they all run the same stuff, albeit in varying degrees of fidelity. Such is the case with the Xbox brand going forward.

I still don't see how they imagine this could possibly work out well for a gaming console... Sounds like something someone high up came up with "because Apple".

fiendcode · Jan 18, 2020

I think Gamepass is a really smart counter to the "locked in ecosystem" effect people think BC will ensure. Some are really sleeping on how important a variable this is for the massmarket.

Deleted member 59519 · Jan 18, 2020

G_Zero said:
I still don't see how they imagine this could possibly work out well for a gaming console... Sounds like something someone high up came up with "because Apple".

The games will scale to the device.

Legend J 858 · Jan 18, 2020

G_Zero · Jan 18, 2020

Tonky said:
The games will scale to the device.

As a programmer, I don't see this not hurting XSX games, as well as multi-platform titles.

rokkerkory · Jan 18, 2020

Its a bold step for sure. Time will tell if it works out. But I am glad they are taking a unique position.

Stalwart · Jan 18, 2020

G_Zero said:
I still don't see how they imagine this could possibly work out well for a gaming console... Sounds like something someone high up came up with "because Apple".

huh? wouldn't it be simply just backward compatibility?

Lagspike_exe · Jan 18, 2020

I hope to God multiplatforms don't go with cross- gen idea after the first year.
Otherwise we'll be paying $499 to play 4K60FPS versions of games designed around goddamn Jaguar, GCN and 5400RPM hard drives in 2020s.

DCBA · Jan 18, 2020

Neat said:
4. With Game Pass, Microsoft could win the race to create the first major "Netflix of gaming" service.

So do we know If Game Pass has more subscriber than Playstation Now?

Deleted member 9584 · Jan 18, 2020

Stalwart said:
huh? wouldn't it be simply just backward compatibility?

I think the concern trolling is mostly about Xbox One being forward compatible for the first year of XSX's life.

G_Zero · Jan 18, 2020

Stalwart said:
huh? wouldn't it be simply just backward compatibility?

It's backwards and forwards compatibility. The backwards is fairly easy, forwards will mean that games are going to be less ambitious than they could be, since they have to be able to run on an eight-core jaguar from 2013.

ForgedByGeeks · Jan 18, 2020

DCBA said:
So do we know If Game Pass has more subscriber than Playstation Now?

Well, Sony announced 1m subscribers this past fall and Microsoft over a year ago said they have "millions".

So at the bare minimum, assuming MS hasn't grown subscribers in over a year, they have double what Sony has.

Roshin · Jan 18, 2020

It's always the next xbox with xbox, it seems. Not this one or the previous one, always the next one.

Eeyore · Jan 18, 2020

Netflix is going to spend 18 billion dollars on original content this year, if Microsoft ends up anywhere close to that, yeah I think we'd all be happy.

G_Zero · Jan 18, 2020

Scrawnton said:
I think the concern trolling is mostly about Xbox One being forward compatible for the first year of XSX's life.

It's not concern trolling, it's concern. This will hurt multi-platform titles as well.

Villein · Jan 18, 2020

and Step 5: TV

Sheng Long · Jan 18, 2020

I fail to see how this would "end the console wars".
Because Sony and Nintendo will just shrivel up and die when MS does something?

Fisty · Jan 18, 2020

Do we even have any pricing info on XCloud? All these articles say it'll change everything but we dont even know what the price is. The only thing that is confirmed free is the Remote Play-like service, which has been free on PS4 since 2013

Number 3 seems like a bit of a stretch

Eeyore said:
Netflix is going to spend 18 billion dollars on original content this year, if Microsoft ends up anywhere close to that, yeah I think we'd all be happy.

LOL

NaDannMaGoGo · Jan 18, 2020

Ending the "console war" by sorta forfeiting the notion of selling anywhere close as many consoles as the competition ( Sony and somewhat Nintendo) is a curious choice of words.

It's not even bad, because I frankly don't think MS could outdo Sony using the he same strategy currently, but that doesn't excuse the dumb title of the article.

And yeh, even as a primarily PC gamer I always considered the single-hardware aspect of consoles their one true advantage. User and developers can benefit alike by simply being able to focus on one thing, or more specifically not worry about many unknown factors.

Even with "pro" iterations and cross-generation releases this hasn't been quite as important these days but it's still there to some degree. But a whole slew of Xbox Series hardware? Meh...

Memento · Jan 18, 2020

The media is so sure about Xbox winning next gen already

Stalwart · Jan 18, 2020

G_Zero said:
It's not concern trolling, it's concern. This will hurt multi-platform titles as well.

how you know multi platform will? you may get some like each gen early but i doubt they wait long to move on.

