Phil Spencer says Xbox isn't "trying to funnel everybody" into just one singular way of playing

Microsoft Gaming CEO Phil Spencer has addressed concerns about the future of Xbox and game ownership during a recent interview with XboxEra.

With Xbox’s growing focus on Game Pass and cloud gaming, some fans worry about losing access to their digital libraries or being forced into subscription models. Spencer reassured players, saying, “I get it… I want to show respect to the people who voice their concerns.”

He also that Xbox isn’t trying to push everyone into Game Pass or cloud gaming. “You can buy every game that’s in Game Pass. We’re not trying to funnel everybody into one business model,” Spencer explained.

He also highlighted Microsoft’s efforts to respect game ownership through features like backward compatibility and Play Anywhere, allowing players to keep their games across generations.

Amid questions about Xbox’s hardware future and comparisons to Sega’s exit from the console market, Spencer acknowledged the uncertainty but confirmed that Xbox isn’t giving up on dedicated devices. He revealed that a portable Xbox is in the works, and leaks suggest a new console might launch in 2026.

Microsoft’s Xbox content and service revenue grew by 2% from October to December 2024, driven by Xbox Game Pass. During that period, Xbox Cloud Gaming saw strong momentum with 140 million hours streamed and a 30% increase in PC subscribers.

Despite this, overall gaming revenue fell by 7%, and Xbox hardware sales dropped by 29% as Microsoft continued its push for cloud gaming. But despite the dip in gaming revenue, Microsoft led global game revenues in December 2024, earning $465 million, largely from Call of Duty: Black Ops 6.