The video game console market "isn't growing," according to Microsoft Gaming CEO Phil Spencer, who recently discussed this in an interview. This is one of the reasons why you don't necessarily need an Xbox console to play Xbox games anymore. "The console space, as a whole, isn't growing, across all brands [Xbox, PlayStation, and Nintendo]. We cherish our customers, but in terms of expanding and growing Xbox, it's about PC, it's about cloud, and it's about making our games accessible in more places," Spencer told Rolling Stone.

Despite the stagnant console market, Microsoft isn't abandoning consoles. Spencer confirmed that Microsoft will "definitely release more consoles in the future," along with "other devices." This isn't unexpected, as Microsoft has already announced a next-gen Xbox promising the "largest technical leap" in Xbox history. Regarding the "other devices," Spencer might be hinting at the rumored Xbox handheld device, which is reportedly a few years away.

In the same interview, Spencer also mentioned that Microsoft likely won't follow Sony's lead with a mid-gen Xbox refresh, like the PS5 Pro. He questioned, "Do we need incremental hardware for our own sake? Does a new device truly offer a unique on-screen experience?" Spencer recalled that the leap between the original Xbox and Xbox 360 was significant in terms of graphics and performance, but nowadays, "it's harder to demonstrate the benefits" of more powerful hardware alone.

A new "This Is An Xbox" ad campaign emphasizes that Xbox is no longer confined to a plastic box under your TV. Your phone, TV, and various other devices can be Xbox platforms because Xbox games and Game Pass are available on them. Spencer acknowledged that some Xbox fans appreciate the "simplicity of a single box, single platform, single game." However, he pointed out that, "Today's biggest games are larger than any individual platform."

Spencer emphasized that the Xbox platform should focus on games, characters, and worlds rather than being tied to a specific device. "That's how we view Xbox today," he concluded.

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