Microsoft Gaming CEO Backs Nintendo Switch 2 — ‘Part of Our Future’

• Phil Spencer, head of gaming at Microsoft, continues to look for more players outside of its Xbox audience.
• Microsoft has been slowly moving Xbox away from a console-focused business model.
• With the cloud gaming market expected to grow rapidly, Microsoft is looking to position itself as a leader.

Microsoft Gaming CEO Phil Spencer has once again expressed support for Nintendo’s upcoming Switch 2 console, offering another rare moment of collaboration in the fiercely competitive console gaming landscape.

The Xbox head’s comments reflect the company’s broader shift toward a “play anything, anywhere” philosophy, moving away from hardware exclusivity and embracing cloud-based gaming experiences.

Xbox and Nintendo

In an interview with Variety, Spencer confirmed Xbox’s continued commitment to supporting Nintendo’s next-gen console, citing the partnership as a strategic way to reach new audiences.

“We’ve been supporting Switch 1, and I want to support Switch 2. Nintendo has been a great partner,” Spencer said. “We think it’s a unique way for us to reach players who aren’t on PC or Xbox.”

Spencer added that the Switch 2’s new hardware doesn’t threaten Xbox, as Microsoft’s focus shifts away from console competition and toward community-building and broader accessibility.

“Our industry should be focused on the communities and the player base we’re building,” he said.

Xbox’s “Everywhere” Strategy

Xbox’s current direction marks a significant departure from its traditional role as a console-centric brand.

Instead of prioritizing hardware sales — like those of the Xbox Series X or Series S — Microsoft is evolving Xbox into a flexible gaming ecosystem, accessible across multiple platforms.

A central pillar of this strategy is Microsoft’s investment in cloud gaming through its xCloud service.

This technology allows players to stream high-performance games on devices that wouldn’t normally support them, such as mobile phones, tablets, or older laptops.

According to GlobalData’s 2025 Console Gaming Report , the cloud gaming market, valued at $4 billion in 2024, is expected to grow to $22 billion by 2030.

“The cloud gaming market is still in its early stages, but competition is heating up,” the report states. “Microsoft and Sony are well-positioned to lead, thanks to their dual focus on consoles and cloud services.”

Another significant component of Xbox’s ecosystem is Xbox Game Pass — a subscription model that gives users access to a vast and rotating game library for a monthly fee.

“There are 3 billion people who play video games on the planet, and I get up every morning thinking about how Xbox can be more relevant to those 3 billion players,” Spencer told the publication.

“That’s through making sure we’re leading in how our games and platform features are available in as many places as possible — whether that’s cloud, PC, or console,” he added.

While Nintendo has not yet confirmed any specific Xbox titles for the Switch 2, rumors suggest major titles like Microsoft Flight Simulator and Halo could be in development for the platform.

Tariffs Pressure on the Console Market

The broader gaming industry continues to feel the pressure of economic and geopolitical developments, particularly U.S. tariffs on imports from China.

Nintendo recently delayed pre-orders for the Switch 2 in the U.S., assessing the impact of these tariffs, although the console’s June 5 launch date remains unchanged.

Meanwhile, Sony has announced significant price increases to its PlayStation subscription services and PS5 consoles.

Although the company did not directly attribute the changes to tariffs, it acknowledged in a recent blog post that “global market conditions” continue to affect its operations.