Phil Spencer does not see Nintendo and Sony has major threats in the gaming war. Instead, the Xbox boss is actually more concerned about Amazon and Google due to their approach when it comes to cloud gaming. Phil claims his company already has two much bigger competitors to worry about and they will challenge Xbox’s longer-term strategy.
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Phil discussed the situation in an interview with Protocol;
[perfectpullquote align=”full” bordertop=”false” cite=”Phil Spencer ” link=”” color=”#06C90C” class=”” size=”21″]When you talk about Nintendo and Sony, we have a ton of respect for them, but we see Amazon and Google as the main competitors going forward. That’s not to disrespect Nintendo and Sony, but the traditional gaming companies are somewhat out of position. I guess they could try to re-create Azure, but we’ve invested tens of billions of dollars in cloud over the years.”[/perfectpullquote]
Phil continued to explain why he did not want to waste time fighting with Sony and Nintendo saying “I don’t want to be in a fight over format wars with those guys while Amazon and Google are focusing on how to get gaming to 7 billion people around the world. Ultimately, that’s the goal.”
Xbox’s main goal is cloud gaming and right now, Sony and Nintendo don’t pose a threat to them according to Phil. When it comes to hardware and games, perhaps that is a different story. Phil’s nonchalant attitude could also be hiding his real feelings. The PS5 has no doubt already gained more traction than the Xbox Series X and Nintendo’s Switch console sold more than the Xbox One did in half the time on the market.
These factors could be forcing Microsoft to pretend they are not worried meanwhile it is of great concern especially for the future. Cloud gaming has failed to gain traction with Stadia being a fail right out of the gate. We will have to see how Microsoft plans on approaching the real elephant in the room; exclusive games and poor hardware sales.