Game companies are “baffled” by Microsoft’s multiplatform strategy, reluctant to develop games for Xbox consoles, according to a new report

Lunatic_Gamer

Lunatic_Gamer

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During the latest episode of The Game Business Show on YouTube, editor-in-chief and co-founder Christopher Dring mentioned that certain publishers and developers he has spoken to are "baffled" by the multiplatform strategy of Xbox. From their point of view, it limits competition within the console space. They are now questioning why they should even bother developing games for Xbox consoles if this is Microsoft's strategy going forward. According to Dring, that's a balance that Microsoft's going to have to strike.

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Dring pointed out that Microsoft needs its consoles to remain relevant, as they are they gateway to the companies premium game subscription service, Xbox Game Pass. As per him, a lot of Xbox Series X|S console owners are Game Pass subscribers. He believes the value of the subscription service, from a consumer point of view, is starting to become really appealing, with AAA games now costing as much as $80.
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The Game Business co-founder shared his anecdotal experience with Xbox Game Pass. He's been a subscriber since 2018, and the last Xbox game he purchased was Sea of Thieves. He looked at how many games he would have bought if he wasn't a Game Pass subscriber, and he realized that Xbox may have made more money off him as a subscriber than they would have if he had bought the games individually. As such, he believes the subscription service is becoming quite appealing.
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Last year, Skill Up associate Edmond Tran had the opportunity to interview a series of anonymous game developers, and the overall takeaway regarding Xbox was that Game Pass resulted in a behavioral shift that led to very few sales on the platform. The general sentiment was that the existence of the subscription service has created a vicious cycle. One such developer released an award-winning title on Xbox more than two years ago after initially releasing on other platforms. They mentioned that their game's sales on Xbox have been the weakest. "It's a bit like trying to sell a DVD to someone who uses Netflix. Sure, people still do that from time to time but you're not targeting the right audience", they said.
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twistedvoxel.com

Game Companies Are Reportedly "Baffled" By Microsoft's Multiplatform Strategy, Reluctant To Develop For Xbox Consoles

Game companies are reportedly "baffled" by Microsoft's multiplatform strategy, and they are reluctant to develop games for Xbox consoles.
twistedvoxel.com twistedvoxel.com


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S SneakersSO stays winning.

He said this would be the case a while ago:

SneakersSO said:
Yup - all chatter i've heard since Jan/Feb RE: 3rd party relations, especially in light of the 3rd party XGS game releases news coming out, is that 3rd parties are openly talking about pulling support outside of the (going to become increasingly rare) 3rd Party GP deals. Even said as much back in Feb. on here that 3rd parties were having meetings to discuss potential plans for platform support going forward in light of them going 3rd party.

Since then, all i've heard makes it sound like the 3rd party pullout starting from next year will become increasingly noticeable.
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GHG said:
S SneakersSO stays winning.

He said this would be the case a while ago:
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LOL.
And here we are, past that date, being the Xbox console with the best third-party support in history and with every game announced for 2026+ coming to Xbox, when supposedly by now we should be seeing massive cancellations or games that not coming to Xbox...🤷

But ehhh, just a tiny error in the dates...🙇

Judging by the article, it actually sounds more like there are developers who aren't happy with Xbox bringing their first-party games to other platforms because it makes things more difficult for them. Because for them, a situation where MS's first-party games stay on Xbox consoles (which would "help" increase the Xseries' user base) would be better, allowing them to have a larger number of potential users and less competition.
 
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The success of Nintendo with third parties has been a blessing since it came at the right time, if MS is ok with that I think it's ok then... But if their audience is not buying games then they'll run out of Game Pass games except for first party titles mostly, unless they start money hatting devs
 
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Darsxx82 said:
LOL.
And here we are, past that date, being the Xbox console with the best third-party support in history and with every game announced for 2026+ coming to Xbox, when supposedly by now we should be seeing massive cancellations or games that not coming to Xbox...🤷

But ehhh, just a tiny error in the dates...🙇
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It's ok, you are free to keep your head in the sand for as long as you need to.

