Phil Spencer, CEO of Microsoft Gaming, aims to dismantle 'walled gardens' in the console market to allow third-party stores like Itch.io and Epic Games Store on Xbox.

Spencer advocates for a future where gamers have more freedom in purchasing options, which he believes would benefit both consumers and console manufacturers.

He acknowledges the financial challenges of subsidizing expensive console hardware in a market experiencing slowed growth.

The strategy includes promoting a more open gaming ecosystem by reducing exclusivity of Xbox games, enhancing cross-platform continuity.

There is ongoing work on Xbox handheld prototypes, reflecting Spencer's interest in expanding into the portable gaming sector.

The proposed strategy has been met with criticism and skepticism, especially in Europe, where there are concerns about Xbox's effectiveness as a hardware producer and the broader trajectory of the gaming industry.