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- Phil Spencer says revenue from PlayStation and Nintendo will improve Xbox’s first-party offerings.
- He is not too concerned about losing out on 30% of the revenue on these platforms.
- The CEO is also uninterested in pulling players toward Microsoft’s gaming ecosystem.
Xbox’s multiplatform strategy continues to be the subject of many discussions. Sharing his thoughts on the subject, Phil Spencer previously discussed how Microsoft’s hardware business would run alongside the many multiplatform releases.
The Xbox CEO has once again clarified the topic, stating that multiplatform releases will ultimately benefit the gaming giant’s first-party lineup.
Why it matters: Because Xbox is pushing for third-party releases so heavily, there has been concern about the gaming giant potentially suffering the same fate as Sega.
During the latest Xbox Era podcast, the Microsoft Gaming CEO addressed one of his past statements from the trial over the Activision Blizzard merger.
He previously described that PlayStation used 30% of the revenue from Xbox games sold on its platform to secure third-party exclusivity deals in an attempt to weaken Microsoft’s position in the gaming market.
This statement appears odd in hindsight since Microsoft has only accelerated its gaming push on PlayStation. As per Phil Spencer, this was not the best choice of words at the time. During the podcast, he clarified that the 70% revenue earned from those sales is no small deal.
In the grand scheme of things, revenue from third-party titles helps ensure Xbox can continue bringing incredible first-party experiences for gamers across all platforms.
I would love to make all the money for all of the games. The 70% we make on other platforms is helpful to us being able to build great portfolios.
-Phil Spencer
The Xbox CEO hopes these benefits will become even more apparent as the year progresses and more exciting titles appear.
Moreover, Phil Spencer stated that bringing players over to Xbox from PlayStation and Nintendo is no longer a priority. Instead, Microsoft is now attempting to maximize its global audience across all platforms.
I’m not trying to move them (PlayStation and Nintendo users) all over to Xbox.
Perhaps the most interesting element to this conversation is that revenue from rival hardware will also allow Microsoft to fund its own hardware business. This may lead to an interesting dynamic where PlayStation and Nintendo’s audience become vital to future Xbox consoles, which might show up within the next two years.
What are your thoughts on the CEO’s statement? Let’s discuss this in the comments and on the Tech4Gamers Forums.
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[News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than three years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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