During last week’s business update, Microsoft leadership reaffirmed two differentiators for the Xbox ecosystem: Game Pass (every first party game coming day one) and platform accessibility (cross-play, cross-save, cloud streaming). Yet I don’t see either feature today as a compelling reason for net new gamers beyond the PC and console core – Xbox’s stated long term growth target – to jump in with Xbox. They are features with huge potential but are stuck today in alpha mode.
Game Pass unquestionably has a lot of great games, but most of the library encompasses small, under the radar indie titles or older catalog hits. Microsoft puts all its first party titles on the service, but none have the marquee prestige and popularity of franchises popularized on rival systems from Sony and Nintendo. Furthermore, I find the onboarding process on Game Pass intimidating for newcomers. There’s a bewildering number of choices, and the Game Pass app’s recommendation system is limited and simplistic; there’s no sense of individual game length or difficulty to guide new players.
Recent news suggests Microsoft will shift Xbox to a multiplatform release strategy; existing and future first party games, including Starfield, Indiana Jones, and Gears of War will be ported to PS5 and Nintendo Switch. While we won’t know the whole story until a “business update” next week, I expect the change to be extensive, with many if not most top tier titles available soon on PSN and the Nintendo Store. In the face of lagging sales and stalled Game Pass subscriptions, the corporation is making a big bet that will attempt to thread a needle: keep an Xbox ecosystem sustainable – digital purchases on the Microsoft Store, lively Xbox Live network, Game Pass subscribers – while going multiplatform with in house studio games to generate additional revenue.
It’s a risk; no gaming company has succeeded as such an extensive third party publisher and simultaneous platform holder. Executed poorly, the plan could push the Xbox ecosystem into an eventual death spiral: gamers shift away from Xbox with its lack of exclusives, the install base drops, so other publishers stop porting games to Xbox, which leads to fewer players, until eventually Microsoft pulls the plug. Xbox hardware and accessories are dead, the digital library goes kaput, and Microsoft becomes a pure third party publisher like Sega.
After a quiet 2022, Xbox kicks off 2023 with a “Developer_Direct” livestream. With deep dives on hyped Xbox titles like Forza Motorsport and Redfall, the event should be a slam dunk. However, based on Microsoft’s hit and miss PR record, I’m worried.
On the one hand, their recent E3 shows are well produced, with solid trailers, minimal padding, and genuine surprises. However, Microsoft press events outside of E3 are almost always forgettable. Their ID@Xbox showcases run too long and leave hosting duties to unprepared Twitch “influencers.” Other one-offs like Inside Xbox and the Xbox Games Showcase Extended are so watered down and rigid in their presentation that even die hard fans skip them.
Xbox marketing also feels asleep at the wheel for large stretches of the year, packing almost all their big announcements in the E3 week presser and the occasional trailer or two during the December Game Awards show. And even though Game Pass is one of Xbox’s top selling points, new releases on the service rarely get the promotion they deserve. Most are sent out with a “fire and forget” approach. Each game is one small part of a bimonthly announcement of five or more unrelated releases crammed together in a single News Wire post.
Rumors suggest PlayStation has a Horizon: Zero Dawn remaster on the way. It’s a frustrating development, confirming Sony’s talented first party studios are laser focused on sequels and remakes. Seeing Jim Ryan shut the doors on anything that isn’t a $100 million IP safe hit, with such creative talent at the helm, is a head-scratcher.
Less risk taking at Sony’s AAA level narrows the field for original experiences and IP and limits the greater potential of the industry. Audiences not into first person shooters and mature action adventures stay on the sidelines. Even for “core” gamers, variety helps; a side project this generation can evolve into the next big thing years from now.
I have well founded pessimism. PlayStation Studios PS5 releases follow a predictable formula: follow ups for Spiderman, Horizon, God of War, and The Last of Us. Three of the four get remasters or “director’s cuts” of their original entries, naturally sold at a $70 price point. Only Returnal and Destruction All Stars would be considered original IP releases, with Insomniac’s Wolverine on the distant horizon.
Opinions around Microsoft’s 90 minute Xbox & Bethesda E3 showcase are positive, a highlight alongside Nintendo’s outing in an otherwise quiet E3 year. But there have been pockets of criticism around the show’s lack of depth and “wow factor.” VG247 argued there were not enough “next-gen show stoppers”. Threads on Resetera, social media, and Digital Foundry knocked the Xbox presentation for having too many CGI trailers.
I’m sympathetic to missing more hands on time with Microsoft’s upcoming lineup. However, much of this “depth” criticism is myopic, relevant to an earlier era where Microsoft’s core focus was on the number of games and consoles sold. Thirty trailers in ninety minutes may not be an optimal pitch for $70 games and $500 consoles. However, it is a very sound approach to push Game Pass.
