Is Xbox Betting on Cross-Platform Gaming? (cnbc.com) 26
A "slew of layoffs, price hikes and studio closures" for Microsoft's Xbox "have led many to declare — not for the first time — that the Xbox is dead," reports CNBC.
Or is it just changing its business model? The company's overall gaming revenue decreased 2% year-over-year, with a 29% dip in Xbox hardware sales, according to Microsoft's first-quarter earnings for fiscal 2026. The broader console industry has been in a major slump, with hardware spending down 27% year-over-year in November, which is typically a busy shopping month, according to a recent report from research firm Circana. It was the worst November in two decades, IGN reported, citing Circana data. Combined Switch and Switch 2 unit sales were down more than 10% during the month and PS5 sales were down more than 40%, IGN said. But the Xbox Series hardware took the biggest beating, with a dramatic 70% drop in sales...Microsoft's Xbox Series S and Series X, at 1.7 million units, couldn't outsell the original Nintendo Switch, which launched in 2017 and has sold 3.4 million units so far this year, data from game sales tracking site VGChartz estimated...
Microsoft CEO Satya Nadella said in a recent interview with the TBPN podcast that the company's gaming business model will look to be "everywhere in every platform," from consoles to TV to mobile. His comments also hinted that the next Xbox may function more like a PC. "It's kind of funny people think about the console and PC as two different things," Nadella said. "We built a console because we wanted to build a better PC, which could then perform for gaming. So I kind of want to revisit some of that conventional wisdom...." A source familiar with Xbox strategy told CNBC that the company is looking at creating an open system that enables players to jump between console, PC and cloud gaming — and any form of entertainment beyond gaming. [Wedbush analyst Michael Pachter told CNBC] that while Microsoft is not completely abandoning hardware, the company is splitting its audience into existing buyers interested in specialized consoles and everyone else.
Xbox Game Pass subscription service, which gives subscribers access to games from a variety of publishers, is a clear example of this strategy... The growth in cloud gaming has been blistering. Xbox reported a record 34 million Game Pass subscribers in 2024 and a total Game Pass revenue of almost $5 billion over the last fiscal year. Xbox said in a November blog post that the number of cloud gaming hours from Game Pass subscribers was up 45% compared to the same time last year. The Microsoft subsidiary also said console players are "spending 45% more time cloud streaming on console and 24% more on other devices..."
Despite gaming's scaling limitations, Microsoft seems committed to doing what it has done with the rest of its products — moving it to the cloud... [Xbox President Sarah] Bond recently said in an interview with Mashable that the idea of exclusive games is "antiquated" as the company has leaned into cross-platform gaming... Xbox is betting that cloud and cross-platform gaming are the future. For a decade, claims have been made about the death of the Xbox, and what comes next could fully spell the end, or bring a metamorphosis.
Or is it just changing its business model? The company's overall gaming revenue decreased 2% year-over-year, with a 29% dip in Xbox hardware sales, according to Microsoft's first-quarter earnings for fiscal 2026. The broader console industry has been in a major slump, with hardware spending down 27% year-over-year in November, which is typically a busy shopping month, according to a recent report from research firm Circana. It was the worst November in two decades, IGN reported, citing Circana data. Combined Switch and Switch 2 unit sales were down more than 10% during the month and PS5 sales were down more than 40%, IGN said. But the Xbox Series hardware took the biggest beating, with a dramatic 70% drop in sales...Microsoft's Xbox Series S and Series X, at 1.7 million units, couldn't outsell the original Nintendo Switch, which launched in 2017 and has sold 3.4 million units so far this year, data from game sales tracking site VGChartz estimated...
Microsoft CEO Satya Nadella said in a recent interview with the TBPN podcast that the company's gaming business model will look to be "everywhere in every platform," from consoles to TV to mobile. His comments also hinted that the next Xbox may function more like a PC. "It's kind of funny people think about the console and PC as two different things," Nadella said. "We built a console because we wanted to build a better PC, which could then perform for gaming. So I kind of want to revisit some of that conventional wisdom...." A source familiar with Xbox strategy told CNBC that the company is looking at creating an open system that enables players to jump between console, PC and cloud gaming — and any form of entertainment beyond gaming. [Wedbush analyst Michael Pachter told CNBC] that while Microsoft is not completely abandoning hardware, the company is splitting its audience into existing buyers interested in specialized consoles and everyone else.
Xbox Game Pass subscription service, which gives subscribers access to games from a variety of publishers, is a clear example of this strategy... The growth in cloud gaming has been blistering. Xbox reported a record 34 million Game Pass subscribers in 2024 and a total Game Pass revenue of almost $5 billion over the last fiscal year. Xbox said in a November blog post that the number of cloud gaming hours from Game Pass subscribers was up 45% compared to the same time last year. The Microsoft subsidiary also said console players are "spending 45% more time cloud streaming on console and 24% more on other devices..."
Despite gaming's scaling limitations, Microsoft seems committed to doing what it has done with the rest of its products — moving it to the cloud... [Xbox President Sarah] Bond recently said in an interview with Mashable that the idea of exclusive games is "antiquated" as the company has leaned into cross-platform gaming... Xbox is betting that cloud and cross-platform gaming are the future. For a decade, claims have been made about the death of the Xbox, and what comes next could fully spell the end, or bring a metamorphosis.
