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Microsoft’s quarterly financials made for some sober reading.

Inflation is rampant, and Russia’s war of aggression in Ukraine is disrupting energy markets and distribution.

Xbox Series X in space

High on Life was one game on the record with Major Nelson’s Xbox podcast, praising the service for how it had boosted Squanch’s debut game.

Value is the best Xbox exclusive right now …

The obvious one is that consumerslove value,especially in our current economic climate.

The Xbox Series S is only one aspect, though.

Xbox Game Pass booth

High on Life was one game on the record with Major Nelson’s Xbox podcast, praising the service for how it had boosted Squanch’s debut game.

Microsoft’s key competitors, namely Sony PlayStation and Nintendo, do not offer this kind of value.

The reasons why are pretty obvious.

But it’s not enough.

High On Life

High on Life was one game on the record with Major Nelson’s Xbox podcast, praising the service for how it had boosted Squanch’s debut game.

Right now, I would posit that Xbox has a desire problem.

Thepostthat spawned the most recent incarnation of the trend has 8.4 million views on Twitter.

Slick marketing campaigns and clever product placements create FOMO around the iPhone and even MacBooks.

Halo Infinite

And sure, iPhones have caught up on the hardware front now.

However, I would argue that, for the longest time, iPhone’s biggest selling point was prestige.

There are of course multiple factors as to why Microsoft retracted a bit this year.

Chart showing Xbox growth over time

This chart from@Welfare_JBP on Twitterextrapolates trends in Xbox’s verticals from investor data shared by Microsoft.

However, the most notable aspect is Microsoft’s truly anemic 2022 with regard to exclusive content.

And Microsoft knows it.

None of this even includes 2023’s headline act, which is undoubtedly Starfield.

Starfield

Qualitatively again, I already know Starfield is a “system seller.”

This is before the marketing for Starfield has even really ramped up.

Xbox Play Anywhere with a thinking emoji

Xbox in a field

Phil Spencer on Gamertag Radio in Jan 2025

Xbox app with Final Fantasy III displayed

Age of Empires 2: Definitive Edition The Three Kingdoms DLC art

Xbox controller with WD-40

Banjo Kazooie Smash

Indiana Jones and the Great Circle

The Elder Scrolls Online 2025 Daedra battle

Moonlighter 2 key art

Razer�s Minecraft collection in retail boxes

Call of Duty: Warzone returns to its roots with Verdansk map for Season 3.

ASUS ROG Strix SCAR 18 (2025)

Witchbrook first look screenshots.

Minecraft�s new key art.

Inspecting the Kilo 141 in Call of Duty: Black Ops 6

Moto book 60