Microsoft FY16 Q1: Xbox HW rev down 17%, live rev up 17%, XBL MAU users up 28% to 39M

Software royalties are BY FAR the vast majority of revenue from the console business, it's not something you can call "it's the only thing they'd lose".

Even ignoring the revenue here, MS never entered the market only for revenue, the Xbox division is still in the red, they entered it specifically to prevent Sony from dominating the living room, and there are far more monetization options right now than there were in the PS2 days.

MS has the same sort of royalty for their digital store even on console as everyone else does... 30%. If we assume the future is all-digital, then software royalties is not a real defense since every digital store even on consoles get a 30% fee from every game sold.
 
I already covered that, lower overhead doesn't mean it's ideal for MS as a company, they would be surrendering the living room, which was the main reason MS created the Xbox division in the first place.

Xbox is not going anywhere.

But they more or less already lost? The Xbox was meant to be the one thing to run everything off now everything run everything more or less. Netflix, HBO, Spotify etc is almost on every device available including the TV itself now or you can just buy chromecast or Apple TV which is far less expensive compared to a game console. Streming movies and other media will only get bigger and a few years from now probably will be the norm. People who want the best picture or music will never use a games console for that either but have dedicated devices for that.
 
Is it though? Almost everyone I know used their 360 as a Netflix machine in addition to games, maybe even more often than for games. MS was on track with owning the living room, at least in NA, making money from Gold subscriptions, games, ads and everything else in the ecosystem. But they blew it pushing this idea past well its breaking point (HDMI in, Input One, TV TV TV, NFL NFL NFL, the next water cooler) and created a console almost no one wanted.

The idea that a >$400 video game console can 'own the living room' simply isn't realistic when I can get the same media functions from a $40 streaming stick.

Don't confuse people who buy the console to play games and then use it for Netflix as what Microsoft was hoping for. They were expecting a significant growth in console gaming to coincide with it becoming basically the central point for all home entertainment for not just gamers, but everyone. That didn't happen, and now they're stuck with a video game console business, something I don't think they expected or particularly wanted.
 
Someone tell me how much money Microsoft has made on Xbox Live these last few years

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But they more or less already lost? The Xbox was meant to be the one thing to run everything off now everything run everything more or less. Netflix, HBO, Spotify etc is almost on every device available including the TV itself now or you can just buy chromecast or Apple TV which is far less expensive compared to a game console. Streming movies and other media will only get bigger and a few years from now probably will be the norm. People who want the best picture or music will never use a games console for that either but have dedicated devices for that.

The irony in their marketing phrase "beta tested in the future".

Their vision was so off.
 
But they more or less already lost? The Xbox was meant to be the one thing to run everything off now everything run everything more or less. Netflix, HBO, Spotify etc is almost on every device available including the TV itself now or you can just buy chromecast or Apple TV which is far less expensive compared to a game console. Streming movies and other media will only get bigger and a few years from now probably will be the norm. People who want the best picture or music will never use a games console for that either but have dedicated devices for that.

Game consoles are still the most used devices for streaming at home, more than PC & Apple TV/Roku...etc. Netflix disclosed that the PS3 is the most used device to stream their service already. More people using your console for such features = more chances of monetizing them.

The Apple TV stuff is just the media overplaying another Apple product's relevance. Game consoles are still king of the living room.
 
Do we know for sure that PC version of Skyrim outsold the X360 version?

It outsold the X360 version & PS3 version combined. The game sold 20 million, more than half of those were on PC.

Two other games that I just remembered are Left 4 Dead & Payday, both sold better on PC.
 
It outsold the X360 version & PS3 version combined. The game sold 20 million, more than half of those were on PC.

Two other games that I just remembered are Left 4 Dead & Payday, both sold better on PC.

That 20 million figure is over 1.5 years old. Considering how leggy PC versions usually are it probably has sold a good amount of its current totals after that. Of course still when you factor that PS3 version also sold probably pretty well PC version is most likely the best selling version.
 
