Today, when it already costs “$300 million to build a video game”, according to Phil Spencer, it’s time to end console exclusivity…

 

 

The video game industry has changed in recent months. The introduction of four of Microsoft’s own games to PS5 and Switch is evidence of a change in strategy within Xbox. We previously reported that Phil Spencer admitted that Activision’s layoffs resulted from a non-growing industry. He clarified that he couldn’t afford “the luxury of not having to run a profitable, growing business within Xbox.”

Also in an interview with Polygon at GDC, he also talked about exclusives and the cost of game development, an area that has grown a lot in recent years.

Phil Spencer admits that “the math of making games has definitely changed” and that “the arguments in favour of exclusivity are increasingly emphasized as the cost of video games rises.” That’s why Spencer wants “a future where every screen is an Xbox.”

The Xbox guru also added that it now costs “$300 million to build a video game.” If this trend continues, it seems clear that the AAA model is likely to become unprofitable and unsustainable. “You can’t be successful if you don’t attract customers from other publishers and other platforms. And since you can’t find new customers with the games you make, everyone is fighting for the same pie”.

 

Is Phil Spencer aiming to bring even more Xbox games to Switch and PS5?

 

Spencer didn’t go into it, but it could happen in the short to medium term. “I will say that every decision we make today and tomorrow is for the benefit of Xbox. I know that sometimes things become weapons, that there is something evil in the background that forces us to do things. Every decision we make is for the benefit of Xbox to be stronger in the long run. That doesn’t mean everyone will agree with every decision we make. But how we make those decisions is crucial.”

Speaking about the “habits of Gen Z,” Spencer says, “So for Xbox, our ‘brand approach’ to attract a younger audience and stay relevant is: ‘Xbox is where I find great games, which I want'”.

Source: Polygon