Shawn Layden compares Xbox's multiplatform strategy to SEGA's shift to software after failure

Shawn Layden discusses Xbox's multiplatform approach, comparing it to SEGA's transition from hardware to software.

Former PlayStation CEO Shawn Layden believes that Xbox’s shift to a multiplatform strategy could succeed despite potential challenges. Layden explained that the rising costs of game development make it necessary for platforms like Xbox to consider opening up their exclusives to other ecosystems. He pointed out that this move might reduce Xbox’s ability to create "FOMO" (fear of missing out), as making games available across various platforms would eliminate the exclusivity appeal.

In a discussion on the Kiwi Talkz YouTube channel, Layden compared this strategy to SEGA's decision to transition from hardware to software after the Dreamcast console's failure. He pointed out that SEGA’s pivot to releasing its games on other platforms worked historically, and Xbox could follow a similar path. While SEGA's hardware business faltered, it became a leader in software development after making that shift.

Layden also discussed the financial pressures of the gaming industry, especially with increasing development costs, suggesting that multiplatform availability might be a way for Xbox to mitigate these challenges. By expanding the potential player base across multiple platforms, Microsoft could focus on growing its audience rather than relying solely on exclusivity.

The growing speculation about Xbox’s future multiplatform plans has been fueled by recent announcements, including the release of Forza Horizon 5 and Indiana Jones for PlayStation 5. The potential for Xbox games to also appear on Nintendo’s Switch 2 only adds weight to these rumors.

In comparing Xbox’s approach to SEGA’s, Layden offers an insightful view into the shifting dynamics of the gaming industry. As development costs continue to rise, Xbox’s decision could reshape the future of gaming by emphasizing accessibility over exclusivity.