Phil Spencer: “We’re not in business of out-consoling Sony or out-consoling Nintendo”

Phil Spencer claims that even if Xbox had great video games, it still wouldn’t be enough to move Xbox from third place to second.

Spencer explained the company’s focus on subscription services like Game Pass and cloud video game innovation in an appearance on the Kinda Funny Xcast, which was published on YouTube today.

“We’re not in the business of out-consoling Sony or out-consoling Nintendo,” Spencer said. No great benefit or victory has come our way.

And I know that will upset a lot of people, but the truth is, when you’re third place in the console market and the top two players are as strong as they are and have in some cases a very discrete focus on doing deals and other things that sort of make being Xbox hard for us as a group– that’s on us, not on anyone else…”

When the Xbox One generation died out, people’s “virtual libraries” of games disappeared, and it was the worst thing that could have happened.Spencer, Phil

Spencer claimed Microsoft is invested in giving Xbox players a great time and making them feel welcome, but he also seemed to recognise that Microsoft’s console strategy couldn’t compete with Sony or Nintendo’s.

I hear people saying that if you just made great video games, everything would turn around, and I see that remark,” he said. It’s simply not true that if we go off and create fantastic video games, you’ll see a rapid and dramatic shift in console share. The Xbox One generation was the toughest to lose since it was when everyone started building their own personal video game libraries.

I don’t think many people can relate to the reality of the statement, “If we just put more effort into making great video games for our console, we’ll win the console race.”

According to Spencer, the costs of upgrading are higher given that people have created virtual libraries they may continue from a previous generation, and around 90% of annual console purchasers are already in one of the three key console settings.

When you factor in Fortnite, Roblox, and Minecraft, this is the first generation when the major video games they are playing were accessible last generation, according to Spencer. “There is such a deep bond between generations. I’ve noticed that many industry veterans long for the days of cartridges and discs, when each new console generation represented a clean slate and the chance to reshape the market. Unfortunately, that is not the world in which we currently reside. There is no alternate reality where Starfield receives an 11 out of 10 and people are selling their PlayStation 5s. That won’t happen at all.

There is no alternate reality in which Starfield receives an 11 out of 10 and people are willing to part with their PlayStation 5s. We can rule out that possibility right now.Spencer, Phil

Spencer expressed concern once again, saying that the system is “the core” of the Xbox brand and that Microsoft will continue to focus on it despite its shifting strategy.

But I get that some people want to hold us up as a better green version of what the blue folks do, and I’m just going to say that following in someone else’s footsteps is not a victory for Xbox. We need to forge our own path with Game Pass, the content we create on Xcloud, and the way we approach game development.

Even the current release of Arkane’s Redfall, one of the more prominent first-party Xbox titles in recent memory, was settled by Spencer. The game’s technical issues and critical reception were recognised, both of which contributed to Metacritic scores that were far lower than Microsoft had predicted based on fake reviews.

He also brought up misleading advertising as a problem.

IGN’s Redfall reveal trailers showed the game running at 60 frames per second on PC, while Spencer said that the game will only run at 30 fps on consoles. Like, we need to be forthright about what we’re exposing, that it’s an agent of what our console customer, our most loyal consumer to our brand name, economically loyal, is visiting and what they’re going to play. Furthermore, we need to be considerably more forthcoming.

Furthermore, the only person I am aiming at is myself. I’m sure I’ll take enough criticism to convince me that someone else is at fault here, but I attribute our success thus far to our willingness to be transparent about the game’s development, goals, design, and features. And it drives me crazy when we injure ourselves by putting things out there and interacting in a way that is unclear or misleading about the true end result.

Spencer also hinted that Microsoft may become more involved with games and companies it acquires in the future.

“I think we need to improve on taking part in video games that are in the middle of production when they enter into Xbox,” he said. Having been in the third person, “I do believe there is a different expectation for a video game and even a group when you suddenly enter into first-party.”

Spencer said, “We didn’t do an excellent task early on in engaging with Arkane Austin to help them comprehend what it meant to be part of Xbox and part of first-party, and use some of our internal resources to help them move along that journey even much faster.”

Spencer stated Microsoft is purchased making certain Xbox owners have a fantastic experience and feel accommodated, however appeared to acknowledge it can’t beat Sony or Nintendo utilizing a conventional console method.

“I see it out there, I see commentary that if you simply develop fantastic video games, whatever would reverse,” he stated. “It’s simply not real that if we go off and develop excellent video games, suddenly you’re visiting console share shift in some significant method. We lost the worst generation to lose in the Xbox One generation, where everyone developed their virtual library of video games.

“This concept that if we simply focused more on excellent video games on our console, that in some way we’re going to win the console race, I believe does not associate with the truth of many people.”

Spencer stated around 90% of individuals who purchase consoles each year are currently in among the 3 primary console environments, and the changing expenses are greater now that individuals have actually developed virtual libraries they can continue from a previous generation.

“This is the very first generation where the huge video games they’re playing were video games that were readily available last gen, when you consider Fortnite and Roblox and Minecraft,” Spencer stated. “The connection from generation to generation is so strong. I see a great deal of experts out there that sort of wish to return to the time when all of us had cartridges and discs, and every brand-new generation was a fresh start and you might change the entire console share. That’s simply not the world that we remain in today. There is no world where Starfield is an 11 out of 10 and individuals are offering their PS5s. That’s not going to occur.

“There is no world where Starfield is an 11 out of 10 and individuals are offering their PS5s. That’s not going to take place”Phil Spencer

Spencer worried once again that the console is “the core” of the Xbox brand name and Microsoft will continue to concentrate on that in spite of its varying technique.

“But I understand some individuals wish to hold us up as being a much better green variation of what the blue people do, and I’m simply going to state there’s not a win for Xbox in remaining in the wake of someone else. We need to go off and do our own thing with Game Pass, with the things we make with Xcloud, and the method we develop our video games.”

Spencer likewise resolved the current release of Arkane’s Redfall, among the higher-profile first-party Xbox releases in current memory. He acknowledged technical problems with the video game and an important reaction that had Metacritic averages double-digits below Microsoft’s expectations from its mock evaluations.

He likewise indicated deceptive marketing efforts as an issue.

“I’ll even return to the Redfall videos on IGN, of revealing videos of the video game performing at 60 on PC, at the point understanding that the video game was going to be around 30 frames per 2nd at launch on console,” Spencer stated. “Like, we need to be transparent about what we’re revealing, that what we’re revealing is agent of what our console consumer, our most dedicated consumer to our brand name, economically dedicated, what they’re visiting, what they’re going to play. And our openness simply needs to be much better.

“And I’m not pointing at anyone however myself. Eventually I’ll have sufficient knocks versus me that it’s someone else here, however I believe it’s openness in what we’re developing, what our goal is for the video game, what it’s going to appear like, what the functions are. And it drives me insane when we [have] self-inflicted injuries of putting things out there and interaction that’s complicated or deceptive about what the real final product is going to be.”

Spencer likewise recommended Microsoft may be more hands-on with video games in the future when it obtains them or their studios mid-development.

“I believe we require to enhance on participating in video games that are midway through production when they enter into Xbox,” he stated. “I do believe there’s a various expectation for a video game and even a group when you’ve been third-party and all of an abrupt you enter into first-party.”

Spencer included, “We didn’t do an excellent task early on in engaging with Arkane Austin to assist them comprehend what it indicated to be part of Xbox and part of first-party, and utilize a few of our internal resources to assist them move along that journey even much faster.”