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[Rolling Stone] Xbox CEO Says There Will ‘Definitely’ Be Future Consoles

Topher

Identifies as young
Although the company's new ads emphasize cloud streaming, CEO Phil Spencer tells Rolling Stone there will still be a box to buy


It appears that the Xbox is no longer just a box. Earlier today, the company’s official accounts ran a new 30-second ad spot, showcasing the brand’s new campaign messaging: “This is an Xbox.”

To the sound of Black Sheep’s 1991 hip-hop track “The Choice is Yours,” the video begins with a Series X console and the bold green text reading, “This is an Xbox.” It then pivots to a smart TV, a phone, a handheld PC, and a laptop — all of which are now considered Xboxes.

On the surface, the campaign makes total sense. Xbox Cloud Gaming launched in 2019, and Xbox games have been available on PC for even longer. If players have an Xbox account, they can stream their purchased games or the Xbox Games Pass library on a variety of devices, anywhere they have a high-speed internet connection.

So, why are people concerned about the messaging?

On social media, many fans have expressed displeasure at the idea that Xbox is somehow abandoning the home console market. It’s true that this generation of hardware, which is led by the Xbox Series X and less powerful Series S, hasn’t been a huge success for Microsoft, with reports in May indicating that Sony’s PlayStation 5 has been outselling Xbox consoles nearly 5 to 1.

Many have declared that the “console wars” are over, referring to the old nomenclature for the rivalry between companies like Nintendo, Sony, and Microsoft that swept up much of the internet discourse in the 2000s.

But is Xbox really sunsetting its console market in favor of cloud gaming? The answer is no, but it’s more complicated than that.

Rolling Stone recently met up with Xbox CEO Phil Spencer in New York to discuss the future of the brand, where he touched on the themes behind the campaign ahead of its official launch.

“It’s an interesting topic because as we look at the brand, as we’re changing the brand, [it] means something different,” Spencer said. “It literally was a box when it first launched. It was the Direct X box. What it’s grown into now is more accessibility. Xbox isn’t just one device, Xbox is on your smart TV, Xbox is on your PC, Xbox is on your phone, and we’re in the middle of that transition.”

To his credit, Spencer knows very well that some fans would ultimately be turned off by the campaign, having said that some people “long for the simplicity of a single box, single platform, single game,” but also noted that, “today’s largest games are bigger than any of the individual platforms.”

Spencer has spent essentially his entire career at Microsoft and Xbox, beginning as an intern in 1988 and moving to the Xbox team during its launch in 2001. Knowing the company’s past, he believes that the DNA of Xbox remains the same even as the company evolves. “I think the thing that should really have longevity are the games, characters and world — and the platforms should enable us to experience those games where we want to play. That’s how we think about Xbox today.”

The number of games Xbox has for those platforms have increased substantially since its acquisition of both ZeniMax media (owners of Bethesda Game Works, id Software, and Arkane Studios) in 2021 and Activision Blizzard in 2023. In three short years, the industry saw a big shift, with properties like The Elder Scrolls, Fallout, Doom, World of Warcraft, Diablo, and the juggernaut Call of Duty franchise now belonging to Microsoft. But the company hasn’t forced most of its games to remain exclusive, allowing cross-platform launches and support on day one for many or staggered releases with games like the upcoming Indiana Jones and the Great Circle arriving on PlayStation 5 a few months after its Xbox and PC debut.

But even with the acquisitions, it hasn’t been an entirely smooth road, with high profile games like Redfall (2023), Starfield (2023), and Senua’s Saga: Hellblade II (2024) arriving to tepid reception from fans and critics. Although sales for Starfield were initially strong, the game’s player base has waned even with the recently released Shattered Space expansion. The weak performance of these first-party titles and the continued support of other platforms has only stoked the fire for players who say Xbox will soon drop out of the console game.

