Microsoft
has no plans to stop making
Xbox
video game consoles, Xbox chief
Phil Spencer
told employees last week, seeking to tamp down speculation about a possible exit from the
hardware market
according to a report.
During an internal town hall meeting, Spencer reassured staff that Xbox consoles will continue to be a crucial part of Microsoft's
gaming strategy
across various devices like PCs and mobile, reporter Shannon Liao said in her recent newsletter, citing sources familiar with the meeting.
His comments come amid growing online speculation and debate about significant shifts in Xbox's business focus and whether Microsoft could abandon producing gaming hardware entirely in the future. However, as per Spencer, the Xbox consoles will continue to be a key part of Microsoft's gaming strategy across devices.
This comes after growing speculation about major strategic shifts for Xbox and whether Microsoft could exit producing gaming hardware as costs rise amid slowing sales.
There has been online buzz in recent weeks that Microsoft will begin publishing Xbox-exclusive games like
Starfield
and Indiana Jones on PlayStation and Nintendo platforms. This could boost content revenue but risks undercutting Xbox's differentiation in the console market.
The company has also laid off workers across its Xbox and Activision studios despite double-digit solid revenue growth reported in its recent earnings. Game Pass has over 30 million members globally, based on surveys.
With pressure and questions mounting, Spencer and other Xbox leaders are set to detail their future roadmap and reaffirm Microsoft's commitment to remaining a player in the global console gaming hardware market.
The Xbox division is hosting a special business update event on February 15, where it promises to detail its "vision for the future" and overall direction. Xbox leaders Phil Spencer, Sarah Bond, and Matt Booty will appear on a podcast to share "updates on the Xbox business" that could relate to recent rumours.
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