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Microsoft should exit the console business

Why does Microsoft, a software and services company, need a console business? The same question was asked when The Rock announced the original Xbox console in 2001, but the industry has changed a lot in 23 years, and it’s worth asking again.

While Sony is increasingly understanding the power of the PC market, and Nintendo is still maintaining at least a couple of its money-spinning mobile games, there is little chance of either company’s overall console strategy changing. Microsoft could probably afford to go multiplatform while maintaining a console business if it had some true AAA franchises to hold back, but despite spending $69 billion on Activision Blizzard, it agreed to not make its new-found system seller, Call of Duty, exclusive to Xbox until 2034. Stepping back from its competition with Sony and focusing on making the best games for the largest audience would put the Xbox division in the strongest position to capitalize on the post-console future.

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