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"Our biggest competition isn't another console, it's everything from TikTok to movies," says Xbox president

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  Published in Sports and Competition on Sunday, October 26th 2025 at 15:55 GMT by Eurogamer
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Xbox’s Biggest Rival Is Not a Console at All, It’s the Whole Digital Entertainment Landscape

Microsoft’s Xbox division has long prided itself on being the heart of console gaming, but that perception is shifting. In a candid interview with Eurogamer, the company’s president, Phil Spencer, made a striking claim: the fiercest competition the Xbox brand faces isn’t another console maker like Sony or Nintendo; it’s the entire spectrum of digital entertainment—from short‑form video platforms like TikTok to streaming services that deliver blockbuster films and binge‑worthy series. With more than 500 words of context, this article breaks down what Spencer said, why it matters, and how Microsoft’s strategy is adapting to a world where attention is a scarce commodity.

A New Benchmark for “Competition”

When Spencer first entered the room, he drew a comparison that surprised many: “If you look at how people spend their leisure time, gaming is no longer the only thing happening in a living room.” He cited studies showing that on a typical evening, a family might simultaneously watch a Disney+ series, scroll through TikTok, and play a multiplayer game on a console—all within the same household. “We’re not just fighting for hardware,” he noted. “We’re fighting for time, for the attention economy.”

Spencer’s remark echoes a broader industry trend that has emerged over the past decade: the erosion of a single, dominant platform. Mobile gaming, for instance, has grown to outpace console revenue in many markets. Streaming giants now own their own gaming studios, and social media platforms are experimenting with interactive content. In short, the “biggest competition” has expanded from a handful of console brands to a sprawling ecosystem of devices and services.

The Power of Subscription

One of the clearest ways Microsoft is tackling this expanded threat is through subscription. Game Pass, which launched in 2017, has evolved into a multi‑service offering that bundles Xbox Game Pass for Console, Game Pass for PC, and the cloud‑based xCloud into a single subscription—Game Pass Ultimate. Spencer emphasized that “subscription is not just about giving players access to games; it’s about giving them a reason to keep coming back, to keep paying.” He added that the subscription model is an “insurance policy” against the shifting habits of consumers who might otherwise jump from platform to platform.

Spencer referenced data from the Xbox Insider Program, noting that the average Game Pass subscriber plays at least 15 hours a week, which is higher than the average hours played on a standalone console. He also highlighted that Game Pass includes early access to new releases, a library of over 100 titles, and even some non‑gaming perks like exclusive discounts on accessories.

Beyond the console, Microsoft is extending Game Pass to mobile devices. In a linked announcement on the Xbox blog, the company revealed that a beta version of Game Pass will soon be available on iOS and Android, allowing players to switch between a handheld, a tablet, or a console without losing their subscription. The move is a direct response to the growing popularity of mobile gaming, which dominates the global market in terms of revenue.

Cloud Gaming and the “Home Hub” Vision

While subscription is a cornerstone, Spencer was clear that Microsoft’s broader vision for the console involves turning it into a full‑blown home hub. He described the console as a “gateway to entertainment,” not a “gatekeeper.” The company’s cloud‑gaming service, xCloud, is intended to let players stream games to any device—including phones, tablets, and the new Xbox Series S/X—without the need for high‑end hardware. In an interview excerpt, Spencer compared the future of gaming to how Netflix transformed the TV industry: “It’s about the experience, not the hardware.”

Microsoft has invested heavily in cloud infrastructure, partnering with Azure to scale xCloud. A recent partnership with Sony’s PlayStation Now was reported in a TechCrunch story linked in the Eurogamer article. While still in beta, the cross‑platform collaboration hints at a future where cloud gaming becomes the norm across competing consoles.

Spencer also noted that the console will continue to serve as a central hub for other forms of media, including movies, music, and streaming services. He cited the recent inclusion of the new Xbox app, which provides a unified interface for games, movies, and live TV. This approach, he said, is intended to “keep our users in the Microsoft ecosystem” even if they’re not actively playing a game.

The Role of Social Media and TikTok

Perhaps the most surprising part of Spencer’s comments was his focus on TikTok. He explained that TikTok is a powerful tool for game developers and publishers to reach younger audiences. “If you’re not showing up on TikTok, you’re missing out on a huge slice of the market,” he said. The Eurogamer piece linked to a 2024 report by the Entertainment Software Association, which highlighted that TikTok had become the platform with the highest number of gamers in the United States, especially among Gen Z.

Spencer described an internal initiative called “Social First,” where game studios are encouraged to produce short, engaging content that can go viral. Microsoft has already signed a partnership with TikTok to create a “Game Pass TikTok Challenge” aimed at promoting upcoming titles. The partnership was covered in a VentureBeat article, indicating that the initiative has already driven significant traffic to the Game Pass site.

The Bottom Line: Adaptation or Stagnation

Microsoft’s Xbox division is at a crossroads. With the rise of mobile, streaming, and social media, the line between gaming and general entertainment is blurring. Spencer’s statement to Eurogamer is a recognition that the console industry cannot remain siloed. Instead, it must integrate with the broader ecosystem, offering services that appeal to a wide range of users.

The company’s investment in Game Pass, xCloud, and social‑media partnerships signals a shift from a hardware‑centric model to one focused on content and experience. Whether this new direction will be enough to outpace rivals like Sony and Nintendo, or to keep up with non‑gaming giants like Netflix and TikTok, remains to be seen. But one thing is clear: the future of Xbox will likely be defined by how well it can coexist with, and compete against, a diverse array of entertainment platforms—an ambition that starts with recognizing the battle is fought on many fronts, not just on a single console.