Topline
Microsoft confirmed in a business update Thursday that four Xbox-exclusive video games will be made available on Sony’s PlayStation 5 and the Nintendo Switch, confirming rumors of a multi-platform release strategy that Sony also alluded to in its latest earnings.
Xbox made the announcement Thursday. (Photo by INA FASSBENDER/AFP via Getty Images)
AFP via Getty Images
Key Facts
Microsoft said in a statement there would be four unnamed Xbox-exclusive games coming to other platforms, citing a need to “ensure long-term success for both Xbox and the industry as a whole.”
A fresh revenue stream from the games’ release on other consoles could help Microsoft compensate for lagging sales for the Xbox Series S and X consoles, which the PlayStation 5 outsold by a three-to-one margin in 2023, according to the Ampere Analysis data cited by the Financial Times.
The titles will reportedly be “Hi-Fi Rush,” “Pentiment,” “Grounded” and the popular action-adventure pirate game “Sea of Thieves,” according to the Verge.
Microsoft added the cross-platform strategy would allow it to invest in either future versions of the four games, or elsewhere in their first-party portfolio.
Sony chairman Hiroki Totoki said in an earnings call Thursday the company wants to “proactively work on” extending PlayStation titles to platforms like PC and mobile, adding he wants to be aggressive in improving Sony’s margins.
Totoki took a similar stance to Xbox in the earnings call, saying first-party content can be grown with a multi-platform approach, “and that can help operating profit to improve.”
Tangent
Xbox president Sarah Bond also alluded to the future of the Xbox console in the update. Bond said there’s “some exciting stuff coming out in hardware that we’re going to share this holiday” and added Xbox was focused on “delivering the largest technical leap you will have ever seen in a hardware generation.”
Surprising Fact
Microsoft hasn’t reported Xbox sales for several years, though the company has said the decision was made because such numbers don’t make up the full picture of Xbox’s business model, IGN reported. Xbox chief financial officer Tim Stuart said last year at a Wells Fargo summit that Xbox was more focused on “content services.”
Key Background
Microsoft and Xbox have put significant time and resources into expanding and capitalizing on their exclusives, which include popular video games such as “Halo Infinite,” “Sea of Thieves,” “Forza” and more. The tech giant closed its $69 billion acquisition of Activision Blizzard last year, meaning Microsoft will own the studio known for developing wildly popular games such as “Call of Duty,” “Diablo” and “Warcraft.”
Further Reading
Microsoft: four Xbox-exclusive games are coming to PS5 and Nintendo Switch (The Verge)
Updates on the Xbox Business | Official Xbox Podcast (Xbox)
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