Support NeoGAF

[Rolla]

"People find real value in the investment that they make in gaming. You can buy a console, buy some games, and it can literally provide your family with hundreds of hours of entertainment. Even when we went back and looked at 2008-09, in that recession, to see what the impact was on gaming - gaming did OK. It was durable.

We want to make sure we're providing the right value to customers.

Price is going to be important.

But our strategy is centred around the player, not the device"

More at the source

Xbox Series X: Microsoft tailors launch plans for the pandemic

Xbox chief Phil Spencer explains how coronavirus has affected the console's release strategy.

www.bbc.co.uk

Considering the approach PlayStation has already committed to aka fast conversion to PS5 the contrast will be stark and I'm guessing if Sony touts their sales, this type of sentiment kinda falls flat. THe problem is XBOX has always touted console and games sales and while they may be trying to move on from a metric of success that they created, I don't think the broader audience cares, understand, or gives a fuck about these new metrics, especially when XBOX refuses to say how many PAYING subscribers they have for any of their services.

 

[Elder Legend]

Not surprising. Phil always said that they do not care how many systems they sell, but instead its about the subscription services like Game Pass Ultimate that will make the big $

 

[Deleted member 775630]

Interested to see what the impact will be on their business once xCloud releases properly. Wasn't this planned for this year? Put it under the Game Pass flag.

 

[whitesugar]

that phil spencer has actually convinced some people they don't care about how many xboxs they sell is honestly impressive

 

[HeresJohnny]

I wonder how his software partners who are investing heavily in the Xbox feel about such a stupid statement.

that phil spencer has actually convinced some people they don't care about how many xboxs they sell is honestly impressive

It really is, but they've been bending over for this guy's bullshit for half a decade now.

 

[Elder Legend]

I wonder how his software partners who are investing heavily in the Xbox feel about such a stupid statement.

How is it a stupid statement? His implying that they want the console to be accessible to many people and that the price should be right.

 

[Psykodad]

Not surprising. Phil always said that they do not care how many systems they sell, but instead its about the subscription services like Game Pass Ultimate that will make the big $

It's because they know they can't compete with Sony and Nintendo and they're already focusing on their streaming services. Next-gen won't be any different from this gen and MS will like shift towards becoming the next EA.

But I'm just a fanboy console-warring these forums, so..

 

[vaibhavpisal]

I am cool with this. I will subscribe to game pass when possible.

 

[REE Machine]

Ans this is why i aint picking one up day one. They are on a very slippery slope with their services angel where as sony again will appeal to the old school gamer who take the box home, buy great games etc.

 

[HeresJohnny]

How is it a stupid statement? His implying that they want the console to be accessible to many people and that the price should be right.

Because the suggestion that the strategy isn't to sell a ton of Xboxes is fucking dumb on its face and irresponsible and insulting for people who've put their eggs in the Microsoft basket and partnered up with them.

 

[Elder Legend]

It's because they know they can't compete with Sony and Nintendo and they're already focussing on their streaming services. Next-gen won't be any different from this gen and MS will like shift towards becoming the next EA.

But I'm just a fanboy console-warring these forums, so..

To tell you the truth, you are acting like a console fanboy lol. Microsoft shifted their strategy a long time ago and have a different approach that will work for them.

Next gen is already better for MS than their old gen. They have a bunch of new 1st party studios and new IPs in the making. You might wanna go back to Sonyland where you belong bud.

 

[ElDiablo90x]

Strategy doesn't make sense. If centred around the player, why not go full third party and appear in all next gen devices? They'd get much bigger game pass numbers.

 

[Vawn]

They will always reveal the metrics that make them appear the most successful and hide metrics that make them look bad. That's just basic marketing, as success breeds consumer confidence.

I don't think it fools most consumers however.

 

[Moses85]

Ok than Philly. Give them all out for free

I’ll take two!

 

[JustP_Gaming]

I and many others have been saying this for a long time but many still don't get it and want to wage this crazy fanboy console war. It's a software war now.

 

[GymWolf]

Traduction

 

[Elder Legend]

Because the suggestion that the strategy isn't to sell a ton of Xboxes is fucking dumb on its face and irresponsible and insulting for people who've put their eggs in the Microsoft basket and partnered up with them.

