Microsoft Sees No Need for a New Generation Xbox, Satisfied with Current Hardware

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Phil Spencer, who heads Microsoft’s Xbox division, has recently stated in an interview that he “does not feel the need” for a significant console update. The existing hardware is perfectly satisfactory for the company, as indicated by the feedback they have received from users.

At the Xbox Games Showcase event, the company presented an upgraded variant within the existing Xbox Series S line—however, this upgrade mainly involved an increased memory capacity. Additionally, the manufacturer has taken steps to offset the shortage of Series X consoles and has “significantly ramped up” shipments.

Console manufacturers typically release new series approximately every three years. Specifically, the Xbox Series S and X versions were first introduced in 2020. However, according to Bloomberg, developers’ investment rates in hardware have been slowing down recently. For instance, 8K resolution has proven less popular than 4K, as many users simply do not notice the difference, and the price difference in equipment is quite significant. In this regard, Spencer emphasizes that the company takes users’ needs into account. For example, Xbox has not seen the need to implement gaming products related to NFTs or blockchain technologies as a whole.

Despite some Xbox users’ skepticism about the company’s ability to independently release successful console games, Xbox presented 13 new products developed by its own studios on Sunday. Forty minutes of the presentation were dedicated solely to the Starfield project by Microsoft’s subsidiary company, Bethesda Softworks.

Microsoft is currently working towards another important goal—the approval of the purchase of Activision Blizzard Inc. by UK authorities, who have blocked the deal over concerns that Microsoft would assume a dominant position in the cloud gaming market. Spencer declined to comment on whether the company would exit the UK gaming market due to the regulator’s decision. He stated that Microsoft would like to find a solution. Microsoft is prepared not to misuse its dominant position in the gaming market and has already made several deals providing content and services to cloud gaming providers, including strong competitors like NVIDIA. At Sunday’s event, Microsoft representatives stated that some PC Game Pass cloud service games will be available to NVIDIA GeForce Now users.

As Spencer noted, the cloud gaming market should not be considered separately from the console market—it is more of an “addition” to it.

Author Profile

Vasyl Kolomiiets
Vasyl Kolomiiets
I'm Vasyl Kolomiiets, a seasoned tech journalist regularly contributing to global publications. Having a profound background in information technologies, I seamlessly blended my technical expertise with my passion for writing, venturing into technology journalism. I've covered a wide range of topics including cutting-edge developments and their impacts on society, contributing to leading tech platforms.

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