Gamepass is the key to saving Xbox from leaving the gaming industry by 2027 Says Phil Spencer

Phil Spencer's Stark Warning for Xbox's Future Amid Activision/Blizzard Deal" – Explore the candid insights of Phil Spencer, the head of Xbox, regarding the challenges Xbox has faced and the transformative potential of the Activision/Blizzard acquisition. Dive into his somber proclamation that hinges Xbox's fate on Game Pass success and the shift away from traditional hardware. Discover how Microsoft's bold strategy aims to navigate the ever-evolving gaming landscape and reshape the industry

[blackblades]

"Phil says" series reboot

[darthv72]

"Spencer Speaks"....

[Eonjay]

'Dive into his somber proclamation'... Are thy trying to make Xbox a cult?

This is utter stupidity. No other company in the industry has more money yet other companies are surviving just fine. How much of of the gaming industry has to be sacrificed to 'save' the trillion dollar company? If they can spend $70 billion and still fail, they probably deserve to fail don't you think?

[Godmars290]

"Are thy trying to make Xbox a cult?"

Pretty much has been since hiring on internet influencers early on to fire up the console wars.

[Cacabunga]

This guy never gets enough of lying and embarrassing himself

[Christopher]

Please have sympathy for trillion dollar company and please invest in their attempt to change the market in their favor since they couldn't win it by just making better games.

[Stanjara]

Hey Chris... how about you look into your site runtime errors and slow page loading (It's been happening for months) buddy, pal, guy, friend?!

[Lightning77]

While I disagree with the ABK stuff They had no studios to make "better games" in the first place hence why they had to buy studios to begin with.

[shinoff2183]

Lightning77

That's bs. After the zenimax deal they had more studios then sony and Nintendo. Activision wasn't needed

Stanjara

Same issues. I thought it was my phone for awhile until I realized other sites worked just fine.

[InUrFoxHole]

Dude runs comments better than the site. Congrats 👏 👏 👏

[Lightning77]

@Shin I'm talking Besides the ABK stuff BGS and everything else I'm talking at the beginning, not now. They didn't have any studios to make anything except Forza, Halo.

Making better games doesn't make sense when they barely had any studios back then.

[Godmars290]

"Making better games doesn't make sense when they barely had any studios back then."

You realize by "back then" you're talking decades, right?

They've had games, yet for whatever reason there's been few honest successes.

[Gamingsince1981]

@jettison

No one can be impartial to MS ruining the games industry and still failing to win, they are a trash tier company at gaming and even Spencer knows it.

[SICKINDIVIDUAL]

@wiz 🤡

Get your facts straight...Sega killed THEMSELVES beginning with Sega 32x/Saturn DISASTER followed by Dreamcast that was great but too late.

[343_Guilty_Spark]

Better than N4FTCG says

[S2Killinit]

He and MS are liars. They want everyone to feel sorry for them. While they gobble up the industry. Bunch of liars.

[Sonic1881]

I would add a certain individual to the list that acts like he works for Phil Spencer and hanging on his 🥜🌰 I'll let you guess who he is

[zsquaresoff]

If that is the case then RIP to Xbox in '27.

[Sonic1881]

So RIP to all the Xbox trolls in 27 😄

[Godmars290]

They'll likely try and take us all with them.

[Eonjay]

This is horrible and I don't want this to happen because, unfortunately with the acquisition of Activision, Microsoft has added another 15K employees to its payroll. If somehow Xbox were to now fail, it would be absolutely devastating to the workers in the industry. Xbox is now the biggest employer of devs in North America. They have basically bought the majority of talent in the industry and if they are basically holding it hostage to GamePass. The only possible way this doesn't end in ruin is if somehow Microsoft can divest its holdings so it doesn't just disappear if Xbox fails.

[Huey_My_D_Long]

And this is why industry consolidation is bad...but nooooo
All in all I predict MS selling Xbox off to Disney, Google or Amazon. They aren't gonna hit 100 million.

