Analyst: If Xbox One Tanks, It Could Be Microsoft's Last Console

Universal broadband penetration in the US would require a massive works program the likes of which this country hasn't seen since we built the highway system in the 1950s. Given this country's broken, polarized, and corporatized political system there's no way Congress reaches a consensus to make this happen anytime soon. And there's no profit for private corps to make it happen. I'd say barring a political miracle the dream of all digital delivery and thin clients will remain a dream for the next decade at least.

thank you. why is this so hard for some people to comprehend? simply because something's conceivable has nothing to do with how realistically doable it is...
 
If Microsoft Goes The Game Industry Goes Also. How many threads will be made though? -__-

You Guys Really Think The Industry Will Survive With Only Sony And NIntendo?

Like Be Real.

Competition Is Good.

Who's Going To Take Microsoft Place?

Amazon? Lmao

Apple? LMao

Microsoft Isn't Going Anywhere. I thought this was Gaf, you people posting like i'm in systemwars.

Microsoft isn't going anywhere, that's for sure, but if it were, there would be Amazon and Valve.

Oh, "but Amazon is no threat, they are doing an Android console!" Well, they are recruiting a lot of talented people to start their business. Amazon entering the console business is no joke and if you think they are, then I don't know what to tell you.

If you guys think the industry is the same when it was only Nintendo and Sega then idk what else to tell you guys.

Of course it isn't. MS has done good things. And nobody said things have been the same.

The industry won't implode because MS can't go on, Sony and Nintendo will continue. The only worrisome thing is competition, but that would be settled with Valve and Amazon entering.

Even if Valve is just doing a box that play Steam games, if they can market their great features, they could do a splash in the market.
 
It's a lot different with a company where gaming is their main thing. Deciding to bail means the destruction of the company. Or at least a major reorganization.

Microsoft dumping their gaming division wouldn't even be a bump in the road. It would just be another business decision.
 
360 made money, not sure why they'd kill the Xbox if it's profitable again this round. DAT greed

The first xbox lost about $4-5 billion, depending on the source. That's a big hole to start out with. And the 360 didn't hit profitability until very late into its lifespan.

I wouldn't like to see MS leave the console market, but their mis-steps so far with the One there is a lingering uncertainty about how the worldwide launch will go. So, the existence of the gaming division does seem to be garnering scrutiny from some large MS investors who may prefer MS concentrate on core products (Windows primarily) which traditionally bring in much more profit but are currently struggling.
 
Microsoft getting bad press of late. But I will be honest Nintendo is pretty much the only company in the industry which has a sustainable business plan. It just doesn't spend mega bucks doing things like the rest of the industry.
 
I doubt someone will take their place if they do leave. How have they been awful?

I don't like what they've brought to gaming. FPS/shooters, dragging pc gaming to consoles, harming JRPG market by keeping JRPG games as exclusives to its dead weight console in Japan and then just throwing the towel, bullshit pay walls, etc.

Oh and the whole mess with xbone.

If the space is there, a more competent entity is bound to take their place.
 
I don't like what they've brought to gaming. FPS/shooters, dragging pc gaming to consoles, harming JRPG market by keeping JRPG games as exclusives to its dead weight console in Japan and then just throwing the towel, bullshit pay walls, etc.

Oh and the whole mess with xbone.

If the space is there, a more competent entity is bound to take their place.

what do you mean dragging pc gaming to consoles?
 
Why would the board want them out if MS makes tons of cash on xbl?

Return on investment. Windows and Office bring in $80-$100bn a year, the Xbox with Live as an integral part brings in $1bn. And it's extremely unlikely that Windows and Office require 80-100 times the investment that Xbox does; there certainly isn't $100bn earmarked for supporting WinRT-exclusive software, or a $50bn advertising budget for Office 2013, but there is a billion dollars for Xbone titles and the infamous $500m Kinect launch.
 
I don't like what they've brought to gaming. FPS/shooters, dragging pc gaming to consoles, harming JRPG market by keeping JRPG games as exclusives to its dead weight console in Japan and then just throwing the towel, bullshit pay walls, etc.

