Why is Microsoft destroying the Xbox? – Reader function

One reader places the blame for Xbox’s current problems squarely on Microsoft, blaming management failures, a lack of vision and an unwillingness to take risks.

It was November 2001 when Microsoft entered the gaming console arena. The cyberpunk-style green dashboard was dazzling and had one real game-changer: Halo: Combat Evolved. Players can battle snarling aliens across vast landscapes and pilot awesome vehicles. This not only took the game to new heights, but also attracted huge crowds to the console.

In 2004, Microsoft dropped the price of the Xbox to an affordable £149. Sales increased and Microsoft had established itself as a major player in the industry.

The Xbox 360 followed suit and kept a firm grip on the market, even with the infamous Red Ring of Death incidents. It seemed like Microsoft was ready to do for gaming what it had done for operating systems and office software, but that changed. You could blame Nintendo or PlayStation for focusing solely on consoles, instead of trying to make them all-singing, all-dancing media hubs.

In 2017, Microsoft launched Game Pass and positioned it as the “Netflix of gaming.” But Netflix doesn’t release brand new, unproven films onto the platform immediately after production. How can a studio make real profit that way?

Instead, Microsoft thought it was smart to release big games like Starfield on Game Pass on day one, rather than waiting at least eight months to a year. With over 10 million players engaging with these titles, but an estimated only 1 to 2 million Xbox users purchasing the actual product, out of a user base of 34 million, this represents a major shortfall.

Microsoft is destroying its Xbox base not through a lack of games, but through a lack of foresight. Day one releases should not exist on any gaming streaming service. Xbox titles would traditionally have to be released for at least eight months to a year before being added to Game Pass.

Xbox is being suffocated by Microsoft, kept afloat only by PlayStation and PC purchases – and perhaps soon by the Nintendo Switch 2 platform. It’s sad to see. I think the Xbox platform might cease to exist in five years – not because of its fanbase, but because its owner never really learned how to compete in gaming.

Look at Sony and Nintendo: game consoles are not PCs. Streaming should give players choice, but shouldn’t deprive production studios of the glory (and profitability) of successful launches. You may not agree with this article, but you will probably agree that Microsoft is losing with Xbox; not because of the fanbase, but because Microsoft itself is no longer a fan of the Xbox.

Maybe I sound harsh, but I remember the original Xbox. Microsoft promised a multiplayer experience. An example was a game called Brute Force, a brilliant title where you control four characters on a mission. It had local support for four players, but everyone was waiting for the Xbox Live add-on. Microsoft once again underperformed, not realizing that adding this component would have boosted sales and expanded its catalog of exclusive titles. Instead, they prioritized the Halo explosion.

Look at Nintendo and Sony: they protect exclusive products because good products sell consoles. Take No Man’s Sky – not exclusive to any platform – but the studio persevered despite a rocky launch. Their belief in the project fueled growth in a small but talented production team. I mention this because Microsoft has repeatedly abandoned gaming projects, stifling the growth of Xbox exclusives.

Perfect Dark was canceled – a perfect example of Microsoft destroying its own platform. With over a million copies sold on the original Xbox, canceling a sequel makes little sense. A return on DLC and season passes could have boosted profits and helped the Xbox Series X sell in solid numbers.

Microsoft owns Activision, which promised exclusive games for Xbox, but instead the company axed titles under new ownership. Did you know that Microsoft lost $300 million by putting Call of Duty on Game Pass? Someone should have been held accountable for that decision.

Microsoft is destroying the Xbox – not because it can, but because it lacks vision. Leaders like Steve Jobs, Tim Cook, Elon Musk (yes, I said it) and Bill Gates understood customer needs and delivered great products that were also profitable. Xbox will unfortunately disappear because no one at Microsoft takes enough risks.

Goodbye, Xbox. It’s sad to see the Chief Master losing the fight.

By reader SDE Wilson

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