Microsoft Gaming CEO Phil Spencer has admitted they lost the “console war” between the Xbox One, PS5, and Nintendo Switch, saying its energies are now on Game Pass, Xcloud, and ensuring its own games work on competing platforms.

Spencer made the comments on Xbox podcast Kinda Funny Games.

He also said the idea that players would immediately jump ship to the Xbox due to strong exclusive titles doesn’t “relate to the reality of most people.”

“It’s just not true that if we go off and build great games, all of a sudden you’re going to see console share shift in some dramatic way,” Spencer said.

“We lost the worst generation to lose in the Xbox One.

“We’re not in the business of out-consoling Sony or out-consoling Nintendo. There isn’t really a great solution for us.”

Spencer also said the days of obviously generations of consoles are over.

“I see a lot of pundits out there that want to go back to a time when we all had cartridges and discs, and every new generation was a clean slate, and you could switch the whole console share,” he opined.

“That’s just not the world that we are in today. There is no world where Starfield is an 11 out of 10 and people are selling their P5s. That’s just not going to happen.”