That 20 million figure is over 1.5 years old. Considering how leggy PC versions usually are it probably has sold a good amount of its current totals after that. Of course still when you factor that PS3 version also sold probably pretty well PC version is most likely the best selling version.

It's unlikely that Skyrim doubled its LTD sales on 360 in that 1.5 years.
 
This is a pretty crazy quote from MS because it basically is flat out saying the Xbox itself isnt the key to their long term gaming strategy



They key there is "aligned to our long term opportunity."

Well, Ms is often practically flat out saying that they want xbox as a game platform on all windows devices, and the goal is to have xbox as a console that runs windows 10.

They said that they want to have your games available on any device you own (which is also their strategy behind apps), they even said that in that extent that they want to bring the 360 emulator to Pc.

It's more and more looking like that the next xbox is going either to be a reference design with other consoles from OEMs, or that they will have a Windows 10 Console Edition (like they have one now for IoT), where you can install in any pc.

People wont pay for live on PC as long as Steam is free..doubt it.

For multiplayer they probably won't. But what if Ms starts throwing some free apps and games from the store each month from the sub? Or some other incentives. Windows user base is huge, they don't even have to get a high attach rate to make tons of money.

They already have a work and play bundle, that gets you xbox live, office 365, and xbox music. I can see other bundles like this being pushed more as well.

And no to mention, in Ms current market share even if they don't directly spent on xbox live, I think that would be happy if a large number of users started using xbox as a gaming community, even if it's to play steam games. Kinda like how they are increasing bing market share by having Cortana and other bing powered services on windows 10. That way they gain mind share, and usage. The best thing they can go for now is to make people associating xbox with their games, and choosing xbox for their gaming social interactions.
 
It's unlikely that Skyrim doubled its LTD sales on 360 in that 1.5 years.

It didn't need to. If PC version is now around 9.5 million (steamspy) back then it could have been something like 6-7 million which would leave 13-14 million to X360+PS3 and most of that goes to X360. ´Then add some extra to X360 also for this past 1.5 years. I know this is kinda guessing as console split has never been disclosed but it's not absolutely sure PC version is the best selling version of Skyrim. Probable? yes.
 
It didn't need to. If PC version is now around 9.5 million (steamspy) back then it could have been something like 6-7 million which would leave 13-14 million to X360+PS3 and most of that goes to X360. ´Then add some extra to X360 also for this past 1.5 years. I know this is kinda guessing as console split has never been disclosed but it's not absolutely sure PC version is the best selling version of Skyrim. Probable? yes.

That's a false assumption, sales for Skyrim in Europe & Japan were significantly higher on PS3, they didn't care about the poor port, the split couldn't have been further from 45/55. Skyrim only sold better on 360 in the US & UK.
 
It's inevitable, but I think we'll see one more round of consoles.

I agree, we will see another round for sure. I just hope they decide to push the technology a bit. While the PS4 is the top dog, it still struggles with many games to hit that magical 1080p/60 with decent AA and other effects.

There are a lot of things to think about for them...do they decide to support 4k? Do they come with 4k blu ray drives that have minimum 100gb capacity or higher (that is the current talk of the 4k blu ray disks), will they even use physical media? Are we going to see minimum 4tb HDD's or SSHD's?
 
Is it though? Almost everyone I know used their 360 as a Netflix machine in addition to games, maybe even more often than for games

Yeah but back then we didn't even have rokuplayere, it was our only choice

Hell anyone remember when it finally came to PS3 and we had to put that special netflix disc in the machine just to get the app to work?

Now a days you can watch Netflix on anything from your phone to your microwave

Definitely a misstep for Microsoft
 
Update: Microsoft will not be using console shipments as its primary metric for success beginning with this quarter, we have been told. The company is more focused on engagement, leading it to choose Xbox Live usership as its leading statistic.

Yeah, that doesn't sound good.

