Microsoft Gaming CEO Phil Spencer has said doubled down on Microsoft’s commitment to the hardware space via Xbox, saying the company aims to “win” by providing the best experience out there. At the same time, Spencer admitted that times have changed. These days, it’s a “game-first” market as opposed to “platform-first,” he said.
Appearing on the GamerTag Radio podcast, Spencer said, “I want people to pick hardware based on the capabilities of that hardware and how that fits into the choices they want to make about where they want to play. We want our hardware to win based on the hardware capabilities that we have.”
Spencer said the biggest, most-played, and most successful video games out there today are multiplatform games that are not locked to one device. Spencer said he’s hopeful his teams can create a platform with Xbox that appeals to developers who make those kinds of games.
“I want to build a platform that services those creators: those creators that are trying to meet people on every screen,” he said.
Spencer also pushed back against the ongoing claims and assertions that Microsoft should get out of the hardware business given its place as the No. 3 system out there today, behind PS5 and Switch.
“Our own hardware? I think it’s fundamental to what Xbox is. It’s not lost on me that, ‘Box’ is in the name of our brand. I’ll say, in the position I’m in, I look at hardware as a critical part of what we do,” he said.
Spencer said it’s his mission, as the CEO of Microsoft Gaming, to “build innovative hardware” that he hopes will attract players. That could be a traditional console that plays on a TV, or a handheld device, or even in “other places” via Xbox, he said.
On the subject of the handheld market, there are ongoing rumors of Microsoft creating its own dedicated Xbox portable device. Spencer didn’t confirm anything, but said he’s learned a lot from Steam Deck and ROG Ally, specifically. “What does Xbox mean on those platforms? I don’t think we’ve tuned it perfectly yet,” he said.
The video game hardware market in the US had a difficult 2024, with all three major platforms–PS5, Xbox Series X|S, and Switch–seeing their yearly sales sink year-over-year. A downturn was expected due to the age of the systems, but the falloff was greater than some experts envisioned. The Xbox Series X|S platform is seeing particularly challenging results, as sales relative to the Xbox One are down as well, whereas PS5 sales are up over PS4 over a similar period of time.