Xbox’s 2024 reveals troubling signs for the brand, marked by studio closures, layoffs, and a significant price hike in their Game Pass subscription, raising concerns about their long-term strategy. Despite facing competition and market challenges, the need for a hybrid console merging PC and Xbox functionalities emerges as a potential pathway for revitalization, echoing Nintendo’s successful hybrid approach with the Switch. The article advocates that Microsoft must innovate to regain player interest and market viability.
This article is an opinion piece and is therefore 100% subjective. The author’s views are personal and do not reflect the opinions of the rest of the editorial team. Enjoy your reading!
Table of Contents
- Xbox’s 2024 Journey Signals Trouble Ahead
- Taking a Step Back
- Navigating the “Console War”
- To Survive, Future Xbox Consoles Must Reimagine Gaming Hardware. Easy, right?
Xbox’s 2024 Journey Signals Trouble Ahead
This year, we’ve been on the front lines witnessing a series of disheartening news regarding the American console maker, who ended 2023 on a high note with the successful acquisition of Activision. It all started in February when Xbox executives convened to discuss the brand’s future amid a tense environment. During this meeting, titles like Grounded, Pentiment, Hi-Fi Rush, and Sea of Thieves were announced for competing consoles. Phil Spencer also hinted at the possibility of other Xbox exclusives making their way to PS5 and Switch, making it clear that there are no real walls in place, and he repeated, “never say never.”
At that moment, Pandora’s box was opened, leading to speculation about the potential arrival of Forza Horizon, Gears of War, Hellblade 2, and even Halo on Sony and Nintendo systems. Although Spencer promised that Indiana Jones would not be among the first batch of exclusives to appear elsewhere, he later confirmed the PS5 port as a highlight for gamescom 2024. Fans once again felt betrayed, as “business is business,” said the head of gaming at Microsoft, who is aggressively pursuing profitability. When sales on Xbox and Game Pass subscriptions fall short, it is essential to seek revenue wherever it exists. This means going “to the devices players already own,” as Spencer confirmed.
Negative developments continued in May when the Redmond firm shut down Alpha Dog Studios (Mighty Doom), Arkane Austin (Prey, Redfall), and members of Roundhouse Studios migrated to Zenimax Online. The hardest hit was the separation from Tango Gameworks, the studio led by Shinji Mikami responsible for Hi-Fi Rush, the most critically acclaimed Xbox title of 2023. Reasons included rising costs and restructuring, which are becoming all too familiar. These closures followed massive waves of layoffs at Microsoft: 1,900 positions eliminated in January and another 650 in September, affecting hundreds of talents from the company’s gaming division. Such staggering numbers have severely undermined the “good guy” image that the green company once enjoyed, having frequently praised the talents behind our favorite virtual worlds.
The year concluded with yet another increase in Game Pass pricing. The Game Pass Ultimate now costs €17.99 per month, signifying a nearly 40% rise in just over a year for this offer. The Game Pass Core has also increased to €69.99 annually (previously €59.99), while the PC Game Pass now comes with a price tag of €11.99 (previously €9.99). Furthermore, the introduction of Game Pass Standard, which effectively replaces Game Pass Console, grants access to hundreds of games, albeit without the much-touted “day one” launches and cloud access. This is a considerable shift from the service’s original promise, viewed by some fans as a betrayal.
Taking a Step Back
To be fair to Xbox, it is not alone in closing studios and raising prices; its direct competitor—Sony—has done the same, recently closing Firewalk as well. However, the year hasn’t been entirely bleak for the green giant. There was the launch of the technically stunning Hellblade 2, a blockbuster summer showcase, and confirmation that Call of Duty would indeed join Game Pass Ultimate/Game Pass PC on “day one,” despite earlier rumors suggesting otherwise. Additionally, there are promising ‘exclusive‘ titles slated for the end of the year, including Flight Simulator 2024, STALKER 2, and Indiana Jones.
Nevertheless, the unclear messages from Phil Spencer during his rare interviews, combined with the radio silence regarding Xbox sales figures and the noticeable absence of third-party games on the American console, have left observers perplexed. Recently, industry insider Jason Schreier remarked that things aren’t looking