It's been all over town for years, (Score:2)
Xbox has no games (Score:2)
No longer has any exclusives, price of XBoxLive is eye-watering now and Sony & Valve seem to have beaten them to the punch in the living room and portably.
Also, they're a BDS Target.
https://bdsmovement.net/news/s... [bdsmovement.net]â(TM)s-xbox
https://www.youtube.com/watch?... [youtube.com]
Nadella being detached from reality (Score:4, Informative)
"It's kind of funny people think about the console and PC as two different things", Nadella said.
It's funny only if you are some detached-from-reality CEO who understands neither the Console nor the PC buyer demography. Microsoft not understanding that a toy is for playing and a tool is for working, and thus have very different requirements, is confirmed by their "tool" (Windows) being brittle like a toy, and their toy (Xbox) turning into unwelcome work for buyers to install and maintain.
I own both a PC (but running a decent operating system, not Windows), and an Xbox, and I would never for a second thought that both should be "merged" and become "one".
Hinting at Hardware Dominance. (Score:2)
Microsoft CEO Satya Nadella said in a recent interview with the TBPN podcast that the company's gaming business model will look to be "everywhere in every platform," from consoles to TV to mobile. His comments also hinted that the next Xbox may function more like a PC.
Wonder how long it will take the anti-trust experts to try and insist that the Professional versions of their operating systems will only be available on Xbox hardware.
An XBox on every corporate desk? Why the hell not. GenGamer being interviewed will love the lunch breaks, and probably easier hardware succession planning than Win10 screwed businesses with.
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probably easier hardware succession planning than Win10 screwed businesses with.
*Win11.
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An XBox on every corporate desk? Why the hell not. GenGamer being interviewed will love the lunch breaks, and probably easier hardware succession planning than Win10 screwed businesses with.
Businesses would probably not like that. First of all, obviously businesses do not want employees gaming during work hours. Having Xbox on them makes it harder to do stop that. Second, many business machines are not very good gaming machines as many of them use integrated graphics as the cheapest option. Securing machines by requiring Windows 11 is something a business can justify. Buy gaming machines with discrete graphics is something they cannot.
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An XBox on every corporate desk? Why the hell not. GenGamer being interviewed will love the lunch breaks, and probably easier hardware succession planning than Win10 screwed businesses with.
Businesses would probably not like that. First of all, obviously businesses do not want employees gaming during work hours.
That entirely depends on the cost/benefit analysis of such activity in controlled breaks (call it "lunch" and "tea time" if you wish to get culturally specific). Manufacturing plants often pay to pump in or allow music throughout the facility. With measured effect when it's removed. All depends on the cost/benefit.
Having Xbox on them makes it harder to do stop that. Second, many business machines are not very good gaming machines as many of them use integrated graphics as the cheapest option. Securing machines by requiring Windows 11 is something a business can justify.
Securing sales by mandating Windows 12 Professional only install on XboxC (as in Corporate) hardware, is something Microsoft can justify. All day, every day. The mode of the machine never cha
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That entirely depends on the cost/benefit analysis of such activity in controlled breaks (call it "lunch" and "tea time" if you wish to get culturally specific). Manufacturing plants often pay to pump in or allow music throughout the facility. With measured effect when it's removed. All depends on the cost/benefit.
Business do not want employees playing video games at work on company machines. If an employee wants to play with their Switch or Steam Deck on their breaks, they do not have issues with that.
Securing sales by mandating Windows 12 Professional only install on XboxC (as in Corporate) hardware, is something Microsoft can justify. All day, every day. The mode of the machine never changes, as it's purpose doesn't. It's still a business machine in a corporate workspace. You merely enable (via granular security) certain features for gaming at certain times.
Businesses do not want it and they generally control what software is installed on Enterprise Windows. And again, most corporate machines use integrated graphics which will perform poorly for games. I am not sure why you are trying so hard to get Xbox gaming on corporate machines.
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Businesses do not want it and they generally control what software is installed on Enterprise Windows. And again, most corporate machines use integrated graphics which will perform poorly for games. I am not sure why you are trying so hard to get Xbox gaming on corporate machines.
Let me clairify once again, to dispel that whole most corporate machines have integrated graphics problem. The Xbox hardware, with great graphics and plenty of power, BECOMES the corporate machine. Running Win12 Professional. For those that wish to be called Professionals at work running an AD instead of those non-professional losers stuck over there in a Workgroup. (Not unlike the “Home” versions before.)
For any large business that does not want Microsoft products today, they often do not h
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Let me clairify once again, to dispel that whole most corporate machines have integrated graphics problem. The Xbox hardware, with great graphics and plenty of power, BECOMES the corporate machine.
Ummmmmm no. You did not "dispel” anything. The facts are corporate desktops and laptops come with integrated graphics. Today. You speculating a future that has not happened is still speculation. But let’s look at your speculation: Why would any business buy Xbox machines for enterprise computers from Microsoft instead from Dell, Lenovo, or HP? From what we can tell MS is trying to exit the hardware business. Your speculation makes no sense.
