Xbox On Track To Becoming Software Only Company In Future, Says Former PlayStation Exec

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Xbox Following Same Pattern As Sega!

Story Highlight
  • PlayStation’s Shawn Layden has commented on Xbox’s decision to go fully third-party.
  • He believes that this approach needs to be balanced since the hardware loses its value once the content is available everywhere.
  • The former PlayStation executive believes Xbox’s current trajectory puts it on a similar path as Sega.

Xbox’s multiplatform approach has led to mixed reactions and speculation about the gaming giant’s future. Phil Spencer has insisted that the hardware remains an important part of the brand, but fans are unhappy with signature titles like Forza Horizon 5 moving to PlayStation.

Industry veterans have also chimed in on the conversations, sharing varying views. According to one former PlayStation executive, Xbox’s current move could lead to the company exiting the hardware market altogether.

Why it matters: Xbox consoles are already performing poorly on the market. With exclusive console content on its way out, audiences will have even less of a reason to buy Microsoft’s hardware.

Shawn Layden recently appeared on the Kiwi Talkz podcast and was asked to share his two cents on Xbox’s current approach.

The former PlayStation executive quickly acknowledged the benefits of the approach, particularly because of rising development costs in the industry. However, he also noted that this approach would make it difficult for Microsoft to sell Xbox hardware.

With Xbox no longer boasting an exclusive library, its brand value will undoubtedly go down. As per Shawn Layden, Xbox will lack the “FOMO” factor in the future since its content will be available to play everywhere else.

He emphasized the importance of balancing this approach, but Phil Spencer has confirmed that Microsoft is going all-in on third-party gaming. Because of this commitment, Shawn Layden sees Xbox going the same route as Sega.

We’ve seen it before. I was in the business when Sega brought Dreamcast titles to PS2. In time, Sega became a software-only company. It does have historical precedence.

-Shawn Layden

Sega’s exit from the console market paved the way for Xbox’s success in the early 2000s, but it seems the latter is on track to share the same fate. Fortunately, Sega is doing better than ever today.

SEGA 2024 games
Sega has gone through a renaissance recently.

PlayStation itself is expected to adopt a third-party approach eventually, so it will be interesting to see how big of a role exclusivity plays in the industry moving forward. At the very least, Nintendo is expected to stick to its old ways.

What are your thoughts on this statement? Do you see Xbox abandoning the hardware market altogether? Let us know in the comments, and share your thoughts on the Tech4Gamers Forums.

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