Is Microsoft About To Become The Next Sega?

This week, it has been reported that Microsoft is considering bringing most of their exclusive IPs and upcoming games to PlayStation. These games include Starfield, Hi-Fi Rush, Sea of Thieves, the Gears of War franchise, and Indiana Jones & The Great Circle. This was all reported by Giant Bomb’s Jeff Grubb, an insider within the gaming industry. While this is all not 100% guaranteed, it is certainly being considered by Microsoft.

To see this many prior exclusive games and franchises from Microsoft consoles such as Xbox Series X and PC potentially going to their main competition of Sony and their PlayStation 5 is quite mind boggling to here. While it’s far from the first time that a previously exclusive game off Microsoft consoles would make it’s way to Sony consoles (Just look at, Rise of the Tomb Raider!), to have a big portion of Microsoft biggest IPs and franchises working it’s way to their main competitor is certainly a sign that things could be changing drastically for Microsoft and for gaming. So much so, that it’s starting to make folks wonder whether Microsoft’s days in console wars are being numbered and shall soon fall into the footsteps with the likes of Sega, abandoning console making and going full-third party with their games.

In case one doesn’t know, Sega at one point in time did in fact develop consoles of their own. This included the likes of the Sega Genesis, Sega Saturn, Sega CD, Sega Dreamcast, and many others. However, in the 2000s, due to not selling enough consoles and facing potential bankruptcy, Sega had no choice but to stop developing consoles and sell software onto the consoles of their previous rivals. With the Dreamcast failing to compete with the original PlayStation, Xbox, and the GameCube, the days of Sega consoles were no more and would eventually see the likes of Sonic the Hedgehog and his friends on every other console known to man for the foreseeable future. While this is likely won’t be as sudden as the way Sega dropped out of the console war, one has to wonder whether Microsoft is destined for a similar fate. The main difference being that this has been in the making for quite a while, a making that is the textbook example of death by a thousand paper cuts.

I plan to make a separate piece about this in the future but Microsoft has had a hard time keeping up with Sony and even Nintendo for quite some time now. This largely goes back to their reveal of their eighth generation console, the Xbox One, back in May 2013. The Xbox One was promised to be more than just an evolution in gaming but evolution of entertainment medium in general. Microsoft marketed their console as an “all-in-one entertainment system”, which was the reason it was called Xbox One. Unfortunately for Microsoft, the concept of the console itself involved a lot of controversy.

From the overreliance of television features to the required online connections to the lack of backwards capabilities to the potential erasure of physical media to barely any focus on their upcoming exclusives/IPs, it was about the worst possible reveal for a new console imaginable. Things got even worse when E3 came around and Sony promised the PlayStation 4 would be the exact opposite of everything that Microsoft was trying to force onto gamers. It would put the major focus on gaming, online services weren’t required, backwards capabilities would still be a thing, physical media still had a major presence, and there would be plenty of exclusives/IPs made strictly for that system.As if all of that weren’t bad enough, a little salt in the wound was added when previous Microsoft CEO Don Mattrick responded to the criticisms of required internet by telling those who didn’t have internet to just get an Xbox 360.

Despite having all the momentum in the world heading into the eight generation with coming high off of the Xbox 360, Microsoft fumbled the ball big time when it came to trying to sell the Xbox One. Sony was basically handed the eighth generation console war on a silver platter and made for the best use of it. They were able to steamroll the Xbox One and made way for the PlayStation 4 being one of the most successful gaming systems of all time. Microsoft found themselves passed by Sony during the mid to late 2010s and eventually Nintendo once the Switch became a thing. The mistakes that Microsoft made for the Xbox One before and after it’s release was simply baffling. So much so that one could argue that they are still paying for it to this day.

Even if the way Microsoft handled the build up to their next console, Xbox Series S/X, wasn’t nearly as bad as the way that they handled the Xbox One, some of their biggest fatal flaws from that console would eventually carry over. From still too much focus on other entertainment assets such as televisions and music to not enough intriguing exclusives or IPs to doing jack s*it with the exclusives and IPs from companies that they actually bought to it’s confusing as hell console titles, unable to tell the difference between which is which, the Xbox Series S/X was not the answer they were looking for, following their humiliating defeat in the eight generation. To this day, I still am confused on what the Xbox Series is even to suppose to be. And when I’m confused about something that should be so simple, then that must mean the majority of the human population would feel the same way.

Because of all of the mistakes I’ve mentioned and more, one can’t wonder if what’s happening with Microsoft right now could be something that has been nearly a decade in the making. The aftermath of a disastrous console reveal, the constant focus on everything except the actual games themselves, the lack of self awareness with the consumers they are suppose to cater to. It’s now all beginning to crashing down hard on Microsoft. Over ten plus years of bad company decisions and focusing on the wrong things had led to this moment. The moment where Microsoft waves the white flag to Sony and Nintendo and will now find themselves joining alongside SEGA and others where they will only deliver software to consumers and no longer hardware.

Regardless of what the future holds for Microsoft and the Xbox, things are not looking too bright right now for them. According to Microsoft CEO Phil Spencer, the company will share details about what their future awaits them sometime next week. It’s only then will we know exactly where Microsoft head is truly at and if it’s heading in the direction we all think it’s going. And if it is, then I would be lying if I said I didn’t see it coming. And Microsoft has no else to blame but themselves for letting it happen.

Another link with more detail from Jeff Grubb himself:

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