There are rumors circulating that Microsoft has been thinking about releasing some Xbox exclusives on the competitor platforms, PlayStation and Nintendo Switch. According to reports, Microsoft is considering a cross-platform release for both Sea of Thieves and Hi-Fi Rush. These rumors, along with recent remarks from Xbox CFO Tim Stuart and CEO Satya Nadella, indicate that the company is considering its Xbox strategy in light of the Activision Blizzard acquisition.
Stuart gave an overview of what he called “a bit of a change of strategy” for Microsoft Gaming, the division that oversees Xbox and the company’s whole gaming endeavors, during a Wells Fargo conference in late November. Our goal is to offer our first-party experiences and subscription services to any screen that can play games, but we’re not revealing anything big here, according to Stuart. “That means mobile devices, smart TVs, and things like PlayStation and Nintendo that we would have previously considered competitors.”
In response to fans’ doubts about Xbox’s future, Xbox chief Phil Spencer told Windows Central a few days later that Microsoft has “no plans to bring Xbox Game Pass to PlayStation or Nintendo.” That’s mostly outside Microsoft’s control anyhow, as, like with Xbox, Sony and Nintendo determine what releases on their platforms.
However, Spencer did not dispute Stuart’s assertion that we should share “our first-party experiences” with competitors. Ever since, the remarks have stoked rumors that Microsoft may be switching to a third-party publisher. Recently, there has been more conjecture surrounding the potential release of Hi-Fi Rush on the Nintendo Switch, following reports that surfaced. In a podcast earlier this month, YouTuber Nate the Hate made a hazy reference to the Xbox exclusive that would be coming to Switch; others filled in the details.
A few days later, Jeff Grubb stated on Giant Bomb that he had heard Microsoft was considering releasing Sea of Thieves on the PlayStation and Nintendo Switch. A few hours later, Stephen Totilo—a former reporter for Axios and Kotaku who now curates the fantastic Game File newsletter—joined in to clarify that, yes, Microsoft had investigated bringing Sea of Thieves to the PlayStation.
Microsoft previously launched two Ori games—developed by Moon Studios and marketed by Xbox Game Studios—for the Nintendo Switch. A Microsoft game team created Sea of Thieves as a major Xbox exclusive, so if it ever makes its way to PlayStation, Xbox will have adopted a new approach.
Although Microsoft CEO Satya Nadella recently gave a general speech regarding the business’s gaming objectives, the company has not responded to the rumors. In an interview with Bloomberg this week, Nadella stated, “With Activision, I think we have a chance of being a good publisher quite frankly on Sony, Nintendo, PCs, and Xbox.” “We’re happy we were able to close the [Activision Blizzard] acquisition, and we’re excited about it.”
Similar remarks were made by Nadella in answer to a query regarding Xbox’s future during Microsoft’s annual shareholder meeting in December. “We believe that we can now truly accomplish what we always aimed to do, which is create amazing games and distribute them to people on all platforms—Xbox and other consoles, PCs, and now mobile and cloud gaming,” stated Nadella.
On its own, Nadella’s remarks may be easily written off as proof that Microsoft is a PlayStation game producer and now owns the Call of Duty series. However, when you factor in Stuart’s earlier remarks, the rumors that Xbox exclusives like Sea of Thieves and Hi-Fi Rush are making their way to competing platforms, and the significant leadership changes at Xbox, it becomes evident that Microsoft has been considering some fresh strategic initiatives for its gaming division now that its massive $68.7 billion acquisition is complete.
Since Sea of Thieves is now six years old, millions more people could play the live-service pirate game if it were released on the PlayStation or Nintendo Switch. Similar to how Sony’s decision to release PlayStation exclusives to PC years later serves as a new revenue source that doesn’t undercut its platform efforts, it wouldn’t necessarily undermine Microsoft’s Xbox exclusives pitch. Since the most popular game from Microsoft, Minecraft, is accessible on many platforms, it makes sense to expand the availability of a live-service game like Sea of Thieves to more platforms.
HelloBut Fi Rush isn’t like that. Although the rhythm-based action game is now playable on PC, it was released less than a year ago, so Microsoft would undoubtedly need to provide some justification for the Switch or PS5 release before convincing Xbox enthusiasts that the platform and hardware are still worthwhile purchases.
Spencer has acknowledged that Microsoft hasn’t always been adept at providing such guarantee. In September 2020, Spencer stated in an interview with IGN, “I don’t really love this idea that for every one of our games, there becomes this little rumor on it ‘is it going to end up on the Switch or not.” “I think we ought to have higher expectations for our fans than that.”
Microsoft has not publicly addressed the Sea of Thieves or Hi-Fi Rush reports, and it is unlikely that it will do so during today’s Xbox Developer Direct stream. However, the truth is that Microsoft’s Xbox division hasn’t focused on selling the most consoles for the past five years at least.
In a 2019 interview with The Verge, Spencer stated, “I think it’s easy from the outside to judge the health of our business around how many consoles any company sells.” “In the end, the number of people purchasing games and the number of subscribers to services like Game Pass are far better indicators of the health of the company.”
Last year, the Xbox CEO was much more explicit about it. “We’re not in the business of out-consoleing Nintendo or out-consoleing Sony,” Spencer stated in a Kinda Funny Games interview.
This is understandable given that Xbox CEO Lori Wright acknowledged during the Epic v. Apple trial in 2021 that Microsoft does not make money only from the selling of Xbox hardware. In response to Wright’s remarks in 2021, a Microsoft representative stated, “The console gaming business is traditionally a hardware subsidy model.” “Consoles are sold by game firms at a loss in order to draw in new business. Online service subscriptions and game sales bring in money.
Sales of the Xbox Series S and X are still trailing behind those of the PS5, and Spencer admitted last year that the Xbox One generation was “the worst generation to lose” since everyone had been amassing a digital game collection throughout that time. Some may argue that allowing PlayStation and Nintendo Switch to play select older Xbox exclusives only serves to improve Xbox Game Pass by giving Microsoft more money to invest in its studios so they can create more games.
Given that titles like Sea of Thieves and Hi-Fi Rush are instantaneously available on Xbox systems and are included in the monthly membership fee, such a move might even be seen as covert advertisement for Xbox Game Pass. In any case, it’s evident from examining Microsoft’s gaming division that selling Xbox systems alone won’t be enough to fuel the company’s significant growth. Microsoft has previously stated that it intends to reach billions of gamers via the cloud, increasing the number of games available on PC Game Pass, and developing a new Xbox mobile store.
Because of this chance, Microsoft and even Sony will investigate new gameplay options for their games. Sony has entered the era of game subscriptions, just like Microsoft. It has also introduced some PlayStation-only PC titles and enabled cloud streaming for PS5 titles. Even still, some of its ambitious plans for cross-platform live-service games are being shelved because of “mixed levels of success.” The key point is that both Xbox and PlayStation are experimenting with where and how they offer their games for sale.
Would it therefore be unexpected for some Xbox exclusives to make their way onto the PlayStation or Nintendo Switch? Not at all. The details will be crucial if it comes to pass.
