Xbox Cautiously Enters a Multi-Platform Future

In February, Microsoft put an end to weeks of speculation by announcing that four of its previously exclusive games would be released on other platforms. The company emphasized that these games were older titles, and highlighted Starfield and Indiana Jones as exclusives that were not included in the announcement. However, this move was only the beginning of a larger strategic shift. Microsoft is gradually transitioning into a multi-platform publisher, but the exact shape of this new business model remains unclear. The company is taking a cautious approach, introducing changes in a staggered manner, with careful denials about future plans. The announcement of a PS5 launch for Indiana Jones, just a few months after its release on Xbox and PC, is a significant development. This move is unusual, as timed exclusives typically do not have their release dates on other platforms announced until after the initial launch. The decision to announce the PS5 launch date alongside the Xbox launch date suggests that Microsoft is prioritizing its position as a third-party publisher over its console sales. The acquisition of Activision Blizzard has significantly altered the balance of Microsoft's gaming business, making it a major third-party publisher with a console platform business attached. The company needs to demonstrate revenue growth, and making Activision Blizzard games exclusive to Xbox would be counterproductive. Instead, Microsoft will focus on game streaming and subscription services, allowing its games to be played on various platforms while promoting Game Pass Ultimate subscriptions on PC and Xbox. The future of the Xbox division is uncertain, but it is likely that the company will continue to prioritize its gaming ecosystem and services over console sales. The rise of PC gaming devices, including small form factor gaming devices and PC gaming handhelds, may also play a role in Microsoft's future plans. The company could potentially make its Xbox software and services licensable for these devices, creating a new market for Xbox-based gaming systems. This would allow Microsoft to bring Xbox back to its comfort zone, with its own hardware occupying a premium position in the market, similar to the Surface laptops.