Microsoft's current generation gambit is incredibly interesting. Unlike Sony, Microsoft's strategy isn't really about exclusives. The PlayStation 5 is propped up by games like Demon's Souls and upcoming titles like Horizon Forbidden West and God of War: Ragnarök. By contrast, the Xbox Series X|S is propped up by its services. From Xbox Game Pass to xCloud to backwards compatibility to PC integration, Microsoft has taken a radically new approach to the console space.
While these initiatives have made Microsoft distinct, these moves never truly challenged Sony's strategy. However, Microsoft's recent statements regarding the now-official Bethesda acquisition are finally putting pressure on Sony to act -- especially in light of Microsoft's larger plan. While specifics have not yet been revealed, Xbox head Phil Spencer made some telling comments during the recent round table outlining the partnership.
Spencer stated that "I can't sit here and say every Bethesda game is exclusive because we know that's not true…if you're an Xbox customer, the thing I want you to know is this [acquisition] is about delivering great exclusive games for you that ship on platforms where Game Pass exists." While Spencer clearly leaves room for exceptions, the overarching sentiment is clear: Bethesda games will largely be exclusive to Xbox and its accompanying services.
Microsoft's New Strategy
Microsoft's strategy here cuts against the conventional wisdom prior to this conference and the precedent set by Microsoft's handling of titles like Minecraft. Many assumed that Microsoft would simply release Bethesda's titles across all platforms, taking a cut of each purchase on rival hardware and offering the games on Game Pass. That was a tantalizing option, one that may come to fruition for certain titles. However, it seems that won't be the primary strategy.
Instead, Microsoft appears to be doubling down on Bethesda's studios and software to make Game Pass more enticing. For Xbox fans, this is an exponential increase in value. However, for those in Sony's ecosystem, Bethesda's migration is a huge loss. From Fallout to Elder Scrolls to Wolfenstein, Bethesda has some of the industry's most exciting titles. These franchises have defined genres and generations, and upcoming titles like Starfield might just do the same.
This is far from Microsoft's only acquisition, but it's the first one that truly puts Sony on the back foot. Losing the lion's share of Bethesda -- even with contractual obligations for titles like Deathloop bringing content to PlayStation 5 -- is not great for Sony's player base. Bethesda has struggled recently with titles like Fallout 76, but those misses are marginal in comparison to the hits.
Plus, with Xbox money, Bethesda can quickly make up lost ground. For as tantalizing as games like Halo Infinite are, Xbox's new silver bullet is control over Bethesda. Suddenly, Xbox's exclusives aren't unknown franchises for PlayStation consumers; they are continuations upon series and from studios they already loved on PlayStation 4.
Sony's Possible Responses
Sony has to react somehow. While many have suggested counter-acquisitions, moves on this scale are effectively impossible for most companies unless they wield Microsoft-levels of capital. Instead, Sony can (and probably should) continue to capture console exclusivity for big individual titles, similar to its strategy for Final Fantasy VII Remake and Final Fantasy XVI. However, these moves don't solve the pressing Bethesda issue.
Sony's solution to that lies in Phil Spencer's statement at the round table. If Bethesda's games will be available on whatever platform Game Pass is on, then Game Pass should come to PlayStation 5. At first glance, that sort of move seems impossible -- but the idea of Sonic the Hedgehog games coming to GameCube after SEGA and Nintendo's bitter rivalry seemed impossible too. A lot of groundwork for this type of collaboration between Sony and Microsoft has been laid already.
Both platform holders already publish content in rival ecosystems. Microsoft has put games like Minecraft Dungeons and Cuphead on PlayStation 4, and Sony is bringing MLB The Show 21 to Xbox later this year. These companies are willing to play ball together, and Xbox is hungry to make its services ubiquitous. Still, Sony would likely reject Game Pass infiltrating the ecosystem. That is a big move with a lot of consequences Sony may want to avoid. However, there is precedent for collaboration and pressure to get Bethesda back on PlayStation, so only time will tell what happens next.