Is Xbox moving away from consoles towards a service model like Sega did?

Despite the lack of hardware focus, it seems Xbox is very much invested in the gaming industry. Their hardware may take a hit, but they still believe there’s money to be made in consoles. They might continue to compete, even if they aren’t the market leader.

Microsoft has been leaning heavily into the service model with Xbox Game Pass, which is a big part of their strategy across various business lines. They’re not pulling out of gaming, but they seem to be focusing on making their games and services available on multiple platforms, possibly at the expense of focusing on their own console hardware. We’re also seeing them sell games on platforms like PlayStation and Switch, though certain games might remain exclusive or only become available years after release.

Microsoft has already announced plans for future consoles. While there are shortages, particularly in Europe, this is likely a temporary distribution challenge rather than a sign of abandonment. The Xbox brand still holds strong with its Game Pass offering, providing significant value that could support console releases for years to come.

Having games on more platforms doesn’t mean Xbox consoles are dead. I enjoy gaming on my Series X and look forward to what’s next. They’ll probably stick around, but maybe they’re broadening their approach to also include partnerships and game accessibility across other platforms.

Some argue Xbox may evolve into something completely different in the coming decade, especially with competition from upcoming platforms. However, it seems they aren’t planning on giving up hardware soon considering the strength and popularity of their Game Pass and the potential for new consoles.