Oh and the whole mess with xbone.

If the space is there, a more competent entity is bound to take their place.

The PS4 is the console it is because of Microsoft. The PS3 and PSN evolved as much as they did because of Microsoft. Food for thought
 
It's not good for the industry if they bail, because I'm not willing to assume there's automatically a company going to take their place. If Microsoft and all their resources can't make it work, I don't think there's a lot of companies lining up and willing to assume the risk.

No competition...Bad.
Extremely bad.
 
what do you mean dragging pc gaming to consoles?

Consoles felt more like proprietary boxes that felt like they offered their own unique flavor compared with pc gaming. MS's "consoles" felt like more straightforward pc boxes. Not to mention they brought genres normally more prédominent on pc's to consoles.

Instead of having two different, unique options, both platforms became more like each other and things feel more redundant as a result.
 
I don't believe MS leaving the market would make the market go away. Realistically, most console gamers would probably consolidate and just move to the remaining console left (and really, there hasn't been a huge difference between consoles, especially with regards to third party titles being the majority of major releases in a given year).
 
I don't like what they've brought to gaming. FPS/shooters, dragging pc gaming to consoles, harming JRPG market by keeping JRPG games as exclusives to its dead weight console in Japan and then just throwing the towel, bullshit pay walls, etc.

Oh and the whole mess with xbone.

If the space is there, a more competent entity is bound to take their place.

There were plenty of FPS/shooters available in the market before Microsoft came into the picture, where I never heard anyone look down on that particular style/genre. And what's this nonsense about "dragging pc gaming to consoles"?

Consoles felt more like proprietary boxes that felt like they offered their own unique flavor compared with pc gaming. MS's "consoles" felt like more straightforward pc boxes. Not to mention they brought genres normally more prédominent on pc's to consoles.

Instead of having two different, unique options, both platforms became more like each other and things feel more redundant as a result.

That was happening all across the board. There were plenty of PC-esque titles on the PS2 and even some like Rogue Squadron on the 'Cube. The technology was there to begin to cross-platform. Nothing more, and nothing less.
 
Consoles felt more like proprietary boxes that felt like they offered their own unique flavor compared with pc gaming. MS's "consoles" felt like more straightforward pc boxes. Not to mention they brought genres normally more prédominent on pc's to consoles.

Instead of having two different, unique options, both platforms became more like each other and things feel more redundant as a result.

I don't see nothing wrong with making it easy for developers. Nintendo brought shooters with goldeneye,that is where it began.
 
It's better for the industry to promote financial stability for its long term viability. Sure, Microsoft have been good for the industry, but the Xbox division's reliance on other parts of the business is giving the industry a false sense of security.
 
Gates still controls the board. While he does, Xbox will continue to exist.

Two months ago we might have said the same about Ballmer remaining CEO. And yet here we are, with Gates on (but not chairing) the committee to choose his replacement.
 
lol I think my apple comment was taken too seriously but I do feel like apple is nowhere near the ideal choice for a games console due to them wanting to monetize and proprietize every little thing. Not to say other companies like Sony and Microsoft dont but I think apple could and would take it even further than Microsoft has tried to.
 
The Halo series sells between 6-10 million every time a mainline game releases. If another company not named Sony or Nintendo bought it, the series would be expanded to 2 other platforms and likely consistently sell at least 10 million copies. Factoring things like shelf life and price drops, dev cost, other fees, it's safe to say the series can pull 400-500 million each release. Which would mean a publisher could probably make a billion dollars back within 2-3 years of releasing games in the series.

Businesses do not sell things like this due to the value of one release, they do it based on it's general power and potential. The Halo series on 360 probably made MS 1-1.5 billion alone and that's not factoring anything outside of the 360 releases. No company would be stupid enough to sell something like Halo for what would likely be the profit amount of 4-5 years of development time at most. They would sell it based on how much it can make over decades and come to an agreement based on something more fair I imagine.

