It's generally agreed upon in the gaming world that exclusives make or break a console. Microsoft will know that fact far too well, as it's lack of first-party releases since the Xbox Series X's launch has landed it firmly in third place in the "console wars", something that the company itself is willing to admit. However, Microsoft CEO Satya Nadella has stated that if he had his way, console exclusives wouldn't be a thing at all.
Speaking as a witness for the ongoing court battle between Microsoft and the FTC (Federal Trade Commission), Nadella explains that he'd love to "get rid" of console exclusives completely, but Sony's reliance on using exclusives to dominate the market makes it impossible. He claims that due to Sony's position as the dominant player in the games industry, it's created a world in which exclusives are the biggest sign of strong market competition.
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"I would love to get rid of the entire exclusives on consoles, but that's not for me to define," says Nadella. "Especially as a low share player in the console market that the dominant player [Sony] has defined market competition using exclusives. I have no love for that world."
Like Nadella says, Microsoft is probably the weakest player in the console market, so it's very easy for him to sit there and make bold claims about where he thinks the future of the industry should head. It's extremely likely that if Microsoft and Sony's positions were flipped, Xbox would still have as many exclusives in the works as it does today. You could even argue that Microsoft was the dominant player in the Xbox 360/PS3 era, but we still saw the company release plenty of exclusive titles.
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