Former Xbox VP comments on Microsoft exiting the console business

Former Xbox VP Mike Ybarra publicly comments about Microsoft's current multi-platform gaming strategy, and the possibility of the company exiting the hardware market.

2

Trends indicate that the current Xbox hardware market is saturated. HW sales aren't growing--console and accessories revenue was down to its second holiday in the Xbox Series generation. Microsoft is breaking exclusivity on its games to grow laterally, and the general consensus is that this is the early stages of hardware being phased out over at Microsoft.

Whatever the case may be--we don't have access to Xbox's accounting data--Xbox management has confirmed another console is on the way. But these hypothetical situations about Microsoft dropping hardware have caught the attention of former key execs in the games industry, namely Mike Ybarra, who was VP of Xbox for a time and spent multiple years with the Xbox division.

Ybarra's comments are pretty stark, and paint a console-free picture of Xbox's future. On Twitter, Ybarra said:

"How is this still news? They've been consistent, they are a Publisher now and support all platforms. It's the right strategy for them and their business. Sure it took a while for them to get clear on this (balancing selling HW/managing customers with the reality of the strategy)."

Game Pass everywhere...sans consoles:

"If I was in their shoes, it's Game Pass everywhere and great games with accountability. Reduce cost everywhere else to invest in games. Adopt the specific social platform of the system - Steam, PS, Nintendo. If you don't you'll just upset the larger community. Short term it's hard, I get it. But living half way in the approach for a long time is worse. A path to success is here."

Ybarra tells Xbox gamers that getting mad "won't change anything" and says console-only gamers may have to access Xbox games on other platforms. Why? Well, because Xbox consoles wouldn't exist.

"I love that their games are on PC and PS5. I get loyal Xbox gamers are mad - but that isn't going to change anything. Embrace and move on - play on what you enjoy playing on (if you're a console only person, that probably means PS or Nintendo in the future). But you'll still have "Xbox" games there.

"PS/Nintendo should work with Xbox on some type of friends transfer system etc. Eventually that should be done to help people stay connected with their friends. We'll never see a universal gaming social platform, but I do wish we could!"

Ybarra tells one gamer that Microsoft won't keep its Xbox LIVE servers up and running if there's no Xbox hardware platform.

You are living in the past. The platform is the social layer and integration. No way they would keep all the cost to maintain Xbox Live. Heck they don't even call it Xbox Live now. They even have their own accounts etc in various games. Writing is on the wall."