Phil Spencer: Economic uncertainty means new xbox may not be priority. Strategy doesn't depend on this years sales.

ChildoAC

Neo Member
Look, Phil Spencer has a bad habit of pre-emptive damage control. When they lost COD, FIfa, Before CD3, SFV going exclusive etc etc etc. This guy and Greenberg are kings at give away a lot of info pre-emptively. The problem with saying in advance that you don't care about console sales is the fact that they are actually releasing a new console.

Really well put and substantiated.

While the absence of information on hardware (Sony) and software (MS - flagship Halo series) has been frustrating from a consumer perspective, I don't think anything about Phil's statement seems 'strategic'.

It reads to me as if he's saying 'brace yourself, high prices are coming and we know sales will suffer'.

With Xbox-ing day potentially pushed to August, the launch strategy just doesn't seem as cohesive as it could be, despite how forthcoming they've been with information.

I consider Xbox GamePass the single best deal in gaming, but Phil's statement is worrying to me.
 
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Deleted member 775630

Unconfirmed Member
Getting the money upfront on a console sale is much more reliable than hoping those 3 people stay subbed on Gamespass for an entire year at full price. That's not really even debatable.
Getting someone to spend $500 on a single day is much more difficult than 3 people spending $15 a month 12 times over a course of 7 years.
 

quest

Not Banned from OT
I’m shocked how many people in this thread, on this forum, are excusing this BS.

Personally, a new console is the only highlight in this morbid reality.
A head of a division is asked how a 100 million people world wide losing their jobs might affect how they launching a new product. If you don't think that has an impact well you win warrior of the month with Tim what's his name.
 

Nikana

Go Go Neo Rangers!
I’m shocked how many people in this thread, on this forum, are excusing this BS.

Personally, a new console is the only highlight in this morbid reality.
giphy-downsized-medium.gif
 

Shmunter

Member
A head of a division is asked how a 100 million people world wide losing their jobs might affect how they launching a new product. If you don't think that has an impact well you win warrior of the month with Tim what's his name.
I’m not commenting on any impact, I’m calling out the lack of commitment to the next gen. But this is nothing new, MS has been diluting the generational step well before COVID & angry mobs.

Your comment is overly defensive, why is that?
 

Nikana

Go Go Neo Rangers!
I’m not commenting on any impact, I’m calling out the lack of commitment to the next gen. But this is nothing new, MS has been diluting the generational step well before COVID & angry mobs.

Your comment is overly defensive, why is that?

Has the most powerful next gen system.

Says they lack commitment.

Can't make this stuff up.
 

Shmunter

Member
Has the most powerful next gen system.

Says they lack commitment.

Can't make this stuff up.
Make what up? The article is linked in the op. Read.

It’s plain. If MS were any more reluctant to release another console vs their services ambitions they’d be pee shy.

And people wonder where all the rhetoric on competing with google and amazon comes from. The most begrudging console release in history.
 

quest

Not Banned from OT
I’m not commenting on any impact, I’m calling out the lack of commitment to the next gen. But this is nothing new, MS has been diluting the generational step well before COVID & angry mobs.

Your comment is overly defensive, why is that?
Because people are willfully ignoring what he was asked for context. The whole thread is wilfully pilling on dishonestly taking something out of context. There is a lot to shit on Microsoft for no need to be dishonest about it. This could of been a good conversation about launching these consoles in tough economic times. Instead it is piling on the Phil don't care about selling systems because he might think someone who lost thier job might choose food or rent over a new toy. That is ok because they will get a job and have money for that new toy soon enough. It is a marathon not a sprint they are in this for the long haul.
 