[S2Killinit]

Its a bluff. Everything out of MS mouth is a bluff. They are not even remotely thinking about leaving. Its yet another shady technique just like everything else they say.

[Gamerscore2077]

It’s probably for best, Phil & his team are doing everything in their power to kill the Xbox console.

[S2Killinit]

Kill Consoles in general. They want to change things up. So they can rack in more money.

[crazyCoconuts]

Xbox isn't going anywhere. They've bought so much at this point they ARE the industry.

[ChasterMies]

Xbox has been on Microsoft’s shit list ever since Satya Nadella took over as Microsoft’s CEO. But Satya knows how big the games business can be, and owning the market for games is just pure profit for any company that can do it. Just ask Tim Cook. Apple makes more in games than Sony, Nintendo, and Microsoft combined.

[crazyCoconuts]

Xbox is MS' last connection to the consumer market, so it's important to them. I don't know about the pure profit comment - I'd say you don't have to look far too see games failing to make a profit. Lots of companies are struggling.

[gold_drake]

its another episode of "Phil says".
tune in to the next episode where he says even more stuff!

how does that guy still have a job, seriously

[darthv72]

Its called "Spencer Speaks"... there are some good episodes to catch up on if you haven't been following.

[Asplundh]

"Spencer Speaks from both Ends" more like it.

[InUrFoxHole]

Aquires ABK... How does this guy have a job? Good question detective.

[gold_drake]

"He" didnt aquire anything.
Microsoft did.

and if you look at the history of all the dumb things Phil did, yes, i do question his still very active job role. people get fired for way less Dick, as in Detective .. of course ha.

[InUrFoxHole]

Yes and he's the face of xbox. While I agree he's stepped on his ball bag... a lot. The deal alone cemented his legacy. When the rich get richer all is forgiven

[crazyCoconuts]

We may not agree but in Satya's eyes the ABK acquisition is a success for him. He himself stated he'd love his career defining moment to be acquiring Nintendo. For him and his boss, that's the definition of success. Not actually beating PlayStation by making better products.

[XiNatsuDragnel]

Sigh oh boy this could be a sign of xbox leaving the industry in 27?

[CBaoth]

hardware yes, software no. I have literally been saying this for 10 years here. Each gen they sell less consoles. But every gen they also acquire more developers. The writing has been on the wall for years. MS wants to go 3rd party with GP available on EVERY device, including Sony and Nintendo hardware. They're willing at this point to strip away Xbox's brand equity to achieve it. I thought maybe they'd sell off the Xbox division to Amazon or Tencent but it appears it's currently headed the way of the dodo or the Titanic

[Relientk77]

No reason to buy an Xbox then. You can keep your all digital subscription service where you don't own anything future

[Outside_ofthe_Box]

So they got 5 years to up those subs. Let's get it going Phil!

This one again highlights that GP is Microsoft's last ditch effort and not something that they are doing because they truly believe it's more profitable than the traditional model, otherwise Sony and Nintendo would be following suit.

[ocelot07]

Wonder if them ditching Xbox live and bringing in Gamepass core ups the subscription count

[Eonjay]

Yes. You should expect at least a 7 to 10 million boost in their next reported figures. Maxing out console figures they will have to expand to PC and mobile. According to the leak the need 100 million to be profitable.

[ocelot07]

@Eonjay

I think they need to re enable to £1 a month subs again. That's the only way I'll be subbing each and every months without thinking about it.

[MrBaskerville]

Abk will undeniably make GP grow, question is, how big is the potential on pc? Consoles aren't selling that well, so they really need pc gamer support.

Unless they can get people to buy their boxes.

[ocelot07]

The thing is Microsoft are setup to be a perfect 3rd party publisher.

They can still make Xbox consoles for the people who prefer the Xbox system and controllers. They can still try and get people to sub to gamepass. Put it on everything possible like, nitnendo, playstation, pc, mobile, TVs.