Deleted member 1120 · Jan 18, 2020

Memento said:
The media is so sure about Xbox winning next gen already

Wouldn't be a new console cycle without that kind of thing lol

Betty · Jan 18, 2020

There's every chance that Game Pass does become their Netflix of gaming, maybe even THE Netflix of gaming.

But unless Sony trip themselves up PS5 will 'win' next gen, and if they invest in a PSNow or something like Game pass for Playstation, they can remain very comfortable.

¡ B 0 0 P ! · Jan 18, 2020

Lagspike_exe said:
I hope to God multiplatforms don't go with cross- gen idea after the first year.
Otherwise we'll be paying $499 to play 4K60FPS versions of games designed around goddamn Jaguar, GCN and 5400RPM hard drives in 2020s.

G_Zero said:
It's not concern trolling, it's concern. This will hurt multi-platform titles as well.

It will work as it does on PC and Mobile: it will be up to the developer to decide what range of hardware specs they want to target for their games. Some will want their games to run on the cheapest hardware (Minecraft) while others will prefer targeting high end devices (Battlefront II). It's not that difficult to understand.

DriftingSpirit · Jan 18, 2020

fiendcode said:
I think Gamepass is a really smart counter to the "locked in ecosystem" effect people think BC will ensure. Some are really sleeping on how important a variable this is for the massmarket.

I think it will help MS quite a bit. I just don't see it cancelling out what anyone else has going. It will be more that everyone has something good going for them even though they are (somewhat) different from one another.

Iwao · Jan 18, 2020

You sure can tell new consoles are on their way.

Memento said:
The media is so sure about Xbox winning next gen already

one · Jan 18, 2020

"With the next Xbox, Microsoft has a 4-part strategy to end the Xbox once and for all"

OneBadMutha · Jan 18, 2020

What Microsoft is doing now is healthier for the industry than the old model. I'm now in the process of buying 2 games tonight I would've never considered thanks to Game Pass and it's ability to expose me to new genres at no risk. I recently jumped at a gaming PC despite consoles being around the corner because there was a lot of games waiting for me Day 1 due to Game Pass. Now I'm also buying stuff from Steam. With that in mind, I'll continue to lean towards multiplats on Xbox knowing they're most likely to move across devices in the future. I think once people step back form the plastic wars, they'll see this is good for consumers, the industry and eventually....may work out for Microsoft.

SturokBGD · Jan 18, 2020

I'm very interested in what Microsoft is doing but I can't take any article that has "console wars" in its title seriously. Especially when the title is as hyperbolic as that.

Deleted member 9584 · Jan 18, 2020

Stalwart said:
how you know multi platform will? you may get some like each gen early but i doubt they wait long to move on.

Exactly. I think big cross gen games mostly stopped this gen after holiday 2014, one year after the new systems released. The same time frame Microsoft said they'd stick to cross gen.

MykhellMikado · Jan 18, 2020

Ummm I don't see how they can claim first Netflix of gaming when they already show that others did it before MS? What's their baseline for "success"?

¡ B 0 0 P ! · Jan 18, 2020

Betty said:
There's every chance that Game Pass does become their Netflix of gaming, maybe even THE Netflix of gaming.

But unless Sony trip themselves up PS5 will 'win' next gen, and if they invest in a PSNow or something like Game pass for Playstation, they can remain very comfortable.

Microsoft is wealthy enough that they could buy all of Sony if they wanted to. Sony could never win an arms races in streaming. Hell just recently they reached a business deal to use Microsoft's Azure servers for PlayStation streaming.

ClamBuster · Jan 18, 2020

what is generation winning to people?

to gamers it will always be units sold

but to the organisations it will always be total revenue

sony will clean up with units sold

but microsofts strategy certainly puts them in a strong position for the revenue crown

Roshin · Jan 18, 2020

Memento said:
The media is so sure about Xbox winning next gen already

Just like last time.

Betty · Jan 18, 2020

¡ B 0 0 P ! said:
Microsoft is wealthy enough that they could buy all of Sony if they wanted to. Sony could never win an arms races in streaming. Hell just recently they reached a business deal to use Microsoft's Azure servers for PlayStation streaming.

Amazon is wealthy enough to buy Netflix, but content is king when it comes to streaming.

If Playstation put's it's library online along with all the 3rd parties, it'll be the same situation with Xbox v PS4 right now.

Plus there's Nintendo, their own exclusives alone would be huge on a streaming service.

jroc74 · Jan 18, 2020

I had to check to see if this was an old article.

How about not worrying about if they win a console war and just hope they succeed at whatever their goals are.