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Eliciel

Member
Doesn't this implicitly turns XSEX, as a console, to absolute irrelevancy to purchase for a lot of people on this forum? How many of us do not own a PC at the same time and why should they then not launch everything on PC via XBOX Live+Gamepass+Gold on Day 1. Maybe they even change it to: Whoever own Gold + Gamespass = 14,99€ per month simply gets ALL games day 1...? WHo knows what will await us, but it must be great for gamers! :D
 

Shmunter

Member
Because people are willfully ignoring what he was asked for context. The whole thread is wilfully pilling on dishonestly taking something out of context. There is a lot to shit on Microsoft no need to be dishonest about it. This could of been a good conversation about launching these consoles in tough economic times. Instead it is piling on the Phil don't care about selling systems because he might think someone who lost thier job might choose food or rent over a new toy. That is ok because they will get a job and have money for that new toy soon enough. It is a marathon not a sprint they are in this for the long haul.
No bro, it is in the context of the overall MS messaging over time that people can properly put what is said in the article into perspective.
 

Nikana

Go Go Neo Rangers!
Make what up? The article is linked in the op. Read.

It’s plain. If MS were any more reluctant to release another console vs their services ambitions they’d be pee shy.

And people wonder where all the rhetoric on competing with google and amazon comes from. The most begrudging console release in history.

There is no where in that article that signifies they are reluctant. At all. But hey, keep trying.
 
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Arkam

Member
As long as the games are priority I couldn't give a fuck where they sell them.

Thats what leads to crap platforms like Origin, Windows Store, whatever that Ubi crap, etc Platforms matter big time. It specifies the user experience when playing said games. So I agree games are very important, but I also think platforms are too.
 
after the bloody financial hole ive found myself in after a couple of legal battles

and being laid off for the course of this pandemic.

i cannot justify spending money on either next gen thing.

and im usually the first to buy them
 

Redlight

Member
As long as the games are priority I couldn't give a fuck where they sell them.
I suspect Phil is just preparing the path for a streaming service alongside the Series X. Sure, we can count unit sales, but MS may be more centred on subscriptions across numerous devices, PC, consoles, phones etc.
 

Gamernyc78

Banned
Because they are stupid? If money will be tight next fall then it surely will affect sales. However, it seems the US economy is picking up steam (gaining jobs in May, not losing them) so things may be swell after all.

Anyways, I'm pretty sure most of you guys replying in this thread have not even read the article...

Thy are so stupid thyve been demolishing them in revenue, sales, and profit in gaming. Smfh. And have been around through many recessions and still sold millions of consoles.

Your comment was edgy, corny, definitely fanboyish and frivolous.
 
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I'll never understand why people think MS's priority has to be to win the generation in sales. Unlike Sony they dont rely on the xbox division to keep them solent, so I'd imagine they are happy as long as the division remains profitable. Personally I like their shift to a subscription based service. It allows me to try games I wouldn't have previously, plus it gives my boys tons of options at no additional expense to me.
 
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Deleted member 775630

Unconfirmed Member
Thy are so stupid thyve been demolishing them in revenue, sales, and profit in gaming. Smfh. And have been around through many recessions and still sold millions of consoles.

Your comment was edgy, corny, definitely fanboyish and frivolous.
Good thing your comment doesn't come over as fanboyish...

Phil Spencer just answered the questions that due to Covid-19, people will have financial problems or not the leeway to buy $499 consoles. So this year's sales figures doesn't have a big influence on their strategy, because only looking at the numbers and not the context doesn't make sense.
 

Nikana

Go Go Neo Rangers!
I'll never understand why people think MS's priority has to be to win the generation in sales. Unlike Sony they dont rely on the xbox division to keep them solent, so I'd imagine they are happy as long as the division remains profitable. Personally I like their shift to a subscription based service. It allows me to try games I wouldn't have previously, plus it gives my boys tons of options at no additional expense to me.
Whoa whoa whoa whoa. Wait...

You're telling me Microsoft cares about money and not fanboy wars on the internet.

Fucking bullshit.
 

