I wanted to update an old thread of mine that was created when the ABK buyout was rejected (Reversed later) and I thought Xbox would die without equalizing the playing field with ABK. It seems a lot has changed since then and so has MS strategy.

Based on recent events, rumors and confirmations let's get into what the new plan for Xbox is.

Trojan Horse Strategy

Many want to believe and, in some cases, hope that the Xbox brand will die and many claims they won't be making another Xbox console. Well, it turns out that not only are MS making another Xbox console, but they are growing in becoming one of the biggest 1^st Party and 3^rd Party Publishers in the world.MS purchase of ABK has boosted Xbox to be the largest 3^rd Party Publisher in 2024.

“According to recent data from Ampere, Microsoft's Xbox division is currently considered the largest video game publisher in the world based on revenue generated in December, with a significant portion of that coming from the success of Call of Duty: Black Ops 6 across multiple platforms, including PlayStation.“

Now many want to think this is a bad thing for Xbox as they are gaining success outside their own hardware... however, they should think again.Xbox is doing what I would like to call the Trojan Horse Strategy. A plan to expand using your competitions resources, it's not to kill its opposition but to work alongside them. The Trojan Horse strategy is MS moving games across to other platforms, using the profits to than be reinvested back into the Xbox eco-system to continue feeding GamePass. Possibly having games to also have internal advertising and promoting Xbox from the inside.

Knowledge is Power

Phil has stated that he wants to compete on sales based on hardware not software, basically meaning remove the exclusivity and allow customers to purchase the better hardware based on their needs, features, value and preferences. I could not agree more on this, as it will push first party platform makers to instead of spending money on moneyhatting IPs and playing keepings off other platforms, they will instead invest that money in making amazing and powerful hardware that is more ahead of time. Instead, the environment they are working with is that they don’t need to make amazing hardware, as they can just focus on controlling the software that arrives on it. Meaning less investment into hardware R&D and more into moneyhatting and controlling third party games.

If companies had to compete by selling the best hardware, they will need to invest the money into the hardware itself, creating more console features, power and efficiency for the customer to win them over rather than spending less on the hardware because they know it will sell because of (Example) GTA6 being exclusive.

This hardware focused strategy puts XB in a very good position as they own multiple Publishers that work hand in hand with PS & N, meaning they will have all the insights of the future tech business and planning. They will know firsthand what the other companies are doing due to them owning massive Publishers in Bestheda and ABK and other brands working with them. The only way PS and N can counter this is to simply refuse or delay the games on their platform, but that would mean not having games like Doom and CoD and any major IP not launching day one on their platforms to avoid any sensitive data to get into the hands of its rival.

If PS and N want to have these same advantages, they will need to release games on XB hardware which we know is the last thing they want to do. So, the pressure isn’t on XB in the future but more on how the others will adapt to this new strategy. They can continue to maintain relying on software exclusivity however as the industry constantly evolve, game development is getting more expensive, single focused exclusives are becoming harder to maintain. Much like Digital, XB are again the front runners in daring to push down this console walls of exclusivity, it’s really a matter of time of how long its rivals can hold out with the dinosaur’s model. We are constantly seeing Companies and brands layoff staff and closures of some favorite studios, weather they are the market leader or not, it is happening across the board because this business cannot survive on 1 or even two platforms.

As many want to say the XB brand is dying, and that there won’t be another XB, they will be quite disappointed and need to rethink this while also thinking on a higher business level. There are layers to business and many different strategies. It seems the underdog in the industry is well placed for the future.

GP the Saviour

Many like to believe that its due to GP which is why XB is dying and that the console is being replaced, however if you really think about it, it seems to be the other way around. GP is the Saviour of XB, let me explain.

GP’s strongest audience is on XB and without the hardware, GP members will fall off a cliff. Originally MS wanted to release GP on PS and N and if successful, that would have been the last days of XB hardware, however both N and PS refused the offer of GP as it would cannibalize their own store fronts. Now that the other platforms won’t accept GP, this means that GP must exist on the XB hardware to stay relevant.

So, this points to the main reason why we will continue to see new Xbox hardware, and that’s because of GamePass. Unless PS and N accept this service, which will again hurt their digital sales, we will continue to see a new Xboxes in the future which have already been confirmed by many sources and outlets that it’s in the making.

