Many game publishers are increasingly embracing the live-service model to offset the rising development costs, but Xbox is taking a different approach by focusing on supporting story-driven games through its Game Pass service. Phil Spencer, the head of Xbox, recently explained that one of the main reasons Microsoft created the subscription service was to ensure the future of games with a clear narrative structure — those with a distinct "beginning, middle, and end." Upcoming Xbox exclusive South of Midnight is a prime example of this type of game.
In a recent interview with XboxEra, Spencer highlighted the importance of Game Pass in helping support these story-based experiences. While other publishers, such as Warner Bros. and Ubisoft, are shifting towards live-service models, Xbox continues to thrive with its single-player offerings. Notable hits like MachineGames’ Indiana Jones and the Great Circle and Obsidian Entertainment's Avowed have garnered strong success. Spencer also pointed to upcoming titles like South of Midnight and Doom: The Dark Ages, which are generating buzz for their potential.
Despite the challenges posed by rising development costs, Spencer emphasized that these types of games are crucial to the industry. This strategy might also explain why many Xbox exclusives are finding their way to other platforms. Reflecting on the importance of first-party games, Spencer shared that he initially faced criticism for his stance but believes that games with a defined narrative are essential. "Part of our reason for trying to get a subscription going was to support games that have a beginning, middle, and end," he said. "I think that’s an important part of our industry because not every story is going to be 100 hours long, and not every medium will rely on a currency mechanic. Some stories just need to be told and finished."
Spencer pointed to Xbox’s role in supporting smaller development teams, such as those at Double Fine and Compulsion Games, who prefer to work without becoming massive, overextended studios. Xbox wants to create an environment where these teams can thrive and focus on producing great games, without the pressure to adopt a live-service model.
Spencer also took the opportunity to reassure Xbox fans about the security of their digital libraries, emphasizing that Microsoft remains committed to respecting the ownership of the games in your collection.
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