Microsoft's Xbox Leaks: Acquisitions, Game Plans, and Future Hardware Revealed

Politics, News Sept. 21, 2023, 10:37 a.m.

Leaked documents from Microsofts Xbox division reveal plans for potential acquisitions, game releases, hardware refreshes, and insights into the changing gaming industry landscape.

This week, a surprising treasure trove of leaks emerged from deep within the upper echelons of Microsoft's Xbox division. These revelations were inadvertently made public as a consequence of the company's legal skirmish with the Federal Trade Commission, all in the context of its recently approved acquisition of Activision. These confidential documents, comprising emails, presentation slides, and images showcasing potential new products from the Xbox powerhouse, provide a rare glimpse into the inner workings of Microsoft's gaming empire. Additionally, whispers of potential new games from Bethesda, a subsidiary of Microsoft, were also unveiled.

Ironically, the source of these leaks was none other than Microsoft itself, as they had provided these sensitive documents to the court via a publicly accessible link. Microsoft Gaming CEO Phil Spencer reacted to the leaks, expressing his dismay at seeing the team's work exposed in such an unceremonious manner.

Within the leaked emails, Phil Spencer and Microsoft personnel engaged in discussions regarding the possibility of acquiring Nintendo, one of the titans of the gaming industry. Spencer mused, "At some point, getting Nintendo would be a career moment," speculating that Nintendo might become more open to acquisition offers in the future due to evolving pressures on its board of directors. He noted, "It's just taking a long time for Nintendo to realize that their future exists off of their own hardware," accompanied by a wry, "A long time... :-)"

The leaked documents also unveiled Microsoft's contemplation of acquiring Valve and Warner Bros. Games, highlighting the company's strategic ambitions within the gaming sphere.

For those nostalgic for the bygone days of gaming, there's a glimmer of hope. Bethesda's roadmap, also among the recently leaked Xbox documents, includes plans for a sequel to Ghostwire: Tokyo, Dishonored 3, and remastered versions of Fallout 3 and The Elder Scrolls IV: Oblivion. However, fans eager for The Elder Scrolls VI will need to exercise patience, as its release appears to be distant on the horizon.

Phil Spencer shed light on the changing landscape of the gaming industry, noting how AAA publishers have been slow to adapt to the disruptions caused by digital storefronts like Steam and those integrated into Xbox and PlayStation platforms. He explained that these publishers have struggled to replicate the dominance they once enjoyed during the era of physical game retail. With the loss of exclusive access to consumers through brick-and-mortar stores, they have failed to establish publisher brands that engender consumer affinity, much like Disney has achieved in the realm of video. Spencer concluded that the role of a AAA publisher has evolved and diminished in importance within today's gaming industry.

Interestingly, it appears that Microsoft had anticipated an Xbox Series X/S port of Red Dead Redemption 2 in 2022, although this expectation ultimately went unfulfilled.

The Xbox Series X and Series S consoles made their debut in 2020. Surprisingly, as of April 2022, the disc-less Series S accounted for the majority of units sold, with 74.8 percent of Xbox Series owners opting for it over the more powerful Xbox Series X. Recent data suggests that the install base split may have approached a more equitable 50/50 distribution. Nonetheless, the substantial Series S user base may pose challenges for developers aiming to deliver high-end gaming experiences within the Xbox ecosystem.

Baldur's Gate 3, a critically acclaimed title, seemed to have been underestimated by Microsoft. Leaked comments revealed that Microsoft had estimated a mere $5 million expense to bring the game to Game Pass, likening Baldur's Gate 3 to a "second-run Stadia PC RPG." In response, Larian's director of publishing pointed out that Microsoft was not alone in underestimating the game's appeal.

In an email exchange with Microsoft CEO Satya Nadella, Phil Spencer touted the Xbox Series X/S line as superior to Sony's offerings, not only in terms of hardware but also in the realm of software platforms and services. He expressed confidence in Microsoft's winning strategy, stating, "we have the ingredients of a winning plan."

The launch of next-gen consoles in 2020 saw an unexpected twist when Sega's long-standing Yakuza series released its latest entry, Like a Dragon, on Xbox Series X/S but not on PlayStation 5. This move surprised fans, as the Yakuza series had long been associated with PlayStation. However, it turns out that Microsoft was equally taken aback, as the choice was the result of competing regional exclusivity agreements that left Xbox players delighted while PlayStation fans were left disappointed.

The leaked materials didn't solely comprise emails from corporate executives; they also included images and details hinting at potential upcoming hardware developments. Notably, a cylindrical-shaped Xbox Series X without a disc drive, codenamed "Brooklin," was mentioned. This potential 2024 hardware refresh promises "more internal storage, faster Wi-Fi, reduced power consumption," and an "enhanced controller." If this device sees the light of day, it could earn the affectionate moniker of "trash can Xbox," reminiscent of the 2013 Mac Pro redesign.

Additionally, the leaked data indicated the possibility of a new Xbox gamepad hitting the market alongside the hardware refresh. The controller, codenamed "Sebile," featured a two-tone color design and boasted modular thumbsticks, as well as features reminiscent of PlayStation controllers, such as "lift to wake," "precision haptic feedback," and an accelerometer. Despite potential visual differences, the controller was said to maintain the "same ergonomics" as the current Xbox Series X/S controller, known as "Merlin."

Slides outlining the future of the Xbox platform provided insights into Microsoft's cloud-centric strategy for the post-Xbox Series X/S console era, which is tentatively slated for a 2028 release. Microsoft envisions this machine as a "next-generation hybrid game platform capable of leveraging the combined power of the client and cloud to deliver deeper immersion and entirely new classes of game experiences."

While these leaks have given gamers and industry enthusiasts plenty to ponder, they also signal another step toward the gradual decline of physical game media. Nevertheless, the tantalizing prospect of a crossover between Mario and Master Chief offers a glimmer of hope for a thrilling gaming adventure in the future.