Microsoft Doesn’t Get Gamers: Profit Over Everything

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Hey, welcome to another Consumer Tech Advice article! Today, we’re diving into how Microsoft struggles to connect with gamers. We’ll cover Windows vs. Linux gaming, Xbox as a console, Phil Spencer’s leadership and exclusives, and of course, Game Pass.

Windows vs Linux Gaming

Starting with Linux gaming—particularly PC handhelds. Tech creator Dave2D tested the Lenovo Legion Go S running Windows 11. Shortly after, Valve released SteamOS for the same device. In his comparison, SteamOS (Linux-based) performed significantly better in FPS (frames per second) and battery-saving mode. When put to sleep, SteamOS paused while Windows 11 kept running, overheating and draining the battery.

Experimenting with SteamOS on desktops is trending, even though Valve hasn’t officially supported it for PC gaming—yet. Players are already seeing better performance in games like Cyberpunk 2077 compared to Windows.

Another Linux gaming distribution, Bazzite, provides a smoother experience on desktop than Windows 11—no bloatware, fewer issues, just reliable gaming. Many don’t realize Linux supports apps like Brave, Spotify, and free Office alternatives. It’s evolved massively.

Still, it’s not perfect. Some live-service games with anti-cheat tech aren’t supported, which is a deal-breaker for some. But for single-player games? Linux often runs better than Windows, whether on handhelds or desktops.

Now, here’s the crazy part: Microsoft—a $3 trillion company built on OS software—is struggling against community-driven Linux, which Valve is improving for gaming. Windows 11 feels cluttered with unnecessary features—AI nobody asked for, Candy Crush pre-installed, constant Microsoft 365 and OneDrive sign-up prompts (even if you’re already subscribed), Bing search in the Start button, and relentless attempts to make Edge your default browser.

And then, Windows collects and sells your data while still being a paid OS. Think Windows is free because your laptop comes with it? Not really—manufacturers like Lenovo and HP factors in Windows’ cost when pricing their devices. Windows is never truly free.

After the backlash from Dave’s video and Linux gaming tests with Bazzite and SteamOS, Microsoft seemed to scramble, unveiling their ROG Xbox Ally X handheld—one of two models, with the X being the more powerful version.

They brought in YouTube influences for previews, but strangely, they couldn’t play games or properly evaluate performance, graphics, or battery life. Many of their questions were met with “We don’t know yet” from Microsoft reps. That lack of transparency makes it feel like rushed damage control after SteamOS and Linux outperformed Windows on handheld and desktop gaming.

Ironically, this new Xbox handheld boots with an Xbox interface but runs Windows 11 underneath, which users can switch to. Microsoft developers claim it’s a stripped-down version that runs on just 2GB of memory—something that sounds closer to Windows 7 but modernized. That version of Windows? Way more intriguing than the bloated OS currently on PCs.

Microsoft should have tested Windows 11’s bloated performance on the Lenovo handheld before launching. With their labs and Q&A teams, how did they not catch how poorly it would run compared to SteamOS? Instead, they launched something that made them look unprepared.

Right now, the Xbox handheld remains a mystery—will it play Xbox and PC games? Likely yes, since it supports Steam and Epic Games stores. That’s surprising, but promising. Despite my criticism, I hope the device succeeds, because if it does, Microsoft might finally optimize Windows for gaming—stripping it down, making it more efficient, and giving users freedom to choose their storefronts.

And of course, Game Pass on that kind of streamlined OS? That would be incredible.

Xbox

Microsoft is making some puzzling moves with Xbox, and it’s hard to ignore the impact.

Xbox has been part of gaming history for decades, but it’s well known that Microsoft sells its consoles at a loss, making money instead from accessories, game sales, and most importantly, Game Pass—their biggest revenue driver.

Yet despite Xbox consoles selling far fewer units than the PS5, Microsoft recently raised prices for accessories and soon on games. If sales are struggling, why increase costs? They may be clearing inventory, hoping consumers still buy despite high prices—but that’s a risky bet.

Meanwhile, exclusives are disappearing. Microsoft is putting Xbox-first games like Indiana Jones in the Great Circle, Oblivion Remastered, and even Forza on PlayStation. A game from Xbox Game Studios appearing on PS5? That’s huge.

