Matt Booty, the head of Xbox game content and studios, has expressed that the company’s primary competition has shifted away from traditional game developers and console manufacturers, stating that it now includes “everything else.”

In a recent discussion with The New York Times, Booty addressed the surprising news of Xbox’s iconic character, Master Chief, and its flagship title, Halo, making their way to the PS5 in 2026. This decision reflects the company’s strategy to connect with gamers across various platforms, moving beyond strict console exclusivity to broaden their reach.

“Our main rivals aren’t just other consoles,” Booty noted. “We’re now competing with everything from TikTok to movies. It’s essential for us to engage with people in their preferred spaces.”

This approach contrasts sharply with Sony’s PlayStation and Nintendo, both of which maintain a strong emphasis on protecting their exclusive titles. Sony has only recently begun experimenting with porting its games to PC, typically doing so months after initial console releases.

Regarding the recent layoffs affecting over 9,000 employees, which Microsoft characterized as necessary for adapting to a constantly changing market, Booty remarked, “Layoffs are challenging. They are a part of our business management.” While the specifics concerning the gaming sector’s layoffs remain unclear, several projects were scrapped, including Rare’s Everwild, the Perfect Dark reboot from The Initiative, and a new MMORPG from ZeniMax. Additionally, around 200 staff members from King, the studio behind Candy Crush, were let go, allegedly replaced by AI tools they developed. Reports also indicate that staff from Turn 10 Studios, known for their work on Forza Motorsport, are no longer with the company. Furthermore, funding for Romero Games’ upcoming project has been reduced, though the studio remains operational.

Recently, Microsoft announced that the Halo series is set to launch on PlayStation 5. At the Halo World Championship, a new demo unveiled Halo: Campaign Evolved, touted as “a loyal yet updated remake of the Halo: Combat Evolved campaign,” which will be available on PC, PS5, and Xbox Series X/S next year. This represents the first instance of a Halo game debuting on a PlayStation platform.