Xbox CSO denies reversal on console exclusive games, even with doubts over profits

Microsoft surprised some analysts by confirming two Xbox exclusive games at its recent showcase. Gears of War: E-Day and Clockwork Revolution will not see PS5 versions. With lackluster profits and slow console sales, the decision didn’t seem to make financial sense. That prompted a report that the company had already reconsidered, which Xbox CSO Matthew Ball has now refuted.

Uncertainty over exclusivity continues

On June 15th, leaker SneakersSO claimed that the announcement was “for show” and to appease fans. Many Series X and S users had called for a retreat from a multi-platform strategy. According to SneakersSO, Xbox consoles won’t see a steady stream of exclusives in the future, as CEO Asha Sharma hinted at.

After the rumor gained traction, CSO Matthew Ball took to social media to clear up any confusion. The executive explained, “There are no conversations and have been no conversations to reverse course.” He reiterated that players can “expect signature exclusives from us every year.”

Even with the clarification, not all observers are convinced Microsoft won’t change its mind. Messaging has often changed weekly, frustrating followers. Another round of studio closures and layoffs also doesn’t give confidence that it will stay committed to the new exclusivity stance.

Xbox console-only games and profitability

There have been indications that Sony has begun locking more games to its hardware. Yet, to chase profits, the industry trend has been to embrace multi-platform publishing. Microsoft also faces the obstacle of having fewer Xbox consoles in the wild than PS5s. Sharma wants to increase hardware sales and lower manufacturing costs through “innovation”, but the memory shortage remains an obstacle.

The company recently revealed that its gaming division has a disappointing 3 percent accountability margin. As discussed at Pure Xbox, Microsoft boss Satya Nadella warned that it needs to become a “sustainable business”. Whether Xbox exclusive games will help achieve that goal is debatable.

In the case of Gears of War: E-Day, Tom Henderson of Insider Gaming leaked that the shooter has a development budget of over $400 million. Critics are doubtful that without a PS5 port, revenue can possibly match that investment.