NickFire

Member
I'll never understand why people think MS's priority has to be to win the generation in sales. Unlike Sony they dont rely on the xbox division to keep them solent, so I'd imagine they are happy as long as the division remains profitable. Personally I like their shift to a subscription based service. It allows me to try games I wouldn't have previously, plus it gives my boys tons of options at no additional expense to me.
MS is free to make any priorities it wants. But selling the most consoles will always be near the top of the list. Maybe not after they realize its hopeless like this gen. But going into a gen of course they want that. More units sold = more profit.
 
MS is free to make any priorities it wants. But selling the most consoles will always be near the top of the list. Maybe not after they realize its hopeless like this gen. But going into a gen of course they want that. More units sold = more profit.
Actually, more games sold = more profit. I like the fact that they are adjusting their strategy, which ends up to my benefit.
 

The Pleasure

Gold Member
Yeah sure you're totally cool with that... As long as it's your Lord and Saviour Sony.

Aight man, keep on fighting 💪 hopefully you'll convince a few people or Sony will notice your zeal and reward you or something, I'm out.
Got a dollar. Five years of gamepass plz. Phil spencer gots the hook up!
 

sainraja

Member
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.

Given everything they have done lately that wouldn't surprise me. If they kept the Xbox platform around and differentiated it with other features while also putting their content on other platforms, well, that would be insane.
 
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Woo-Fu

Banned
"Phill, the economy is in the toilet and the stock market is crashing, do you know what to do with Xbox SEX?"
Have you looked at the market recently? It is up 3-4k points over the last 30 days. It is just barely negative for the year, barely, it was positive briefly yesterday.
 

EDMIX

Writes a lot, says very little
All of the publishers you listed already have their own launchers. Why do you think you can't get Overwatch on Steam? They don't want to give up their cut.

Thats nice...

Who said they didn't?

They are still on many platforms to make as much money as they can. My god, I even state in clear English "Plus on PC or even XB" as in PLUS their own set up.....as in, also, including etc. Having their own platform with launchers or subscriptions didn't stop them from being multiplatform.

but to give up consoles and hardware

Never said anything like that... as to why I even stated on top of PC and XB install base, no different then EA with Origin or Ubisoft with their Uplay stuff. Them having that didn't suddenly mean they released games on nothing else. If they love those subscription numbers so much, going completely 3rd party sounds inevitable at this point by this publisher as their own messaging is seeking to put games on ALL DEVICES.

"That is our goal: to bring high-quality games to every device possible on the planet.”


So them even continuing XB or not is a if, but them going 3rd party most certainly is not.
 

diffusionx

Gold Member
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 think they would release games on the PS5 unless they can tie it to some sort of EA Access like service for their own titles. But if Sony were to give the go ahead on that, I would fully expect to see Forza, Gears, Halo, the stuff from Obsidian and inXile, etc., land on the PS5. I think they would do it in a second.
 

Nikana

Go Go Neo Rangers!
Thats nice...

Who said they didn't?

They are still on many platforms to make as much money as they can. My god, I even state in clear English "Plus on PC or even XB" as in PLUS their own set up.....as in, also, including etc. Having their own platform with launchers or subscriptions didn't stop them from being multiplatform.



Never said anything like that... as to why I even stated on top of PC and XB install base, no different then EA with Origin or Ubisoft with their Uplay stuff. Them having that didn't suddenly mean they released games on nothing else. If they love those subscription numbers so much, going completely 3rd party sounds inevitable at this point by this publisher as their own messaging is seeking to put games on ALL DEVICES.

"That is our goal: to bring high-quality games to every device possible on the planet.”


So them even continuing XB or not is a if, but them going 3rd party most certainly is not.

I don't even know what you are on about anymore. Maybe you are confusing me with a different conversation? I never said they shouldn't go third party. What I said was it doesn't make sense to put Game Pass in eco systems they can't control and are closed off.

You very clearly said they should question to make their own hardware.

So I think 3rd party is likely inevitable for them if they keep this up as it starts to question the point of even making hardware if they are JUST fighting for subscriptions and services etc.

