Xbox Expands First-Party Game Availability to PlayStation and Nintendo, Maintains Dedicated Hardware

After Microsoft’s acquisition of Activision-Blizzard and its array of development studios, the company has vaulted Xbox into the position of the largest third-party game publisher historically. Recently, Xbox head Phil Spencer stirred the gaming community with remarks on Gamertag Radio, noting that upcoming Xbox titles would also find their way to platforms like Nintendo and PlayStation. This news has certainly made waves but upon reflection, it really makes perfect sense.

Spencer’s comments—”I want people to enjoy the games we create and the services we offer on as many devices as possible” alongside “We obviously cherish the native experience we offer on our own platform and hardware, which is something we’ll continue to foster”—were part of a conversation with Danny Peña and Parris on Gamertag Radio, available on YouTube. Spanning 26 minutes, the interview is a treasure trove of industry insights and nostalgia, taking a look back at Xbox’s roots, including the original Xbox and the Xbox 360 eras.

For those unfamiliar with why these remarks are stirring up so much buzz, a quick trip down console history is useful. Remember Sonic The Hedgehog? That popular movie character actually has roots in a series of video games, some beloved, others less so. Initially, Sonic games were exclusively available on Sega consoles. But after Sonic Adventure 2 made its way onto GameCube, everything changed. The Dreamcast, Sega’s last home console, was overtaken by Sony’s mightier PlayStation 2, which eventually forced Sega to pivot to a third-party developer role—a market space that Microsoft’s Xbox soon filled.

In the early days of what was originally called the “DirectX Box,” which later became the Xbox, the system supported backward compatibility with Sega Dreamcast games, facilitated by its compatibility with Windows CE. Although this feature didn’t survive to the final product, several sequels from the Dreamcast era, like Jet Set Radio Future, were Xbox exclusives.

Initially, Spencer’s words might sound reminiscent of a struggling console company bidding farewell. But Microsoft is far from that. With Xbox now being the preeminent third-party game publisher of all time, their goal focuses more on selling as many titles as possible rather than tying players down to the Xbox platform alone.

Spencer elaborates, “We aim for everyone to play on Xbox, which means more of our games will be available on more platforms, not just PlayStation. We love our collaborations with Nintendo and our work with Valve on Steam, and this will certainly continue.”

Is Xbox following in Sega’s footsteps? Definitely not. Microsoft’s vast resources guarantee security. However, if the next line of Xbox consoles hopes to stay competitive, they’ll need impressive offerings to lure consumers on hardware alone, compared to the likely portable-focused “Switch 3” and the undoubtedly more powerful PlayStation 6—both likely to tout their exclusive games, as is customary in the console world.

Still, Microsoft must tread carefully with Xbox not being merely a hardware-centric platform but rather a hub for games and services. Otherwise, the risk looms that if everyone adopts Xbox, then it might lose its unique identity.