Microsoft Believes that the Success of Xbox Depends on Games, Exclusives, Hardware Power and More

By Giuseppe Nelva

August 8, 2014

Microsoft just released its annual 10-K report (a document required by the U.S. Securities and Exchange Commission, giving a rundown of the company’s finances for the year) for the fiscal year that ended on June 30th. The document includes an interesting statement detailing how the company views its competition at Sony and Nintendo, and how how it plans to overcome said competition and achieve success.

Our Xbox Platform competes with console platforms from Sony and Nintendo, both of which have a large, established base of customers. The lifecycle for gaming and entertainment consoles averages five to ten years. Nintendo released their latest generation console in November 2012. Sony released their latest generation console in November 2013.

We believe the success of gaming and entertainment consoles is determined by the availability of games for the console, providing exclusive game content that gamers seek, the computational power and reliability of the console, and the ability to create new experiences via online services, downloadable content, and peripherals. In addition to Sony and Nintendo, we compete with other providers of entertainment services through online marketplaces.

This definitely matches well the new course set by the new Xbox division head honcho Phil Spencer in the last few months.

The statement also includes an evaluation of the current position of the Xbox business in the market:

We believe the Xbox Platform is effectively positioned against competitive products and services based on significant innovation in hardware architecture, user interface, developer tools, online gaming and entertainment services, and continued strong exclusive content from our own game franchises as well as other digital content offerings.

With Gamescom just a few days away, it’ll be interesting to see if Microsoft will manage to push ahead of the competition in the field of exclusives. If E3 is any indicator, they’ve been trying definitely hard lately, and Gamescom may come with quite a few more surprises.

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Giuseppe Nelva

Hailing from sunny (not as much as people think) Italy and long standing gamer since the age of Mattel Intellivision and Sinclair ZX Spectrum. Definitely a multi-platform gamer, he still holds the old dear PC nearest to his heart, while not disregarding any console on the market. RPGs (of any nationality) and MMORPGs are his daily bread, but he enjoys almost every other genre, prominently racing simulators, action and sandbox games. He is also one of the few surviving fans of the flight simulator genre on Earth.

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