Why Microsoft Isn’t Shutting Down Xbox Music and Xbox Video

Source: Getty Images

Source: Getty Images

Xbox Originals may be a goner before it even launched, but some Xbox entertainment components are with Xbox fans for the foreseeable future.

When the news broke that  Microsoft (NASDAQ:MSFT) would be shuttering its Xbox Entertainment Studios, some feared that all of Xbox’s non-gaming components would be getting the axe too. It turns out that this assumption is not true. Xbox Music and Xbox Video will continue to exist.

The reason why is due to the fact that Xbox Music and Xbox Video are part of the larger Microsoft universe. Both products are universal apps, meaning they are intended for use on Windows PCs, tablets and smartphones in addition to the Xbox. Despite getting part of their names from the gaming console, the apps are among the company’s growing group of apps that work across all Microsoft devices. Xbox Music is also particularly valuable as a potential contender in the growing field of streaming music.

The source of this fear is based on commentary from Microsoft CEO Satya Nadella in his speech during Microsoft’s fourth quarter conference call. In his comments, Nadella mentioned downsizing Xbox’s growing entertainment hub.

“With our decision to specifically focus on gaming, we expect to close Xbox entertainment studios and streamline our investments in music and video. We will invest in our core console gaming in Xbox live with a view towards the broader PC and mobile opportunity,” he said.