June 13, 2024

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According to Spencer, the lack of growth could spell the end of the Xbox division

According to Spencer, the lack of growth could spell the end of the Xbox division

As leaked today, Microsoft’s Phil Spencer was also asked about Game Pass plans during a hearing about Activision Blizzard’s planned acquisition. As Spencer pointed out, unsatisfactory growth in subscription offerings could, in a worst-case scenario, lead to the collapse of the Xbox division.

As a result of today’s leak, various statements made by prominent figures at Microsoft during the hearing about the planned acquisition of Activision Blizzard have also made their way to the public.

As the leaks showed, Phil Spencer, CEO of Microsoft’s gaming division, was asked by James Weingarten, an FTC lawyer, about an internal Microsoft sketch revolving around the growth of Game Pass.

The graphic that we have included for you to see below these lines shows that Microsoft aims to break the 100 million Game Pass subscribers mark in the period between the fiscal years 2029 and 2030.

A goal that Spencer considers less than desirable as described. In detail, the CEO of Microsoft’s gaming division expressed concern about the fact that the growth of Game Pass in the described scenario is very weak, especially outside of Xbox consoles. According to Spencer, the PC and cloud segments should increase significantly by fiscal 2027.

Otherwise, the future of Microsoft’s gaming division may be subject to internal scrutiny.

Spencer talks about the future of the Xbox division

Regarding the rendering, Spencer said in the now-concluded court hearing: “I don’t assume this is going to be the future of the Xbox business. This is a presentation from our hardware division to the gaming leadership team. So, this is the view of the team charged with building our hardware of what it will look like.” It’s future business.

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“I can say with some certainty that if we don’t make more progress outside of consoles, we’ll be out of the gaming business. If that’s the case, then we… I don’t think we’ll survive,” Spencer continued. “If that were the outcome, “I don’t think we will remain in this field.”

“The majority of our customers are not using our own devices, and I hope that will be before 2030. So, if you ask me if I agree with that graphic and if the bright green and blue, depending on the colors you see, should be much larger, I would say we will be in this The situation by the 2026/2027 financial year “It should be the year,” Spencer added.

“Otherwise we will have to make a different decision for the company.”


More reports on this topic:


But the question that finally arises is how seriously to take the statements regarding a possible exit from the Xbox division. After all, Microsoft is not only currently preparing to complete its roughly $69 billion acquisition of Activision Blizzard.

In addition, it leaked today that the American giant was already talking internally about a possible successor to the Xbox Series Which could appear in 2028.

source: Wccftech

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