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Phil Spencer has made a statement about potentially leaving the gaming business if Xbox Game Pass doesn't show significant growth by 2027.
Image credit: Phil Spencer
The leaked document, which was revealed yesterday, disclosed a plethora of interesting information, such as an updated Xbox Series X console, which is planned to be launched in 2024, initial thoughts on Baldur's Gate 3, how the company underestimated it, and many others.
This time we came across new details that emerged from the FTC vs. Microsoft trial. Phil Spencer, the CEO of Xbox, made some statements about the future of the company.
According to extracts from a hearing, Phil Spencer said that to remain engaged in the industry, Microsoft would require significant and rapid growth in the light green and blue segments (PC-first gamers and cloud-first gamers) by fiscal year 2027. Otherwise, the company may consider the option of stepping away from the business altogether.
Image credit: Microsoft
"I do not believe that that is what the future Xbox business would look like. This is a presentation from our devices organization to the gaming leadership team, so this is the view from the team that is chartered with building our hardware on what the future business would look like.
I can fairly safely say that if we do not make more progress than this off of console, we will exit the gaming business. If this were the outcome, we would – I don't believe we'd still be in the business.
A majority of our customers are found off of our own hardware, I would hope by earlier than 2030. So, when you asked me if I agreed with this chart the light green and blue depending on what colors you see there would have to be much larger much earlier. I would say by FY26, '27 that we should be in that position, or we'd have to make a different decision with the business," stated Spencer.
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