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Phil Spencer Shifts Xbox Strategy: "We're Not Trying to Move All Players to Xbox Anymore"

Phil Spencer, the head of Xbox, has made a notable shift in the company's approach to gaming platforms. In a recent conversation with the XboxEra podcast, Spencer revealed that he is no longer focused on converting PlayStation 5 or PC players to Xbox. Instead, his goal is to expand access, allowing more people to enjoy Xbox games on various systems.

Spencer acknowledged that, while Xbox only retains 70% of the revenue from sales on competitor platforms like PlayStation and Nintendo, this approach is beneficial for the company in the long run. He explained that this 70% enables Xbox to build a strong portfolio of games and grow its presence across multiple platforms. He emphasized that players have different reasons for sticking with their chosen systems, whether it's their existing game libraries, preferences for controllers, or the specific titles available. Spencer made it clear that Xbox doesn't intend to push these players to switch systems, instead focusing on providing opportunities for more people to experience Xbox games, regardless of the platform.

Spencer was also candid about the business side of things. While Xbox is able to build its portfolio with the sales from other platforms, he admitted that it would be ideal to retain 100% of the revenue by having players exclusively on Xbox. However, he remains pragmatic, recognizing the value in allowing people to access Xbox games wherever they choose.

Despite this shift in focus, Spencer clarified that Xbox isn't giving up on its hardware. He reaffirmed that investing in their own platform is essential, as Xbox makes a larger share of the revenue when players engage directly with their system.

In line with this evolving strategy, Spencer also addressed the future of game exclusivity. When asked about the potential exclusivity window for titles like Indiana Jones or Starfield, he responded simply, "No," indicating that these games would not be confined to Xbox systems. This pragmatic approach underscores Xbox’s evolving business model—one that prioritizes accessibility and flexibility over strict platform loyalty.

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