In an interview with Polygon, Phil Spencer, the head of Xbox and Microsoft Gaming, discussed the strategy shift of Xbox in selling games across multiple platforms. He explained that there were two primary reasons for this shift:
1. Increasing game development costs: Phil revealed that the current cost of developing AAA games is exceedingly high, possibly reaching $300 million USD. The console market is not growing significantly as most customers stick to their existing consoles, making it increasingly difficult to develop exclusive games.
2. Gen Z behavior: Through research, Phil discovered that Gen Z individuals are accustomed to accessing content across various platforms, such as TikTok, available on both iOS and Android. They do not limit themselves to a single platform.
In conclusion, Phil emphasized that the strategy shift by Xbox aims to attract and retain younger players. He wants players to see Xbox as a place where they can discover the exceptional games they desire to play.
TLDR: Phil Spencer discusses Xbox’s strategy shift to sell games across multiple platforms due to increasing game development costs and the diverse behavior of Gen Z individuals. The aim is to attract and retain younger players by providing access to the games they desire.
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