Matt Booty, President of Xbox Game Studios and Content, explained Microsoft's multiplatform strategy in an interview.
"Our main competitor isn't another console... We are increasingly competing with everything from TikTok to movies."
He also commented on the layoffs of 9,000 employees and the closure of studios:
"Layoffs are difficult, but they are part of managing the business."
The shift in strategy to multiplatform releases began in early 2024. Microsoft announced that several Xbox games would be released on PlayStation, including Halo, Indiana Jones and the Great Circle, Forza Horizon 5, and Gears of War: Reloaded. Xbox President Sarah Bond called exclusives an "outdated practice."
These measures come against the backdrop of weak Xbox console sales. PS5 sells almost twice as well as Series X|S. The focus is on Game Pass: the company's profits are growing, and six of the ten best-selling games on PS5 between April and July were from Microsoft. At the same time, Xbox raised Game Pass Ultimate prices by 50% and increased the cost of consoles twice in 2025.
