Meanwhile Valve entered the hardware business while getting games from Xbox and PlayStation.
MS positioned themselves in a way where they have nowhere to go beyond becoming third party. It's too late for them to put up a fight against either Steam or PlayStation, gamepass just doesn't matter nearly as much as they assumed it would and they are just too big now to be limited by Xbox.
Phil Spencer never got a single thing right about the gaming market:
- Of all those seven or so studios they bought in 2018~2019 pretty much not a single new game came out.
- Bethesda released a series of flops after being acquired by MS.
- CoD sold less than usual and Diablo 4 collapsed.
- Gamepass wen't nowhere and still cannibalized sales.
- Series S was an all time blunder.
- Their hardware team failed to design a Series X capable of consistently performing better than the PS5.
- His attempts to get the Xbox user base to care about Japanese games went nowhere.
- Xbox is now dead in continental Europe and Asia and well on it's way to dying everywhere else.
- Tons of effort to control the narrative and get the gaming media on his side and it turns out none of it matters and nobody cares.