[purple101]

A desperate attempt to rally fans into spending money on gp to keep Xbox afloat.

Everyone knows it's sinking.

Cod won't save them, and it's still on ps for another 10years anyway. No one is jumping ship just for cod, not after how badly the've been treated the last few years, thel either continue to pay for it on ps, or just fins something new / move on or outgrow it.

[S2Killinit]

They aren't sinking. Only in relation to PlayStation. But I agree its another trick. They’ve realized this is a method to fool people.

[jznrpg]

Nothing will get me to subscribe to Gamepass.

[badz149]

Unless they make it a mandatory. I would have never subscribed to any subs, not even PS+ if it wasn't made necessary since the PS4 launch. Sure the games we have been getting are great, I see great value in the service just by the monthly games alone, but I don't have the luxury of time to fully take advantage of that value due to commitments. Like right now, a mere hour of GT7 session is all I can afford for the day before I have to stop playing for various reasons...thus I see no time luxury for me to subscribe to GP no matter how much value it offers. I'm buying Spidey2 at launch. I guess GT7, Horizon, GoW all have to go back to the shelve for now. I wonder how long will I finish that game. Sigh...

[jznrpg]

They can make gamepass mandatory
(not sure that means) but I still won’t ever sub. The most I could see my self doing is buying a used Xbox and a few used physical games someday but I doubt I’ll even do that.

[S2Killinit]

You better believe MS would have made it mandatory if they had the numbers.

[Deathdeliverer]

He really trying to make it sound like Xbox was on its deathbed. No matter what he says it was all of the game divisions own doing. Should have invested in gaming instead of gimmicks and celebrities. Actual innovation instead of doing “enough”. Can’t lie, languishing really paid off in the end. It’s allowed them to buy up some hefty companies and really get maximum gains with very little effort. They really have a powerful potential outlook in future years. How PlayStation responds will be interesting. Not with purchases, but with new ips.

[HyperMoused]

Go all digital with no actual xbox and you will leave the industry

[JusttJD0099]

Yes, please. Bye.

[MrDead]

...Gamepass a subscription service, the very thing that is destroying Hollywood because the subscription service model isn't sustainable. Can't wait for MS to screw up the gaming industry before they ditch it, still a lot of very rich CEO's and investors will get even richer off these mergers.

[Hofstaderman]

I've been saying this since Phils we lost the console war interview; XBOX as a console is done for and XBOX as a service/ third party publisher is where they intend to go. The acquisition of Activision is a good fit for this route. This is Phil trying to cushion the inevitable.

[Gamerscore2077]

It would make sense at this point for them to become a third party publisher like SEGA. I mean their whole marketing strategy right now is them literally saying that you don’t need an Xbox to play their games is just mind boggling to me.

[Hofstaderman]

Exactly

[n1kki6]

Where did he say leave gaming? I see "or we’d have to make a different decision with the business."

[SonyStyled]

Not leave gaming, but the Xbox brand ending as a console as MS moves to subscription and streaming models of business.

[S2Killinit]

MS is on a crusade to end console gaming.

[Futureshark]

Well this is our chance folks, get rid of GP & get rid of Phil.
MS is no way leaving the game biz, they've just forked out $69 billion for Activision and would not abandon that investment sum in just 4 years.

No...it's uncle Phil's neck on the line and it's time to vote with your wallets, get him out and get Xbox changed for the better!

[Stanjara]

Previously on Spencer Talk:
S: We are so small, we have no games!
FTC: We will always help the small guy.
S: 👏🎶

[Lexreborn2]

So they have 4 years to put out some quality titles. Which would put things at the 7 year life cycle of the series s/x where the series s is going to be reallllllyyyyy at its limit.

The games in the next 2 years we can assume (avowed,fables 4, senua 2) perfect dark we know is in limbo.

If we go off of ms past release schedule next year should be a flood with the last 3 years being as dry as the first 3 years and anything of note will be on the successors pallet to entice pppl.

