Xbox CEO Phil Spencer wants to continue focusing on multiconsole releases as some gamers worry the video game company could go the way of Sega (SGAMY). Microsoft (MSFT)-owned Xbox hasn’t relied on exclusives to sell consoles this generation, instead opting to put games developed by the company’s studios on Nintendo (NTDOY) and Sony (SONY) platforms.
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Some gamers are worried that this could result in Microsoft leaving the video game console race with Xbox becoming a brand instead of a gaming machine. This would mimic what happened to Sega during the sixth console generation. The company’s Dreamcast failed to find its footing, causing Sega to leave the console wars and release its games on the original Xbox, Sony’s PlayStation 2, and Nintendo’s GameCube.
It makes sense gamers are worried about the state of Xbox considering its lagging console sales. The Xbox Series X/S consoles have only sold 28.3 million units, compared to the PlayStation 5’s 74.9 million units and the Nintendo Switch’s 154.02 million units.
The Future of Xbox Is Diverse
These concerns were raised to Spencer during his interview on the XboxEra podcast. Spencer said he wants to “show respect to the people who voice their concerns” and that he gets the questions. He noted the company’s history of respecting players’ game libraries through “back-compat and Play Anywhere” and wants to continue doing so.
However, Spencer also highlighted the success of Xbox reaching gamers across multiple platforms. That includes cloud gaming, which is a growing segment for the video game developer. Due to that, Spencer said Xbox isn’t “trying to funnel everybody into one business model” and instead wants gamers to “Play the games the way you want to play them.”
Is MSFT Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Microsoft is Strong Buy based on 29 Buy and three Hold ratings over the past three months. With that comes an average price target of $510.38, a high of $600, and a low of $425. This represents a potential 24.96% upside for MSFT stock.
