Microsoft could leave the gaming industry altogether

Microsoft is trying hard to close the holes that led to tens of highly confidential documents becoming public. Tech gurus thoroughly combed through each leaked document and came up with some pretty shocking findings.

Not only information about new hardware and games was revealed, butč also the news that Xbox or Microsoft has given up investing in cloud games for the time being.

Even more shocking is the proposal by Xbox boss Phil Spencer that Microsoft will completely leave the gaming industry if the number of Game Pass subscribers does not reach 110 million by 2030. Microsoft it rarely discloses the number of subscribers, but it is now clear that in January 2022 it hovered around 25 million.

The shocking statement was made during Microsoft's legal case against the US Federal Trade Commission (FTC), when the lawyer questioned Spencer about a slide showing Microsoft's long-term plans up to 2030.

The documents leaked so far have already revealed that Microsoft is planning to release next-gen consoles in 2028, and the slide also shows the most optimistic prediction that the number of Game Pass subscribers could grow within two years of the next-gen console's release. to 110 million. Spencer was asked what would happen if they didn't reach that goal, and his answer was:

"I can say very confidently that if the console had not made more progress, we would have left the gaming industry. If the outcome had been like this, I believe that we would not have been any more. in this industry.»

"Most of our Game Pass users don't use our hardware. We hope to be able to turn this image on its head even before 2030. So when you asked me if I agree with this graph, my answer is that the light green and blue column should gain share very quickly. I would say we should be in that position by fiscal 2026, 2027, or we would have to make a different business decision."

In the chart, the dark green part represents classic Xbox console users, the light green part is PC players, and the light blue part is cloud users.

As the other revealed data showed, cloud games are currently almost irrelevant for the majority of gamers, so a period of three years is a very short time to solve such a complex problem.

However, despite everything, many believe that Phil Spencer exaggerated his claims and the possible consequences in the case of unachieved goals. During the legal investigations of Activision Blizzard, Microsoft presented itself as a company that barely competes and barely keeps in touch with the dominant Sony.

Whether there is any truth in what Spencer said, or whether he simply told the lawyers what was most useful to him, is hard to say.

The Xbox Series X/S consoles, which are still underselling the PlayStation 5 and the Nintendo Switch, have certainly raised the question of how long the Xbox should remain in the gaming market at least once. can't possibly rank first.