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

Expert Verified By

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.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Crimson Desert Under Fire After Fans Spot AI-Generated Art

Crimson Desert appears to make use of AI-generated assets for certain art elements despite Pearl Abyss not disclosing the use of AI.

PlayStation Lead Architect Confirms ML-Based Frame Generation Support For PS6

Mark Cerny, Lead Architect for PlayStation, has confirmed ML-based frame generation support for the PS6 in a new interview.

Developers Voice Frustration With DLSS 5, With One Saying, “F**k NVIDIA, F**k These Ghouls”

Developers voiced their frustration over DLSS 5 and had a lot of harsh words for Nvidia, feeling fearful for the industry's future.

DLSS 5 Is More AI Image Enhancement Than Rendering Breakthrough, NVIDIA Confirms

Nvidia confirms that DLSS 5 isn't image rendering; instead, it takes a 2D frame with motion vectors and enhances it using AI.

Intel Announces 10% Price Increase For It’s Consumer CPUs

According to a report from ETNews, Intel is planning to raise the price of it's consumer CPUs by 10% by the end of the march.