Xbox “Gives Up” on Console Wars

This information was obtained from the podcast XboxEra. In the podcast, Phil Spencer mentioned that he is no longer trying to persuade PlayStation 5 console owners to switch to Xbox.

Phil Spencer acknowledged that although Microsoft has to pay 30% to Sony every time it sells a game on PlayStation—something he previously criticized during the Activision Blizzard acquisition case—the decision to release more games on competing platforms remains a smart move.

He emphasized that although there is greater profit on their own platform, there are business opportunities that cannot be ignored in other ecosystems, considering the diverse market preferences, whether from user habits, existing game collections, or hardware factors like controllers.

Spencer also stressed that even though Microsoft does not receive full profits on third-party platforms, the 70% revenue they earn from sales outside the Xbox ecosystem still contributes to the overall growth of their game portfolio.