Phil Spencer spoke in an interview about Xbox Game Pass, Xbox Cloud and the differences between Microsoft’s services and a video streaming subscription like Netflix, which for him lie in the business model used.
After talking about how “Xbox Series X|S totaled higher sales than any other Xbox”, Spencer explained that from a streaming point of view, Xbox Cloud and Netflix are somewhat comparable, although in the former case the technology involves interaction. and the ability to make a purchase.
“I believe the ability to let users buy it’s a traditional component of gaming,” Spencer said. “The retail market remains very strong and growing, so we want to make sure that we offer people a choice between subscription and sale. It’s probably the only difference between us and some video subscriptions.”
Which business model is most important right now? “Sales are more relevant than subscriptions, but the latter are growing fast also because they are something relatively new, and with the Game Pass we were the first to advance in that space. However, sales are a very big deal, we still sell physical records. . “
“The gaming market is probably worth $150, $200 billion, including hardware, and it’s something that big companies are looking forward to. We see more and more of these companies targeting games as a place to go, including Netflix.”
“As far as we’re concerned, we’ve just spent 20 years of Xbox on the market, we have thousands upon thousands of relationships with developers and creators who have already built something on our platform. And then there’s Xbox Live social media with millions of users connecting every month.”
“These friendships are incredibly important and I think the cloud is critical. Netflix clearly has it, as do Amazon and Google. However, they don’t have content, so I think what they’re doing is smart: they buy some development studios, they’re learning the creative process behind interactive entertainment.”
“It is a very smart move to enter this space, but we started this journey many, many years ago”.