4 years to win gamers back doesn’t seem like it’s enough time

[Bathyj]

So happy the most inept platform holder has so much power and responsibility over so many. /S

[Vengeance1138]

Gonna be a juicy fire sale when all of those Xbox studios are up for grabs in '27!
The industry will be eating good off the carcus of Xbox.
As the famous quote states, "Sometimes Dead, is better".

[neomahi]

I'd like to see Xbox bail out of hardware and take on the role of SEGA. This is getting rediculous. PlayStation needs to take their time and play it smart to bring back aggressive PlayStation brand like when Kaz Harai, Jack Tretton, and Andrew House were running it. Ken Kutaragi would be great pushing hardware innovation, but consumers are pansies and gripe and complain so we're stuck with off the shelf parts. PlayStation, carefully select your new CEO, Bobby Kotick just opened up, unless he's in cahoots with Microsoft now and that's what they want, but how would that be to watch Bobby Kotick dismantle Activision blowing Microsoft's $69 billion investment. It's not the boards concern anymore. Maybe more people want to see the Microsoft empire fall too. So they say, every good thing must soon come to an end. But, seriously, PlayStation needs to be smart to ensure they can put Xbox away and finish this

[ApocalypseShadow]

Somehow, seeing the nonsense headline and paragraph made me think of the Biff Tannen propaganda video. With Lorraine being Activision.

[S2Killinit]

As if we are lucky enough. They think we are all idiots. Then Good riddance. Leave please.

[Petebloodyonion]

Wow, this opinion piece feels like a tale from the Crypt story.
Here's a simple logical thing MS didn't become a trillion company by making mistakes over mistakes over mistakes
Meaning that if they had their sights on some of the biggest publishers around it's not to throw the towel in the gaming space in the next 3 years (especially when it's gonna take a couple of years to pump their games out.

The only real shred of truth is will Xbox as a console will still be around for the next-gen or if MS will embrace becoming the biggest 3rd party player for Nintendo and PlayStation.

[Petebloodyonion]

As for the member who called me a Moron for calling this an opinion piece well I'll say this:
this article is an interpretation of what Spencer meant so yeah by interpreting the author creates an opinion.
Case in point another interpretation of the exact same news with a completely different explanation.
https://www.laptopmag.com/g...

So tell me which one is the real explanation?

[TiredGamer]

MS has invested in publishers with the goal of producing a steady and perpetual revenue stream. They won’t care about selling consoles or winning the “console war” - they have already admitted to that. From a business sense, the games/subscription revenue is the prize. I would not be surprised in the slightest if in 2027, MS shelves their hardware ambitions and manages to put Gamepass on PlayStation. That’s a win-win for everyone in the end. One less doppelgänger console (the Switch exists in its own separate space), and Microsoft now has access to every PS owner. And every PS owner can GAAS it up the MS way without switching the input on their TV.

[UltimateOwnage]

Good thing I have never and have no interest in subbing to GaaSPass. I’ll be sticking with Sony, Nintendo and my PC for all my gaming needs.

[Barlos]

Bye Xbox. Don't let the door hit you on the way out.

[Samonuske]

Terrible thing to saw for people who are invested in their eco system, with their digital libraries tied to Xbox's store and system. it might carry over to PC due to it's already existing integration, but people play on consoles because they either can't afford a decent PC or for the UI and simplicity of picking up and playing, MS potentially robbing people of their libraries kinda harkens back to Don Matrick saying " We have a system for people who wanna play offline, the 360"

[ironmonkey]

Lol huge slap in the face, so now theres a date in place. Trillion dollar business can't take anymore L's. Basically take or leave it.

[NotoriousWhiz]

Once Xbox is gone and Sony has no real competition, gaming is going to get real expensive. Time will tell if this ends up being good or bad.

