Xbox Expands First-Party Games to PlayStation and Nintendo, While Maintaining Its Hardware Presence

Following Microsoft’s acquisition of Activision-Blizzard and its array of development studios, the company has positioned itself as the largest third-party game publisher in history. This context is key to understanding the buzz generated by Xbox head Phil Spencer’s recent comments. In an interview with Gamertag Radio, he hinted that upcoming Xbox games might also appear on platforms like Nintendo and PlayStation. While these remarks have certainly stirred the pot, they also ring true to Microsoft’s broader strategy.

During the chat with Danny Peña and Parris of Gamertag Radio, Spencer expressed a desire for gamers to access Xbox-created games and services across a multitude of devices, while still valuing the experience available on their own platforms. Spanning 26 minutes, the interview offered a treasure trove of industry insights and fond recollections from the days of the original Xbox and the Xbox 360.

To grasp the weight of Spencer’s statements, a quick detour into console history is helpful. Take Sonic the Hedgehog, for example. Though now known as a movie character, Sonic originated from a series of games that were, once upon a time, exclusive to Sega consoles. This changed when Sega exited the console market after the Dreamcast, bowing out in the face of the much stronger PlayStation 2. By this point, Sega pivoted to becoming a third-party developer, a role that Microsoft’s Xbox soon adopted in its place.

Back when the “DirectX Box” was evolving into the Xbox we know today, the console was initially backward-compatible with Dreamcast games due to shared technology with Windows CE. While this feature didn’t make it to the final product, several sequels to Dreamcast titles found a new home on Xbox, such as Jet Set Radio Future.

At first glance, Spencer’s comments might resemble the kind of statement a struggling console maker would make. But Microsoft is hardly in a precarious position. Instead, as the biggest third-party game publisher around, Microsoft’s current goal is to maximize its game sales beyond just its own platform.

Spencer articulated this new direction: “We’re interested in reaching as many players as possible, which means more of our games will appear on various platforms. Our collaborations with Nintendo and Valve on Steam illustrate that.”

So, does this shift mean Xbox is about to follow Sega’s path? Absolutely not—thanks to Microsoft’s deep pockets, that won’t be happening. However, future Xbox consoles will need to offer compelling reasons for players to buy them, especially with competitors like the upcoming “Switch 3” focusing on portability and the powerhouse PlayStation 6 banking on its exclusive titles.

But Microsoft must tread lightly. If Xbox transforms too much into just another content provider without a strong hardware identity, then, ironically, its presence could dilute: “If everyone’s on Xbox, then no one truly is.”