Elaborate?
Google Amazon are the competition.
Companies with the cloud/server infrastructures, software experience, user hardware/software, investments and money to leverage and compete beyond console gaming.
those are some of the only companies that could, organically, by nature of their investments, host and provide content on a global level, with enough proliferated user hardware/services to drive user (gaming) subscriptions beyond a gaming console and buy mindshare so you’d have to offer their service on other platforms.
Sony and Nintendo are not vertically integrated enough, beyond producing gaming consoles and software to compete on a non niche level like MSFT is aiming for.
which is gaming accessible on every device, beyond Xbox.
Imagine if, they were able to not only get people to subscribe to gamepass on Xbox, but surface tablets, then eventually, tvs, then if popular enough, fire sticks, rokus, google chromes, iPhones, android etc. much like Netflix is today.
That’s a whole lot of 15.99 game pass subs.
that’s how you get Nadala to spend almost 100 billion on 2 publishers.
just look at his latest interview. Phil signals who the real competition is.
Spencer said he's concerned about tech companies unfamiliar with the gaming industry barging in to the space, as opposed to the current, experienced competition against Nintendo and Sony.
"They have a long history in video games," he said. "Nintendo's not going to do anything that damages gaming in the long run because that's the business they're in. Sony is the same and I trust them. ... Valve's the same way. When we look at the other big tech competitors for Microsoft: Google has search and Chrome, Amazon has shopping, Facebook has social, all these large-scale consumer businesses. ... The discussion we've had internally, where those things are important to those other tech companies for how many consumers they reach, gaming can be that for us.
which lines up with the quote from 2 years ago…
Xbox says Nintendo and Sony no longer main rivals - BBC News
Phil Spencer, Microsoft's head of gaming, said he now considered Amazon and Google as his top rivals because of their cloud-computing infrastructure.
Cloud gaming tackles some common frustrations experienced by players but introduces some issues of its own.
But Mr Spencer said his "traditional" rivals Nintendo and Sony were out of step with the future of gaming.
"When you talk about Nintendo and Sony, we have a tonne of respect for them, but we see Amazon and Google as the main competitors going forward,"
he told Protocol, a new technology news website.