The New Xbox

The idea of a gaming platform is changing

Microsoft’s Xbox division has been part of what gamer’s call the “big three” of the gaming community for over two decades. However, I’ve seen talk going around by gamers that “Xbox is dead” after Microsoft started to commit to bring multiple first-party games to competing platforms. So, I wanted to take a look at that and why I feel those are not the right words to use in this situation. Xbox isn’t dead as a platform; it’s more the concept of platform is changing.

First, let’s focus on what this discussion is really about. When many gamers, specifically in the Millennial and Gen-X generations, talk about Xbox as a brand, they mean the consoles. These two generations are the core demographics that grew up with the industry and still sees these brands (Nintendo, PlayStation, and Xbox) as dedicated gaming boxes that sort of re-boot every console generation. They see Microsoft putting their games on other hardware and the reports of lagging console sales and immediately say the Xbox brand is becoming third-party and that there’s no point to Xbox anymore. These core group of gamers are the most hostile to the changes happening to the industry, so much so that they can get in a bubble about it. Now before you get at me if you are part of this group, I want to say that I technically would belong to this group and that I mean all of this more as observation, not as an attack.

The concept of gaming consoles in the way many of us in that core group think about them, is a dying concept. Technically the generation of PS3 and Xbox 360 was the final generation with this version of consoles. Now, the industry has evolved and changed to make dedicated consoles, who change every gaming generation, a smaller part of the industry. While it’s the norm to dismiss, the fact is that mobile gaming is becoming a bigger and bigger part of the industry. More kids today are starting their video game life on mobile devices over consoles. On the adult side, many gamers are now opting for PCs. While having a good gaming PC requires more money than a standard console, gaming becoming a lifestyle means more enthusiasts with money to use will invest in a good PC to control what games they can play.

Consoles today have two main advantages, the ease of use and having a preferred ecosystem. Phil Spencer doesn’t see Xbox’s success in console sales like we all tend to. While Phil would love to hear Xbox is selling well, the real goal now is that magical term every gaming company is mentioning - monthly active users. We don’t just see this in gaming either. TV ratings used to be a huge part of gauging user satisfaction for shows and especially wrestling. However, as customers have cut the cord and gone more digital, ratings don’t need to be as high and because the way people engage with shows has changed. Spencer and Xbox are banking on a similar change happening to the industry and rather have Xbox as a platform that goes beyond a box. If Microsoft can get these customers through the traditional console box, mobile devices, computers, and eventually down the road cloud; they see that as a success over touting over fifty to seventy million consoles sold.

Now, comes the controversial part, because I don’t think it’s just Xbox that’s going to be doing this as the next decade or two passes by. Sony has been hinting that selling exclusive games to one console platform is becoming harder and harder as sales skyrocket. They’ve also released some games on PC, granted much later after release. Now I know many will say they don’t see PlayStation eventually doing the same things as Xbox, but I feel declarations like that are ignoring the history. Did you think you would see Sonic on a Nintendo console? Did you think you would see PS3 make a comeback after royally screwing up their launch? Did you think Microsoft would commit almost seventy BILLION dollars to get Activision-Blizzard? Did you think Sony would release games on PC? Expecting something not to happen is not always the best answer when looking forward. Plus, I’m not talking about three or even ten years from now, I mean that sometime in the future as a dedicated game console become less important in how we game, I can see Sony making their own moves to get more customers.

Another point on how the idea of a console is changing comes from Sony. Sony has stated that half of their user base is still on PS4. With graphical fidelity starting to hit a ceiling and the most popular games (Fortnite, Minecraft, Call of Duty) still being available on PS4 and Xbox One, the reasons to upgraded hardware isn’t as simple. Add in the issues with high costs around the world, and selling a console has actually become harder to do. The console has gone from helping get gamers into ecosystems to play, to becoming a barrier with the high cost of investment. If you can find customers outside of that hardcore fan base that’s okay with paying a premium for a box, you’ll find a potentially bigger user base.

The Xbox brand has evolved, not died. The Xbox platform is now a family of consoles (Xbox One, Xbox Series S, Xbox Series X), optional cloud services and/or devices, PC gaming, mobile gaming, and most likely a possible handheld to come. Much like the way movies and music can be consumed through multiple devices, we are headed to a future that has gaming available through more than just a box connected to your TV. While we were probably headed there eventually, it was Microsoft falling far behind with Xbox One and the hybrid nature of the Nintendo Switch that accelerated us towards it.

If you grew up with consoles a certain way and wished it stayed that way (new box every six plus years, everything physical, consoles sales important), I understand why you prefer things to remain the same, but life never usually goes the way we want. This is the new Xbox. It’s going to take time to get used to, but eventually gamers will see a platform being more than a box. After they get used to it, I personally think it’ll happen all over again when competitors follow as well. The power of X has evolved.