Many want to use the argument that XB is just another division much like previous divisions that were shut down like Mixer and soon to be Skype. If that’s really the case, answer this one question, why are they again making another XB? Why are they not shutting it down, they have fallen from grace since 2013 and they want to cook another piece of Hardware that would probably add another 7 years of existence... currently it’s been 12 years of underselling hardware and adding another 5 to 7 years puts it closer to 2 decades of underselling. No company keeps a product around for 2 decades if they are losing money or not seeing a potential for growth. So why is another XB confirmed? It makes zero sense to any business to do it, but MS are. So maybe, just maybe, the internet is wrong, and people are just fearmongering? It seems that way.

Conclusion

Weather you enjoy Xbox or gaming on other platforms, its everyone's freedom of choice to game where you want to game, however ignore those fearmongers and the toxicity on the internet that Xbox is dying. Based on everything mentioned above, Xbox isn't going anywhere. If you love playing Xbox games and you don't want to wait years to play them at full price, then the Xbox is the best suited option. One important thing to remember is while others pay, others play for less, that seems to be the current situation. MS have a plethora of games releasing and with a simple GP membership, you have access to all of them, otherwise, expect to spend hundreds to thousands in owning them all at most likely full price of other platforms (Fun Fact: They are Digital, so you don't really own them anyway) 

For those wondering, why buy an Xbox, well here are some Key Reasons to own an Xbox and why cross platform games shouldn't affect this decision.

1) Xbox IPs Guaranteed from 30+ Studios

2) Day and Date

3) GamePass

4) Backwards Compatibility

5) FPS Boost

6) Eco-System

7) Controller Design

8) Quick Resume

I know I might have ruffled a few feathers on this site, as many want Xbox to die because for some reason, they hate Xbox but love their games (Make it make Sense) and they don't want competition however unfortunately for them, its more than confirmed that another Xbox is being produced. 

New next-gen Xbox console confirmed: Rumours, release date and more | The Independent

Wow what a load of actual Xbox propaganda, with brand exposure pictures, bad memes and headlines, conspiracy and 4D chess lunacy, even following "hardcore" fanbase slogans by the book.

Congrats, you have managed to outdo yourself with this one!

Trying to put a positive spin on losing to your competition and having to put your games on their platforms. Why go to all these lengths to convince yourself Xbox is still winning when they're clearly not. 

(Not sure if “Trojan Horse” wiuld be the best name for your first point, since you explicitly state that Xbox isn’t looking to harm Sony nor Nintendo, but rather work alongside the,. Maybe “Symbiotic Strategy”? Or “Software First Strategy”?)

Addressing your first section… You are describing the current business model of Microsoft Gaming: Place software revenue over hardware. It’s a short-sighted perspective on behalf of Microsoft, as (…appearently i accidentally deleted the remainder of this paragraph as I was editing….)

Address your second section… Phasing out software exclusivity means giving additional value to Sony, PC, and Nintendo. If you already own a PS5 or NSW1/2, then why purchase an Xbox? You theorize that by pivoting focus toward hardware over software, Xbox will become the optimal platform as far as technology is concerned…but this theory just isn’t based in reality. XBSX and PS5 are nearly identical when it comes to game development (somebody far more informed on this than I could explain the details), PS5 Pro is currently the most powerful system on the market (and not an Xbox system), and most third-party titles run far smoother on a PlayStation system (which comes entirely as a consequence of PlayStation’s domination over Xbox resulting into more software sales coming from PlayStation and not Xbox; hence, resources must be pivoted toward the most popular system). What evidence do you have to suggest Microsoft is pivoting resources toward hardward R&D? What evidence do you have to suggest that this R&D strategy has led or will lead to optimal third-party experiences over PlayStation? Or is this entirely conjectural?

Addressing the next section… I agree that GamePass is the only reason to own an Xbox at this point. And, it makes sense why Nintendo and Sony are not interested in offering such a service on their platforms, as doing such would send consumers into the Microsoft Gaming ecosystem; not because they fear it would “cannibalize their own store fronts” (if you own a NSW1/2, I’m not sure how GP would “cannibalize”/negatively impact the over 60% of all software sales that go to Nintendo first-party?). What I’m not underdtanding, however, is your logic that GP’s existence must imply Xbox’s existence in the long-term future? GamePass is available on PC, and noting XBSXS catastrophic decline over the past 3y, I’d imagine the higher-ups at Microsoft are prepping to either (i) reinvigorate Xbox hardware sales figures (which, judging by their recent first-party development, suggests this isn’t too crazy of an idea), or (ii) prep for a Microsoft Gaming future relegated entirely to PC. As long as Microsoft still has a base of consumers to purchase an Xbox, then I do believe they will continue producing successor systems; but if Microsoft is truly “jumping the gun” with next gen very soon, then this would suggest to me that Microsoft isn’t satisfy with XBSXS current sales figures. If next gen sees similar numbers, then it’s hard to entirely say whether they'll be interested in furthering support for Xbox, and begin to go “all hands on deck” with PC/PS5/NSW1/2.

