Calm down internet — Xbox’s “exit the gaming business” by 2027 quote is taken out of context

Head of Xbox Phil Spencer recently commented on information regarding the growth of Xbox Game Pass and its ecosystem, making a drastic claim about its development. When an FTC lawyer, James Weingarten, presented him with projected growth metrics revolving around Xbox Game Pass subscribers, Spencer claimed that the projections were far below reasonable expectations for the company (via Wccftech).

These growth metrics showed the service reaching 100 million subscribers between fiscal year 2029 and 2030, but Spencer is not a fan of these predictions. In fact, he does not “believe that is what the future Xbox business would look like.” He then proceeded to say “if this were the outcome, we would — I don’t think we’d still be in the business.” He believes the company needs to be in that position by fiscal year 2026 to 2027, or “we’d have to make a difference decision with the business.”

Is Xbox truly going to exit gaming?

If you’re anything like me, your first instinct upon reading Spencer’s quotes is to thrust yourself into panic mode. Are our video games safe? Is Xbox Game Pass going to perish? What about all of our digital media? Will the three gaming titans shrink down to two and revolve around only Nintendo and PlayStation?

Xbox projections

(Image credit: Xbox)

But there’s a reason why that one part of the quote is being highlighted by the media, as the full context of the situation is not given a proper spotlight. Spencer’s comments on the growth of Xbox do not come from a place of uncertainty and fear; it’s a result of him believing that there’s no way that would happen.

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