Former PlayStation Boss Is Optimistic About Xbox's Multiplatform Strategy

Microsoft has embarked on a new multiplatform direction for several of its Xbox games, and former PlayStation boss Shawn Layden believes that this new initiative could work in the company's favor if handled correctly--much like it has for Sega. Layden believes that Microsoft can benefit from having a wider market to sell its games to as part of its new multiplatform strategy, but the downside to this is that it could possibly make it harder for the company to attract more people to its platform.

"Multiplatform is a strategy, particularly in a world where the cost of development is increasing dramatically," Layden said to YouTube channel Kiwi Talks. "Multiplatform means widening your addressable market, as the marketing guys say. How do you create the fear of missing out, trying to do that by bringing everyone to your platform? Saying, 'If you're not here you're missing out,' but if it's available on all platforms, that's one of your marketing tactics. You can't say it's only available here if it's available everywhere. So it's a balancing act, right? I'm increasing my addressable market, that's good. I'm making it harder to sell only on my platform."

As Layden noted, there was precedent for this shift in business tactics, as following the launch and poor sales of the Dreamcast, Sega dropped out of the console hardware race to focus on developing and publishing video games. "We've seen it before. I mean I was in the business when Sega brought their Dreamcast titles to PlayStation 2. And in time, Sega became a software-only company and have been a great transformation in that respect," Layden said.

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