Reaction: Xbox’s Third-Party Strategy Is Finally Making Sense To Me

I believe I shared the same sentiment that many Xbox enthusiasts experienced when it was disclosed that titles like Indiana Jones and the Great Circle and Forza Horizon 5 would be arriving on PS5. Why are we losing our exclusives? Does Xbox not care about the likely negative impact on console sales? Is a third-party approach truly the ideal strategy in 2025?

However, it’s all starting to become clear to me. While I have some doubts about specific aspects, I genuinely believe that a third-party strategy is the optimal direction for Microsoft right now – and it could result in substantial rewards in the future as well.

Just look at some of the recent reports about multiple Xbox games ranking in the top 10 pre-orders on PS5, alongside how Oblivion Remastered has been thriving in sales on Steam (and likely PS5) since its surprise release earlier this week. By not restricting these games to a single platform, Microsoft is undoubtedly cashing in significantly, and this should contribute to a robust first-party Xbox library for years ahead.

Indeed, a third-party strategy isn’t ideal for Xbox Series X and Xbox Series S console sales, which I certainly find disappointing, but let’s be honest.. Xbox console sales haven’t been remarkable this generation. Microsoft can’t bank on the next generation of Xbox consoles to perform any better, so adjusting strategy and concentrating on multiple devices, both hardware and software, greatly mitigates financial risks ahead.

However, I still perceive a risk regarding brand loyalty. Team Xbox has already pledged to develop the next Xbox console alongside several handhelds, but will offerings like Xbox Game Pass and Xbox Play Anywhere be sufficient to attract potential customers? Does a bold hardware approach still resonate when you’re openly stating that your first-party titles will be available on PS5, Nintendo Switch 2, PC, and additional platforms?

This is what will be truly intriguing in the upcoming years — we are stepping into uncharted waters in various respects. Nintendo will consistently release exclusives as they have for years, PlayStation will likely follow suit, but Xbox is embarking on a markedly different route that will almost certainly create an industry-wide transformation, potentially redefining our perception of consoles and exclusivity moving forward.

Right now, I fully comprehend the situation. One might question the Oblivion Remastered launch decision, pondering why Xbox didn’t opt for exclusivity (or at least a timed exclusive) – considering the immense sales it garnered, it would have undeniably boosted console sales. However, by choosing a simultaneous release for PS5 and PC, Microsoft was able to reap immediate benefits, possibly more profitably by leading the sales charts across various platforms.

Let’s not overlook that Xbox Series X and Xbox Series S consoles are growing increasingly scarce. In my view, they remain the superior option for playing Xbox’s first-party titles thanks to Xbox Game Pass (and the fact they’re well-built machines), but it has become clear that selling consoles isn’t the primary focus at this moment.

We’ll have to await and see how this third-party strategy unfolds in the long term. I have ultimately come to believe that Xbox’s rationale makes sense, and perhaps the entire industry will align with this approach in years to come.

What do you think about this? Share your views in the comments section below.