The biggest competition facing Xbox is not rival games companies, but the broader entertainment industry. 

That's according to Xbox Game Studios boss Matt Booty, who told the New York Times that Microsoft's games business' main competition is coming from TikTok and film. This comes as the firm is bringing its flagship shooter Halo to PlayStation platforms. 

“We are all seeking to meet people where they are,” he said. 

“Our biggest competition isn’t another console… We are competing more and more with everything from TikTok to movies.”

His remarks mirror comments made by Netflix boss Reed Hastings back in 2019 when he said that Fortnite was greater competition to the streaming giant than HBO. 

Booty also said that the recent wave of layoffs that Microsoft enacted, which cost around 9,000 their jobs, saw projects cancelled and studios shut down – were "difficult". 

“They are a part of managing our business," Booty explained.