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Xbox, PlayStation, And Nintendo Console Market "Isn't Growing," Phil Spencer Says

Microsoft loves consoles and will make more, but the console market is stagnant, Spencer says.

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The video game console market "isn't growing," Microsoft Gaming CEO Phil Spencer said in a new interview, and that's part of the reason why you don't need an Xbox to play Xbox these days.

"The console space all up isn't growing, across all of them [Xbox, PlayStation, and Nintendo]. We love those customers, but in terms of continuing to expand and grow Xbox, it's about PC, it's about cloud, and it's about making our games more available in more places," Spencer told Rolling Stone.

Just because the console market isn't growing, that doesn't mean Microsoft is abandoning consoles. Spencer said Microsoft will "definitely do more consoles in the future," as well as "other devices."

None of this is a surprise, as Microsoft has already confirmed a next-gen Xbox that promises the "largest technical leap" in Xbox history. As for the "other devices," Spencer may be referring to the Xbox handheld device that is a "few years out."

Also in the interview, Spencer reiterated that Microsoft is probably not planning a mid-gen Xbox refresh, like Sony did with the PS5 Pro. He said, "We don't need to do incremental hardware for our own benefit. Does a new device really give you a unique experience on screen in some way?"

Years ago, the leap between the original Xbox and Xbox 360 was significant in terms of graphics and performance, Spencer said, but these days "it's harder to show the benefits" of more powerful hardware alone.

A new "This Is An Xbox" ad campaign reminds people that Xbox is no longer limited to being a piece of plastic under your TV. Your phone is an Xbox, as is your TV, and any number of other devices, because Xbox games--and Game Pass--are available in those places. Spencer said he understands some part of the Xbox audience enjoys the "simplicity of a single box, single platform, single game." But the reality is that, "Today's largest games are bigger than any of the individual platforms."

He said the Xbox platform should be about games, characters, and worlds, as opposed to any one dedicated device. "That's how we think about Xbox today," he said.

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CIA_BOSS

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Gamespot is just deleting my comments!!

All I mentioned is that gaming industry is being destroyed by the woke virus but I guess gamespot wants to censore our comments!

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TommyTong

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Just make good games, dude.

Don't leave that to people who have no idea about it.

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Gamefanantic007

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dude is delusional. XBOX market isnt growing lol

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WarGreymon77

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Drop. Prices. Not just games, but everything. ESPECIALLY controllers. I don't need a bunch of fancy features in my controller, just buttons and sticks.

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FreeRPGer

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@WarGreymon77: Agreed! 100%

My haptic feedback/vibration is turned OFF ... to save battery life.

Tried it. Once.

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FreeRPGer

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Yeah, the Xbox console market isn't growing.

& maybe some other markets aren't growing because prices are going up? Some can't buy as much, especially when 4 games release in the same month (or sometimes a few on the very same day).

Federal minimum wage has been stagnant for 15 + years, but those prices keep on growing (or keep erecting for those CEOs/corporations). If it keeps going like that, the market will shrink -- shrink & shrink in a slo-mo type fashion.

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faithxvoid

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@FreeRPGer: where in America do you live that has no other employment options besides accepting $7.25 an hour? McDonald's is paying $16 and I'm rural af.

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FreeRPGer

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@faithxvoid: I never said there were no other options. Not once did I say that.

Yes, McD's pays $15 an hour here (which is why their fast food is so expensive now, by the by), & states do all have their own minimum wages, but the FEDERAL minimum wage is $7.25 an hour. Has been since 2009. So, one can legally pay that amount. My point was FEDERAL wages have not gone up, but inflation does, making the wealth gap grow bigger & bigger since the late 70's.

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faithxvoid

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Edited By faithxvoid

@FreeRPGer: You also made the point that the federal minimum wage is worthless and shouldnt exist.

Seems to me McDonald's wages increased without having your government force them to.

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BoobyTrap

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The console market isn’t just the XBox consoles, Phil lol

Switch and PS5 are doing great in terms of sales.

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Fitzy_2812

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@boobytrap: He isn’t referring to just Xbox though. He is talking about the console market as a whole (which obviously includes PS5 and Switch). The console market for the past few generations has not grown at all, its hovers around the 150-200M (or whatever the exact number is) total units per generation which is divided up between the different consoles. That‘s the number he is talking about, that’s the number that isn’t increasing each generation. There is no growth, rather all that’s been happening for about 3 generations now is that new users come in and replace old ones.

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Just1MoHr

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@fitzy_2812: Consider those are total sales, and how many of us have multiple consoles. 2x Switches, 2x PS5's, 2x XBox's here alone.

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Fitzy_2812

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Edited By Fitzy_2812

@just1mohr: Yea and that is kind of the point he is making. The total sales market hasn't changed in like 20 years, the only thing that has changed has been the marketshare that each console has of that total market.

Basically new customers coming in are not outweighing the customers leaving the console market entirely, hence the no growth remark. The market has simply been replacing existing customers or shifting them around, its not growing.

Its stagnant and all 3 console manufacturers have admitted as much, Sony as recently as one of their last investor calls when they were asked why they are expanding more into PC. Pretty sure Spencer even said it way back when this generation started as well.

