Microsoft Might Leave The Gaming Business

Recent Xbox leaked emails revealed that Microsoft might exit the gaming business if the Xbox game pass doesn’t grow in the coming years.

Amid the Microsoft vs. FTC court case, a lot of confidential company information got leaked including emails between high-ranking company officials. These emails reveal some crucial information regarding what the company has planned for the future like a new controller and the next Xbox console. One of the significant things that was revealed was that Microsoft might leave the gaming market. This email showed a projection of what Xbox expects to achieve before fiscal year 2030.

In response to this projection, Spencer said:

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 would 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 that 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.

Phil Spencer

Currently, the Xbox game pass has 30 Million subscribers, and it would be interesting to see how Microsoft and Xbox will grow this number above 100 Million in the coming years.

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