Something like Mega Man is probably worth less than a billion dollars these days, but even that amount probably wouldn't pry it out of Capcom's hands anytime soon. MS could likely sell the IP to a company like EA and make more money than they ever lost on the Xbox platform.

I'm not sure you know business very well either, you do know there's a distinction between revenue and pure profit, because selling the ip for 1 billion would be getting 1 billion of pure profit.

In your 400-500 milliom figure, how much account for:

development costs
marketing costs
retail cut
taxes
distribution and packaging

you're just giving figures left and right without any comprehensive breakdown of spending and revenue.
 
Microsoft leaving the videogame industry would definitely hurt it, but its impact would be small compared to Sony or Nintendo leaving. If they do leave, someone else will step up. I want them to stay though.
 
The PS4 is the console it is because of Microsoft. The PS3 and PSN evolved as much as they did because of Microsoft. Food for thought

I agree. I realize that Sony was pushed to include a lot of great features in its consoles as a direct result of competition brought by Ms. I just don't think it outweighs the bad aspects that MS brought to console gaming.

I don't see nothing wrong with making it easy for developers. Nintendo brought shooters with goldeneye,that is where it began.

Yea I know consoles still had FPS games before but they really got too big with xbox.
 
Their E&D division is one of their divisions with the most growth potential. The 360 is the main reason that division is profitable, despite losses from most of the products that also spawn from there.

It's possible they'll drop gaming, but what else is going to prop that division up?
 
Their E&D division is one of their divisions with the most growth potential. The 360 is the main reason that division is profitable, despite losses from most of the products that also spawn from there.

It's possible they'll drop gaming, but what else is going to prop that division up?

E&D is gone now anyway with the reorg. The whole company is transitioning to devices and services.
 
I'm not sure you know business very well either, you do know there's a distinction between revenue and pure profit, because selling the ip for 1 billion would be getting 1 billion of pure profit.

In your 400-500 milliom figure, how much account for:

development costs
marketing costs
retail cut
taxes
distribution and packaging

you're just giving figures left and right without any comprehensive breakdown of spending and revenue.

I agree with the pulling numbers part, but I imagine it would be hard to quantify.

Lets not forget things like DLC, Merchandise and EU in books and film/tv. The game is not the only way halo brings in money.
 
Are you saying PC gaming is the most dominant? Are there sales numbers to back this up?

In terms of size yes. In terms of developer friendliness it is unmatched. About sales numbers, I'm too lazy to do a search you can do. But let me just say this, every pc is a gaming device. Not all are next-gen equivalent, but the entire market is huge.

hypothetically say this happens...could anyone see Nvidia making he jump? the have the shield now, thats like a toe in the water in terms of making hardware...just a thought.

I guess the same for AMD too. Why not just 'go direct' with their tech?

just a thought.

No, I do not see any of the two graphics card manufacturers jumping into a money losing business. Nvidia has worked extremely hard to stay profitable, and even with that, the profits are not that spectacular. AMD is one foot away from filing for Bankruptcy - this is hyperbole I know - but they have been suffering loses pretty consistently for the past few years.
 
Microsoft leaving the videogame industry would definitely hurt it, but its impact would be small compared to Sony or Nintendo leaving. If they do leave, someone else will step up. I want them to stay though.

No one will step up. Samsung and Apple are not going to spend 100's of millions on R&D and other costs on a machine that breaks even for a long time and take years to get profitability. Those companies are used to huge margins in the electrons sector. Unless you want a 500 dollar box that is even more under powered than the Wii:U so they can make 100 dollars launch day per unit. MS leaving would be a disaster as far as I am concerned. Sony would be unchecked in the core gamer category.
 
If MS left the industry and their subsidiaries went to Sony platforms, would anyone notice? It would be business as usual, only with one less console. Certainly nothing like when Sega left the hardware business...
 
Their E&D division is one of their divisions with the most growth potential. The 360 is the main reason that division is profitable, despite losses from most of the products that also spawn from there.

