Tech giants Microsoft appear to changing their Xbox focus to services and software, very much similar to the overall efforts of the company. Phil Spencer, Microsoft’s head of gaming, while with an interview with Bloomberg, explained the reason behind the company’s shift in focus on subscriptions, game sales, and other services related to gaming over hardcore hardware sales.
Spencer who was very recently promoted to report to Satya Nadella, CEO of Microsoft, explains the vision of Microsoft of connecting players playing different games across every device. He also insisted that the company is not going to neglect the consoles but are simply concentrating more on connecting with gamers wherever they are with the company’s vision in gaming.
This change in focus is very similar to what Satya Nadella himself bringing into Microsoft – focusing more on the consumer instead of hardware. The tech giant has been changing its strategy based on the hard truth of people choosing iOS and Android phones over Windows handsets. Nadella want the company to concentrate more on the services and software that are backed by the cloud and are able to connect with people irrespective of the device they are using. The cloud services are now a major part of overall revenue of Microsoft.
This also doesn’t imply that Microsoft is completely giving up on making new Xbox hardware, but it is now crystal clear that the company will concentrate more on the services and software instead of hardware and might even rival mobile devices and other consoles. Microsoft has been lagging behind Sony’s PS4 in terms of sales, and the company has now started to surge up its revenue from Xbox with the help of subscription services such as Xbox Game Pass.