[VariantAEC]

Gaming was always really expensive. It was never cheap even in the Nintendo days. The cheapest gaming console was probably GBA and it was powered by literally 12 year old tech when it launched. PSP pushed Nintendo to make more powerful portable HW and Switch is an extension of the fight Nintendo lost to PS in the mobile power space. Of course PS found out their mobile market wasn't big enough to justify huge budget AAA games.

Nintendo is selling $70 games on a $250 console that barely has any games that look better than PS Vita could manage. At least Nintendo still has nice games that are actually fun, somewhat creative, and no one here is knocking Nintendo's 1st party quality level. The reason their games level of polish is so high is because they are using older more mature technologies to make their games work well.

That really helps to make Nintendo games work well without patches... but are Nintendo games really actually worth $70 legitimately? Is Nintendo pocketing like 8 times what they actually put back into making better games? Probably.

PS is spending a lot and while they rake in more than they spend the reality is if PS revenues drop off they're going to be hurting in ways Xbox and Nintendo won't because PS is pushing the medium forward. As some have pointed out Mario Wonder is taking ideas from other platform titles not just prior Mario titles. I'm reminded of some scenes from even Spyro in Wonder. Of course, games have covered basically everything at this point so... not too surprising.

[blacktiger]

So buy the entire industry?

[Soulsborne]

Its also the cancer of the industry, cloud gaming 2027 M$ is already happening. No one tell Obscure tho

[derek]

We don't need Microsoft to "reshape " the gaming industry in their favor or any other propaganda they've been peddling to justify their aggressive acquisition spree. We want great games and a open free/competitive market that's it, if xbox can't improve in this regard then they should go away so another platform can emerge. Microsoft doesn't even need gaming like the other 2 platform holders its not essential to them thats why their interest in producing games disappeared for over a decade and it will again if they cant dominate/control. They just want to monopolize and force people to buy into their crummy subscription service. No imagination no creativity just buy buy buy in the hopes that they can spend Sony then Nintendo out of business.

[SimpleSlave]

I'm willing to sacrifice all of Microsawft for a Dreamcast 2. So...Bye Felicia.

[OWCY]

So xbox has until 2027 to try to catch up and compete with the monopoly that is Sony. Or they fold. And then it will just be Sony for console and vr and Nintendo for handheld console hybrids.

[GamingSinceForever]

What monopoly does Sony have?
XBox chose not to explore VR.

[anast]

They aren't leaving, he is trying the "pathetic" approach: [not actual quote] "send us your money if you don't want us to leave." This is desperation stuff right here. He is praying that streaming becomes viable quickly so he can push cheap gaming Roku boxes for $200 plus a $100 annual subscription.

[VariantAEC]

What if MS is handing down this ultimatum to Xbox? I won't say Xbox will surely be dissolved by 2027 if this benchmark isn't met.

On the other hand Xbox has been a drain on MS for more than 25 years by 2027, I can see MS saying... 'We're done losing money here.'

[Rockstar]

Honestly, at this point...I care very little if Xbox remains a thing...

[jjb1981]

Xbox can't fail. I hope they don't fail because then Sony and Nintendo will be tightening their grips on us gamers and feeding us hot, steamy bowls of shenanigans. These companies love these recurring subscription plans. Sony has already raised their prices by a ridiculous amount. Nintendo charges $50 a year to play old N64, gameboy and Genesis games. It just keeps getting worse. Thankfully the PC market exists. Game Pass can be great value for a lot gamers but at what cost to quality? Is MS willing to spend big development money just to release on GP? Only time will tell and thankfully I have a massive backlog that can be played offline.

[Bronbron92]

I’m curious on how much monies in a year they make off gamepass after they give money back to the devs and others and if they can really reach their need goal to be “saved” gamepass is a great deal but I’m sure more price hikes will come or even a tier system possibly just like PlayStation already has done but I’m sure they’ll get flack just like Sony did but hey pay to play right

[jeromeface]

Not all of us want xbox in our gamespace... wonder if he considered that.

[GamingSinceForever]

Wait I thought GamePass is profitable, so what is the concern?