Xbox First-Party Games Expanding to PlayStation and Nintendo, but Xbox Hardware Stays

After Microsoft snapped up Activision-Blizzard along with its treasure trove of development studios, it propelled itself—and Xbox—into the position of the largest third-party game publisher ever. So it’s understandable why Xbox chief Phil Spencer’s recent comments on Gamertag Radio caused quite the stir. During the interview, he hinted that future Xbox titles could make their way to other gaming platforms, like Nintendo and PlayStation, which is a move that actually makes a lot of sense.

In the chat with Danny Peña and Parris from Gamertag Radio, Spencer expressed his vision: “I want people to be able to experience the games that we build, the services that we offer on as many devices as we can.” Yet he reassured Xbox fans, “We obviously love the native experience that we have on our own platform and our own hardware, and that’s something that will continue for us.” This 26-minute dialogue offers a wealth of industry insights and a nostalgic look back at Xbox history, traveling through the original Xbox and the 360 days.

For those unfamiliar, here’s a brief history lesson to explain why Spencer’s statements ruffled feathers. Remember Sonic The Hedgehog, the movie icon? He originally sprang from a long, tumultuous series of video games, initially exclusive to Sega consoles. These titles were only available on these systems until Sonic Adventure 2 was adapted for the GameCube. The Dreamcast, Sega’s last console, unfortunately met a swift end due to the more robust PlayStation 2 from Sony, turning Sega into solely a third-party developer. At that juncture, Microsoft entered the scene with Xbox, filling the void Sega left behind.

Initially, Microsoft’s “DirectX Box,” which eventually became the Xbox, supported backward compatibility with Sega Dreamcast titles. Many thought this was due to the Dreamcast’s compatibility with Windows CE. Even though the final Xbox model didn’t retain this feature, it boasted several exclusives rooted in Dreamcast origins, like Jet Set Radio Future.

Some might interpret Phil Spencer’s comments as the desperate rallying cry of a struggling console maker, but don’t be mistaken—Microsoft is a far bigger entity than that. Now that Xbox holds the title of the largest third-party game publisher ever, their strategy centers on broadening their game distribution rather than cornering players into their platform exclusively.

Spencer reiterated this by saying, “We want everybody to be able to play on Xbox, and it does mean more of our games shipping on more platforms, not just PlayStation. We love the work that we do with Nintendo, we love what we do with Valve on Steam, and that’s going to continue.”

So, is Xbox pulling a Sega? Not at all. Microsoft’s financial strength will prevent that scenario. Nonetheless, the upcoming generation of Xbox consoles will need to entice with more than just hardware. They’ll face stiff competition from the potentially hybrid nature of “Switch 3” and the powerhouse that will be the PlayStation 6, both likely to leverage exclusive games to maintain their market identity, as tradition dictates in the gaming industry.

But if Microsoft isn’t careful with how it manages this evolving identity—selling Xbox as more than just hardware but as a suite of games and services—they might risk saturating the brand to the point where “when everybody’s on Xbox, no one will be.”