Phil Spencer reveals Xbox will continue buying studios to “feed” Game Pass

During an October 26 interview, Microsoft’s Phil Spencer revealed the company’s plans to continue to buy more studios. The executive explained that the acquisitions are needed for Xbox Game Pass.

The gaming industry was shaken to its core when Bethesda announced that it had been acquired by Microsoft in September. The tech giant paid $7.2 billion to bring popular series’ such as Fallout and Elder Scrolls under their console’s brand.

However, according to Xbox lead Phil Spencer, this is just the beginning. In an October interview, the executive explained that they will be purchasing more studios in order to “feed” their Game Pass service. 

Phil Spencer reveals Xbox’s plans to “feed” Game Pass

Microsoft’s move to buy Bethesda in September was the first major shot fired in the next-gen showdown between Xbox and PlayStation. The massive deal immediately solved the American platform’s lack of first-party story driven content which plagued them in the previous generation.

According to Phil Spencer in an interview with GameReactor, more acquisitions are on the horizon. “And frankly, as Game Pass continues to grow, we need to continue to feed that subscription,” he stated.

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The Microsoft executive also stated that the company will be “constantly” looking to purchase more studios because of the service: “So, with the growth that we are seeing, I expect we will constantly be in this mode of bringing more creators into the fold.”

According to Spencer, Xbox’s focus on Game Pass has given him support from Microsoft to acquire teams: “We built a business model that prioritised investing in content knowing that we would have to invest early and wait a while for those investments to pay off.”

It remains to be seen what studios the tech giant could buy up next. Their strategy to continue to buy up properties is sure to have Sony on alert. The company could soon acquire games that were historically associated with the PlayStation brand, but not actually exclusive to the Japanese company.

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Spencer clarified in the interview that the Bethesda deal has not actually closed yet, and won’t be until sometime in 2021. Interestingly, the Xbox head explained that it would be “illegal” to discuss future plans for the studio, so he can’t comment on whether games like Fallout will be exclusive to the Microsoft platform or not.