Speaking about consoles, Spencer said that he loves that people are buying Xbox hardware, but notes that it isn’t a growth market. “Our biggest growth in Xbox players is on PC and cloud,” he said. “The console space all up isn’t growing, across all of them. We love those customers, but in terms of continuing to expand and grow Xbox, it’s about PC, it’s about cloud, and it’s about making our games more available in more places.”

In regard to whether the company’s emphasis on cloud streaming and anywhere devices means that the they’ll cease developing new home consoles, Spencer had a definitive answer.

“We’ll definitely do more consoles in the future, and other devices.”

Those “other devices” are likely to include a mobile version of Xbox hardware to compete with the booming handheld PC trend that’s taken off over the last few years with systems like the Asus ROG Ally (which Spencer himself plays on) and Valve’s Steam Deck. These handheld versions of PCs are often Windows-based, meaning that they’re still running in Microsoft’s ecosystem, and allow players to play Xbox games on the go, with seamless transition between their home consoles and PCs using cloud storage for their saved data.

During the conversation, Spencer alludes multiple times to wanting to create a handheld Xbox, a detail he later confirmed with Bloomberg. Asked about whether there will be a mid-cycle hardware refresh like Sony has with the recently released PlayStation 5 Pro, he doesn’t give a clear answer, but implies that it isn’t necessary given the diminishing returns developers are seeing with increased horsepower.

“We think about hardware that can create unique value for our players or creators on our platform,” he said. “We don’t need to do incremental hardware for our own benefit. Does a new device really give you a unique experience on screen in some way? [It’s] less like the old days, going from the original Xbox to 360; that was standard definition to high definition. Now, [it’s] harder to show the benefits.”

For Spencer, the legacy of Xbox is top of mind, and how the brand continues to evolve in the future. Xbox Cloud Gaming is at the heart of that mission — the DNA of the Xbox needs to remain more than just the streaming service and software library.

“We are trying to expand, ‘What does an Xbox mean?’ I want Xbox to be something 20 years from now,” he said. “I think in order for Xbox to be vibrant, be successful, it needs to be about multiple pieces of hardware.”



Well.....there it is. Been suggesting for a while that Microsoft is moving on to other "hardware" than consoles, but seems I got that wrong.
 

Mayar

Member
CEO Phil Spencer tells Rolling Stone there will still be a box to buy
images
 

ap_puff

Member
Although the company's new ads emphasize cloud streaming, CEO Phil Spencer tells Rolling Stone there will still be a box to buy


It appears that the Xbox is no longer just a box. Earlier today, the company’s official accounts ran a new 30-second ad spot, showcasing the brand’s new campaign messaging: “This is an Xbox.”

To the sound of Black Sheep’s 1991 hip-hop track “The Choice is Yours,” the video begins with a Series X console and the bold green text reading, “This is an Xbox.” It then pivots to a smart TV, a phone, a handheld PC, and a laptop — all of which are now considered Xboxes.

On the surface, the campaign makes total sense. Xbox Cloud Gaming launched in 2019, and Xbox games have been available on PC for even longer. If players have an Xbox account, they can stream their purchased games or the Xbox Games Pass library on a variety of devices, anywhere they have a high-speed internet connection.

So, why are people concerned about the messaging?

On social media, many fans have expressed displeasure at the idea that Xbox is somehow abandoning the home console market. It’s true that this generation of hardware, which is led by the Xbox Series X and less powerful Series S, hasn’t been a huge success for Microsoft, with reports in May indicating that Sony’s PlayStation 5 has been outselling Xbox consoles nearly 5 to 1.

Many have declared that the “console wars” are over, referring to the old nomenclature for the rivalry between companies like Nintendo, Sony, and Microsoft that swept up much of the internet discourse in the 2000s.

But is Xbox really sunsetting its console market in favor of cloud gaming? The answer is no, but it’s more complicated than that.

Rolling Stone recently met up with Xbox CEO Phil Spencer in New York to discuss the future of the brand, where he touched on the themes behind the campaign ahead of its official launch.

