Microsoft reveals the future of the Xbox platform - what you need to know

Last week, rumours of a massive change in strategy at Microsoft's gaming division were rife. According to insider information, the Redmond software giant is planning to publish many Xbox games on Playstation and Nintendo consoles. There was even talk of "Starfield" and the newly announced "Indiana Jones" game.

The company has now commented on the rumours in a podcast lasting around 20 minutes. Microsoft has also announced several new hardware iterations in the Xbox ecosystem. It is the "biggest technical leap between hardware generations".

Three Xbox team leaders answered the questions of Xbox podcast host Tina Amini: Phil Spencer (CEO Microsoft Gaming), Sarah Bond (President Xbox) and Matt Booty (President Gaming Content & Studios). I have summarised the most important points from the "Business Update" below.

Yes, Xbox games will appear on Playstation 5 and Nintendo's Switch

First, Phil Spencer commented on the most explosive rumours. Microsoft is currently planning to release four Xbox games on third-party consoles, i.e. the PS5 and Switch. He does not reveal which games these are. Instead, there are vague statements that two of the games are older Live Service titles. The other two games are smaller projects that were never marketed as major exclusives anyway. According to The Verge, these are "Hi-Fi Rush", "Pentiment", "Sea of Thieves" and "Grounded".

According to Spencer, these four games were chosen to increase their player base and generate additional revenue. This, in turn, would be channelled into the future development of smaller games or live service titles.

Are "Starfield" and "Indiana Jones" coming to the PS5?

Spencer also reveals in the podcast that there are currently no plans to release "Starfield" and "Indiana Jones and the Great Circle" for the PS5. At the same time, however, he also says that exclusive games will die out in the next five to ten years.

In an interview with The Verge, Spencer leaves the option of a PS5 release open. In response to the question of whether the two titles will ever be released for the PS5, the Xbox CEO says: "I don't think we should [...] ever rule out a game coming out for another platform. We're focusing on these four games and learning from that experience."

What's behind the change in strategy

During the podcast, the three Xbox bosses repeatedly try to play down the massive change in strategy. The release of the four games on third-party consoles was not a fundamental change in strategy. Xbox's goal for years has been to bring its content to as many screens as possible. Thanks to the acquisition of Activision Blizzard, the company is already one of the largest publishers on Sony and Nintendo's consoles anyway.

The main aim of the upcoming PS5 and Switch releases is to gain experience. All business decisions that are made serve the long-term success of the Xbox brand. As long as the brand is not damaged by releases on other platforms, the option will also be considered in the future. In the best case scenario, PS5 and Nintendo fans will be intrigued and switch to the Xbox ecosystem in the long term. There, they don't have to buy the games individually, but receive them as part of the "Game Pass" games subscription.

Furthermore, it is important for Microsoft's gaming division to grow in order to remain profitable. The Xbox platform can grow either by taking more money out of the pockets of the existing player base or by reaching more players through a broader publishing strategy. Xbox has also pursued the latter option in the past with simultaneous releases on Xbox consoles and PCs as well as its cloud gaming strategy.

What about the future of the platform - will Xbox become a third-party publisher?

With last week's wild rumours, Xbox fans have also become increasingly fearful that Microsoft will turn its back on the Xbox platform completely and mutate into a third-party publisher. In the podcast, Microsoft affirms that it will continue to support the Xbox as a platform. According to the blog post, Microsoft guarantees that the "world's biggest games" will continue to be released for Xbox and that the digital games library of Xbox customers will continue to be easily accessible in the future - whether on console, PC or in the cloud. The company also promises: Game Pass as well as Xbox hardware will remain an essential part of Microsoft's gaming business.

Matt Booty announced that the Game Pass promise will continue to apply in the future: all Microsoft games will be available on a plan at launch. The Game Pass will also not be available on third-party platforms. In addition, games from Activision Blizzard will soon be integrated into the Game Pass. The first game will be "Diablo IV" - the diabolical role-playing game will be released on 28 March in Microsoft's gaming subscription.

By the way, Booty reveals that 34 million players have now subscribed to Game Pass. The last update was two years ago, when the plan had around 25 million subscribers. This puts the company below its ambitious targets.

Will Microsoft continue to make consoles?

Xbox President Sarah Bond doubles down and promises that consoles will remain an essential part of Microsoft's strategy. They will continue to guarantee the best gaming experience in the Xbox ecosystem in the future.

Microsoft's next-gen plans are in full swing, according to Bond. The next Xbox console is set to be "the biggest technical leap" ever between two generations of hardware. Spencer is also confident in an interview with The Verge: "We are developing hardware that will sell because of its uniqueness. It's a kind of unleashing of the creative abilities of our hardware teams that I'm really looking forward to."

There are also some surprises in store this year. In a post on X, Microsoft teases "new console and controller options". This could be the Xbox Series X version without a disc drive, which is leaked as part of the Activision acquisition court case.

A new controller is also in development, according to leaked documents. In the interview with The Verge, Phil Spencer plays dumb and says: "I don't know anything about leaks. I don't know what you're talking about [laughs]".

It is also possible that the hardware surprises for this year will include a handheld announcement. Spencer has repeatedly expressed himself in interviews and on X as a big fan of gaming handhelds. In the interview with The Verge, Spencer confirms that he is "a big fan" but has nothing to announce at the moment.