Lol. You don't need any of their consoles to play their games. You can play them on PC by subscribing to Game Pass and this is where the magic happens for publishers and devs. Many games will be far easier accessible than before. I don't get how people don't understand that Microsoft is trying to sell an eco system and not a box. The box is just a bridge if you don't have a PC.

I am pretty sure if this was stupid strategy that none of the 3rd party devs would go with it. Lol.

 

[Rolla]

Honestly it seems like pre damage control. Phil absolutely refuses to say how many actual "paying" GP subs they have. Giving away GP subs on the back of candy wrappers is one thing. A publisher looking to make money or at least help recuperate their investment on the XBOX platform is another.

I honestly think that statements like this lead to the disparity in the number of exclusives Sony is able to get from third party

 

[Psykodad]

To tell you the truth, you are acting like a console fanboy lol. Microsoft shifted their strategy a long time ago and have a different approach that will work for them.

Next gen is already better for MS than their old gen. They have a bunch of new 1st party studios and new IPs in the making. You might wanna go back to Sonyland where you belong bud.

You probably take it that way and I can't be bothered about it tbh.
All I'm saying is the obvious and now we have Phil Spencer indirectly saying the same as well. Again.
If that's me being a fanboy, I'm perfectly fine with it. People will realize it eventually.

MS already gave up going for the top as a console manufacturor a long time ago.

 

[HeresJohnny]

Lol. You don't need any of their consoles to play their games. You can play them on PC by subscribing to Game Pass and this is where the magic happens for publishers and devs. Many games will be far easier accessible than before. I don't get how people don't understand that Microsoft is trying to sell an eco system and not a box. The box is just a bridge if you don't have a PC.

I am pretty sure if this was stupid strategy that none of the 3rd party devs would go with it. Lol.

What if you don't have a PC?

 

[Vawn]

Strategy doesn't make sense. If centred around the player, why not go full third party and appear in all next gen devices? They'd get much bigger game pass numbers.

Sony and Nintendo likely don't want GamePass on their consoles. Why tank their software sales so Microsoft can get subscription fees from their players?

 

[Elder Legend]

What if you don't have a PC?

You can play Halo Infinite, Hellblade 2, Gears 5 on your android phone via xCloud.

I was playing DMC5 on my phone the other day at silky smooth 60fps with my controller attached. It was fantastic.

 

[Vawn]

What if you don't have a PC?

What if you don't have electricity?

Obviously, you need something. You just don't need an Xbox.

 

[Naddy]

It's because they know they can't compete with Sony and Nintendo and they're already focussing on their streaming services. Next-gen won't be any different from this gen and MS will like shift towards becoming the next EA.

But I'm just a fanboy console-warring these forums, so..

Usually, console makers don't make a profit selling their consoles. Usually they make most profit with selling the software.
I mean back then Sony lost a lot of money by just selling the PS3 hardware:

Sony Losing Big Money on PS3 Hardware

Analysts say makers sell consoles at a loss and profit on games, but Sony's loss is unusually high.

www.pcworld.com

Of course nowadays that loss is not that big anymore, but still Sony and MS make most money selling Software and Subscription services, so of course, to him it doesn't really matter how much console he sells this year as long as they sell their subscription services and games, they are happy. As long as you are in their ecosystem they are happy.

And again, he said:

Our strategy does not revolve around how many Xboxes I sell this year.

Because there is a pandemic going on, so he is fine with people buying their games on xbox one or PC they already have, as long as they are in their ecosystem.

Don't know what's so wrong about that at all.

 

[HeresJohnny]

You can play Halo Infinite, Hellblade 2, Gears 5 on your android phone via xCloud.

Wow sounds fucking rad.

 

[Shrap]

 

[Deleted member 775630]

Honestly it seems like pre damage control. Phil absolutely refuses to say how many actual paying GP subs they have. Giving away GP subs on the back of candy wrappers is one thing. A publisher looking to make money or at least recuperate their investment is another.

10 million Source

 

[HeresJohnny]

What if you don't have electricity?

Obviously, you need something. You just don't need an Xbox.

Not everyone is going to have a PC that is capable of playing games with any consistent hope of them looking better than dog poop.

Still, I find the "we don't need to sell Xboxes" strategy to be compelling. Let's see how it plays out.

 

[Elder Legend]

Wow sounds fucking rad.