For any large business that does not want Microsoft products today, they often do not have a choice.
Do you actually work in a corporate job because where I
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Let me clairify once again, to dispel that whole most corporate machines have integrated graphics problem. The Xbox hardware, with great graphics and plenty of power, BECOMES the corporate machine.
Ummmmmm no. You did not "dispel” anything. The facts are corporate desktops and laptops come with integrated graphics. Today. You speculating a future that has not happened is still speculation. But let’s look at your speculation: Why would any business buy Xbox machines for enterprise computers from Microsoft instead from Dell, Lenovo, or HP? From what we can tell MS is trying to exit the hardware business. Your speculation makes no sense.
For any large business that does not want Microsoft products today, they often do not have a choice.
My original comment was referring to Microsoft as the anti-trust experts. It was a tongue-in-cheek reference to their history. And their known power and dominance within the corporate space. Point is if they wanted to try and force "Professional" versions of their OS onto some specific hardware (which they happen to currently be all tooled up to make and do,) it sure as shit wouldn't be coming from an unknown place of profit (cough, Apple). And it would eliminate most problems of hardware compatibility
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My original comment was referring to Microsoft as the anti-trust experts. It was a tongue-in-cheek reference to their history. And their known power and dominance within the corporate space. Point is if they wanted to try and force "Professional" versions of their OS onto some specific hardware (which they happen to currently be all tooled up to make and do,) it sure as shit wouldn't be coming from an unknown place of profit (cough, Apple). And it would eliminate most problems of hardware compatibility and make IT easier with a single platform.
Point is MS trying to force hardware onto corporate customers would lead to widespread revolt. Point is MS does not make ANY desktops today and barely make any laptops. The suggestion is absurd at its face that MS would leverage hardware they don't make.
Would they piss off a lot of 3rd party hardware vendors? Sure. But there's always the Home market for them.
No they would piss off their corporate customers. Their corporate customers who will not use Home.
And as GenZ's name becomes more "Boss" and "Sir", we'll see what the break room morphs into. The LAN party might be the new smoke break.
You must be smoking something if you think corporations will buy gaming machines because Gen Z employees want to game.
I chose a Mac over Windows in 2008 regardless of my Windows needs at the time. Because virtualization. Yeah. I'm well aware of the 5% of fringe cases in business.
Your experience is from 15 years ago. Toda
console games ruined pc gaming a long time ago (Score:3)
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Why I left (Score:2)
I left xbox gaming over a decade ago, the age of little skids yelling in the mic about how they were doing my mom, and how awesome they were got old fast. I traded console gaming in for another cesspool though, pc gaming... Now I don't game at all unless you consider flight simulation a game.
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They'll continue to fail... (Score:1)
no matter what they do. They refused to acknowledge the root of the problem, which is that they don't produce any games people want to play. They've been infested from top to bottom with activists who have made their games ugly, boring, dumb, and expensive.
Nobody wants Gamepass bro - not at these prices.
The business model is changing (Score:3)
To understand where we're going, understand where we came from.
In the old days, consoles were specialized devices. They had custom hardware that made them better for playing games that ordinary PCs. Games were written specifically for a console and designed to take advantage of the console's unique hardware. The console maker controlled distribution and got a cut from every game sold for their console.
Modern consoles are just gaming PCs. Their hardware is very similar to other gaming PCs, and they mostly run the same games that run on PCs. But the business model hasn't changed. The console maker still controls distribution and gets a cut.
That model is working well for Nintendo and Sony. They want to keep it going. Microsoft tried to get in on it, but they mostly failed. Having been unsuccessful at getting a big slice of the pie, they're trying to replace the pie with a different one. They want to switch to the business model that works well for them on PCs: control the OS, not the hardware. Lots of companies will make consoles, but they'll all run Microsoft's OS and get their games from Microsoft's store.
Valve has a similar goal, but they're coming from the other side. They dominate PC gaming and are locked out of consoles. So they also want to redefine a console as just a PC that sits in your living room. And they want that PC to get games from their store, not Microsoft's. But if Microsoft controls the OS, they'll be at a disadvantage. Microsoft's store, not theirs, will be presented as the default place to get games. So they created SteamOS. They want consoles to run an OS they control, or if not that, an open OS that no one controls.
It's still up in the air who is going to win.
Xbox's death is a major letdown... (Score:1)
... and it's a very sad one. So, they're hiking prices right in the middle of an economic downturn? I mean, they already fired the game developers, what could go wrong? How about a major economics crisis?
The Xbox brand won't recover after this in 2026. The most likely outcome is that, they'll exit the market. Consoles feel 'antiquated' anyways, you know...
It's all over, folks, time to close the shop, now.
Can we get clarification for Satya Nadella? (Score:2)
Cool, cool, and hes the techbro after all, but can he explain why XBOX lives within a closed eco system unlike the PC which is built upon the premise of an open system? Because, it seems to be, that Satya Nadella doesn't have the first fucking clue what hes talking about on this. XBOX is just as much a PC as an iPhone is a PC.