How Microsoft can fix Xbox

Xbox suffers from a range of problems due to Microsoft focussing on too many things at the same time, but the question is: How can Microsoft fix Xbox?

One problem i see currently with Xbox is that Microsoft is forcing the Xbox division to use everything Microsoft has to offer. In result the Xbox platform is suffering from a lack of focus. While it’s understandable that Microsoft as a large tech company can’t afford to stay behind in some fields, for example in the Cloud Business, it’s not necessarily needed for Microsoft to check all the boxes and compete in other fields, such as Mobile gaming. Large tech companies such as Apple and Google have already taken a large market share of the Mobile gaming market. At the same time Xbox is also competing with Sony, Nintendo, as well as third party publishers.

Microsoft should stick to a few fields, such as the console gaming market and PC market with the option to be able to play Xbox first party games via the Cloud. The result of focussing on too many markets at the same time and trying to push everything via the “Xbox platform” is that the Xbox console has become irrelevant to a certain extend. Even when it comes to Cloud Gaming and PC gaming, Nvidia and Steam have already gained a large chuck of these markets. Microsoft’s multi-market approach and lack of focus is visible there as well.

In my opinion all Microsoft has to do is go back to it’s roots and release a truly Next-Gen Home Console and dedicated Gaming Consoles such as Hybrid Xbox Handheld, with a heavy focus on great first party exclusives. The success of Xbox 360 is proof that Microsoft doesn’t need to compete in every other field and focussing on too many things at the same time will just result in lower console sales and damage the brand.

The problems started when Xbox started releasing first party games on PC, with day one releases on both the Xbox consoles and PC/Steam. This was the first stage of devaluing the Xbox console brand, since it was no longer needed for consumer to own a dedicated Microsoft Gaming consoles to play first party Exclusives. If this wasn’t enough, Microsoft went even further and make the Xbox consoles even more irrelevant…by giving consumers the option to play all Games via Gamepass and xCloud, if you own a decent PC or iMAC or any smartphone with a proper Web Browser, you can play many Xbox Games via Gamepass/xCloud.

Microsoft then went even further and recently released 4 first party games on Playstation and Nintendo platforms, which angered Xbox Series X|S console owners. In many ways Microsoft is destroying it’s own Xbox console brand by releasing it’s first games on other platforms.

Nintendo and Playstation are proof dedicated consoles with exclusive consoles and exclusives features sell hardware and software. Imagine if all Nintendo Switch and Playstation first party games were available on any other platform, from Cloud to Mobile to PC and Consoles…that would remove the need of owing a dedicated Nintendo or Playstation console. This is common sense but somehow Xbox is doing the opposite and this makes their consoles less and less relevant. At core it’s all related to upper management at Microsoft pushing the Xbox division to grow and expands in various fields, to compete in all markets and to sell their subscription services. That’s essentially the main problem, a lack of understanding of the console market and upper management forcing the Xbox division to make illogical decisions.

Xbox is in a bad shape and i’m not sure Xbox can fix all the problems at this point but one thing is sure, a lack of focus is killing the Xbox brand. I hope Microsoft can fix the problems because competition is good for the game industry, Xbox used to be a major player in the game industry…and still is to a certain extend, but it’s not what it used to be anymore. Xbox seems to make one mistake after another and continues to disappoint fans and Xbox owners with failures and bad management decisions.

It’s going to be interesting to see what Xbox shows at the June 2024 event. It might give away which path Xbox will take in the future. Will continue this path or change for the better? A strong focus on a few key fields is needed, instead of trying to get a piece of the pie in every gaming related market and (as a result) end up third in every market. Focus on dedicated console, exclusives and exclusives features (such as a new cool controller) and that’s enough in my opinion…