For The First Time In Generations, Xbox Has Its Priorities Right

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Shaheer Zahid

At HI Digital I test and write about different hardware configurations to show other PC users what they can expect from their build. My end goal is to educate the masses to make the right decision when they are looking for new PC parts to buy

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The console war between Xbox and PlayStation has been going on for decades and generations now. PlayStation had the lead first, with Xbox taking the win during the next generation.

PlayStation has led since the last two generations, evidenced by successful exclusives like Spider-Man 2 and console sales. In this generation, Xbox’s loss is already evident halfway through, with PlayStation 5 shattering multiple sales records.

Despite PlayStation’s smaller first-party output in 2023, there was a vast gap in console sales, with Sony staying in the lead. Learning from these failures, Microsoft has shifted its priorities.

Why it matters: With the console competition becoming more challenging for each generation, Xbox has turned away from a brute-force approach.

Major Shakeup At Xbox

When Microsoft suddenly failed after launching the Xbox One, it struggled to define a proper direction.

Phil Spencer quickly undid the changes put in place by previous management. He then introduced backward compatibility, a more powerful console, and removed the mandatory Kinect requirement.

All of these were positive changes, but they could not help Xbox catch up to PlayStation. In my opinion, everything Xbox has done over the last few years has led to its multiplatform announcement from earlier this year.

Whether collecting publishers like Activision Blizzard and Bethesda or growing its users through Game Pass, it was evident that Microsoft would eventually break away from a closed-off ecosystem.

Jack of All Trades, Master of None

In my opinion, this is the smart approach. Competing with PlayStation would be like Microsoft banging its head against the wall. At some point, Xbox figured out it should join PlayStation if it can’t beat it.

Making new IPs that directly compete with big PlayStation exclusives like God of War, The Last of Us, and more could be quite challenging. So, Xbox decided to bring its first-party games to other platforms.

This is a smart strategy for two reasons. In the worst-case scenario, Microsoft can still benefit from PlayStation’s growing user base. However, it hasn’t given up on the console market.

Xbox’s approach makes it a player in all sectors. While PlayStation specializes in home consoles and Nintendo is the leader of handhelds, Microsoft is trying to capture all types of audiences.

It may never lead these segments, but this willingness to participate in the industry will ensure it never ends up defeated like Sega. The next generation will also be interesting since Xbox is rumored to introduce a handheld.

This is further proof of its strategy moving forward. Meanwhile, major IPs like Call of Duty will continue to fund these endeavors, even if they aren’t the most successful.

Secret Cloud Gaming Leader

There’s another angle to Microsoft’s strategy.

Xbox is emerging as the biggest cloud gaming company, potentially setting the stage for its sudden takeover. Cloud gaming is already expected to be the future, and Microsoft has the most robust streaming infrastructure of the three major console manufacturers today.

Phil Spencer stays one step ahead of the curve by focusing on this element. If audiences suddenly adapt to cloud gaming, Xbox will be best equipped to deal with the demand.

The next Xbox consoles could arrive in 2026, two years earlier than the normal console cycle. The Series S|X consoles weren’t successful, so I understand why Microsoft is taking this approach.

All of this and more shows Microsoft’s willingness to change. If the same approach isn’t working, there’s no point in beating a dead horse. I think the shakeups are just what Xbox needed, and its future is looking brighter than ever.

Shaheer Zahid

[How-To Guides Expert]

Laiba, our tech guru at HI Digital, simplifies and crafts How-To Guides with a Google IT Support Certificate. Beyond tech, she captures the city’s aesthetics through her lens. Join her journey where tech meets creativity!

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