It's possible they'll drop gaming, but what else is going to prop that division up?
Its basically dead. Look at literally everything going on with it. Its products and services that came 3-5 years too late.Xbox is proping it up basically surface has the most potential of a comeback. Which is why I'm starting to believe the story of Mattrick wanting to spinoff the Xbox division and make it its own
 
God I hope not, then who would compete with Sony? Nintendo isn't even in the same game anymore (not out of the game, just playing a different one).
 
Well, yeah. Companies that make huge investments that fail might not do it again.

Am I missing something or is this just not an Earth shattering revelation?
 
I don't like what they've brought to gaming. FPS/shooters, dragging pc gaming to consoles, harming JRPG market by keeping JRPG games as exclusives to its dead weight console in Japan and then just throwing the towel, bullshit pay walls, etc.

Oh and the whole mess with xbone.

If the space is there, a more competent entity is bound to take their place.

Hardly any of that shit is the fault of the Xbox brand, especially the part about JRPG's. They were already loosing steam on their own, TOV being exclusive to the 360 meant fuck all, not to mention they own the IP's for Infinite Undiscovery , Blue Dragon and Lost Odyssey. Of course they are going to be exclusive to the console. Are we going to get mad at Sony because Uncharted isn't multiplatform as well?

I'm not even sure what argument you are trying to make about FPS's. Are you mad at MS because they became popular? Lol god damn why did Halo have to be such a great fucking game huh? Give me a break. If you are going to make a case that they some how harmed the industry, please come up with something better than that.
 
Microsoft leaving the videogame industry would definitely hurt it, but its impact would be small compared to Sony or Nintendo leaving. If they do leave, someone else will step up. I want them to stay though.

Can't agree. If any of the three leave, it would be very bad for this industry.

E&D is gone now anyway with the reorg. The whole company is transitioning to devices and services.

Oh my mistake, I knew about the transition but I didn't know E&D is gone. What division is the Xbox, windows phone, devices, etc part of now?
 
Hardly any of that shit is the fault of the Xbox brand, especially the part about JRPG's. They were already loosing steam on their own, TOV being exclusive to the 360 meant fuck all, not to mention they own the IP's for Infinite Undiscovery , Blue Dragon and Lost Odyssey. Of course they are going to be exclusive to the console. Are we going to get mad at Sony because Uncharted isn't multiplatform as well?

I'm not even sure what argument you are trying to make about FPS's. Are you mad at MS because they became popular? Lol god damn why did Halo have to be such a great fucking game huh? Give me a break. If you are going to make a case that they some how harmed the industry, please come up with something better than that.

So the xbox brand made no effort at all to have its bread and butter in FPS/shooters and sports games? They didn't cultivate that market at all? Lol OK.
 
So the xbox brand made no effort at all to have its bread and butter in FPS/shooters and sports games? They didn't cultivate that market at all? Lol OK.

That market was there all along and both MS and Sony have done things to win over this market which is why CoD is one of the highest selling games on both platforms.
 
It won't do as well as the 360 but it won't fail so bad that MS pulls out of the console space. X1 could very well have some tough days ahead of it, but MS will do everything in their power to turn it around.
 
The Xbox One won't tank... but it wont be a run away hit either unless they drop the price to 399.

bite the fuckin bullet mircosoft!
 
That market was there all along and both MS and Sony have done things to win over this market which is why CoD is one of the highest selling games on both platforms.

Yea I'm not saying Sony didn't fuel the trend of endless brown and grey shooters at every E3. It's just combined with all the other shit xbox brand brought, they left a bitter taste in my mouth and I wouldn't be sad at all to see them exit the industry.
 
So the xbox brand made no effort at all to have its bread and butter in FPS/shooters and sports games? They didn't cultivate that market at all? Lol OK.

Well seeing as the Xbox brand has a total of Two exclusive FPS( Halo and Perfect Dark) i am not seeing how they were "cultivating" anything. First person shooters were popular before the xbox was even thought of. As for sports games, they are popular on just about every console. Madden will Sell on the PS3 as much as it does the xbox.

Even if they were doing as you say, you are basically condemning them because genres you don't like are "popular"
 
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