Nice sarcastic snarky response. You thought you were slick with your "What if you don't have a PC?" Comment. Sit the fuck down dude.

 

[sublimit]

I'm pretty sure he would sing a different tune if they had sold as many XB1s as PS4s.

 

[DrAspirino]

Strategy doesn't make sense. If centred around the player, why not go full third party and appear in all next gen devices? They'd get much bigger game pass numbers.

I don't know why, but it seems this is going to be their last generation (Xbox Series X) before going full cloud...OR maybe they'll keep releasing consoles but at a much lower number.

Just take their Office suite, for example. They've moved from a version-to-version scheme (with a steep license cost), to full-on Office-as-a-service scheme, pushing their Office 365 services hard - and when I say hard, I mean REALLY HARD, up to the point of converting big companies to their subscription model.

So...if you want to get Office 2016 or Office 2019 you can still do so, but they highly discourage it in favor of subscribing to Office 365. Same can (and probably will) happen to the Xbox division.

 

[Psykodad]

Usually, console makers don't make a profit selling their consoles. Usually they make most profit with selling the software.
I mean back then Sony lost a lot of money by just selling the PS3 hardware:

Sony Losing Big Money on PS3 Hardware

Analysts say makers sell consoles at a loss and profit on games, but Sony's loss is unusually high.

www.pcworld.com

Of course nowadays that loss is not that big anymore, but still Sony and MS make most money selling Software and Subscription services, so of course, to him it doesn't really matter how much console he sells this year as long as they sell their subscription services and games, they are happy. As long as you are in their ecosystem they are happy.

And again, he said:



Because there is a pandemic going on, so he is fine with people buying their games on xbox one or PC they already have, as long as they are in their ecosystem.

Don't know what's so wrong about that at all.

There's nothing wrong with what Phil said, or what he has been saying for the last couple of years.
It's just all their statements put together that indicate that they are taking a turn and moving away from focusing on their consoles.
Which is perfectly fine.

At this point, they're just better off at being a major third party publisher.
But somehow people take that as console warring.

 

[Elder Legend]

Usually, console makers don't make a profit selling their consoles. Usually they make most profit with selling the software.
I mean back then Sony lost a lot of money by just selling the PS3 hardware:

Sony Losing Big Money on PS3 Hardware

Analysts say makers sell consoles at a loss and profit on games, but Sony's loss is unusually high.

www.pcworld.com

Of course nowadays that loss is not that big anymore, but still Sony and MS make most money selling Software and Subscription services, so of course, to him it doesn't really matter how much console he sells this year as long as they sell their subscription services and games, they are happy. As long as you are in their ecosystem they are happy.

And again, he said:



Because there is a pandemic going on, so he is fine with people buying their games on xbox one or PC they already have, as long as they are in their ecosystem.

Don't know what's so wrong about that at all.

The fanboys are bored due to Corona and they're looking to incite a flame console war. That's what's happening.

 

[Vawn]

Not everyone is going to have a PC that is capable of playing games with any consistent hope of them looking better than dog poop.

Still, I find the "we don't need to sell Xboxes" strategy to be compelling. Let's see how it plays out.

I agree with that. Especially if their games sell on Steam, they give 30% to Valve. And if a third-party game sells on Xbox MS gets 30%, while they get 0% on PC (unless it's their own storefront that nobody uses).

 

[Dabaus]

Reading between the lines here, it sounds like there will be less Series X's than initially planned for launch, it will be more expensive than intended, or they have data suggesting despite all the positive PR theyve generated that no one is actually interested in buying the system. Or all of the above.

 

[HeresJohnny]

Nice sarcastic snarky response. You thought you were slick with your "What if you don't have a PC?" Comment. Sit the fuck down dude and admit you got caught.

I meant that not everyone is going to have a PC capable of playing games.

Also your assertion that "if this were a dumb strategy 3rd parties would run away" is flawed. Kinect says hi.

 

[cireza]

that phil spencer has actually convinced some people they don't care about how many xboxs they sell is honestly impressive

Hardware sales have never been the main source of revenue for video-game companies, nothing new here.

especially when XBOX refuses to say how many PAYING subscribers they have for any of their services

You can subscribe to gold and gamepass without paying ?

 

[Deleted member 775630]

Reading between the lines here, it sounds like there will be less Series X's than initially planned for launch, it will be more expensive than intended, or they have data suggesting despite all the positive PR theyve generated that no one is actually interested in buying the system. Or all of the above.