It's obvious they want to hide really really bad xb1 numbers.

I wonder what their shipped numbers are so far. 13 million at best? Which would probably put the ps4 at a 11 million lead? Right? What we're the last ps4 totals? 25 million?
 
Cover XBox sales
Remove Kinect
Replace the need to say 'Kinect' with 'Cotana'
Promote LIVE
Bring Xbox in line with PC
Promote PC

Job done. The future is obvious.
 
Microsoft got into console gaming to control the living room but that battle is going to be won by devices like the apple tv and chromecast. I don't understand the strategic purpose of the xbox anymore. It just seems like waste of energy.
 
Microsoft got into console gaming to control the living room but that battle is going to be won by devices like the apple tv and chromecast. I don't understand the strategic purpose of the xbox anymore. It just seems like waste of energy.[

How if those devices don't have the latest popular AAA games? That's not to say that those devices don't/won't do well but there will always be appeal in a gaming console being used as an all around media box as long as consoles provide content and/or apps that aren't on streaming sticks.

Basically, what I'm saying is that these streaming devices need to have their own unique features to gain interest vs. the competition. Gaming consoles with third party games (whether Xbox or PlayStation) are viewed as true one stop boxes for the latest entertainment by many because no streaming stick can compete when it comes to gaming content.

Many people interested in games like Madden, NBA 2K, Call of Duty, will use gaming consoles to stream media before ever using or getting a device like an Apple TV, Roku, or Chromecast.
 
Are people serious with the this thought that console gamers will magically migrate to PC?

lmao

I have no idea, but as living room PCs mature there's a better chance of similar happening now than at any other point in gaming's history. I've held the opinion that the original Xbox should have been a living room focused branch of Windows (with a gaming focus initially) as opposed to a hardware platform that Microsoft sunk billions into, but Microsoft massively misjudged the market.
 
Game consoles are still the most used devices for streaming at home, more than PC & Apple TV/Roku...etc. Netflix disclosed that the PS3 is the most used device to stream their service already. More people using your console for such features = more chances of monetizing them.

The Apple TV stuff is just the media overplaying another Apple product's relevance. Game consoles are still king of the living room.

Sure they do but no one interested in watching Netflix will buy a console for it today unless they are into games aswell. The popularity of watching it on consoles is not strange since it was one of the first devices to do it and already in millions of homes. A few years from now that will not be the case.
 
I have no idea, but as living room PCs mature there's a better chance of similar happening now than at any other point in gaming's history.

I think you are off base with your belief that it is even remotely likely that this will happen. Living room "PCs" in the sense that we are talking about are not going to happen. Look at where that industry is trending. Apple TV, Roku, Chromecast, Smart TVs. The average person has absolutely no interest in a PC in their living room. They want a simple to use, dedicated or integrated "Netflix Box." The real thing I expect to gain greater traction over time (as long as the idea continues to be fleshed out and built upon) are Smart TVs.

I can tell you anecdotally, that 70% of my customers, once they purchase and install a Smart TV with a decent interface, do not use ANYTHING but the built in features of the TV for streaming.

Integrating these features into the television, that is how you win the livingroom.
 
How if those devices don't have the latest popular AAA games? That's not to say that those devices don't/won't do well but there will always be appeal in a gaming console being used as an all around media box as long as consoles provide content and/or apps that aren't on streaming sticks.

Basically, what I'm saying is that these streaming devices need to have their own unique features to gain interest vs. the competition. Gaming consoles with third party games (whether Xbox or PlayStation) are viewed as true one stop boxes for the latest entertainment by many because no streaming stick can compete when it comes to gaming content.

Many people interested in games like Madden, NBA 2K, Call of Duty, will use gaming consoles to stream media before ever using or getting a device like an Apple TV, Roku, or Chromecast.

I own a ps4 but I will get an Apple TV 4, that machine and OS is built with movies/tv/apps in mind. With PS4, it's not an ideal machine for media, more like a bonus.
 
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