Just remember to come up for air at some point.
 
Darsxx82 said:
LOL.
And here we are, past that date, being the Xbox console with the best third-party support in history and with every game announced for 2026+ coming to Xbox
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The problem is that while the system is being supported, the consumer is not supporting the games with purchases.

the overall takeaway regarding Xbox was that Game Pass resulted in a behavioral shift that led to very few sales on the platform. The general sentiment was that the existence of the subscription service has created a vicious cycle. One such developer released an award-winning title on Xbox more than two years ago after initially releasing on other platforms. They mentioned that their game's sales on Xbox have been the weakest. "It's a bit like trying to sell a DVD to someone who uses Netflix. Sure, people still do that from time to time but you're not targeting the right audience", they said.
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Darsxx82 said:
LOL.
And here we are, past that date, being the Xbox console with the best third-party support in history and with every game announced for 2026+ coming to Xbox, when supposedly by now we should be seeing massive cancellations or games that not coming to Xbox...🤷

But ehhh, just a tiny error in the dates...🙇
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What? We are?
Since then, all i've heard makes it sound like the 3rd party pullout starting from next year will become increasingly noticeable.
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Last year, Skill Up associate Edmond Tran had the opportunity to interview a series of anonymous game developers, and the overall takeaway regarding Xbox was that Game Pass resulted in a behavioral shift that led to very few sales on the platform. The general sentiment was that the existence of the subscription service has created a vicious cycle. One such developer released an award-winning title on Xbox more than two years ago after initially releasing on other platforms. They mentioned that their game's sales on Xbox have been the weakest. "It's a bit like trying to sell a DVD to someone who uses Netflix. Sure, people still do that from time to time but you're not targeting the right audience", they said.
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GHG said:
It's ok, you are free to keep your head in the sand for as long as you need to.

Just remember to come up for air at some point.
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My head is pretty clean and healthy because it's based on what's there... Others have their heads clouded by brand hatred and have problems or cannot stand people thinking like that, however 😉
Mr Moose said:
What? We are?
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We're almost halfway through the year... and supposedly "some devs are starting to get confused"...

You have games announced for 2026+ on XSeries, with increasingly gain better third-party support (including PlayAnywhere games)... I don't know.... 🤷
 
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Darsxx82 said:
My head is pretty clean and healthy because it's based on what's there... Others have their heads clouded by brand hatred and have problems or cannot stand people thinking like that, however 😉

We're almost halfway through the year... and supposedly "some devs are starting to get confused"...

You have games announced for 2026+ on XSeries, with increasingly better third-party support... I don't know.... 🤷
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You think "play anywhere" doesn't cost anything?

They are literally paying developers/publishers to maintain support. For now.
 
We know sales are kinda bad on Xbox and they keep giving even fewer reason for people to be on the console. It's not much of a leap to think some studios will think twice whether it's worth porting without a gamepass deal.
 
They are not in a good position, just being honest.

They want to own gaming. Instead they are culturally irrelevant to gaming. The Activation deal was supposed to reverse that but the reality is that Activision will be dragged out of cultural relevance by Microsoft by the same force that holds MS down. Low risk tolerance and mismangement.
 
I think most big games will continue releasing on the Xbox Series. But some will start missing the next generation.
 
GHG said:
You think "play anywhere" doesn't cost anything?

They are literally paying developers/publishers to maintain support.
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Sure, sure, MS is paying every single studio and publisher to keep releasing on Xbox...🙇

I don't know, maybe they also release their games for charity.... it's something that has also been said 😉
GHG said:
For now.
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With games of all kinds, genres, and origins announced for 2026+... that "for now" seems to have a very broad meaning 🤔
 
Darsxx82 said:
Sure, sure, MS is paying every single studio and publisher to keep releasing on Xbox...🙇

I don't know, maybe they also release their games for charity.... it's something that has also been said 😉


With games of all kinds, genres, and origins announced for 2026+... that "for now" seems to have a very broad meaning 🤔
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Well if its not play anywhere or gamepass then it is pretty much "charity" since they will end up with very few sales on the platform.

