Xbox Everywhere | Unpacking Xbox’s New Vision

Xbox everywhere? Well, Xbox wants to be everywhere. An Xbox Handheld, TVs, Mobile phones, multiplatform consoles, PCs – you name it, it seems Microsoft and the Xbox brand are hard at work making plans to be there, be it games, services or both – wherever they can access players.

It’s a seismic shift for an industry that for over 30 years has always been about using exclusive software to sell bespoke hardware, ensnaring paying customers in to their walled-garden ecosystem. Now, the focus is on the games themselves, with the method of delivery seemingly no longer seen as the be all and end all, at least by Microsoft. Is that just an excuse wheeled out to explain Xbox’s dwindling hardware sales and overall marketshare, or is there more to it?

Is ‘Xbox Everywhere’ just another buzzword, or are we looking at the seeds of a new way of doing things that will ensure not just the Xbox brands survival, but the turning point for an industry that appears to be in more than a bit of trouble?

It Started with Game Pass

Back in February of 2017, Microsoft kicked off this protracted journey with the announce of Xbox Game Pass, the first multi-game subscription service of its kind, allowing would be punters access to a multitude of Xbox games for a relatively low monthly fee.

Suddenly, after decades of buying interesting looking games at full price on day one, Microsoft had flipped the script and changed the way players could access games. Purchase was no longer necessary, and it’s hard to argue against the fact that Game Pass has made high-quality gaming more affordable and more accessible.

Significantly, the decision to bundle all of their first-party releases into the service was the first signal of a massive departure from what would be considered the traditional console-exclusive strategy. Now, it wasn’t just about the games, it was about the ecosystem.

Since 2017, Microsoft has been aggressively expanding Game Pass. Acquisitions of beloved studios like Obsidian Entertainment, Ninja Theory and Double fine, let alone entire publishers – Bethesda for $7.5 billion, not to mention the whopping $70 billion or so they paid for Activision Blizzard, bringing World of Warcraft, Diablo and Call of Duty along for the ride.

This ensures an already engorged Microsoft a literal treasure trove of beloved video game franchises. Doom, Elder Scrolls, Call of Duty, Diablo, Minecraft, Halo…I could go on.

The evolution of Game Pass signalled this new era from the get-go. The subscription service was the opening move to become a gateway to playing great games – on any device.

They’ve got to Break Free

I’d assume anyone reading this knows that historically, the video game industry has always operated on a hardware-first approach; buy a new console, buy the exclusive software only available there, and stay within that ecosystem.

It’s why terms like “system-seller” exist – the very idea that a single game can be enough to force would be fans to not just have to buy the game, but buy the very system required to play it. Over the last decade, that model has begun to shift, and Microsoft believe that the future of gaming isn’t limited to console hardware.

So they launched Xbox Cloud Gaming in 2020 (commonly referred to as just ‘xCloud’), which is now available in 26 countries as of 2023, allowing users to play Game Pass titles – and even now, games they own outright – on mobile devices, smart TVs, and this has been one area where they’ve seen consistent growth.

In 2024, we saw for many what has always been considered unthinkable. Xbox announced, after several months of rumours, that they’re planned on bringing first party titles to competitor platforms – namely Sony’s PlayStation 5 and Nintendo Switch – breaking completely from traditional console exclusivity norms and a model that had long defined the industry.

Surprise, the games have sold pretty well for the most part, hence Microsoft continuing what it had once referred to as a mere ‘experiment’. The latest that’s headed to make the jump across party lines, Forza Horizon 5 – a game that has already seen 30+ Million players – has been at the top of the pre-order chart on PlayStation in many countries.

The Biggest Games are Everywhere

I think one of the biggest indicators of Microsoft’s long-term strategy here is their recognition that the biggest games, the ones with the most players, the most success, and arguably, the highest revenues – are everywhere. They’re not constrained to one box, one platform. Fortnite, Minecraft, Call of Duty – they all thrive because they’re readily available.

By committing to still launch first party games into their subscription service, they can provide the benefits of their ecosystem, while still giving their games the broadest reach possible everywhere else. This becomes particularly key in countries where console adoption is relatively low, but PC and mobile gaming are thriving.

The industry has been struggling over the last few years – for many smaller dev teams, it was “survive until 2025” – and rather than restricting access to games through one device – and their potential success through one device, Microsoft and Xbox are working towards a world where the games are accessible everywhere, reinforcing their position as a gaming service provider rather than just a console manufacturer.

I’ve yet to have someone explain to me how that’s a bad thing for the health of my favourite pastime, which fun fact, isn’t arguing about who sells the most hardware. I just like playing great video games.

There’s Upsides…

I’ve already spoken at length about the benefits of this transition for Xbox and gaming as a whole – the increased market reach and engaging with broader audiences, the realisation of recurring known-revenue through Game Pass subscriptions meaning better funding for more games.

Even the unification of Microsoft’s PC and Console ecosystems is a benefit, where I can enjoy a seamless gaming experience with cloud saves across PC, Console and mobile – and that’s one that exists today, as far as if the game is part of the existing Play Anywhere model.