My response was simply not making hardware doesn't make sense because people buy their hardware. Its not in the 160 million by any means but theres not a lot of reason to stop making hardware when they no longer are taking huge losses out of the gate as previously in the industry. They sold 50 million devices of what the market considers a meh product.

This strategy aligns with the Surface strategy which works well for them. Its proven to work there. Without surface and the hardware it wouldn't be nearly as profitable.

What doesn't make sense is putting Game Pass on every device that they can't control the rules on.Putting in on PS4 they take a huge cut, same as switch. But other markets like android it makes sense and they already are prepping for it. Putting their software on markets like Steam and taking the hit makes more sense than trying to put a library of content that you don't own onto a service like Steam.
 
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EDMIX

Writes a lot, says very little
My response was simply not making hardware doesn't make sense because people buy their hardware.


smh

" I even stated on top of PC and XB install base "

So I see no reason to even argue about that when I'm even stating here including that install base if they choose to go that route. So we don't know what MS will do with XB past this gen, but what I stated very clearly speculates what it would be like if they had that included.. Even if MS got rid of XB, that 50 million install base (if thats even the final number tbh) will just migrate to PS, Nintendo, PC etc. They won't suddenly stop gaming for life or something. To MS, the cost of even making that hardware and marketing it, manufacturing it, sustaining it etc might be even more of a incentive to just be a publisher solely.

What doesn't make sense is putting Game Pass on every device that they can't control the rules on.

I disagree. The extra 160 million install base is just way too much to even entertain them NOT doing that for such a silly reason. EA clearly can't control all the platforms, same with Activision and Ubisoft, yet clearly they are 3rd party publishers. Having their own launchers is nice, but its not sooooooooo much of a priority that they would avoid more users as it doesn't really make any sense. So EA having that subscription service on XB and PS and a launcher on PC doesn't actually stop them from still making games on many platforms, even ones they don't control. MS own messaging states they want games on all devices so clearly MS THEMSELVES don't seem to actually care as much as you regarding that tidbit...

As in, you are even arguing a point MS themselves don't seem to actually support based on their messaging. So I'd hold off on the "MS won't do this or that" stuff as we've heard that many times before. Wasn't MS not going to put games on Mac yet did? Not going to put games on PC, yet did. Ok on PC, but not Steam, then did. Ok, on Steam and PC, but not day and date, yet did. Would not put at any games on PS or Nintendo, yet did...... We've heard this so many times, I think its best to just accept what MS is saying.

For god sakes, they are TELLING YOU THE WANT GAMES ON ALL DEVICES! Whats next? Ok MS is putting Gamepass on PS5 and Switch 2, but the won't be day and date AAA MS titles?
 
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Not exactly surprising coming from the company that launches their games on xbox and PC simultaneously. Obviously HW sales will take a hit.
 

Jadsey

Member
It now looks like next gen is a straight fight between Sony and Nintendo.

Phil basically saying what we’ve all known for years....Xbox are out of the console space and into a paid subscription service only.

Ultimately, that will fail also as their exclusive games are substandard.
 
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EDMIX

Writes a lot, says very little
What else do they have to counter PS4 swansong with FFVII Remake, TLOU2 and GoT?

Agreed.

As far as I can see, Sony's PS4 lineup this year, is their marketing for PS5 next gen. As in, look at what we are doing now, we are PROVING we support our systems to the end, you can count on The Last Of Us 3, Ghost Of Tsushima 2, FFVII Remake continuation etc. They are making a massive point with this year to give great reason to users to buy PS5.

Its not a promise of support, its a obvious, inevitable continuation of it and this year shows what fans can expect from the publisher on PS5.

If you own a XONE, you are basically watching Nintendo gamers go nuts over Animal Crossing and PS gamers go nuts over FFVII remake, The Last Of Us 2 etc. Support for that install base is a promise of something, support on other install bases is clockwork, its routine, its the norm.... Even look at PS2's ending with God Of War 2 coming out after PS3's release or PS3's last year having The Last Of Us, Beyond Two Souls and GT6 etc. They are known for supporting their systems 100% beginning to end, they don't need to promise anything.

