Not every game needs to be turned into some big live service according to Phil Spencer. The Xbox CEO advocates for a renewed focus on single-player games with a clear “beginning, middle, and end.”
Live-service games: a thriving yet controversial business model
As per a recent survey, a third of all triple-A developers are actively working on live-service games. Despite being an umbrella term for vastly different games spanning several genres, from Fortnite to Genshin Impact, the notion of a live-service game applies to a title mostly designed for continuous updates and in-app purchases.
While offering players a go-to comfort game that may last decades, games as a service provide a stable revenue stream for developers – and somewhat of a perpetual money-making machine for shareholders. Even with the failures of titles like XDefiant, major publishers like Ubisoft have been doubling down on their live-service efforts.
But this business model is increasingly in dispute, with gamers riled up against what many perceive as mere cash grabs. And one prominent voice in the industry might not be as interested as everyone else in seeing these games dominate the AAA landscape.
A push for more diversity in the big-budget end of the gaming ecosystem
Speaking with Xbox Era, Xbox boss Phil Spencer expressed his thoughts about the current live-service trend. Not every story needs to be “told in that way,” he said, before adding that not all creative ideas fit that business model.
Rather ironically, the publisher owns one of the biggest such services in the world, with subscribers to the Xbox Gaming Pass able to access titles such as Apex Legends or Forza Horizon 5. The acquisition of Activision Blizzard brought to its catalog some of the most popular live-service games around, including Overwatch 2. However, the company’s subscription service has also backed several single-player games that don’t span hundreds of hours.
To hammer the point home, Spencer cited the latest Xbox Developer Direct broadcast as an example, during which many smaller single-player games were showcased, such as South of Midnight. Mentioning studios like Compulsion or Double Fine, he reinforced that not all teams needed to be 1000-strong to do great and innovative work. Incidentally, Spencer explained that one of the reasons for launching Game Pass was to give developers an alternative to turning every game into a live-service product.
A live service fatigue in sight?
Many developers feel as strongly as Spencer about delivering complete stories to players, even when it means antagonizing their very publishers. Following the disappointing sales of Dragon Age: The Veilguard, EA suggested that the fantasy RPG would have performed better as a live-service product.
Yet, BioWare teams were vehemently against incorporating live-service and multiplayer elements into The Veilguard. A former Dragon Age dev even called out the “silly” demands to “change the DNA” of what the fandom loved. In 2024, a Game Developer Collective survey indicated that developers were split on the issue, with 70% of respondents worried about the sustainability of the live-service model.
A silver lining for single-player gameplay?
Recent success stories have shown that not all games must go down the live service route to perform well. Released in early February, Kingdom Come: Deliverance II sold a whopping 2 million units in less than 2 weeks – teaching publishers the important lesson that single-player experiences can triumph just the same as their multiplayer counterparts.
As side effect, the acclaimed RPG might have reignited the interest in similar medieval stories, from Manor Lords to Crusader Kings. The medieval theme is even in fashion on iGaming platforms like VegasSlotsOnline. Single players can discover online slots like Medieval Warfare, Age of Knights, or Knight Gambit. Unlike live-service titles, these mobile-friendly games require no registration. Users may still sign up to grab promotional deals like free spins.
What’s next for Game Pass?
In 2025, Microsoft will celebrate eight years since launching its Netflix-style gaming service. Despite featuring many live-service heavy-hitters like Call of Duty, Game Pass is now big enough that Xbox can support a wider variety of games, just like its CEO intended.
Phil Spencer reasserted that Xbox does not aim to replace game ownership with services like Game Pass while reaffirming the pivotal role his company must play in encouraging triple-A and smaller studios to tell complete single-player stories without shoehorning live-service elements. Incidentally, one of the biggest upcoming releases on Game Pass is none other than the single-player fantasy RPG Avowed.
