Former Xbox Head Believes Microsoft Will Eventually Exit Hardware Market

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Xbox's Future Could Be Based Around Software!

Story Highlight
  • 2024 has already been a wild ride for Xbox.
  • Former Xbox head Peter Moore believes Microsoft may be hinting at a return to its roots.
  • The executive speculates that it could exit the hardware market and settle as a service-based company.

Xbox and PlayStation have been through fierce competition in the hardware market for two decades. However, the recent dominance of PlayStation could force Microsoft’s hand.

The gaming giant has been pushed into a corner, and despite achieving 34 million Game Pass subscribers, it has found it difficult to thrive in the market. Microsoft has also begun a multi-platform push recently.

Analyzing these events, the former Head of Xbox believes Microsoft is hinting at an eventual exit from the hardware market.

Why it matters: Peter Moore led Microsoft during its most successful gaming era, giving his opinion on the company more weight due to his experience.

Microsoft Xbox
Xbox released two consoles in 2020.

During a recent interview with IGN, former Xbox Head Peter Moore discussed all things Xbox, including its future in the gaming industry. He speculates that the future could see Microsoft focusing on what it has always done best.

This includes its role as a software and services company. When asked about Microsoft potentially abandoning Xbox hardware, he stated that Phil Spencer’s latest moves appear to be a teaser of what is to come.

He also pointed to the acquisition of Activision Blizzard and how this move could influence Microsoft’s decision-making, pushing it toward a software-based company again.

There may not be a platform, and we turn into what we really had at our roots, which is a software and services company.

-Peter Moore

With Microsoft now being the biggest games publisher in the industry, such a future does not appear to be too far-fetched.

However, Peter Moore is doubtful about the future of consoles in general. He believes that hardware will eventually be left behind once it falls into the trap of being too iterative, so Microsoft might not be the only one to follow this path.

Xbox Series X
The Xbox Series X was Microsoft’s most ambitious hardware design yet.

Ultimately, Xbox’s recent struggles could lead to Peter Moore’s predictions coming true, but it is too soon to say anything definitively for now. For the time being, Microsoft has already confirmed the development of new hardware, so the gaming giant has at least one more generation in the works.

This console could be designed by the surface team, pushing Microsoft into a new era. While the future remains uncertain, we are hopeful that Microsoft will make the best decision for both the gaming industry and its future.

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