3rd Party

     The excitement for next gen is building and it seems this generation (as far as the preparation and the buzz of rumors and insider talk) means we know what to expect. We know what kind of performance and leap the hardware will likely make. Do we know what the focus is? What we know of Project Scarlett is that the next gen Xbox will have rebuilt and expanded its first party studios, and seek to correct the weakest area for Microsoft as a gaming platform. We know that the weakness of the Xbox One generation has been the exclusives, both in quality and quantity. Microsoft is looking to continue to build the content offered through Gamepass and help Microsoft establish itself on PC and as a cloud gaming provider. While it is not currently being discussed, this strategy must also include third party support, not just multiplatform, but a return to the 360 era where Microsoft benefitted from second party and third party relationships with PC and Japanese Devs. That meant many games came first or were only found on the Xbox platform. The next evolution of Microsoft Gaming is not only to be everywhere and on as many devices as possible, but for Xbox platform to be a global platform and able to expand Xbox, not just beyond consoles, but beyond North America and Europe.

     What will this look like? Xbox has kept a lid information regarding even their first party road map of games. In some respects, even if Xbox has been open about their approach and strategies, they have seemed to tell more then to show; at least it has appeared to be a recent policy not to show games too early. They have, however, shown their intentions and directions, if one looks at certain statements and interviews. While many were disappointed at Microsoft’s E3 presentation, many may have missed the significance of some of the games that were shown. There are many gamers in North America who were unaware and unenthusiastic of the showcase of some of the games shown at E3. Two games come to mind as huge strategic gets that show that some of Phil Spencer’s and Chris Charla’s efforts in Japan and Asia are starting to bud, with Phantasy Star Online 2 and Crossfire X coming to Xbox. It is also my opinion that PSO 2 “marked the return to Sega on the E3 stage” was not a throwaway line, but marks an integral relationship that is deepening and becoming more integral to their futures between Sega and Microsoft. It would be a much larger article to explain the history of Sega (going back to Dreamcast and the current state of both companies, and how they would benefit currently or even show a recent trend to work closer together). It is an example of the partnerships and relationships Microsoft is willing to form. 

     Xbox has focused mostly on their first party studios system, rapidly expanding and rebuilding their studio system culminating in a rebrand from Microsoft Studios to Xbox Game Studios. There are signs that there are 2nd party and 3rd party moves Xbox is making, as Phil Spencer continues to grow and build out all Xbox divisions to become a more global gaming presence. The first detail that has gone under the radar is the announcement of hiring Damon Baker as the new Head of Portfolio at Xbox to manage, supervise and grow their game portfolio.

     A brief search will tell us that Damon Baker is one of the individuals responsible for the success of Nintendo’s Indie game offerings on the Switch. One could conclude that since he was hired to “evaluate” their portfolio of 2nd party/3rd party titles he was hired to help Xbox decide which properties to pursue, continue or let go; an example may be giving Remedy Alan Wake back their publishing rights. In short, it can be a sign or display an interest that they are willing to invest and/or buy 2nd party and 3rd party games for the Xbox platform and that Damon Baker’s experience with Nintendo may give him keen insight into identifying Japanese studios and games with which to partner to bring to the Xbox platform, and what Indie games and devs might be worth adding to the Xbox portfolio, not just the ID@Xbox program.  

     Another example of the 3rd party renaissance at Microsoft is that Xbox has recently announced at E3, replacing Shannon Loftis as VP of Microsoft Studios Global Publishing, with Peter Wyse, as GM of Publishing at Xbox Games Studios. A quick glance at Peter Wyse’s Linked In page will show that Wyse has worked at studios that handle some of the largest and biggest IP’s (Intellectual Properties) in gaming, working at Warner Bros.,Disney Interactive and Atari. A move like this shows that they want someone at Global Publishing who can manage huge AAA partnerships, and games being published by Xbox Games Studios, such as Smilegate bringing Crossfire to Xbox. As for the Asia Division and Microsoft looking for a team to run GGPD, we can look to something they have already done in China with E-Home Entertainment, where they have developed games and studios and helped publish many games locally in China, and helped Chinese games be published abroad twp recent examples being Momodora and Initial 2:New Stage by Restory games a game launched on PC and coming to Xbox in the fall. While these games are smaller games they are building and partnered with a company like Oriental Pearl group, to help build the console gaming industry in China and help Chinese developers make and publish games. As we can see, there is evidence that it is not just first party that is being developed and expanded, but Xbox is reorganizing to also broaden and expand its second party and third-party games and make strategic partnerships in pursuit to become a better global gaming brand and company.

     Some of this will be accomplished by luring PC focused developers and expansion of genres on Xbox platforms; also, by offering and ensuring that the keyboard and mouse experience is comfortable and attractive on consoles. This will make it easy for developers to port their games as intended. We also saw that Xbox under Phil Spencer, is looking at their portfolio and looking to expand their offerings, and expand upon the ID@Xbox program. It also means (as we have briefly explored what they are doing in the Asian market) it is not only centered on Phil Spencer’s visits and deals with Japanese developers, but Microsoft establishing GGPD(Global Gaming Partnerships & Development) as a division focused and located in all of Asia, and the hiring of Bradley Hopkins as the newly appointed GM of their Consumer Group Asia to grow their presence and capacity in Asia. It should not be overlooked that a huge factor of games such as Crossfire X and Phantasy Star Online 2 coming to Xbox is Azure and the cloud, which is one of the 3 C’s of Xbox strategy next gen, according to Phil Spencer. What it means is that whether we are talking new partnerships and content formed through XCloud, Azure, or Playfab, or by expanding their reach and efforts in Asia that forms new partnerships and brings new developers into the Xbox brand. You can expect that more PC and Japanese game favorites will continue to grow and expand. You should also expect that Microsoft’s strategy will continue to be to diversify and distinguish themselves from Sony and Nintendo. This means that Xbox will continue to attract and look for the next PUBG as it is in looking to bring franchises such as Kingdom Hearts to the platform. This shows us Microsoft has global ambitions for gaming and is looking to make some of the strides and excitement it produced on Xbox 360, by once again expanding and forming partnerships with global game developers and community.