Former Xbox VP Peter Moore Questions Xbox's Hardware Future, Says "Netflix Model" is Microsoft's Ultimate Goal

Former Xbox Corporate Vice President Peter Moore offered his thoughts about the future of Xbox in a detailed interview on the Danny Peña podcast, commemorating the twentieth anniversary of the iconic Xbox 360 console. Moore, who notably served in executive positions at SEGA and Electronic Arts, discussed how drastically the gaming industry has changed and questioned the viability of Xbox hardware in the future.

During the podcast, Moore stated:

“If Microsoft had the choice, would they make hardware? No. They would be delighted if they could be a multi-hundred billion-dollar entity delivering content directly to the television, or to whatever monitor you choose, in the classic Netflix model.”

Moore pointed out that Microsoft's acquisition of Activision Blizzard fundamentally altered the company's business model and approach to the gaming industry. Rather than focusing on traditional console wars—centered around market share, customer acquisition, and exclusive content—Microsoft’s strategy is shifting towards broader content accessibility, breaking away from the exclusivity model that once defined the industry.

He elaborated:

“The acquisition of Activision Blizzard changed things—not 'I think,' I know—at Microsoft. These aren't the old days of the console wars and punching each other for market share. This is bigger economically. Has it lost some of the feistiness that fed and grew the industry? I think so.”

The former VP highlighted a notable shift in Microsoft’s gaming strategy, stating clearly that the era of platform exclusivity is over. This aligns with comments made by Microsoft CEO Satya Nadella, who previously mentioned the company's long-term vision of creating a Netflix-like subscription service with Game Pass. However, this approach has encountered significant resistance from gamers, with Game Pass showing stalled growth despite high-profile titles like Starfield and Call of Duty debuting day-one on the service.

Moore, who departed from the gaming industry in 2017 after his tenure at EA to join Liverpool Football Club, admitted nostalgia for past industry dynamics, but emphasized the necessity of evolution:

“Do I look back fondly when things crop up in my social media feed, like E3 fifteen years ago? Yeah. But I think we as an industry positioned it to where it is now. It's different.”

Xbox’s move toward cross-platform content releases—publishing games even on historically rival platforms like PlayStation and Nintendo—has fueled speculation that Microsoft might eventually phase out hardware altogether. Moore’s insights amplify these concerns, suggesting Microsoft may ultimately determine that investing in physical consoles isn't economically viable, particularly if sales continue to decline.

Do you believe the Netflix-style approach to gaming subscriptions is the future, or should Microsoft stick with dedicated hardware? Share your thoughts below!