That’s not to say there’s plenty of risk in this transition period too. Many, myself included have spoken about the potential dilution of the Xbox brand, and the possibility that this approach may make Xbox hardware itself redundant. Cloud gaming, as great an additive experience as it can be, is not the way many hardcore gamers want to consume games, and it’s reliance on internet infrastructure remains a barrier.

While Xbox leadership have repeatedly assured Xbox fans that Native-Xbox hardware will remain a key part of their ecosystem, many feel that the loss of exclusives will make Xbox far less appealing compared to its competitors, who continue to invest heavily in exclusive software, be it developed in house or paid for timed exclusivity.

…and Downsides

The concern is understandable, as PlayStation’s ‘exclusive-first’ strategy has helped it sell over 75 million consoles as of the end of 2024. Xbox’s hardware sales in comparison, are in a downward spiral.

For Xbox, one of the biggest hurdles they face is often misinterpretation by gaming media, pundits and industry analysts. Many still, right now, operate under a traditional ‘console war’ mindset, and consistently frame Xbox’s new strategy as a sign of failure rather than one of evolution.

This fuels a fanbase that in equal measure, has been conditioned to think in the same way. Headlines, forum posts, social media essays questioning the relevance of Xbox hardware going forward or that multiplatform releases are a sign of ‘defeat’.

There is a persistent focus on hardware sales as a success metric, no matter how much Microsoft emphasise Game Pass growth, their ecosystem or player numbers. This perspective, which I feel is somewhat outdated, leads to scepticism from analysts and fans alike, seeing the departure from exclusivity as a loss rather than a meaningful expansion forward.

This line of thinking, in my opinion, misses the broader and frankly, far more interesting industry shift that Microsoft is pioneering.

Xbox Handhelds and Hardware

This week, we’ve finally got word of the next step in Xbox’s transitional journey.

With rumours of, fuelled by Phil Spencer himself no less, Xbox developing a native Xbox handheld in addition to working with OEM partners, Jez Corden of Windows Central and Tom Warren of The Verge shared a little more detail, revealing internal Microsoft projects known as Projects ‘Kennan’ and ‘Bayside’.

Project Kennan is Xbox working on a partnered, handheld Windows PC that seeks to unify Xbox and Windows more than ever before. Note that I said handheld PC, because oh boy are people running away with the headlines on this one, referring to the device as a “Handheld Xbox’ – which is not what this is going to be. Future hardware, including a native Xbox handheld and a more traditional “box” are, according to Windows Central, greenlit for 2027.

The new handheld, slated for this year, will be adopting more Xbox-like design sensibilities than we’ve seen before from ASUS’ existing ROG Ally series. You can expect an Xbox Guide and face buttons, and a more traditional Xbox controller form to the handles with which you’ll grip the device. There is another model, that from what I understand has the more typical ROG Ally setup – and its extra buttons – but it remains to be seen what the key differences are beyond that.

Project Bayside, from what I understand, is the unification of Windows and Xbox, with Game Bar, the Xbox app and Xbox services all seeing notable improvements, and dare I say it, a certain level of Steam integration if we’re lucky. How far that goes, we’ll have to wait and see. It’s Microsoft’s tale to weave, and their plane to land.

We’re in the Endgame Now

This all of course, leads us towards the true end goal here. A true Xbox OS, that just like Windows, can be shipped on devices from partners, in all kinds of form factors. And this is where the new hierarchy begins – not with the console, as has been the norm for the console space, but with the operating system.

Let’s look at Steam Deck. Anyone concerned about it only having sold 4 million units? Worried that the hardware is going to go away? Concerned they’re not going to make a Steam Deck 2? Of course you’re not, because the Steam Deck isn’t the point, is it?

There is little doubt in my mind – or anyone else’s – that Valve will continue to iterate on the device, because it’s primary goal is not to sell hardware for hardware’s sake. It exists to expand the reach of Steam.

In the same way, Microsoft no longer sees Xbox console hardware as the sole measure of its success. Just as Valve uses the SteamDeck to bolster Steam’s presence in the handheld space, Microsoft uses Xbox consoles as an entry point – an important one to be sure – to their broader ecosystem.

You Have a Choice

The success of Xbox is no longer tied exclusively to console sales but rather to player engagement across Game Pass, cloud gaming, and multi-platform accessibility. With an Xbox Operating System, they can pursue the main Xbox line, but allow partners to create all manner of new things, giving us more choice than ever before.

By turning Xbox into an extension of Windows, Microsoft it seems are genuinely looking to also push a transformative change to game development for their platform. We’ve already seen them talking up Xbox Play Anywhere, and going forward, the new development environment – Windows – is a big part of that.

As per Tom Warren in his recent piece via The Verge – “Microsoft is also working on combining Windows and Xbox in a way where there’s a single store of games and an easier path for game developers to build titles that span across handhelds, console-like hardware, and PC gaming rigs.”

Xbox Everywhere

Microsoft’s transformation to take Xbox from a console, hardware-centric platform to one that is instead platform agnostic, marks one of the most significant shifts in gaming. However, if they can stick the landing and bring all the services and capabilities that Microsoft can wield together, it could position itself as a new leader in the industry.

The road ahead is uncertain. There are new opportunities, but they are challenging long-held industry norms. One thing is clear – Xbox is no longer going to be waging the war for the living room. Xbox is going Xbox everywhere. (Whether you like it or not)