Microsoft's PS5 strategy is paying off – but for how long?
Microsoft continues to bring more Xbox games to PS5 and it's seen early success. But how long will it last?
💰 Microsoft has boosted its bottom line by putting its games on PS5
🤔 However, questions remain over how successful the strategy will be in the future
📉 Xbox hardware sales dropped over 40% year on year
🤷♂️ Microsoft may struggle to convince people to buy its consoles soon
Microsoft’s decision to release Xbox games on PS5 remains controversial, but that strategy is paying off – at least for software sales.
According to Windows Central, Sea of Thieves has reportedly sold over one million copies on PS5, which is no small feat considering the game was first released in March 2018.
That equates to around $40 million in additional revenue for developer Rare and Microsoft, minus Sony’s 30% platform fee cut. Microsoft also released Hi-Fi Rush, Pentiment, and Grounded on PS5, but it’s unclear how successful those titles have been.
Microsoft remains undeterred by the backlash it received from some fans, as it recently announced that Indiana Jones and the Great Circle, an exclusive Xbox desperately needed, won’t stay solely on its platform for long. The game is out on December 9, 2024, but will make its way to PlayStation 5 in spring 2025.
It feels like only a matter of time before other marquee Xbox titles, like Starfield, Forza Horizon 5 – which was heavily rumored to be announced for PS5 – and even Halo make their way to Sony’s platform. But what are the implications of that?
Microsoft is happy
Speaking at Gamescom 2024, Microsoft CEO of Gaming Phil Spencer defended the decision to bring Indian Jones to Sony’s console, and said that the company has “more Xbox console players than ever.”
Spencer also reiterated that ultimately “We run a business” and said, “Our platform continues to grow on console, PC, and cloud, and it’s just a strategy that’s working for us.”
However, Xbox hardware sales have decreased over 40% year-over-year, with many arguing there’s no need to buy an Xbox Series X or Xbox Series S now that you can get Microsoft’s games elsewhere.
It’s clear that Microsoft wants people to sign up for Xbox Game Pass, but it still needs to make its consoles attractive to new buyers while keeping current owners satisfied. Whether Microsoft is meeting that expectation is up for debate.
Microsoft may be able to squeeze more money from its games by releasing them on PS5, but convincing players to choose its hardware over Sony’s or Nintendo’s – especially when the next Xbox will compete directly with the PS6 or Nintendo Switch 2 – will be far more difficult.
Whether you love them or loathe them, people purchase consoles because of exclusives, with Nintendo proving that point ad nauseam. Players want to experience the next Zelda, Mario, Metroid, and Animal Crossing game, and these titles can only be found on Nintendo’s platform. The same holds mostly true for Sony, though you can play PlayStation titles on PC if you’re willing to wait.
Microsoft is the only one giving its competitors its console-exclusive titles and asking nothing in return. And while that may bring in more money in the short term, the long-term outlook isn’t so cut and dry.
More reasons to worry
A more immediate obstacle for Microsoft is Sony’s upcoming PS5 Pro, which could lead to a scenario where the best Xbox games run better on a rival system. That would only make Microsoft’s strategy to put its games on PlayStation look even more questionable, especially when it’s offering three new consoles with no technical improvement.
Microsoft hasn’t even tried to bring in prospective customers with an Xbox Series Slim, while Sony has shrunk its console and released accessories such as the PSVR 2 and PlayStation Portal, albeit with mixed results. New Xbox controller colors and admirable strides in offering more accessibility options seem to be Microsoft’s focus.
So where does this leave Microsoft? We know that Xbox president Sarah Bond said the company is committed to hardware and is working on the next-generation console. But at this rate, the only reason someone would choose the next Xbox over PlayStation is Xbox Game Pass – which has increased in price and no longer receives day-one releases – or if you prefer the Xbox controller. And that’s not enough.
Microsoft’s short-term gains could become a long-term hell.
Up next: Microsoft’s white Xbox Series X and 2TB Galaxy Black console preorders are now live
Adam Vjestica is The Shortcut’s Senior Editor. Formerly TechRadar’s Gaming Hardware Editor, Adam has also worked at Nintendo of Europe as a Content Marketing Editor, where he helped launch the Nintendo Switch. Follow him on X @ItsMrProducts.