In a recent interview, the CEO of Microsoft Gaming, Phil Spencer, discussed various Xbox-related topics in an open and transparent manner. The interviewer, Stephen Totilo, covered cloud gaming, the rise of AI, and the future of Xbox Game Pass, producing several top-tier topics for the Microsoft head to address.
The interview produced some key results. Spencer emphasized that Microsoft is responsive to consumer preferences, with no immediate plans to phase out disc-based games. However, he acknowledged the digital revolution’s impact on the industry, noting the decline in physical game purchases due to the growing adoption of cloud gaming.
To read the full interview, click here.
Phil Spencer’s Insight
When discussing the future of physical media at Xbox, Phil Spencer made his stance clear:
‘We are supportive of physical media, but we don’t intend to prioritize it disproportionately to meet customer demand. We ship games physically and digitally, aligning with our customers’ preferences. Currently, a majority of our customers are purchasing games digitally, and our mission is to deliver what most customers want.’
Spencer pointed out that gaming consoles are among the last consumer electronic devices with disc drives, highlighting the industry’s broader shift toward digital content consumption. He also addressed cloud gaming, acknowledging the ecosystem’s slow adoption but emphasizing Microsoft’s efforts to keep pace with its rapid growth.
New ways of delivering games and reaching a wider audience were among the challenges discussed by Phil Spencer, who also touched on the recent layoffs at Microsoft’s gaming branch. He emphasized the need for the firm to find innovative ways to attract new players and explained the reasoning behind the layoffs as a strategic assessment of the combined portfolio of Microsoft, Activision, and ZeniMax.
The interview also revealed plans to bring Call of Duty and other Activision Blizzard games to Game Pass, with the expectation that “Call of Duty 2024” will be available on the subscription service at launch.
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