Or maybe they are planning to release Game Pass on another device? Although I don't really know any other device that would let this service on their system.

 

[SuperLupeRap]

that phil spencer has actually convinced some people they don't care about how many xboxs they sell is honestly impressive

It's not just words otherwise they wouldn't be supporting the Xbox One with all first party exclusives for another 2 years after the launch of Series X

They obviously care more about how many people sign up to Live, Gamepass and how much software they push through Xbox and PC.

But people on Neogaf are going to claim they know better than Phil and MS

 

[turtlepowa]

Don't do this Phil. So many Sony warriors can't wait for the sales numbers next year, just to rub it in the Xbox fan's faces even though it's clear MS can't win with Pc ports and xCloud. You can't take that away from them!

 

[HeresJohnny]

But people on Neogaf are going to claim they know better than Phil and MS

Maybe because Spencer and MS have gotten their asses kicked and hearing ridiculous shit like "we don't have to sell consoles" isn't giving us the warm fuzzies that they've learned anything from it?

 

[Vawn]

But people on Neogaf are going to claim they know better than Phil and MS

They DO know better than to blindly believe a PR person who tells you what he WANTS you to believe.

 

[SuperLupeRap]

I wonder how his software partners who are investing heavily in the Xbox feel about such a stupid statement.


It really is, but they've been bending over for this guy's bullshit for half a decade now.

They seem to be totally fine, hence all of them supporting Gamepass and Japanese studios getting back to Xbox (Yakuza, all FF games, Tales games etc finally coming to Xbox)

But please, your armchair analyst degree can be valuable in telling us how what I said above is not true

 

[HeresJohnny]

They seem to be totally fine, hence all of them supporting Gamepass and Japanese studios getting back to Xbox (Yakuza, all FF games, Tales games etc finally coming to Xbox)

But please, your armchair analyst degree can be valuable in telling us how what I said above is not true

I owned a 360 and I own an Xbone. I can confidently testify that they don't seem totally fine.

 

[SuperLupeRap]

They DO know better than to blindly believe a PR person who tells you what he WANTS you to believe.

Euh... How does Phil making me believe that MS prioritizes other metrics to measure success have any impact on sales, business growth and or profit whatsoever?

Genuinely confused what they gain in "making" me believe that

 

[SuperLupeRap]

I owned a 360 and I own an Xbone. I can confidently testify that they don't seem totally fine.

Cool well please lay it out to me as I kindly asked in my previous post.

 

[JOEVIAL]

Back in the day Microsoft actually made computers. They quickly went away from that model though to just offer Windows OS to computer manufactures. Nowadays Microsoft makes their money off of software and OS (although yes, I know they do still sell computers and other electronic devices.)

It really does sound like they are wanting to turn XBOX into the Windows OS model. The model that makes them the big bucks. They want to replicate that, even though it may not be successful. They just want to turn XBOX into that, no matter what the cost really.

This makes me sad. Gone will be the days of a dedicated box, made for a dedicated purpose.

 

[Deleted member 775630]

Maybe because Spencer and MS have gotten their asses kicked and hearing ridiculous shit like "we don't have to sell consoles" isn't giving us the warm fuzzies that they've learned anything from it?

But the Game Pass strategy can result in so much more money than the console business...

Let's say the XSX will sell for $500 the first year. You'll only need 3 people that will subscribe for 1 year on Game Pass to generate the same amount of money. (3 people * $15 GP subscription * 12 months). Knowing that Game Pass is available on PC AND Xbox, I understand that he says that selling Xbox consoles isn't the only metric onto which Nadella will grade his performance.

 

[HeresJohnny]

Cool well please lay it out to me as I kindly asked in my previous post.

Well, let's stick with the topic and discuss why it makes sense to anyone that if a company is going to go into hardware and develop partnerships based at least (probably more) on that hardware, to say that they're not concerned with how many they sell in its launch year.

 

[SuperLupeRap]

Hardware sales have never been the main source of revenue for video-game companies, nothing new here.


You can subscribe to gold and gamepass without paying ?

Hey man, no logic or sensible evidence will be accepted in this thread lol.

They will just come back with nonsensical verbal diarrhea like it actually changes anything to cold hard facts or reality