Microsoft's Phil Spencer is considering opening up the Xbox platform to third-party digital storefronts such as Epic Games Store, Itch.io, and GOG. This initiative is part of an effort to reduce platform fragmentation and offer players a PC-like choice and freedom when purchasing games. This change could be driven by the challenges facing the console market, such as a decline in hardware sales, which was noted in a recent Circana (NPD) report. The industry's hardware sales dropped by 30% year-over-year in February 2024. Spencer voices that offering more purchasing options on consoles could promote a seamless gaming ecosystem, reduce friction for creators and players, and potentially invigorate the industry.

Could Microsoft's Xbox platform actually feature third-party digital storefronts in the future?

Yes, Phil Spencer, the CEO of Microsoft Gaming, has expressed an interest in allowing Xbox users to have additional options for purchasing games, potentially including stores like the Epic Games Store, Itch.io, and GOG.

Extra background information: The Xbox console, developed by Microsoft, has traditionally operated a closed ecosystem, with games being sold exclusively through the Xbox Store. Allowing third-party stores onto the console would be a significant shift in strategy, potentially increasing the range of available games and services and aligning the console experience closer to that of a gaming PC. This follows a broader industry trend towards platform agnosticism, where players can access games regardless of the hardware they use, erasing the lines between different gaming ecosystems.