The recent leak of documents related to Microsoft’s Xbox business has caused a setback for the company, as confidential corporate insights and trade secrets were inadvertently made public. The files, which were part of a deposition intended for the U.S. District Court for the Northern District of California, contained un-redacted emails, reports, and presentations that provided a glimpse into Microsoft’s Xbox plans. Although Xbox Head Phil Spencer downplayed the significance of the leaked information, there are still noteworthy details to be uncovered.
Key Takeaway
The accidental leak of confidential documents has shed light on Microsoft’s Xbox plans, including ambitions to acquire Nintendo and future console developments. While the leak may cause some challenges, it is unlikely to significantly impact Microsoft’s ongoing acquisition of Activision.
Microsoft’s Ambitions and Xbox Roadmap
One of the notable revelations from the leak is Microsoft’s ambition to acquire Nintendo. In an email from 2020, Spencer expressed his belief that Nintendo is a valuable asset in the gaming industry and that Microsoft would be well-positioned to acquire the company. However, it’s clear that such a deal would face significant scrutiny from antitrust regulators. Additionally, the leaked documents unveiled Microsoft’s plans for an updated version of the Xbox Series X, codenamed Brooklin, which would feature a cylindrical design and remove the disc drive. The leak also hinted at a new version of the Xbox controller with lift-to-wake functionality and an accelerometer.
The Future of Xbox: A Hybrid Game Platform
The leaked documents suggest that Microsoft’s next-generation Xbox console could be a “hybrid game platform” that leverages cloud computing to offer advanced gaming experiences. The company envisions a system optimized for real-time gameplay and creativity, pushing the boundaries beyond what the hardware alone can achieve. While these plans are likely still in their early stages, they indicate Microsoft’s focus on delivering cutting-edge gaming technology.
Insights into Microsoft’s Xbox Business
The leaked files also provided interesting insights into Microsoft’s Xbox business. For example, Microsoft appeared to dismiss the popular game Baldur’s Gate 3 as a “second-run Stadia PC RPG” that was not a priority for Xbox Game Pass. The irony lies in the fact that Baldur’s Gate 3 ended up gaining more attention and acclaim than the highly anticipated Xbox exclusive Starfield.
Impact on Microsoft’s Acquisition of Activision
Despite the leak and potential anti-competitive murmurs, Microsoft’s plans to acquire Activision are unlikely to be affected. The company successfully defended its merger against the Federal Trade Commission (FTC) in July, allowing the proposed $69 billion deal to proceed. However, regulatory concerns have led to a deadline extension for the merger, which is now set for October 18. Microsoft continues to face scrutiny from U.S. regulators as well as the U.K.’s Competition and Markets Authority.