That support is expected by Sony fans, its promised by MS....
 

Nikana

Go Go Neo Rangers!
smh

" I even stated on top of PC and XB install base "

So I see no reason to even argue about that when I'm even stating here including that install base if they choose to go that route. So we don't know what MS will do with XB past this gen, but what I stated very clearly speculates what it would be like if they had that included.. Even if MS got rid of XB, that 50 million install base (if thats even the final number tbh) will just migrate to PS, Nintendo, PC etc. They won't suddenly stop gaming for life or something. To MS, the cost of even making that hardware and marketing it, manufacturing it, sustaining it etc might be even more of a incentive to just be a publisher solely.



I disagree. The extra 160 million install base is just way too much to even entertain them NOT doing that for such a silly reason. EA clearly can't control all the platforms, same with Activision and Ubisoft, yet clearly they are 3rd party publishers. Having their own launchers is nice, but its not sooooooooo much of a priority that they would avoid more users as it doesn't really make any sense. So EA having that subscription service on XB and PS and a launcher on PC doesn't actually stop them from still making games on many platforms, even ones they don't control. MS own messaging states they want games on all devices so clearly MS THEMSELVES don't see to actually care as much as you regarding that tidbit...

First off, you dont need to be be so passive aggressive with your wording. Your posts are not as clear as you think.

" I even stated on top of PC and XB install base "

Where because I don't see that anywhere? Its possible I missed it but I digress.

BOT. "To MS, the cost of even making that hardware and marketing it, manufacturing it, sustaining it etc might be even more of a incentive to just be a publisher solely." "EA clearly can't control all the platforms, same with Activision and Ubisoft, yet clearly they are 3rd party publishers. Having their own launchers is nice, but its not sooooooooo much of a priority that they would avoid more users as it doesn't really make any sense. So EA having that subscription service on XB and PS and a launcher on PC doesn't actually stop them from still making games on many platforms, even ones they don't control. MS own messaging states they want games on all devices so clearly MS THEMSELVES don't see to actually care as much as you regarding that tidbit..."

You seem to be missing my point so I will try to clear it up.

Comparing Microsoft to any third party publisher apples to apples doesnt make sense as they don't have their own hardware and eco system. The difference between Game Pass and something like EA Access is that EA Access is only their content where as Game Pass is Microsoft's content as well as third parties.

Microsoft is able to get the deals that they are because of their position in the market of being a major publisher with hardware. Every third party is not able to match Microsoft because they dont have their own ecosystem to promote. If Microsoft loses that leverage then all they have is their content which then Game Pass becomes way less of a no brainer.

Why would lets say Capcom, who has been a major partner for Microsoft and Game Pass, agree to be apart of Game Pass without Xbox? There really isn't a major benefit since all of their content is already on Steam. Which then leads into the issue of making deals with GP because since Microsoft would lack the ability to make better deals to keep the price of Game Pass where it is at. For everyone to win on Game Pass in a world where Xbox isn't a thing would require Game Pass to be far more expensive. Again defeating a lot of its appeal.

If they are forced to abide by everyone else's rules by joining the eco systems of lets say Playstation and Switch, they lose more than just consoles. They lose leverage and the abilities to make deals.Their first party content isn't to the point where its strong enough to warrant $10 a month. Even though they would have a bigger market by being available on everything, it will be much harder to entice the larger market as their strategy and price point would have to change.

Its not all just about sub numbers. If that was the case you wouldn't have competing markets in any streaming services. Theres a reason Disney decided to do their own streaming service with Disney Plus instead of continuing to partner with Netflix. Even though Netflix has more subscribers than Plus, they make far more money being in control of their content and what goes onto their network.

Does Microsoft's messaging state they want to be on as many devices as possible. For sure, but notice they are developing software on their own and putting their software on devices that they can control. You dont hear talk about Xcloud coming to Switch or PS4. Theres a reason for that. What you do see is it coming to Android and PC where they can maximize their pull and control.