“It’s an interesting topic because as we look at the brand, as we’re changing the brand, [it] means something different,” Spencer said. “It literally was a box when it first launched. It was the Direct X box. What it’s grown into now is more accessibility. Xbox isn’t just one device, Xbox is on your smart TV, Xbox is on your PC, Xbox is on your phone, and we’re in the middle of that transition.”

To his credit, Spencer knows very well that some fans would ultimately be turned off by the campaign, having said that some people “long for the simplicity of a single box, single platform, single game,” but also noted that, “today’s largest games are bigger than any of the individual platforms.”

Spencer has spent essentially his entire career at Microsoft and Xbox, beginning as an intern in 1988 and moving to the Xbox team during its launch in 2001. Knowing the company’s past, he believes that the DNA of Xbox remains the same even as the company evolves. “I think the thing that should really have longevity are the games, characters and world — and the platforms should enable us to experience those games where we want to play. That’s how we think about Xbox today.”

The number of games Xbox has for those platforms have increased substantially since its acquisition of both ZeniMax media (owners of Bethesda Game Works, id Software, and Arkane Studios) in 2021 and Activision Blizzard in 2023. In three short years, the industry saw a big shift, with properties like The Elder Scrolls, Fallout, Doom, World of Warcraft, Diablo, and the juggernaut Call of Duty franchise now belonging to Microsoft. But the company hasn’t forced most of its games to remain exclusive, allowing cross-platform launches and support on day one for many or staggered releases with games like the upcoming Indiana Jones and the Great Circle arriving on PlayStation 5 a few months after its Xbox and PC debut.

But even with the acquisitions, it hasn’t been an entirely smooth road, with high profile games like Redfall (2023), Starfield (2023), and Senua’s Saga: Hellblade II (2024) arriving to tepid reception from fans and critics. Although sales for Starfield were initially strong, the game’s player base has waned even with the recently released Shattered Space expansion. The weak performance of these first-party titles and the continued support of other platforms has only stoked the fire for players who say Xbox will soon drop out of the console game.

Speaking about consoles, Spencer said that he loves that people are buying Xbox hardware, but notes that it isn’t a growth market. “Our biggest growth in Xbox players is on PC and cloud,” he said. “The console space all up isn’t growing, across all of them. We love those customers, but in terms of continuing to expand and grow Xbox, it’s about PC, it’s about cloud, and it’s about making our games more available in more places.”

In regard to whether the company’s emphasis on cloud streaming and anywhere devices means that the they’ll cease developing new home consoles, Spencer had a definitive answer.

“We’ll definitely do more consoles in the future, and other devices.”

Those “other devices” are likely to include a mobile version of Xbox hardware to compete with the booming handheld PC trend that’s taken off over the last few years with systems like the Asus ROG Ally (which Spencer himself plays on) and Valve’s Steam Deck. These handheld versions of PCs are often Windows-based, meaning that they’re still running in Microsoft’s ecosystem, and allow players to play Xbox games on the go, with seamless transition between their home consoles and PCs using cloud storage for their saved data.

During the conversation, Spencer alludes multiple times to wanting to create a handheld Xbox, a detail he later confirmed with Bloomberg. Asked about whether there will be a mid-cycle hardware refresh like Sony has with the recently released PlayStation 5 Pro, he doesn’t give a clear answer, but implies that it isn’t necessary given the diminishing returns developers are seeing with increased horsepower.

“We think about hardware that can create unique value for our players or creators on our platform,” he said. “We don’t need to do incremental hardware for our own benefit. Does a new device really give you a unique experience on screen in some way? [It’s] less like the old days, going from the original Xbox to 360; that was standard definition to high definition. Now, [it’s] harder to show the benefits.”

For Spencer, the legacy of Xbox is top of mind, and how the brand continues to evolve in the future. Xbox Cloud Gaming is at the heart of that mission — the DNA of the Xbox needs to remain more than just the streaming service and software library.

“We are trying to expand, ‘What does an Xbox mean?’ I want Xbox to be something 20 years from now,” he said. “I think in order for Xbox to be vibrant, be successful, it needs to be about multiple pieces of hardware.”



