With Sony’s PlayStation VR 2 set to release on June 03, 2025, it marks the latest in a long line of major gaming devices the company has released outside its mainline consoles. It’s somewhat surprising thatMicrosofthas yet to release its own VR headset, or even a handheld gaming device. However, when taking a look atMicrosoftand Xbox’s general strategy over the years, it’s not difficult to see why the company has refrained from venturing out beyond PC and consoles.
The gaming industry has evolved tremendously over the last decade, with a growing number of players spending more time in a smaller number of titles. Whereas consoles and PCs used to be the only way to play, mobile games take up a large chunk of the industry, generating massive revenue for companies. Virtual reality is on the rise, with new devices coming out each year that push the medium forward. Because of Microsoft’s commitment to building out itsXbox Game Passservice, it can sit back while fans join its ecosystem from any device.
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Xbox Game Pass is Microsoft’s Most Powerful Tool
Over roughly 18 years, Sony has released five handheld game consoles that include several PSP iterations, the PS Vita, and two virtual reality headsets. Another prominent company, Valve, has released its own handful of devices over the years includingSteam Machines, Steam Link, the Valve Index, and most recently the Steam Deck. These devices serve a very specific role for Sony and Valve: getting a wider variety of gamers into each company’s ecosystem.
Currently, one of the biggest differences between Microsoft and Sony is that Microsoft’s ecosystem has a much wider inherent reach. Rather than focus on expanding its selection of hardware, Microsoft (through Xbox Game Pass) has greatly expanded the reach of its software. ThroughGame Pass and Cloud Gaming, players can access Microsoft’s ecosystem through a desktop PC, an Xbox console, their mobile phones, or even a smart TV.
One reason Valve has become a juggernaut is that it built a similar ecosystem accessible from any PC. When more people enter its ecosystem, it leads to more sales.Valve’s Steam Deckand the Nintendo Switch are perfect modern examples of how to successfully resonate with consumers when creating handheld gaming devices. When gamers are given more ways to play without having to purchase separate versions of software, it becomes a no-brainer in terms of where they want to buy those games.
The Steam Deck allows gamers to take their existing Steam library into a handheld form, and theNintendo Switchcan be played as a home console or a handheld. This similar freedom of choice is what Microsoft does so expertly with Game Pass and Cloud Gaming. Fans can access a library of games wherever they want, whenever they want, and they often don’t have to purchase a new device to do so.
Sony and Nintendo have clearly taken notice of Microsoft’s success with Game Pass, leading them to step up their game with their own subscription services. Sony now offers a library of games to be downloaded rather than having to rely on streaming, and Nintendo is providing a similar option with its classic titles. Microsoft has been building up Xbox Game Pass for about five years now, and one feature that no competitor has an answer for yet is new releases being added to the service day-and-date with their launch. With acquisitions like Bethesda and likelyActivision/Blizzard, Game Pass’s library will only continue to grow and improve over time forMicrosoft.
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