Microsoft, the parent company of Xbox, has announced that it will make four of its exclusive Xbox games available to rival consoles, such as PlayStation and Nintendo. This is a surprising and unprecedented move in the video gaming industry, where exclusivity deals are often used to attract and retain customers. Microsoft Gaming CEO Phil Spencer revealed this news in a special edition of the Official Xbox Podcast on Thursday, February 15, 2024.
Spencer did not specify which four games will be shared with other platforms, but he hinted that two of them will be “community-driven” games and two will be smaller titles. He also said that the teams behind these games have plans that are “not too far away” and that the games will make sense when they come out. He ruled out the possibility of Bethesda’s Starfield and Indiana Jones being among the four games, as they are highly anticipated and big-budget titles.
Spencer explained that Microsoft’s decision to share its games with rivals is not a fundamental change to its exclusivity strategy, but rather a reflection of its vision to make gaming more accessible and inclusive. He said that he believes that exclusive games will become “a smaller and smaller part of the game industry” in the next five or 10 years, as gamers demand more choice and flexibility. He also said that Microsoft is not interested in creating artificial barriers or walls between gamers, but rather in creating great games that can be enjoyed by everyone.
Microsoft’s expansion of its Game Pass service
Microsoft’s move to share its games with rivals is also part of its broader strategy to expand its Game Pass service, which is a subscription-based platform that offers access to hundreds of games for a monthly fee. Game Pass works like a Netflix for video games, allowing gamers to play a variety of games without having to buy them individually. Game Pass is available on Xbox consoles, Windows PCs, and mobile devices, and Microsoft plans to bring it to more devices and platforms in the future.
One of the ways that Microsoft is enhancing its Game Pass service is by acquiring more game developers and publishers, such as Activision Blizzard, which it bought for $69 billion in October 2023. Activision Blizzard is one of the largest and most popular game makers in the world, with franchises such as Call of Duty, Overwatch, and Diablo. Microsoft’s acquisition of Activision Blizzard gives it access to a huge library of games that it can add to its Game Pass service, as well as exclusive rights to future games from the company.
On Thursday, Xbox President Sarah Bond announced that the first Activision Blizzard game to join the Game Pass service will be Diablo IV, which will be available on March 28, 2024. Diablo IV is the latest installment in the acclaimed action role-playing game series, which has a loyal fan base and a high demand. Bond said that adding Diablo IV to Game Pass is part of Microsoft’s commitment to make Xbox, the Xbox experience, and the games that it builds as widely available as possible.
Xbox’s potential to gain more market share and revenue
Xbox’s move to share its games with rivals and expand its Game Pass service could have a positive impact on its market share and revenue, as it could attract more gamers and subscribers to its platform. Xbox has traditionally lagged behind PlayStation and Nintendo in terms of sales and popularity, as it has fewer exclusive games and a smaller presence in some regions, such as Asia. However, Xbox has been gaining ground in recent years, as it has invested more in its hardware, software, and services, as well as in its customer satisfaction and engagement.
According to Microsoft’s latest earnings report, its Windows-led personal computing business, which includes Xbox games and services, grew by 19% to $16.89 billion in the fourth quarter of 2023. This growth was largely driven by the addition of Activision Blizzard, which contributed 55 points to the 61% increase in Xbox-related revenues. Microsoft expects this trend to continue in the future, as it adds more games and features to its Game Pass service, and as it shares more of its games with rival consoles.
Xbox’s move to share its games with rivals and expand its Game Pass service could also have a positive impact on the video gaming industry as a whole, as it could foster more innovation, competition, and collaboration among game developers and publishers. It could also benefit gamers, as they could have more options and opportunities to play the games that they love, regardless of the device or platform that they own. Xbox’s move could be a game-changer for the video gaming industry, as it breaks the barriers of exclusivity and embraces the spirit of inclusivity.