In a surprising revelation, Xbox head Phil Spencer recently hinted at a potential exit from the gaming business for Microsoft and Xbox. This revelation emerged during the extensive information leak stemming from the Microsoft vs. FTC court case, shedding light on the role Xbox Game Pass plays in the company’s future.
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If Xbox Game Pass Doesn’t Grow, Microsoft Could Exit The Gaming Industry
A leaked document showcased projections for Xbox Game Pass subscribers in the coming years, with estimates surpassing 100 million subscribers sometime between fiscal year (FY) 2029 and FY30. In response to this projection, Spencer emphasized the critical need for accelerated growth, stating:
“I do not believe that that is what the future Xbox business would look like. This is a presentation from our devices organization to the gaming leadership team, so this is the view from the team that is chartered with building our hardware on what the future business would look like.
I can fairly safely say that if we do not make more progress than this off of console, we would exit the gaming business. If this were the outcome, we would — I don’t believe we’d still be in the business.
A majority of our customers are found off of our own hardware, I would hope by earlier than 2030. So, when you asked me if I agreed with this chart that the light green and blue depending on what colors you see there would have to be much larger much earlier. I would say by FY26, ’27 that we should be in that position, or we’d have to make a different decision with the business.”
– Phil Spencer
Currently, Xbox Game Pass boasts over 30 million members, a testament to its popularity and impact on the gaming landscape.
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Microsoft’s Other Acquisitions: Nintendo and Warner Bros Interactive
Apart from Game Pass, the email exchange revealed from the Document leak also uncovered Microsoft’s interest in acquiring Nintendo, dating back to 2020. Phil Spencer views this potential acquisition as a pivotal career milestone, believing it would be mutually beneficial for both companies. He expressed his confidence that Nintendo will eventually recognize the potential to diversify beyond their hardware-centric approach.
Moreover, Microsoft’s aspirations extended to the acquisition of Warner Bros Interactive alongside Bethesda’s parent company, Zenimax. However, obstacles arose concerning Warner Bros’ intellectual property ownership, or lack thereof, marking a significant hurdle in the potential deal.
Nintendo has yet to officially respond to Phil Spencer’s leaked statements, leaving the gaming community and industry experts intrigued about the future landscape of the gaming business.
Well, only time will tell how the trajectory of the Xbox Game Pass and potential acquisitions are going to affect Microsoft’s ventures in the gaming industry in the years ahead.
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