Microsoft’s (MSFT -1.10%) upcoming Xbox game console won’t be delayed because of the COVID-19 pandemic, although new titles for it may be.
That’s according to Phil Spencer, the head of Xbox. In an interview with CNBC earlier Thursday, the executive said Microsoft’s Xbox development is “in line” with where it should be in terms of the Xbox. What’s not clear is if game production is being impacted by the pandemic, given social distancing and shelter at home orders. Developing games require hundreds of people working together, said Spencer.
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Earlier in April Sony said it was delaying the launch of “The Last of Us 2” game because of issues with logistics. The sequel to its popular game is one of the most anticipated titles of 2020.
Concerns had been mounting the tech stock would be forced to delay the launch of its latest Xbox, which is slated to be ready for the holiday selling season. Dubbed the Xbox Series X, the game console will take on the Sony PlayStation 5.
Microsoft is seeing a surge in demand for Xbox Live, its subscription service which now has 90 million monthly users, Xbox Game Pass, its video game service, which as of the end of the third quarter has more than 10 million customers, and Microsoft’s Project XCloud gaming service that’s in beta and has hundreds of thousands of users in seven countries. “People everywhere are turning to gaming to sustain human connection while practicing social distancing. And we continue to deliver new exclusive, first and third-party content to attract and retain gamers,” Microsoft CEO Satya Nadella said on a conference call to discuss third-quarter results.
Spencer acknowledged in the CNBC interview the demand for Microsoft's gaming subscriptions could slow down as the economy begins to open back up and people are freer to roam but noted there was a lot of demand prior to the pandemic.