Phil Spencer and Exclusive Games

Phil Spencer, the head of Xbox, has always dismissed exclusives, but the timing feels strategic. With poor console sales, he’s openly acknowledged they need revenue—so instead of relying on hardware, they’re pushing Xbox titles to other platforms.

Sony takes a cut in each sale, but it’s better than earning nothing from consoles that aren’t selling. Yet if Spencer is really “for the gamer,” why is Xbox laying off 2,500 employees in recent months? That’s a staggering number of people losing jobs, while high-level execs remain in place.

Phil Spencer’s biggest asset is Game Pass, but beyond that, his leadership hasn’t sparked much innovation. While he inherited a struggling Xbox brand, his approach has been more about acquisitions than groundbreaking ideas.

Microsoft spent $69 billion on Activision Blizzard and $7 billion on ZeniMax Media (which includes Bethesda). Yet, many of their studio releases have been disappointing, with flops like Starfield, Diablo IV, and Avowed. Sure, there have been hits—Indiana Jones in the Great Circle, Call of Duty: Black Ops 6, and Oblivion Remastered—but remasters aren’t new games. The hit-to-flop ratio isn’t in Xbox’s favor.

Meanwhile, Halo Infinite lacks a successor, despite Master Chief being Xbox’s most recognizable mascot. The Xbox Series X even launched with a massive Master Chief picture on the back of the box, yet the game itself arrived a year later—a baffling marketing decision.

Then there’s the Tango Gameworks shutdown, which shocked the gaming community. Hi-Fi Rush was a critically acclaimed hit, winning awards and boosting Game Pass. Yet Microsoft closed the studio, leaving fans confused.

When Xbox President Sarah Bond was asked about it, she dodged the question with a corporate response. Meanwhile, a conveniently timed camera zoom out during her response revealed Xbox’s skyrocketing growth chart—raising questions about why layoffs are happening despite financial success.

It seems like Spencer and Bond are prioritizing short-term profits, even if it means shutting down talented studios.

Xbox leadership is making questionable decisions, and layoffs of talented developers only highlight their struggles. Games aren’t selling well, yet instead of addressing deeper issues, they cut staff—effectively punishing creators for corporate missteps.

Game Pass

Raising prices on consoles, accessories, and soon games add another layer of frustration. But Microsoft has a perfect solution—Game Pass.

They’ve made their games more expensive to push players toward their subscription service, which is Xbox’s most profitable division. No explanation, just a clear strategy: increase costs, funnel players into Game Pass, and maximize recurring revenue.

Now, despite this criticism, Game Pass is hard to dislike. It’s an incredible value with multiple tiers for Xbox and PC users, and it even offers an early cancellation refund option—at least in Canada.

My experience—beating Call of Duty Black Ops 6 and Indiana Jones, then canceling Game Pass for a partial refund—is a major benefit. Those games each cost $90 when brand new in Canada, but using Game Pass strategically and cancelling early for each game during separate months saved me $150.

For single-player gamers, this is a fantastic deal. However, multiplayer requires a subscription, whereas on PC, it’s free—another cash grab by console makers.

Game Pass undeniably works, but Microsoft’s tactics—pricing shifts, layoffs, and exclusivity changes—raise concerns. They’re forcing the gaming industry into a new era.

Game Pass gets a lot of praise for its massive indie game library, but let’s be real—it’s not about supporting indie developers out of kindness. It’s cheap for Microsoft to license indie games compared to costly AAA titles, making it a quick win for Game Pass without breaking the bank. Ironically, indie games are outshining many big-budget releases.

Ask any Xbox gamer the best thing about the console, and most will say Game Pass—a subscription service where you don’t own the games and need an internet connection. That’s a wild concept when you think about it. You buy a console, yet its best feature is a monthly fee.

Game Pass is great, but Microsoft keeps hiking prices to push players deeper into subscriptions. They could have balanced pricing between Game Pass, standalone games, and hardware costs. Instead, poor management of exclusives forced them to release Xbox titles on PlayStation—an admission of failure.

A $3 trillion company (Microsoft) should have positioned Xbox as a must-buy device. How did Phil Spencer let the hardware division collapse like this?

Can Microsoft fix console and PC handheld gaming to compete with Valve? Hopefully. Because for gamers, more competition is always a win.

At the end of the day, Microsoft wants players locked into Game Pass. It’s a great service—but remember, you don’t own the games.

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