At the end of the day, it's the games that determine the overall success of a console. There has been speculation that cloud-based gaming is the future of that particular industry.
To further this cause, Spencer noted Microsoft is also working on a new streaming service for the Xbox that will use Redmond's cloud reach to pipe games to not only Xbox One consoles and Windows 10 PCs but also phones.
E3 was long centered on the Microsoft, Nintendo, and Sony consoles, but a rise of play on personal computers and games becoming spectator sports has broadened the focus of the event. "Our growth strategy is to continue to expand the worlds that players love, while developing all-new exclusive games that deepen their engagement with our platform".
Microsoft recently unveiled the game engine Halo Infinite, the newest title in the series, at the E3 2018 convention in Los Angeles, California. The four studios will add to Microsoft's considerable heft in first-party game development, especially as the company looks to strengthen its game download subscription service Xbox Game Pass.
Without disclosing timing or details, Microsoft officials said they are "deep into" building more Xbox consoles (plural), and that they'll include AI technologies to help make gaming more immersive.
In the interview with Gamestalk, Miyazaki suggested that there will be some souls-like elements in the game, stating that players "will, again, die many times, and that "like Dark Souls, the sense of accomplishment overcoming difficulties is an important concept".
"The original games we create at Microsoft Studios are some of our biggest assets", said Matt Booty, corporate vice president of Microsoft Studios.
The future is looking bright for Microsoft. It has formed a brand new studio called The Initiative.
Developer Playground Games has also introduced the concept of dynamic seasons into this latest installment, which not only changes the environment throughout the game but also affects how the cars perform depending on the season.