After the official announcement of the PlayStation 5 in March 2020, Microsoft Gaming CEO Phil Spencer emailed his superiors, including Microsoft CEO Satya Nadella and CFO Amy Hood, to share his thoughts on the PS5 reveal. In the email dated March 18, 2020, Spencer expressed his belief that the Xbox Series X|S was in a stronger position to succeed than the PS5. This email was recently revealed as part of the extensive leaks from the FTC trial involving Xbox.
He stated, "Our focus extends beyond hardware and encompasses the software platform and services layered on top. We possess the necessary elements for a successful plan."
Spencer admitted to feeling a higher level of stress than usual on the morning of the PS5 reveal event. However, after thoroughly examining the details, specifications, and community feedback surrounding the PS5 reveal, he expressed confidence that Xbox had a superior strategy.
Spencer mentioned in the email that despite Microsoft not having "won anything" yet, there will be a forthcoming discussion about pricing and other factors regarding the Xbox Series X|S consoles. However, he ended his message by expressing that it was a positive day for Xbox.
The email also suggests that Spencer may have had a meeting with the Microsoft Board of Directors that didn't go as planned. He mentioned receiving feedback about coming across as "too confident" during the meeting. Although Spencer acknowledged that this email to Nadella and Hood might reinforce that perception, he decided to proceed with his "humbly confident" message because he wasn't as stressed about the PS5 reveal as he had anticipated.
In a previous email, Spencer discussed how the Xbox One failed to match the success of the PS4 and expressed hope for improvement with this new generation. He acknowledged that for the past 7 years, Xbox started each generation at a disadvantage in terms of price, performance, and messaging compared to the PS4.
Unfortunately, in terms of sheer sales, Spencer did not achieve his desired outcome. The PS5 and Nintendo Switch continue to dominate the market, outselling Xbox consistently in the US and likely worldwide. However, Microsoft's trump card is Xbox Game Pass, which offers a unique and game-changing experience that sets Xbox apart from Sony. Despite this, PlayStation continues to generate billions more in revenue from games, hardware, and services compared to Xbox.
The Xbox leaks unveiled additional information regarding Microsoft's future plans for the next-generation Xbox, a potential mid-gen upgrade for the Series X|S, as well as an upcoming lineup of Bethesda games. Furthermore, leaked documentation also showcased a new Xbox controller with haptic feedback.
The origin of this leak raises questions. According to the FTC, Microsoft initially shared a link containing this information, which was subsequently uploaded by the Court. Although Microsoft later attempted to have the documents removed, the indelible nature of the internet prevented their complete eradication.