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GHG said:
The if its not play anywhere or gamepass then it is pretty much "charity" since they will end up with very few sales on the platform.

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Wow, what things, those same Studios and editor did not have nor show so much kindness and charity in the generation of X360 and XBO, at what point did they become such good people ??? 😂😂
 
This doesn't make sense.
"MS are releasing Forza Horizon on PS5, so what's the point of releasing our game on xbox?"
I mean it would still be the same reason - the millions of Xbox owners.
 
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The big issue isn't just the dwindling sales numbers, those can be largely overcome if you can get a gamepass deal, which a lot of devs don't have much trouble with.

The real big elephant in the room is sort of related to what Spencer was saying about Sony taking their %30 to use against them via exclusivity deals etc.

Well in this case Microsoft is asking its 3P partners to give them ports (which cost money) and to give them %30 of all transactions, they are then turning around and using that gamepass and sales revenue to compete with developers on more lucrative platforms like Playstation, Nintendo and Steam.

There's an inherent contradiction between being a big platform player and a big 3P player, and Microsoft is likely finding that out in real time.
 
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Skifi28 said:
We know sales are kinda bad on Xbox and they keep giving even fewer reason for people to be on the console. It's not much of a leap to think some studios will think twice whether it's worth porting without a gamepass deal.
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And the fact that a "GamePass" deal is even an option for studios or that they would consider it, shows the potentiallity of Microsoft's strategy.

It's already forcing a radical shift in the industry smaller companies.

Xbox as we know it is dead, for sure.

Xbox As a Service is alive and well.
 
Oh no, some shitty Japanese game where something with big tits wearing a maid outfit saves the world XXILLMLMXXII won't be released.

But it will be on PC.

And Xbox PC :messenger_sunglasses:
 
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Surprised? I've bought one game on Series X since launch… Everything else has been played through Gamepass. The DVD comparison is spot on. I no longer buy DVDs either, or music CDs. I subscribe to Netflix, and Spotify, and Gamepass.
 
poppabk said:
This doesn't name sense.
"MS are releasing Forza Horizon on PS5, so what's the point of releasing our game on xbox?"
I mean it would still be the same reason - the millions of Xbox owners.
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By releasing their games day and date on other consoles, MS is now actively competing against third party games on all fronts, when the relationship between first and third party is supposed to be a partnership. Both sides get what they need from each other without encroaching on the other's turf.

With each sale of a game on Xbox or each gamepass deal they are effectively giving money to the competition.

So because of this and other reasons MS can't have it both ways. They either focus on growing their platform with exclusives. Or they throw it away and go third party.
 
I mean I think we are all baffled but what companies are not making games on xbox that where already not making games before?
 
Software (Exclusives) sells Hardware. Nintendo proves this all the Time.

Microsoft releasing their 1st Party Games (Exclusives) on rival Platforms (PlayStation 5) are negatively affecting their own Hardware (XBox Series X & XBox Series S) Sales.

Why should Video Gamers buy an XBox Series X or XBox Series S instead of a PlayStation 5 when they can have access to all 1st Party Microsoft Games and all 1st Party PlayStation Games by purchasing a PlayStation 5.

Microsoft is ruining their own XBox Brand with their Multiplatform Strategy!!!
 
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Ebrietas said:
By releasing their games day and date on other consoles, MS is now actively competing against third party games on all fronts, when the relationship between first and third party is supposed to be a partnership. Both sides get what they need from each other without encroaching on the other's turf.

With each sale of a game on Xbox or each gamepass deal they are effectively giving money to the competition.

