Phil Spencer Wants Epic Games Store and Others On Xbox Consoles
Spencer explained how, in the past, console makers would typically subsidize the cost of expensive hardware, knowing that a portion of every dollar spent on games for the platform over the years would eventually make it back to the console maker. Then, in time, the console maker would recoup the subsidy — and hopefully more. But, Spencer said, “Moore’s Law has slowed down. The price of the components of a console aren’t coming down as fast as they have in previous generations.” Worse, he explained, the console market isn’t growing, with more gamers moving to PC and handheld options. Now, the notion of subsidizing a console — and forcing players to purchase games through the official storefront to help recoup costs — might not make sense. The walls meant to lock people into consoles might be motivating them to stay out.
“[Subsidizing hardware] becomes more challenging in today’s world,” Spencer said. “And I will say, and this may seem too altruistic, I don’t know that it’s growing the industry. So I think, what are the barriers? What are the things that create friction in today’s world for creators and players? And how can we be part of opening up that model?” The answer, in part, is scrapping exclusivity on more and more Xbox games. Spencer explained that the game experience is hindered when it matters what consoles we play on or what shops sell us our games. As an example, he pointed to Sea of Thieves. A player, he explained, shouldn’t have to worry about what hardware they or their friends own. They should just know if their friends have and want to play Sea of Thieves. Now, Spencer said, “if I want to play on a gaming PC, then I feel like I’m more a continuous part of a gaming ecosystem as a whole. As opposed to [on console], my gaming is kind of sharded — to use a gaming term — based on these different closed ecosystems that I have to play across.”
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