Some people haven’t appreciated Phil’s honesty here and see it as admitting defeat, but Spencer is just laying out the reality of Microsoft’s place in the gaming industry right now. Most gamers are already committed to a platform of their choice and have invested in this. Playstation has been the dominant console since its release in 1994, and since the doomed Xbox One generation, its lead is insurmountable. Spencer is describing how Xbox’s focus needs to be on other avenues to compete and ultimately grow.
Source: N4G PC Xbox hasn't 'given up' on the console war they already stopped taking part