Xbox has already lost the console war, according to Microsoft. However, each generation brings a new opportunity, a fresh start to explore new options with innovations that can turn the tide.
A former Xbox executive has recently identified a few critical reasons for Xbox’s failure. She believes it lost the console wars due to the work culture that led to the poor decisions of the last generation.
Why it matters: Microsoft has made key changes to its console business since 2013’s disastrous reveal. However, it has found itself struggling against competitors like Sony and Nintendo.
Laura Fryer, a former Xbox employee who had been at Microsoft as early as 2004, explained that while Don Mattrick’s 2013 interview was damaging to the brand, it was not the core issue plaguing Xbox. She stated:
“These were just the symptoms, the real issue was culture.”
She then pointed to her role on the Xbox team, highlighting that Xbox promoted a culture based on merit, which led to equal opportunities and rewards for every individual.
Laura Fryer also shed light on Microsoft’s feedback loop. She pointed to Xbox Head Peter Moore, who consistently listened to his team and considered their suggestions.
This promoted a healthy culture and meant that everyone’s work was essential to the result of the Xbox brand. However, things changed eventually, and no event highlighted this shifting culture better than the launch of the Xbox One.
Laura Fryer claimed that a senior Microsoft employee was unaware of the console’s terrible name until its reveal, highlighting that the division was run by only a few people who cared little about incorporating feedback into the decision-making process.
This shift was also noticeable in Microsoft’s interview process, with Laura Fryer claiming that the company began to go against its established formula, sometimes leading to unqualified employees.
Such changes culminated in the current position of Xbox, with the company desperately trying to catch up and recover from its last performance. Currently, the PS5 has outpaced Microsoft’s latest consoles, with the latter selling nearly 22 million units.
On the other hand, the PS5 has shipped around 42 million units.
Nonetheless, the former Xbox employee concluded the video on a positive note. She stated that Phil Spencer is trying to fix this culture, hoping to return Xbox to its prime through a team that values discussion and prioritizes quality in each endeavor.
We also believe Phil Spencer is on the right track, as he has already made a number of vital changes to Microsoft’s gaming division, and innovations like Game Pass have provided a unique selling point for Xbox.
The gaming giant is currently more active than ever, hoping to undo the damage from the last generation.
Recent releases like Starfield have marked a positive first step, but the console manufacturer has a long road ahead before it can reclaim its former position as an industry leader.
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