In a recent CNBC video interview, Phil Spencer was asked about the competitive landscape and the competition Microsoft and Xbox face from big tech giants like Amazon, Facebook and Apple entering the market.
We’re seeing the big tech players come in and see this gaming opportunity.. we really think in order to achieve success you need great content, a large gaming community and more and more we’re leveraging our cloud assets at Microsoft to deliver our products to people on the devices they already have.
We have a long history, and it’s why the 90 million people on Xbox Live is a really important metric, a community of people already coming to Microsoft looking for their gaming entertainment, looking for those great games, those great Minecraft experiences… we have great content from our first party and our third parties on our platform.
We have a large community and this cloud asset which is something we’re really leveraging right now, the partnership between Xbox and Azure is very strong right now. We have hundreds of thousands of people even in our preview [of xCloud]
As we look forward the competition is going to be there as it always is but our long history in gaming, building up this large community and content base along with our strengthened Azure makes us uniquely positioned.
This is not something new, we’ve known for a while that Microsoft sees big tech giant companies as the competition going forward, not Sony or Nintendo.
“When you talk about Nintendo and Sony, we have a tonne of respect for them, but we see Amazon and Google as the main competitors going forward. That’s not to disrespect Nintendo and Sony but the traditional gaming companies are somewhat out of position.”Source
Due to these companies all being a lot bigger than Sony or Nintendo, Microsoft recognises they are a bigger future threat due to their potential to rival Microsoft’s cloud system. It’s interest to get insight into how Xbox plan on handling this competition.