People Need to Stop Freaking Out About Whether Xbox Hardware is Going Away

In this episode, we discuss the rumors swelling around that Microsoft is looking to potentially and production of Xbox consoles, and why in the end it really doesn't matter. Let's take a look.Show more

The sky is falling! The sky is falling! Microsoft is going to stop selling Xboxes! They are going third party?! Yes, these are the rumors swirling around and Microsoft is not directly addressing them to quell people's fears or confirm the rumors. But in the end, whether Microsoft is making hardware or simply focusing on software, it really doesn't matter and doesn't change their business model a whole lot. Here is why.

Since its inception, Microsoft has been a software and services company, and hardware has never been their thing. Think back to when Windows really became a dominant force and how the machines that ran the software were named. Windows compatible. It wasn't a Microsoft PC. And until recently, Microsoft did not produce laptops or tablets. But they, themselves, aren't even making that hardware, they're having components sourced and built for them and they are slapping their name on it.

When I say Microsoft is a services company, the reason for that is simple from a business term. They are all about that residual income at this point. They would rather have people spend $16.99 a month for a Game Pass subscription than purchase a $59.99 physical disc for a game. The game purchase is one and done. That $16.99 is a recurring monthly, quarterly, or yearly expense that they get to rake in. As such, one game pass subscriber is financially more valuable to them than someone who buys a game or two a year.

Microsoft has been all about making Xbox content available on various devices for an extremely long time. When they launched Xbox on PC, they doubled down on it. They've also tested the waters and limited terms by placing some of their content on other manufacturers' systems, specifically the Nintendo Switch. While games such as Halo aren't there, games such as Super Lucky's Tale, Cuphead, & a few more have already made their way out of the system. And while they bought Minecraft, that's on everything. It's even on the PlayStation!

Another interesting thing about Microsoft hardware is it has never really maintained any sort of resale value. Much of this is because so much of the library is available to the generation that follows. With the Xbox Series S and Series X, you can play much of the preceding library from all Xbox console generations, but an interesting thing now is that you can play that library not only on the newest generation hardware but for the most part also on the previous generation hardware!

Microsoft has not divided the library for Game Pass between console generations. As such, you can play the latest Halo game on the Xbox Series S or Series X just as you would on the Xbox One, One S, or One X. You do miss out on graphical fidelity on the Xbox One Series compared to the Xbox Series X, however, you will have a very similar graphical experience on the Xbox Series S to the Xbox One X. As such, if all you're looking to do is play the games, it could be argued that an Xbox One X is a better gaming option currently compared to the Xbox Series S.

In the end, whether Microsoft makes game consoles moving forward doesn't really matter. Xbox gaming studios are what will matter. Xbox game pass is what will matter. As long as those things are still alive and well and kicking, you'll still be able to play your favorite Xbox titles, you just might do it on a different piece of hardware. As long as people are playing games and having fun, that's all that really matters. If there's a way that you can do so and not spend as much money, that is a great win in my book.

#Xbox #XboxHardware #Microsoft

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