E3 2021 has made it abundantly clear that Microsoft has bet Xbox’s future on subscriptions. Keeping gamers hooked on Game Pass is a different, tricker pitch than buying high profile games. Variety is a must, with enough titles and genres to attract a wide variety of subscribers. Quantity can also help. Not every game will interest a potential subscriber, but the feeling that many more games are coming to the service over time adds to its sense of value.
After almost two decades of avoiding Microsoft-based web products whenever possible, I’ve come full circle: the new Microsoft Edge is my browser of choice. It has excellent privacy options, a large extension community, and developer support that makes it a reliable option on macOS over Chrome, Firefox, and Safari.
Admittedly, when I first started using the new Chromium-based Edge a few months ago, I was skeptical about its potential. Microsoft’s Internet Explorer left a bad taste in my mouth, thanks to the struggles I had developing against IE6 and IE7 in the early 2000s. But the more time I spent with this fresh iteration of Edge, the more I was left impressed.
Stadia looks like a flop out of the gate, and its meager, overpriced game selection is a significant factor why. Google overestimated the console market’s appetite for experimental moonshots. Most gamers aren’t making purchasing decisions based on streaming quality, teraflops, 4K, or fast SSDs. Instead, as I wrote about earlier this year, it’s the games themselves — both selection and quality — that matter most. It was a crucial differentiator in the battle between PS4 and Xbox One, essential to the Nintendo Switch’s breakout success, and it will continue to be important for next generation hardware.
Games matter more for reasons beyond their historically strong track record. It’s also because across other facets — hardware, marketing, third party integrations — Sony and Microsoft will be on similar footing next generation, at least to your average consumer. I don’t foresee the major stumbles that marked previous console generations. Price and power, two factors that solidified PS4 as the clear victor this generation, I expect to be a moot point in 2020. Microsoft learned its lesson launching a console $100 more expensive and less powerful than Sony’s. Sony hopefully still remembers the $600 launch PS3 debacle and how undercutting on price helped secure their win for the PS4. Speculation from Digital Foundry and other sources posit the PS5 and Xbox Series X will rely on similar internal components. The result for consumers should be two boxes with similar specs and no more than a $50 gap in price differential.
With Sony MIA, Microsoft had an opportunity to go on the offensive this E3, which made their lack of detail on next-gen hardware, exclusives, and even streaming technology perplexing. But when you looked past console war talking points and read between the lines of their keynote, 2019 marks the most definite sign that Microsoft is splitting away from its competition, with Xbox Game Pass its centerpiece strategy. Other companies have dipped their toe into the subscription market, but given the maturity and boldness of Game Pass, I’m convinced Microsoft is all in.
The evidence of Microsoft’s subscriptions push was all over their E3 presser: onstage speakers and game trailers name-checked Game Pass frequently. The debut of Game Pass on PC and a special “Ultimate” bundle for combined PC and console access got a prominent showing. Two high budget upcoming Game Pass games — The Outer Worlds and Halo Infinite — bookended the show. And there’s no coincidence the first item Microsoft highlights under their E3 page is Game Pass.
Game streaming services depend on three big factors for success: technical prowess, cost, and games. Based on Google’s track record and their recent GDC pitch, Stadia’s tech chops will likely hold up well in real world testing. Consumer cost I’d anticipate won’t be high either. The big unresolved question is what actual games Stadia will have for its release later this year. And it’s on games that give Sony, Microsoft, and Nintendo solid footing for blocking Stadia’s advances.
Games carry an outsized significance when considering past PC and console platform battles. For example, the PS4’s “must play” exclusives helped buttress their lead over the Xbox One over the last few years. This is where Google will run into a substantial headwind; game libraries on Switch, Xbox One, PS4, and PC are gigantic, with many critically acclaimed exclusives bound to a single platform. Assuming next-generation consoles from Sony and Microsoft support backward compatibility, this “lead” from Google’s competition should only grow.
Playing console and PC games through streaming may shift from niche experiment to mainstream reality this year. It’s the biggest gaming news story to watch; if the tech lives up to the hype, streaming will disrupt the gaming industry in a way that many companies will be unprepared for.
Historically streaming’s technical hurdles like high latency and bandwidth requirements have been a barrier to entry, but the latest signs of progress are promising. Google ran a beta of Assassin’s Creed: Odyssey streaming through a Chrome browser. I read positive feedback on the experience, even from dedicated gaming sites like GameSpot; we’ll learn more from Google at GDC tomorrow. And while Microsoft’s xCloud streaming infrastructure is under private beta, they are bullish enough on the technology to release multiple splashy video teasers. If there are any two companies with the right expertise in cloud infrastructure to pull this off, it’s Google and Microsoft.