It's like the iPhone killers. It was more the media putting that out there, not so much the companies making the phones. Some did here n there. But nothing like the media.

¡ B 0 0 P ! · Jan 18, 2020

ClamBuster said:
to gamers it will always be units sold

Gamers are pathetic if they give a damn about units sold. All you should care about is your rights as a consumer and the quality of games released. Sony and Microsoft ain't ya friends, nor are I presume most of us here shareholders of these companies. God knows why people get to attached to these brands.

Betty said:
Plus there's Nintendo, their own exclusives alone would be huge on a streaming service.

lol Nintendo are living fossils when it comes to online. The day they have a successful version of their own Gamepass is the day pigs fly.

Polyh3dron · Jan 18, 2020

Lagspike_exe said:
I hope to God multiplatforms don't go with cross- gen idea after the first year.
Otherwise we'll be paying $499 to play 4K60FPS versions of games designed around goddamn Jaguar, GCN and 5400RPM hard drives in 2020s.

bUt iTs pRo cONsuMeR

Aureon · Jan 18, 2020

Such a microsoft thing to do.

They're wanting to move to software as much as possible, as that is their strong suit.
Also, focus on backwards compatibility is what both made Windows the desktop standard and completely lost it any chance on the server and mobile markets.

Hamchan · Jan 18, 2020

I think it's incredibly smart what MS doing. People that still think about "winning" and a company aiming to "kill" the other one in a "console war" are already behind the ball. The truth is all of the big 3 are now positioned to fight different battles from each other and do things in a different direction. MS saw that they would never beat Sony with their current strategy and have shook it up to now target what they're strong at as a company: services.

jroc74 · Jan 18, 2020

¡ B 0 0 P ! said:
Microsoft is wealthy enough that they could buy all of Sony if they wanted to. Sony could never win an arms races in streaming. Hell just recently they reached a business deal to use Microsoft's Azure servers for PlayStation streaming.

Replace streaming with gaming, games.

Yet somehow Sony is still surviving, despite MS and all the money they have.

Sprat · Jan 18, 2020

Memento said:
The media is so sure about Xbox winning next gen already

Just like they initially were last time

NaDannMaGoGo · Jan 18, 2020

ClamBuster said:
what is generation winning to people?

to gamers it will always be units sold

but to the organisations it will always be total revenue

sony will clean up with units sold

but microsofts strategy certainly puts them in a strong position for the revenue crown

How's that? Game pass is ridiculously good value... for customers right now. I don't care how many people are and will be subscribed, there's no way in hell that they have the revenue crown when the bang/buck ratio is so lopsided.

Which is also why it'll have to change eventually. MS overall can obviously afford to drag that out as long as they want but there's no doubt in my mind that the cost of gamepass won't stay anywhere near as good 2-3 years later.

elenarie · Jan 18, 2020

G_Zero said:
As a programmer, I don't see this not hurting XSX games, as well as multi-platform titles.

As a AAA game developer, the more people play our games, the better.

Atom Heart Mother · Jan 18, 2020

The sooner 'console war' shit is over, the better. We don't need this dumb air of toxicity in the industry. I'm so happy MS is taking steps to kill it. I fully embrace this line of thinking and encourage Sony to do the same.

Betty · Jan 18, 2020

¡ B 0 0 P ! said:
lol Nintendo are living fossils when it comes to online. The day they have a successful version of their own Gamepass is the day pigs fly.

Very true, but their bite size Snes and Nes offerings right now are very Netflix like and if they got their whole back catalogue up they'd be successful in the streaming wars.

Eeyore · Jan 18, 2020

¡ B 0 0 P ! said:
Microsoft is wealthy enough that they could buy all of Sony if they wanted to. Sony could never win an arms races in streaming. Hell just recently they reached a business deal to use Microsoft's Azure servers for PlayStation streaming.

I'm not sure I quite agree. You could use the same logic when Microsoft entered gaming back during the PS2 gen. And yet we're about to enter the fourth generation with Xbox involved and they've never been a leader in the space. Sure their expertise as far as Azure and services is well known and why Nadella has invested in the Xbox product, but you need the right people involved as well as the money to really make inroads. Microsoft need to be more competitive worldwide, not just in English speaking countries and places like Mexico.

Nazgûl · Jan 18, 2020

tutomos · Jan 18, 2020

Console war will become ecosystem war next gen.

[Business Insider] "With the next Xbox, Microsoft has a 4-part strategy to end the console wars once and for all"

alt account

alt account

User requested account closure

alt account

Self-requested ban

User requested ban

alt account

user requested account closure

User requested account closure

Alt account

Prophet of Regret

Game Developer

User requested ban