Xbox's loathed "Project Latitude" strategy which saw Microsoft support its biggest rival with content is ending, with CEO Asha Sharma doubling down on exclusives.
A new report suggested that Xbox plans to double down on exclusive games, as Microsoft explores paths to grow its ecosystem.
At the Xbox Showcase, CEO Asha Sharma outlined plans to make Gears of War: E-Day and Clockwork Revolution fully exclusive to Xbox consoles. Bloomberg suggests Microsoft is looking to add even more exclusive games to its lineup potentially, which echoes comments execs made to me at Summer Game Fest in LA last June.
Much like Xbox's "it's only four games" statement about going multiplatform previously, the "it's only two games" mantra applies here in reverse. Microsoft is looking at making even tentpole single player games, historically multiplatform, exclusive to Xbox hardware (at least on console.) Could this mean we eventually see the next mainline Fallout and Elder Scrolls go exclusive to console on Xbox?
Reaching the biggest possible audiences has been the best margin play Xbox has had in recent years. Microsoft was previously driving Xbox to chase a 30% profit margin, and an easy way to do that is sell software wherever you can. However, Asha Sharma is not operating under that mandate. Instead, Sharma is operating under an ecosystem growth mandate.
Sharma has spoken at length about how her initial focus will be on Xbox's core: the console gamer. Console gamers in the Xbox ecosystem represent 4 times higher lifetime spending than other types of users across Microsoft's vast gaming ecosystem. On PC, they compete with Steam for margins. On mobile, they compete with well-established and dominant Eastern titles, while handing away millions to Apple and Google for the privilege.
Despite Xbox's retreat from PlayStation in the recent term, there remains tens of millions of active users in the Xbox ecosystem. These users are disproportionately passionate and spendy. Indeed, I would posit that anyone left in the Xbox ecosystem after all the disappointments represent the least "casually-invested" consumers in all of gaming potentially. Sharma wants to grow that base.
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