Phil Spencer, head of Microsoft's video gaming division, has stated that there is currently no pressing need for a major upgrade of their Xbox game console. In an interview with, he stated that they are "pretty set on the hardware we have," and that they are not receiving negative feedback regarding its capabilities.
During Sunday's Xbox Games Showcase in Los Angeles, Microsoft unveiled a new version of the Xbox Series S with improved storage. Additionally, Spencer noted that the company has "significantly increased" the supply of the more powerful Xbox Series X to address its shortages.
In the past, video game console makers have typically released major upgrades about three years into a console's life. However, the rate at which developers are able to create new and improved hardware has slowed, leading to more incremental advancements. For example, 8K technology is not yet as in-demand as 4K, as not all consumers can tell the difference and cutting-edge hardware is expensive.
According to Spencer, Xbox is currently in "third place" in the video game console market, behind Nintendo's Switch and Sony's PlayStation. To stay competitive, Microsoft has diversified its game delivery strategy, allowing for titles to be played through its PC gaming app and Game Pass subscription service.
Spencer also emphasized his commitment to listening to gamers' feedback and ensuring that their wishes help shape product development. He noted that Xbox did not pursue trends such as nonfungible tokens or blockchain gaming, as these were viewed skeptically within the gaming community. "I just want to make sure that the games are led by the experience that the player feels and nothing else," he said.
Notably, Microsoft's in-house game development has drawn criticism from skeptical fans. The company's subsidiary Arkane released the critically-panned first-person shooter game Redfall in May, which suffered from development challenges. However, during Sunday's showcase, Xbox put the spotlight on 13 new games from its own studios, dedicating 40 minutes of presentation time to Starfield, which is being developed by its Bethesda Softworks division.
Spencer stated that his team has not interfered with Starfield's development and that he trusts the studio, which is known for creating critically-acclaimed games in its Elder Scrolls series. He emphasized his preference for helping studios to "realize their vision" rather than "coming into a team and telling them how to make their game better."
Despite Microsoft's interest in expanding its gaming business, its proposed $69 billion acquisition of Activision Blizzard Inc. has been blocked by the UK's Competition and Markets Authority over concerns of potential dominance in the cloud gaming market. The US Federal Trade Commission has also sued to stop the deal. Microsoft is currently appealing the UK decision and Spencer declined to comment on the possibility of pulling their business from the UK as a result.
Microsoft has made deals to provide content and services to cloud gaming providers, including competitor Nvidia Corp. During Sunday's showcase, they also announced that some titles available on its PC Game Pass subscription service will be made available on Nvidia's rival GeForce Now service. Spencer stated that he views cloud gaming as an additive market rather than a separate one from console gaming.