Xbox Is Going the Wrong Way

Or, if you are a heartless business person at Microsoft, it could be titled "Xbox is Not Going the Way a Random Guy who still uses Blogger doesn't Like." Of course, I think the official title of this post is true, but the other one has a lot of truth to it. I am random, and I still do use Blogger. Why? Because I'm familiar with it, Google likes it, and it's easy. Others have come and gone; Blogger is still here. Also, who cares? It is all video now.

So, now, back to Xbox. I've written a few times about it recently and will post the links below, but let's get straight to the red meat.

Xbox is moving closer to the mothership instead of away, and that, to me, is the wrong way. What this means is that "Xbox" will just be another coat of paint on a brand under the umbrella of Microsoft like Azure, GitHub, Bing, LinkedIn, and all the rest. Gone will be the dedicated hardware, and in will be it becoming a software-only brand.

Of course, right? There have been many that said this from the beginning. It is in Microsoft's DNA to be a software company. They don't make PCs for Windows. Why make an Xbox for games? It makes perfect sense to do the thing that you do best. And why not? PC gaming has grown exponentially over the last 5 years, as evidenced by the number of Steam users; nearly 40 million of them. Most of them? Using Windows. (As a note to this, I think Steam growth is not necessarily "new" PC gamers, just existing ones coming in from the wilderness.)

Then why would anyone think that scrapping an Xbox console is the wrong thing to do?

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1. Console Gaming's Unique Identity

Console gaming is over 40 years old. It grew up alongside the personal computer, not as a personal computer. Atari, at their peak, tried making a PC and it failed. Sega slapped "Windows CE" on their Dreamcast to try and bridge the PC gap and it died. The Apple Bandai Pippin and the Commodore 64 are other examples of this convergence failing. Nintendo, as we know it in the West, was born from the Famicom – a dedicated gaming machine.

I see the growth of both the PC and Consoles as different streams, parallel to each other. They don't branch off away from one another, yet right alongside.

But Why? It's simple.

Consoles (or gaming away from a computer) are fundamentally a FUN activity. Leisure time. PCs are, by and large, for work. It is that simple.

For consoles, for me it's like - Here's this box of fun. There's no work here. No emails from the boss popping in. No message from Slack or whatever messaging program popping in. No goddamn spreadsheets, no Google Docs, no browsers, not even TV (which Xbox completely failed at, notably). It's like going to a park versus going to the breakroom. You can sit back, kick your feet up and have just about any kind of fun you want. It's a happy place.

I do see what is happening over on the PC side of things. People of course have dedicated gaming PCs and are able to either ONE: segregate their time on it for work/play or TWO: Don't even have work to do. They are college age and younger or an adult who might not use it for work – construction, trades, landscaping, mail carrier, park ranger, etc. Or, and this is the controversial demo and growing in the USA, adults who don't work much or at all.

2. The Unmatched Simplicity and Dedicated Experience

Beyond the "fun vs. work" dichotomy, consoles offer a level of simplicity and a dedicated experience that a PC, even a gaming PC, struggles to replicate. When you turn on an Xbox, you are immediately in a gaming environment. There are no driver updates to troubleshoot, no background applications hogging resources, and no complex settings menus to navigate just to launch a game. This "plug-and-play" nature is a core appeal for millions of users, particularly those who are less tech-savvy or simply want to jump straight into entertainment without friction.

This simplicity extends to the living room experience. Consoles are designed to be central entertainment hubs, easily connected to a TV, often shared by multiple family members. The couch co-op experience, the ease of passing a controller, and the shared screen moments are intrinsic to console gaming culture. While PCs can be connected to TVs, the setup is often more cumbersome, and the underlying operating system is still geared towards a desktop, single-user experience rather than a communal living room one.

3. Maintaining a Distinct Brand Identity and Loyal User Base

If Xbox were to shed its hardware, it would risk losing a significant part of its brand identity. Xbox isn't just a service; it's a physical presence in homes, a tangible piece of technology that gamers connect with. The console itself is a statement, a commitment to gaming that resonates with its dedicated fanbase. By becoming solely a software and service provider, Xbox would dilute its unique position in the gaming landscape, potentially becoming just another app on a Windows PC or smart TV.

This move could alienate the very users who have invested in the Xbox ecosystem for generations. These players have chosen Xbox hardware for its specific features, design, and the curated experience it offers. Abandoning them for a software-only approach might be seen as a betrayal, pushing them towards competitors who still offer a dedicated console experience. A brand is built on more than just its software; it's built on the entire user journey, from unboxing the hardware to launching the latest game.

4. The Competitive Edge in a Hardware-Driven Market

The console market, despite the rise of PC gaming, remains fiercely competitive and hardware-driven. Sony's PlayStation and Nintendo's Switch continue to thrive by offering distinct hardware experiences. By exiting the hardware race, Microsoft would effectively concede a major battleground to its rivals. Innovation in console gaming often comes hand-in-hand with hardware advancements – new controllers, unique system architectures, and dedicated graphical capabilities. Without its own hardware, Xbox would be reliant on the innovation of others, potentially limiting its ability to push the boundaries of gaming.

Furthermore, owning the hardware allows Microsoft to control the entire user experience, from the operating system to the storefront and the security. This end-to-end control is vital for delivering a consistent, high-quality, and secure gaming environment. Relying solely on third-party hardware platforms would introduce variables and dependencies that could compromise the Xbox vision.

FINAL THOUGHTS

While the allure of a software-only model might seem logical from a purely business-efficiency standpoint, it overlooks the fundamental nature of console gaming and the deep connection users have with dedicated hardware. Xbox consoles are more than just PC machines made for simpletons; they are gateways to a distinct form of entertainment, free from the distractions of work, and central to a unique living room experience. For Xbox to truly succeed and maintain its relevance in the long run, it must continue to embrace its dual identity as both a software powerhouse and a purveyor of dedicated gaming hardware.

And if Microsoft wants to get out. Sega should jump back in. Me and my 20 years in assembly and manufacturing are more than willing to help.

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Xbox Is Going the Wrong Way