Once a thriving, nostalgia-inspiring game company, Xbox is now a greedy, distrustful platform. Other game companies are not at their highest right now, but none have had the satisfying downfall like Xbox. Xbox managed to exploit fans and sink their reputation as one of the most criticized game brands in the world in a short period of time. It would seem impossible to achieve that. How did Xbox do it?
A significant factor in the downfall is the increase in prices on Game Pass and the upcoming Xbox console. When Xbox announced the price increase of 50% on Game Pass, people immediately went to cancel their subscriptions. The movement was so big that it crashed the Xbox website. This is because Game Pass was viewed as an affordable subscription to gain access to hundreds of games, and when they raised their prices, this went against what they had previously promised.
For the next-gen Xbox console, the reportedly rumored price was between $1000 – $1200. This received immediate backlash from fans and content creators on all social media platforms; however, Xbox argued the console would justify the cost with the performance and game libraries of their own and from Steam. This explanation failed because consoles were made for casual gamers who valued affordability and accessibility. Releasing a console with an exorbitant price will mean cheating casual gamers of what consoles were supposed to be. They also raised prices on the Xbox developer kits, with a price increase of 33%. This resulted in more backlash against the greedy company they are now. Xbox is more money-hungry now than ever before, and fans are at the limits of what they can take.
Another cause is that they gave away console exclusives. Xbox exclusive games like Halo, Forza, and Gears of War have been released to PlayStation and other platforms. Originally, Xbox and PlayStation were rivals, but now it feels as if Xbox is giving PlayStation the throne as the better game company. Their console exclusives are what kept Xbox in the market for the past decade, but now people don’t have a reason to get an Xbox. What do they have to offer? PlayStation has everything they’re asking for, and Nintendo also has exclusives. Xbox has nothing now, which makes them more irrelevant over time.
The shift towards Xbox Cloud Gaming has taken a toll on Xbox’s reputation. They announced a “free with ads” plan for Xbox Cloud Gaming, which generated a backlash. People reacted with anger because they believed gaming is an experience that can’t be interrupted. Having ads placed in the middle of a session can disrupt the flow that a game has, and it can also snap a gamer out of the mindset of the gaming experience. This is a big impact, and that’s one step closer to their demise.
Phil Spencer, the CEO of Xbox, is arguably the biggest cause for Xbox’s downfall due to his decisions and criticisms. One example is the Redfall game launch failure, in which Spencer complained that he didn’t have the technical capabilities. Spencer also laid off 650 employees to “organize [Xbox’s] business for long-term success” and canceled multiple projects, which hurts Xbox because decisions like that can arguably cause more drama than generate more long-term success. While he has made concerning decisions like those, he has barely taken any risks. Through Spencer’s bad decision-making and complaints, Xbox’s popularity has crumbled to an all-time low. If there’s any more of Spencer’s control, it may cause the end of Xbox.
With all these reasons for Xbox’s downfall, you may wonder if there’s a solution. In short, yes. There’s a way for Xbox to be the best game company again, but it requires them to focus on three key strategies.
First, Xbox has to be an active listener. To be an active listener means to look at what the audience wants. Giving the audience what they want is an effective way to get their title back as the best game company, because if they’re happy, then Xbox can thrive.
Next, Xbox has to be a better decision-maker. This directly connects to being an active listener because looking at what the audience wants can help them make better decisions. If the audience doesn’t want higher prices, then try lowering them. Xbox needs to think about the decisions they make very carefully because these decisions can have an impact, no matter how small they are.
Finally, Xbox has to be a strong risk taker, and this is arguably the hardest part. Taking risks can be scary because there’s a possibility that they can fail, but if they play it safe, no one will ever be interested. This integrates with making better decisions because taking risks means making intense decisions. When Xbox makes a decision to take a risk, there are chances of failure but also chances of success. This can be used to revive Xbox since there is a way for risks to be successes, which helps Xbox in the long run.
This whole plan has all the parts connected to making better decisions, because once they’ve learned to make better decisions, they’re more likely to return to their former popularity.
Xbox’s reputation depends on themselves and how they’re going to handle the criticism. If Xbox has something good up their sleeve, then it seems like the system is not over. In the meantime, we’ll just have to wait to see what they are planning next and hope for the best.
