Gaming forums and gaming circles on social media have been on fire ever since reports emerged that a number of Xbox exclusives are heading to PlayStation. Analysts and respected journalists have been weighing in on the matter, and in the midst of the hoopla, some insiders claim to have heard that Microsoft’s current strategy for games isn’t making enough money.
Why are Xbox exclusives heading to PlayStation?
XboxEra, which first broke the news of Starfield releasing on PS5, reports that Microsoft’s senior leadership wants to “recoup the money left on the table” in the aftermath of its expensive purchases of ZeniMax Media as well as Activision Blizzard. The latter is one of the most expensive (and controversial) video game acquisitions to date, totalling an eye-popping $68.7 billion.
Separately, Windows Central’s Jez Corden claims to have heard that Microsoft’s leadership feels that its gaming division isn’t making enough money with its current strategy. “They want to build healthier margins and cash flow using Sony’s install base, to then reinvest in growing the Xbox ecosystem using that money,” Corden tweeted.
Xbox hardware business has been in a lull for a decade. Add to this the fact that the company has pledged to launch its first-party games on Xbox Game Pass. Analysts and Microsoft’s own rival Sony have warned for years that such a subscription model isn’t sustainable, and data shows that the market for subscriptions has been stagnant for a while.
It’s currently unclear when Microsoft will formally announce its new multiplatform strategy (although its leadership has been hinting at it). According to XboxEra, a statement could come as soon as this month.
