Shawn Layden, who oversaw PlayStation Studios until 2019, said Microsoft must choose between becoming the world's largest game publisher or a competitive console platform. He argued the two paths cannot converge.
Layden explained that a successful platform requires exclusive content, similar to Nintendo's Mario and Zelda or PlayStation's Kratos and Horizon series. In contrast, the biggest publisher must release games across multiple platforms.
He noted Microsoft's acquisitions, including ZeniMax Media for $7.5 billion in 2020 and Activision Blizzard for $68.7 billion in 2022, positioned the company near the top of publishing. These moves, starting with several studios in 2018, created a hybrid model that Layden believes leads to confusion.
Layden expressed a preference for strong industry competition, recalling the Xbox 360 and PlayStation 3 era. He said it drove better games and excitement for players and developers alike.
The comments came in an interview conducted days before recent Xbox layoffs, as Layden discussed the challenges facing current Xbox head Asha Sharma.