The launches are extremely important to publishers. I have no idea why you are saying they are not. EA held Battlefield hostage for many years because they didn't want to give Steam a cut or support things on Steam. Its only as EA has taken a ton of hits to their bottom line after many years of sub par performance that they are giving into Steam.

Same with Overwatch which is not on Steam. Having your own walled garden with your own content that people want is incredibly powerful and puts more money in your pocket.
 

EDMIX

Writes a lot, says very little
You dont hear talk about Xcloud coming to Switch or PS4. Theres a reason for that.

Yea, happenchance. Simply saying its not YET announced. You didn't hear talk about them putting games on PC day and date, yet they did, you didn't hear talk about them putting games on PS and Nintendo yet they did....

So....you don't hear "talk" about lots of things MS ultimately does anyway. So MS didn't just say "our devices" they said "EVERY DEVICE".

The launches are extremely important to publishers.

Agreed, no disagreeing with that, so is actually being on every major platform... so I expect MS to clearly have launchers like EA, but I expect them to also be on every platform like EA if the want to compete with them. So seeing how they want to be on every device like a 3rd party publisher, I expect them to behave as such. We already have examples of 3rd party publishers so I see next to no reason to pretend MS wouldn't do that when their messaging states otherwise. Not sure why they'd leave so much install base for EA, Ubisoft, Activision etc to grab up.
 

NickFire

Member
Not if you broaden your market.. ala PC support. Pretty sure MS will be just fine.
What you wrote defies logic, reason, and common sense. If you sell more consoles, then you sell more games unless the console was bought by some collector who keeps it in the box. Yes, selling more games on PC also results in more games sold. But that has no bearing, at all, to the simple premise that more consoles sold = more games sold.
 

Nikana

Go Go Neo Rangers!
Yea, happenchance. Simply saying its not YET announced. You didn't hear talk about them putting games on PC day and date, yet they did, you didn't hear talk about them putting games on PS and Nintendo yet they did....

So....you don't hear "talk" about lots of things MS ultimately does anyway. So MS didn't just say "our devices" they said "EVERY DEVICE".



Agreed, no disagreeing with that, so is actually being on every major platform... so I expect MS to clearly have launchers like EA, but I expect them to also be on every platform like EA if the want to compete with them. So seeing how they want to be on every device like a 3rd party publisher, I expect them to behave as such. We already have examples of 3rd party publishers so I see next to no reason to pretend MS wouldn't do that when their messaging states otherwise. Not sure why they'd leave so much install base for EA, Ubisoft, Activision etc to grab up.


Besides Minecraft what have they put on Playstation? They tried Cuphead and Ori on Swicth and they have already stated that wont be happening again anytime soon.

Putting them on PC makes sense as they own windows. Again, controlling the things they can control. Game Pass on PC doesn't cost them anything as they own platform. You don't see Game Pass on Steam.

And they dont wan't to be like every 3rd party publisher. I already explained this. If that was the case they wouldn't of invested in their own ecosystem. You seem to mistake their message on being on every device as they want to natively support every device in the wild which is not what they have ever said. They want to be on every device through their services. Xbox, X-Cloud, etc. And they also said they want to be on every device but that doesnt mean platforms want them on their device either, Thats far different than simply trying to grab marketshare.

You think Sony is going to let Micrsoft put Game Pass on Playstation that already sells the third party games that Microsoft offers in GP. No way in hell is that going to happen.

In a world where Game Pass and XBLG doesn't exist it makes sense for Microsoft to go third party, but those things do exist and give them a lot of power to be able to do things other publishers cant, which is why publishers work with them to begin with.
 

Psykodad

Banned
In a world where Game Pass and XBLG doesn't exist it makes sense for Microsoft to go third party, but those things do exist and give them a lot of power to be able to do things other publishers cant, which is why publishers work with them to begin with.
GamePass is all the more reason for MS to go 3rd party, though. 😶
 
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