Phil Spencer sat down with Rolling Stone in light of the new advertising campaign “This is an Xbox,” which hardcore Xbox fans found displeasing as they interpreted it as a sign that Microsoft would stop producing console hardware. Spencer reiterated that Microsoft will definitely release new console hardware in the future, as well as other devices. This likely includes the portable Xbox gaming device that he recently mentioned would take several more years to develop.
However, Spencer emphasized that the console hardware market is no longer growing, with growth now seen in PCs and cloud gaming. Therefore, Microsoft’s strategy is to expand its own game offerings to these markets. He also pointed out that Microsoft does not believe in releasing mid-cycle hardware updates like the PS5 Pro, arguing that it is unnecessary to launch slightly more powerful hardware incrementally. He questioned how much a mid-cycle hardware release would actually improve the gaming experience on screens, comparing the transition from the original Xbox to the Xbox 360, which elevated picture resolution from SD to HD, noting that creating a similar impactful change today is not as straightforward.
TLDR: Phil Spencer reassured Xbox fans that Microsoft will continue to develop new console hardware and devices, emphasizing the company’s strategy to expand into PC and cloud gaming markets. He also explained why Microsoft is not in favor of mid-cycle hardware updates and discussed the challenges of making significant improvements in today’s gaming landscape.
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