What factor did Microsoft share that will set Xbox apart from PS5? Microsoft doubled down on gaming as their primary focus for this generation. You may not think this comes as a significant shock. However, there is a difference between being focused on gaming versus focusing on games. Microsoft states gaming would edge out their competition during their 2020 annual shareholders meeting.
What was said?
Amy Hood, Chief Financial Officer, did not state how Microsoft set Xbox apart from PS5 but did mentioned Microsoft acquiring ZeniMax Media. They are the parent company of Bethesda Softworks, which develops and publishes Fallout and The Elder Scrolls franchises. Of this move, Amy said it would “bolster our first-party content and fast-growing subscription services.”
Later on, there was a Q&A session. During this time, a shareholder asked about what strategy would help Microsoft set Xbox apart from PS5. The answer on how Microsoft set Xbox apart came from Satya Nadella, Chief Executive Officer. Satya also references the ZeniMax purchase. Microsoft’s vision is to allow gamers “to play their games, anywhere they want with all the content they want and with whom they want to.” He references their Game Pass subscription service then states they “are absolutely very, very much focused on gaming.” This section ends with him telling gamers Microsoft set Xbox apart with “the best content, best community and the best cloud services to power their gaming experiences going forward.”
What Might This Mean?
We can read these statements seeing they are straightforward with both referencing subscription services. Depending on how many games you purchase each year, Game Pass Ultimate gives you a lot for your money. It sounds like Microsoft is going all-in on this strategy. I like the service because it is available on other platforms, like my PC, at no extra charge. Microsoft set Xbox apart by focusing on their subscriptions and first-party games. They aim to change how we play, not what we play. Sure, acquisitions of gaming companies help, but they are only a means to an end. By the end of this relatively new generation of consoles, we will change how we game. Microsoft set Xbox apart in this fashion to lead the charge.
SOURCE: Seeking Alpha