In recent years, it has become clear that Microsoft's priorities in the gaming market have changed radically and will continue to change even more as time goes by. They are no longer worried about the amount of hardware units they sell, now they are much more focused on creating a larger ecosystem that attracts subscribers instead of hardware purchases, subscribers that they hope to maintain through services such as Game Pass and xCloud.
As such, their priorities are largely different from traditional game companies like Nintendo and Sony, which still focus primarily on selling consoles more than anything else. According to Xbox boss Phil Spencer, in fact, Nintendo and Sony, for that same reason, are no longer the main competition of Microsoft and Xbox. Now they see the likes of Amazon, which is preparing to enter the transmission space, and Google, which has already done so with Stadia, as its main competitors.
"When we talk about Nintendo and Sony, we respect them a lot, but we see Amazon and Google as the main competitors in the future," Spencer said while speaking with Protocol. "That's not disrespecting Nintendo and Sony, but traditional game companies are somewhat out of place." I guess they could try to recreate Azure, but we've invested tens of billions of dollars in the cloud over the years. "
According to Spencer, competing with Nintendo and Sony for "format wars" makes no sense, when Google and Amazon seek a much larger market share of billions of players.
"I don't want to be in a fight over format wars with those guys, while Amazon and Google are focusing on how to bring the games to 7 billion people worldwide," he said. "Ultimately, that is the goal."
Such a perspective may have seemed too much there about a decade ago, but in recent years, it is clear that Microsoft's strategy makes a lot of sense to them. The creation of an ecosystem that does not restrict the player base based on hardware exclusivity means that Microsoft can point to a much wider audience, and if they can continue delivering products with Game Pass and xCloud, while offering new consoles Traditional for those who still prefer that, they will ensure a successful future for themselves.