Some Key Reasons to own an Xbox and why cross platform games shouldn't affect this decision.

1) Xbox IPs —> (?) How is this a reason to purchase an Xbox? All their games are coming to PlayStation?

2) Day and Date —> (?) Do you mean that to say that “You won’t have to wait super long for that Xbox port”? If so…Indiana Jones is going multiplat within a few months of launch. Hi-Fi Rush went multiplat within 18m of launch. And, judging off Microsoft higher-ups recent remarks, it doesn’t appear as though these multiplat releases are going to be taking too long to release moving forward.

3) GamePass —> Okay.

4) Backwards Compatibility —> Only useful if we’re discussing people who have already owned an Xbox system prior, and already have an established personal library.

5) Eco-System —> (?) How is this a selling point? I’m confused…

6) Controller Design —> Controller design is utterly useless if I can’t play SMOdyssey nor God of War on the system.

….not entirely sure why i devoted time to read through and thoroughly address every point that was made lol. But, you can take-it or leave-it.

You have kept telling us for years why Microsoft has a great strategy and with every passing year Xbox has been closer to its way out. Your article about the next Xbox is a year old already, so it means nothing in light of Microsoft making major changes like putting more and more of their games on Sony's PS5.

What you call a trojan horse strategy is what everyone else refers to as going third party because that's what Microsoft is really doing.

But I agree that Microsoft is one of the biggest first party publishers in the world. That's by virtue of there being only three of them.

I've read this paragraph 4 times, it doesn't make sense.

"Phil has stated that he wants to compete on sales based on hardware not software, basically meaning remove the exclusivity and allow customers to purchase the better hardware based on their needs, features, value and preferences. I could not agree more on this, as it will push first party platform makers to instead of spending money on moneyhatting IPs and playing keepings off other platforms, they will instead invest that money in making amazing and powerful hardware that is more ahead of time. Instead, the environment they are working with is that they don’t need to make amazing hardware, as they can just focus on controlling the software that arrives on it. Meaning less investment into hardware R&D and more into moneyhatting and controlling third party games."

You deliver "amazing hardware" by subsidizing the hardware through software sales. That is the console model. Any other model leads to build your own PC or buy a cheaper competitor.

Moneyhatting as you call it is investing in a game, subsidizing games by platform holders. And yes, they want something in return for that, (timed) exclusivity. Without it, games will be less optimized / less amazing, not fully using the hardware, which goes against competing on hardware. You "moneyhat" games to make your hardware look (perform) better. To make your hardware the best hardware to run that software on.


The only reason to sell consoles is to get an affordable easy to use box in people's homes to play games on. Price and availability of games are the biggest factors. Not power. Competing on hardware is the PC market. Consoles compete on software. People that want the best hardware go the PC route.


Anyway what I see MS doing moving forward is a cheap streaming box that can run BC games and Switch 2 type games. Not competing on hardware power but indeed on options. GP machine that can play 1080p games locally or stream more intensive games from the Cloud. $299?

Although maybe just $199 streaming box with 6 months or a year of GP Ultimate included. That's a Trojan horse. (Get you hooked on GP Ultimate, then $20 a month / $240 yearly) MS is all about subscriptions nowadays.

I just hope this thread was satire

As far as I'm concerned, they are Rockstar or EA. They are a publisher, now. They sell hardware if you want to play on it, but they're basically a third party publisher. They no longer represent anything more than that to me.

I literally wrote an article years ago about Xbox leaving the industry but guess you conviently missed that one right?

To sum up your entire point with one question.

Why are they making another Xbox?

I am all for getting to see a blast from the past, so provide a link to your old post.

As for your question, work on the next hardware starts immediately once the current one has been launched. Microsoft being in this process doesn't mean that they'll end up launching it. If your follow-up question is why will they launch it, then the answer is because they've been clueless for over a decade by now.