During PAX West 2024, Xbox head Phil Spencer shared stories about games Xbox passed on, including Destiny and Guitar Hero, which later became hits with Activision.


Phil Spencer Reflects on Missed Gaming Opportunities

At PAX West 2024, the head of Xbox, Phil Spencer, held a captivating 'Story Time' session where he delved deep into the intricacies of the gaming industry and its history, particularly focusing on some critical moments and decisions made by Xbox. Among other topics, Spencer tackled a question that sparked considerable interest: which significant games had Microsoft missed the chance to sign?

In an illuminating revelation, Spencer highlighted two major game series that Xbox had the opportunity to publish but ultimately passed on — Destiny and Guitar Hero. Both games were presented to Xbox when they were just concepts, being pitched by their respective development teams.

Destiny, a game developed by Bungie, was notably intriguing since Bungie had recently separated from Microsoft. This might explain why the pitch from Destiny's team seemed like a more natural fit at the time, although it was still declined. Spencer didn’t dive too deep into the specifics of why Destiny was turned down, but he noted the missed opportunity as the game went on to achieve tremendous success under the banner of Activision.

However, the decision around Guitar Hero was discussed more extensively. Spencer shared a candid reflection on his initial reaction to the Guitar Hero pitch. He admitted to being skeptical about the viability of a game where players used plastic guitars to interact with a music video game. This skepticism led to Xbox deciding not to collaborate on the project, a decision that Phil now looks back on with some regret. Guitar Hero would later become a massive success, creating a new genre of rhythm games and changing the music interaction gaming landscape forever.

Following the Guitar Hero pitch, the original developers partnered with Activision, and the series saw fantastic success. The popularity of Guitar Hero was a catalyst for other music and rhythm games, including Rock Band, which was developed by the same team after their work on Guitar Hero.

It's always fascinating to witness industry leaders like Phil Spencer openly discuss the "hits and misses" within the gaming sector. Spencer’s talk at PAX West provided not just a peek into past decisions but also highlighted how unpredictable the gaming industry can be. Not every executive decision can foresee the future potential of a game, and what may seem like a bizarre or unlikely concept could turn out to be a groundbreaking success.

These revelations about missed opportunities are particularly poignant, considering Xbox has previously discussed other significant games they passed on, such as the popular title Genshin Impact. Each of these instances provides a learning experience and sheds light on the complexities of game publishing and platform partnerships.

Despite the setbacks from missed opportunities, Xbox and Spencer continue to navigate the evolving gaming landscape, aiming to capture new and innovative gaming experiences for their platform. The candid nature of these discussions not only humanizes the decision-making process at large corporations like Xbox but also provides invaluable insights into the highs and lows of the gaming industry.

Phil Spencer's reflections serve as a reminder of the ever-present element of risk in the gaming industry. What might initially seem like a questionable idea can transform into a cultural phenomenon, proving that in the world of gaming, innovation and risk-taking often go hand in hand. As Xbox looks to the future, the lessons from missed successes like Destiny and Guitar Hero will undoubtedly influence their strategies and decisions in the ever-competitive world of video gaming.