Xbox can’t just buy its way to the top

Microsoft should be dominating this generation of gaming. With their powerful and affordable hardware, excellent instant game service, great streaming options, and strong understanding of gamers, they have all the right ingredients. Yet, surprisingly, PlayStation 5 sales have skyrocketed while Xbox Series sales are reportedly down 18% in Q1 2023. This is alarming news for Microsoft, who has been struggling since the disastrous launch of the Xbox One in 2013. The reason behind this struggle is simple: Xbox lacks captivating exclusive games.

Now, hold on a second before you shout, ‘But Xbox has games!’ Yes, it does have a decent library. However, it faces a familiar challenge that plagued consoles like the PS Vita and Wii U: a lack of noteworthy exclusives. Those are the games that truly make you choose one system over another.

At the moment, the Xbox Series X|S has very few exclusives and mostly relies on multiplatform releases. This strategy worked well in the era of the Xbox 360 when the PS3 struggled with ports. But times have changed. Both Xbox and PlayStation have been on par with each other for a decade, offering quality multiplatform releases and robust online multiplayer experiences. While Sony’s exclusives may not have been mind-blowing so far, they are mostly good, featuring their iconic franchises and delivering polished and enjoyable gameplay.

Meanwhile, Microsoft hasn’t had the smoothest ride with their 9th generation exclusives. Remember Halo: Infinite? It was supposed to be the Xbox Series’ flagship title, but poor reception of its gameplay trailers forced a year-long delay. The multiplayer shooter CrossfireX fared even worse, ranking among the lowest-rated games of 2022. The upcoming co-op shooter Redfall is receiving flak for its lack of a performance mode at launch, capping frame rates at 30fps until a future patch. Although Forza Horizon 5 showcased the hardware impressively, racing games rarely drive console sales. This leaves all hopes pinned on Starfield, and beyond that, Xbox’s 2023 lineup seems underwhelming.

Interestingly, Microsoft has been acquiring game studios left and right, making headlines with their attempted merger with Activision-Blizzard. While regulatory scrutiny and resistance from Sony pose challenges, it’s likely to go through soon, granting Microsoft access to gaming’s biggest franchises like Call of Duty, Warcraft, and Overwatch. These are heavy hitters in the industry. However, for the deal to receive regulatory approval, it seems none of these franchises can become Xbox exclusives—at least for a few years.

This brings us to Microsoft’s major predicament. They own a plethora of intellectual property, yet they’ve struggled to capitalize on it. Buying studios won’t guarantee success if they don’t harness these assets to create compelling exclusives for their platform. When both consoles cost the same, which one would you choose: the one with a wide range of multiplatform games or the one with those games plus its own highly acclaimed exclusives? Most gamers would opt for the latter, proving that having the most powerful system or slightly better online services isn’t as crucial as a stellar game library. Furthermore, Microsoft’s struggle to meet the demand for Series X consoles while PS5s become more readily available only adds to their challenges. With AAA development times growing longer, it’s going to be an uphill battle for Microsoft to turn things around.