Well.....there it is. Been suggesting for a while that Microsoft is moving on to other "hardware" than consoles, but seems I got that wrong.
I wouldn't be too sure. Phil careens from plan to plan monthly it seems. Do the common sense test on this one. Does it make sense for them to make a new box?
 

ap_puff

Member
Don’t let him mislead you…
Mislead me with what? I never take Phil at his word. That is the one constant with Xbox. I just do not see the business justification to make another xbox, especially not in 2025, especially when the xbox division is being pressed for margins. Even if, for example, they have a hardware that's stronger than the ps5 pro in time for GTA 6, what's the number of units that will move? 10-15mil? Most of whom will already be people in the xbox ecosystem. And if they are making it stronger than ps5 pro (and i mean actually stronger, not in the "series x > ps5 sense), they're going to take an absolute bath on the hardware costs. It's clear Phil wants to hew to his console war dreams but the business case just isn't there.
 

King Dazzar

Member
I'm always interested in new consoles as they are my primary way to game. But from someone who was all in with an X1X and then an XSX at launch. To now only seeing the XSX as a BC and demo machine. Good luck winning back my trust and getting me to spend any more money with them. Its not impossible. But good luck.
 

SHA

Member
Most people can't afford a second console, and consoles aren't budget friendly, so it's not a rejection issue with xbox as many may think it is, otherwise, their games wouldn't sell on other platforms.
 
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Wondering if Amy Hood and Nadella understand just how much money they are giving up (ie 30% split on xbox store) by killing the xbox(consolle) brand. I dont think its even a scenario they understand that people will rather buy ps5, pc, switch 2 than an xbox in the future.
 

Magic Carpet

Gold Member
I only want to know about the rumored but never seen handheld OS version of windows. Not even a blurry cellphone shot of this thing.
I suspect development has not even been started. The budget went for coffee and donuts.
 

Topher

Identifies as young
I wouldn't be too sure. Phil careens from plan to plan monthly it seems. Do the common sense test on this one. Does it make sense for them to make a new box?

It makes sense if Microsoft is making money off of Xbox consoles. Myself and others have been pointing to the poor numbers for a while and suggesting that Microsoft needs to do something different. Reality is that none of us know if Xbox hardware is meeting whatever criteria they have for keeping it alive, but this announcement seems to indicate that it is. Spencer being this emphatic about there being new consoles leads me to believe that is what is going to happen.

Frankly, I'm glad. Sony needs competition even if it isn't particularly strong.
 
Wondering if Amy Hood and Nadella understand just how much money they are giving up (ie 30% split on xbox store) by killing the xbox(consolle) brand. I dont think its even a scenario they understand that people will rather buy ps5, pc, switch 2 than an xbox in the future.

They imagine people logging into the Xbox app wherever they are and buying games from there. Not that hard to understand their thinking. Have the store in as many places as you can and get people in the ecosystem.
 

cireza

Member
Yup, of course there will. No surprise. I'm surprised at anyone who thought otherwise. They aren't just going to throw away their 30 million (or whatever) console base. It's the largest source of GP subs, among other things.
Reading all the quotes in OP, I actually get the opposite feeling. Read between the lines.

Especially this :
To his credit, Spencer knows very well that some fans would ultimately be turned off by the campaign, having said that some people “long for the simplicity of a single box, single platform, single game,” but also noted that, “today’s largest games are bigger than any of the individual platforms.”
and this :
“Our biggest growth in Xbox players is on PC and cloud,” he said. “The console space all up isn’t growing, across all of them. We love those customers, but in terms of continuing to expand and grow Xbox, it’s about PC, it’s about cloud, and it’s about making our games more available in more places.”
and this :
“We are trying to expand, ‘What does an Xbox mean?’ I want Xbox to be something 20 years from now,” he said. “I think in order for Xbox to be vibrant, be successful, it needs to be about multiple pieces of hardware.”