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Tiwill44

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Tiwill44  Online

Gaming should shrink and become niche again anyways, that's when the best games are made because they aren't trying to pander to people who don't play video games in a desperate attempt to grow bigger.

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Dominicwow

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Xbox leadership never places emphasis on their first party library when discussing the identity/future of the company, even after spending nearly 100 billion on game studios. They don’t actually want to be a publisher, they just want to be a software service. Maybe like steam, I dunno. I’m not a fan of modern xbox

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chiyochan111

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Phil Spencer has been the big rich jerk of the industry.

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Lord_Sesshy

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After last gen and continuing this gen, it kind of feels like we are heading towards another game market crash. And honestly it would probably be a good thing. A reset back to the PS2 and 360 days would be nice. (And before someone mentions it, I know that the PS2 and 360 were different generations, but those two gens were arguably the best in gaming)

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Just1MoHr

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@Lord_Sesshy: I agree, loved the PS3/XB360 games, even if they were 6-8hrs. If that is what it takes to make better games and more of them, then go for it to save on dev costs.

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BoobyTrap

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@Lord_Sesshy: don’t you think it’s a bit too dramatic?

PS5 is only 2 mil units behind PS4 after the same time on the market. Switch is on track to become the best selling console of all time.

Don’t read too much into what this clown has to say. He’s just trying to make it look like the XBox hasn’t flopped as hard.

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Lord_Sesshy

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@boobytrap: Sorry, I should have explained better. My statement isn't solely for consoles or their sales (I do realize those are going strong) but gaming as a whole. I think people are just getting tired of all the MTX, season passes, high prices, excessive collector editions, et cetera.

And just to clarify, I don't hold your same opinion about Xbox. I actually like what they have done, for the most part. I may be in the minority but I actually use all their services, like gaming on the Series X, PC and streaming games on my phone. Are they last? Sure, but when there are only 3 spots the competition is rough.

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GirlUSoCrazy

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It isn't growing? They told us they were selling more consoles than the same point in the last generation.

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Dushness

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beyond the tech specs, how will the new xbox make playing games more fun?

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Player_1_Ready

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Phil is totally right about it....even Sony hasn't met their sales target with the PS5.

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Brimac19

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Look in the mirror Phil-Failure!!!!!

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tbird7586

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Edited By tbird7586

Nintendo has slowed down but considering the switch is about to be the best selling console of all time I'd say Nintendo has figured it out. The switch 2 will smoke PlayStation and Xbox just like the switch did

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lewst2k1

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I think it's growing, but the growth is proportional to the quality of exclusives...that's why Nintendo is king, PlayStation is 2nd and xbox last. Also, you will never (legally) play a nintendo game on a pc. Everyone knows that. You will probably play a PS game eventually, and you will always be able to play an xbox game on pc. Xbox problem, is that not only can you play all their games elsewhere, but the exclusives are not as good as PS or Nintendo. I'm saying this as an xbox fan, who's bought every console beginning with the OG xbox.

I don't mind that this is the path xbox chose, but this path is the reason Xbox consoles aren't growing. He shouldn't be trying to justify it by saying no one else is growing either...

And the other excuse - it's because we lost the online generation, where everyone already had their online libraries and friends on the competing console for xbox one - No. The switch barely has online integration. The OG xbox had better online integration than the switch. It's all about the exclusives.

If xbox had true exclusives scoring higher than 8, that don't have Forza in the title, we would not be here.

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Fitzy_2812

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@lewst2k1: He isn’t talking about just Xbox though or individual console sales.

He is referring to the total number of ALL consoles sold within a generation. That number hasn’t changed for several generations now, it’s just been sitting around 150-200M total units or so for like 15-20 years.

That 150-200 million or so has been divided between the consoles differently over each generation, but the total still remains quite steady. that’s the number he is referring to about having no growth. For generations now the big 3 have just been fighting for a share of the same 150-200M.

Sony and Nintendo are obviously growing their share of the market by taking it from Xbox but the market as a whole has been pretty stagnant for a while now. Even Sony themselves admitted the market was stagnant when they explained why they started releasing things on PC.

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Edited By samoan

@lewst2k1: Totally Agree with you. The main issue here is that there is 0 incentive to buy an Xbox Console. All their so-called Exclusive games are also available on the PC. They are starting to release more of their Xbox-only titles to PS5 and Nintendo. Sony outsold them in consoles, had better exclusives that were actually exclusive to their console and started selling on cross-platforms. Like with MLB the Show. So saying it is not growing is not an accurate statement. They released two consoles Xbox Series X with a Disc drive that has superior hardware to the Xbox Series S, making them directly compete with each other, Sony released a Digital and Disc console that has the exact same specs. Also, you can get the disc drive separately if you change your mind. The lack of backward compatibility, original IP games, and a string of recently bad games, has made the console market slow down. But it is in fact still growing. This is evidenced by the fact that consoles are still selling every month. The PS5 Pro launched and despite being super expensive has sold 78,086 units in Japan, haven't seen US numbers yet. We are heading into the holiday season so those numbers should go up. The fact is Xbox's business model of selling inferior digital consoles (if fanboys don't believe me, compare the specs) to their disc version has sold less consoles than Sony and Nintendo. Sony sold about 62.67 million units of PS5 Globally. Switch sold 143.88 million with the lite selling about the same amount as the regular one. Then the older switch sold 20 million roughly. Xbox sold 30.20 million units. For both digital and disc versions combined.

