Phil Spencer is reportedly banking on continued Xbox Game Pass subscriber growth to secure his position in the video game industry.
During the recent FTC trial, Xbox’s future plans were revealed, including the new Xbox Series X variant and the next generation of consoles scheduled for 2028.
Xbox boss Phil Spencer has expressed the importance of the Xbox Game Pass subscription service and warned that if subscribers do not reach an adequate level by 2027, Microsoft could consider exiting the video game business.
Xbox Game Pass is currently available on Xbox consoles and PC, although the PC platform has fewer subscribers. Xbox aims to increase the number of subscribers on PC to stay in the video game industry.
Spencer has mentioned that if significant progress is not made outside of consoles, Microsoft could reconsider its involvement in the video game business.
The upcoming next-gen consoles developed by Microsoft will be designed with Xbox Game Pass in mind, with a focus on a hybrid cloud system that enables fully digital gaming on Xbox platforms.
Although Xbox intends to bring cloud streaming to Sony’s PlayStation consoles in the future, they believe this could be blocked by competitors.
Xbox Game Pass is expected to surpass 100 million subscribers by 2029/2030, and success will largely depend on upcoming Xbox exclusives and AAA titles added to the service.