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Xbox boss Phil Spencer says Gen Z market research guides Xbox business decisions

Microsoft Gaming CEO Phil Spencer believes that the habits of Generation Z have affected the company’s recent business decisions.

In an interview with Polygon, Spencer explained the moves in Microsoft’s gaming division and gave his thoughts on the company’s “transformation” into making as many multi-platform and cross-device compatible games as possible.

Xbox chief explains business priorities

Spencer has had a busy 2024 so far, and in the first Xbox partner preview, he laid out some of Microsoft’s cross-platform decisions, such as HiFi Rush, Starfield, and many other games that have made the jump to PlayStation rivals.

“I would say every decision we make today and tomorrow is for the better of Xbox,” Spencer said candidly of the gaming company’s move. “I know sometimes things get weaponized and there’s some nefarious element behind it that drives us to do things – ‘Phil hates exclusivity, that’s why we’re like PlayStation and Switch now.’ In the long run, every decision we make is It’s about making Xbox stronger. That doesn’t mean everyone is going to agree with every decision we make. But it’s critical to how we make decisions.”

These decisions have resulted in gamers seeing Xbox exclusives like Sea of ​​Thieves move to Sony consoles, and Spencer is pleased with the new way to watch Xbox.

“We don’t see in our Gen Z research the concept of an Xbox being just a device that plugs into a TV,” the CEO said. “Because for them, there’s nothing better than that.” .”

The Gen Z market as a whole loves gaming across consoles and mobile, something Spencer downplays: “Some of them[Gen Z players]will have iPhones, some of them will have Androids, but all games and everything is Same. I can still access TikTok on both platforms, at least for now.”

Phil Spencer and Xbox’s decision to release on a rival console can be seen as an attempt to squeeze the value out of an existing game with an untapped audience.

Spencer said that “it can cost $300 million to make a video game now” and that “as the cost of games goes up (with the continued use of Xbox consoles and Game Pass), exclusivity will come under pressure.” Specific console audience.

PlayStation console owners now have exclusive games like Spider-Man 2 and God of War, but now can expect Microsoft Studios to slowly release exclusive games at a later date.

For those who think Bethesda’s upcoming games mean they have to invest in a new console, this appears to be the best of both worlds.

Phil Spencer’s “money for rope” approach to Microsoft’s existing catalog of games would be a smart move for the company, but those loyal to the brand may soon reconsider them device selection, as “exclusivity” is not part of Microsoft’s future business plans.

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