This reads like the days of Xbox consoles are definitely counted, and when Cloud/PC/Mobile and whatever other device will represent a much larger player base than the traditional consoles, they will simply stop making consoles because it will not be worth the hassle anymore. They are going to phase them out in the next 10/20 years.
 
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Kacho

Gold Member
and when Cloud/PC/Mobile and whatever other device will represent a much larger player base than the traditional consoles
I agree with what you said. This part here is the most important thing. They are counting on this to happen, they expect the market to move in this direction, but I don't see it happening any time soon.
 
As I mentioned before, Xbox physical hardware will continue to exist but it's now simply additive to their strategy rather than a core part of it.

Each future generation console they release will almost certainly sell fewer units than its predecessor, as they have confirmed with us all that everything is an Xbox and therefore there is no reason to buy their systems.

Weekly active users, Xbox account growth and $ generated across their gaming division is probably all that matters most to them now.

I just wonder whether it'll pay off. It seems like they were super-serious when they mentioned in those emails how they intend to make Sony (or was it Nintendo) go out of business.
 

Kvally

Member
Reading all the quotes in OP, I actually get the opposite feeling. Read between the lines.

Especially this :

and this :

and this :


This reads like the days of Xbox consoles are definitely counted, and when Cloud/PC/Mobile and whatever other device will represent a much larger player base than the traditional consoles, they will simply stop making consoles because it will not be worth the hassle anymore. They are going to phase them out in the next 10/20 years.
I think all consoles will be phased out in 10-20 years. I recommend keeping consoles in your homes going forward and not trading them in, if you want to keep console gaming in your life.
 

Humdinger

Gold Member
Reading all the quotes in OP, I actually get the opposite feeling. Read between the lines.

Especially this :

and this :

and this :

This reads like the days of Xbox consoles are definitely counted, and when Cloud/PC/Mobile and whatever other device will represent a much larger player base than the traditional consoles, they will simply stop making consoles because it will not be worth the hassle anymore. They are going to phase them out in the next 10/20 years.

Ok, but 10-20 years from now is a lot different than what some people were thinking - that this gen was their last, i.e., the end would come in 2 years, not 10 or 20. I wasn't saying Xbox hardware would exist forever. I was just reacting to the headline, saying of course there will be a next-gen Xbox (because some people doubted that).

In those quotes, what I hear is Phil's/MS's desire to expand markets for the Xbox app, beyond just the Xbox hardware itself. That's entirely understandable and expected. It's something they've been saying for many years.

There isn't anything in those quotes, at least to my ears, that says the console hardware is done, i.e., there will be no next-gen Xbox. It just wouldn't make any sense. The patient may be terminal, but it's not time to pull the plug yet.
 
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It entirely depends on the prospective sales of a new gen. 15 million? No way they are putting up the infrastructure needed for such a pathetic install base.

These interviews don't come out of nowhere. There's no need to do damage control this early both for exclusives on rival platforms or the hardware business continuity.
 

cireza

Member
I think all consoles will be phased out in 10-20 years. I recommend keeping consoles in your homes going forward and not trading them in, if you want to keep console gaming in your life.
I don't really see why, when you see the sales that Nintendo get for example with profitable hardware/games, there is no reason for them to go after any other kind of market.
 

Synastry

Member
The Xbox one sold 58M
The Xbox s/x will not match that meaning it will sell less.
So if the trend continues and I see no way it doesn't there next Box will sell even less then S/X

Weird way to continue a brand selling less consoles each Generation.
 

splattered

Member
People on here been goofy for a while...

"Playstation is beating Xbox 2/3:1 so surely they are getting out of the hardware business! This will be the last generation they ever participate in, guarantee it!"

Xbox has been losing to Sony nearly the entire time they have been in the console business... didnt stop them previous generations won't stop them this generation or the next.

Just because they are trying to expand their presence to more players off of their traditional console doesn't mean they are throwing in the towel.

If anything they are doubling down and making a greater investment in getting their games everywhere they can, including their own consoles.

Keep buying Xbox's games on your Playstation and Switch peeps, it's only helping to fund Microsoft's fight in the "console wars"
 
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