So because of this and other reasons MS can't have it both ways. They either focus on growing their platform with exclusives. Or they throw it away and go third party.
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Still doesn't make sense unless you think these companies are making million dollar decisions based on "I don't know how much the rest of you know about Japanese game sales culture (I'm an expert), but honor and shame are huge parts of it" thinking.

"MS are making it harder to sell our games on PS5 so we shouldn't sell them on Xbox" doesn't make any sense. The only thing I can think of that would kind of make sense would be - why cultivate an audience on Xbox consoles if they won't exist next generation.
 
VGA-Games said:
Software (Exclusives) sells Hardware. Nintendo proves this all the Time.

Microsoft releasing their 1st Party Games (Exclusives) on rival Platforms (PlayStation 5) are negatively affecting their own Hardware (XBox Series X & XBox Series S) Sales.

Why should Video Gamers buy an XBox Series X or XBox Series S instead of a PlayStation 5 when they can have access to all 1st Party Microsoft Games and all 1st Party PlayStation Games by purchasing a PlayStation 5.

Microsoft is ruining their own XBox Brand!
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Just get a gaming PC where you can get all Xbox games, PS games and PC games all in one!
 
Because they want to push gamepass , and it's not sustainable for their AAA games , they have to release them on other platforms , this way they can still push gamepass as well as make money from the game to fund their studios
 
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poppabk said:
Still doesn't make sense unless you think these companies are making million dollar decisions based on "I don't know how much the rest of you know about Japanese game sales culture (I'm an expert), but honor and shame are huge parts of it" thinking.

"MS are making it harder to sell our games on PS5 so we shouldn't sell them on Xbox" doesn't make any sense. The only thing I can think of that would kind of make sense would be - why cultivate an audience on Xbox consoles if they won't exist next generation.
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Its not about honor and shame. When some of these companies spoke out in support of Microsoft buying ABK, what they really wanted was for Microsoft to take away ABK from Playstation and potentially create an opening for them to launch alt-ABK types of products (think Battlefield for COD.. etc).

This idea of theirs has completely and utterly blown back on them though. Take a look at how frequent Microsoft releases are now, all of those are day 1 releases on PlayStation and PC too.

Now these devs don't only have to deal with an independent ABK, they also have to deal with XBS releases too.

Releasing games on Xbox only helps Microsoft fuck with them further at this point.
 
RoboFu said:
I mean I think we are all baffled but what companies are not making games on xbox that where already not making games before?
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Didn't Capcom hold back a couple of releases? Or is everyone still considering that an error on Capcom's end?

Darsxx82 said:
Judging by the article, it actually sounds more like there are developers who aren't happy with Xbox bringing their first-party games to other platforms because it makes things more difficult for them.
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I see the problem here, you are confusing one emotion (confusion) for another emotion (unhappiness).

I think confusion shouldn't always be taken as a negative. Sometimes it's just business, and these businesses just want to spend their money and resources wisely.
 
seb85 said:
Because they want to push gamepass , and it's not sustainable for their AAA games , they have to release them on other platforms , this way they can still push gamepass as well as make money from the game to fund their studios
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That's a they problem. Unfortunately, they are turning it into a problem across the industry with one dumb decision after another. Since they are backed by microsoft they can continue to make these dumb decisions when any other console manufacturer would have long been gone.
 
I don't really understand the "Xbox 3rd party is stronger than ever" like it's a Nintendo console. It does get almost all games, no ?
 
"He believes the value of the subscription service, from a consumer point of view, is starting to become really appealing, with AAA games now costing as much as $80"
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And that's a good thing.
 
Couple of issues people were calling out forever ago:

Gamepass has conditioned a large part of the consumer base to just not buy games.

Gamepass has also started the conditioning of studios relying on a Gamepass deal to make an xbox version worthwhile, which is an issues we have not see truly bust wide open for a year or two. (I could be wrong here, and honestly hope I am, but how many studios have seen the sweet GP deals given to companies like Sega and Square and thought "maybe if we withhold we'll also get a sweet deal?")
 
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