The Switch is the 3rd best-selling console of all time. The total number of consoles sold in this generation is 236.75 million. The last generation sold 280.73 consoles combined. The current generation is not over yet. Keep in mind the last generation was 7 years before the new consoles came out. We are only 4 years into the current generation. So no the console market isn't shrinking, Since the switch outsold every console but the PS2 and DS. Before the current Generation, most games were only available on Console. This is why they sold more units for the PS2, which is the biggest-selling console of all time with 158 million units sold. So people had to buy a console to play games, Xbox 360 was the best-selling Xbox Console. and in my opinion the last great exclusive library for Xbox. Xbox One has some good exclusives but what is the series X where are their popular franchises like Halo, Gears of War, and Fable? Microsoft has spent so much time and money buying gaming companies and getting their games on PC that they forgot to make the games that sold their consoles.


The only game on my Xbox is Starfield. They had bet on their Xbox Game Pass being what would put them over the top in sales and it backfired. Yes, it is popular among Xbox users but most people want to own their games and play them when they want. Games leaving game pass is the main reason I didn't subscribe to it. But it works both for PC and Xbox. So people who have a good PC would rather play the game than have their PCS. Plus it doesn't incentives them to buy games for 70 dollars a pop when 10-20 dollars a month gives them all the games they want to try and play. Basically, if you get a PS5, have a good PC, and get a Switch you can play all the games you want and never need an Xbox. They divided their own fan base. Lastly, Sony keeps pushing to innovate in new areas, like VR, 3D sounds, 4k Blu-ray, and others. Not everyone wants that but the option is there on top of coming out with great exclusives and some flops. That you can't get on any other platform, and the ones you can like HellDivers 2 are cross-functional play.

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swantn5

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well i mean 70 bucks a game and most then ask you to buy a season pass or have type of mircotransaction system i think if prices where lower in general they might see a boost in sales

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deactivated-680a5fa8cce7a

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It's because video game industry declining. Games are trash due to walking simulator "interactive story" BS + wokeness, to make it playable people prefer mods they can easily install on PC. Also PC offers better quality for graphics and better FPS.

New games are trash for either they are walking simulator "interactive story" BS like Death Stranding or copy-paste gameplay that are woke like Dragon Age: The Veilguard or both like Alan Wake 2. They should come up with Playstation 2-style creativity in games just for the sake of fun and decent graphics for the sake of good art-style. Now they just use Unreal engine's default settings and call it a day and they think just adding generic textures and real-time shadow is enough to call it "good graphics" for them. Original Silent Hill 2 on my Playstation 2 played on CRT TV looks way better than Silent Hill 2 Remake rubbish because one is artwork but other is digital garbage. As for fun instead of listening to characters arguing about pronouns in games I prefer to actually do something fun in games thank you. :DDDDDDDDDDDDDDDDDDDDDD

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zerojuice

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This sounds more like a cop-out from a failure of a CEO. Just because you ran your gaming division into the ground and are costing Microsoft billions of dollars annually to support the likes of GamePass; doesn't mean other gaming companies are faltering.

Nintendo is gonna slap it's gigantic mushroom tip on Phil's forehead when they drop the Switch 2. Everyone and their mother will buy one. Consoles aren't dead. Xbox is dead.

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PUNKnDRUBLIC

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@zerojuice: GET RID OF Phil, SAVE XBOX. we need competition, but Phil has proven to be a complete and udder failure over and over and is turning xbox brand into the next sega.

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YumeriaYumi

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@punkndrublic: Consoles are not dead. He did not say that. He said they are not growing. In reality, they are shrinking, as he said. Lots of gamers are going to PC. Nintendo is the one example of a smart "jerk" move. They keep their stuff exclusive, which sucks but also forces people to buy the console. The is basically no reason to have an Xbox or PlayStation. It is too bad, but everyone can buy whatever they want and whatever happens happens.

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samoan

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@YumeriaYumi: The console market isn't shrinking by that much, the Nintendo Switch is the 3rd highest-selling console of all time. Only beat by PS2 and DS. The problem is MS has divided their fans by being on PC causing their consoles market to shrink. Sony's market has slowed a bit, but they have 3 more years to pick it up. The main issue is there isn't a lot of new IPs and franchise games coming out to incentive players to buy consoles. Now Sony and MS are launching their console-exclusive games to the PC. Consoles are cheaper than gaming pcs but there isn't much of a reason for a PC gamer to need a console anymore since the most popular games are released on PC these days. And with console prices being as high as they are, less people can afford to buy them. But if the Nintendo market is any indication the console market is not shrinking. People are just tired of bad games and games people want not to be made but instead just remasters and remakes.

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PUNKnDRUBLIC

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@YumeriaYumi: pc gaming and console gaming is a bridge that shouldn't be connected.

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