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eXtas1s: The majority of employees I have spoken are completely confused about Xbox's general strategy
- Thread starter Lunatic_Gamer
- Start date
- News Drama Rumor
DeepEnigma
Gold Member
The management is just as confused.
Unknown Soldier
Member
Satya: "You have failed me for the last time, Phil"
Heisenberg007
Gold Journalism
Phil Spencer:
Rentahamster
Rodent Whores
The consumers are confused as well.
adamsapple
Or is it just one of Phil's balls in my throat?
Ok, sure. Make game pass more enticing and start putting the Activision catalog on it then. Shouldn't take this long, folks.
PonyStation4
Member
Microsofts direction is clear, they want to move all services to the cloud and are willing to be a loss leader to do it.
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Bonfires Down
Member
I don’t think that’s the objective at all. The objective is to go multiplatform while leaving Xbox and Game Pass to fend for themselves.
Danny Dudekisser
I paid good money for this Dynex!
One does get the sense that there were people at the company who, for years, kept a lid on all of the dumb shit Microsoft speedran in the last 5-6 years. Once they left, *boom*
tl;dr: It was Good Guy Mattrick all along.
tl;dr: It was Good Guy Mattrick all along.
Heisenberg007
Gold Journalism
Yep. Game Pass is already seen as a failure of a project internally. It missed its growth targets for the past 3 consecutive years, and Satya has removed its growth from his CEO bonuses.
The goal is to increase profitability and game sales. And they have decided that the primary platforms for achieving those goals would be Nintendo, PC, and PlayStation, as Xbox just doesn't have the userbase.
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LavitzSlambert
Member
"Daddy Nadella, with all the mixed signals between layoffs and changes in hardware decisions, it seem there is turmoil in Microsoft's Xbox division. Although their struggles are not new news, it's been a hot topic throughout all of 2024. Can you shed some light on this - what Xbox's strategy?"
"Thank you for having me on, Susan, and great question - I get this one all the time from our beloved x-rats on NeoGAF. Quite honestly, until the Activision-Blizzard acquisition closed and Phil told me 'we got CoD, we got CoD', I had no idea what the fuck they were doing over at Xbox. As you know, as CEO, I've been busy running an actual business for the last decade - one that makes money. We are looking to up our subscriptions and to do that we are going to need to provide the best available service for our Xbox fanbase - and to do that I am pleased to announce that with the money saved on headcount, we will be enhancing our Xcloud infrastructure by purchasing 5 million PS5 Pros."
Crispy Gamer
Member
The strategy is to show growth every quarter by all means that's Phil's last marching orders
ShaiKhulud1989
Gold Member
When you’re spending 70 billion dollars on a purchase that generates nothing but operating loss, don’t be surprised that the upper management will notice you and demand you to make money even if it means dropping from console race altogether.
My bet that the messaging is indeed confused. The strategy though is very clear. Microsoft Games will become a big publisher and Xbox will be demoted to the glorified PC sticker.
My bet that the messaging is indeed confused. The strategy though is very clear. Microsoft Games will become a big publisher and Xbox will be demoted to the glorified PC sticker.
Preseznik
Neo Member
There is no strategy currently, higher ups that have nothing to do with this industry are doing "general management stuff".
It's the most under qualified people doing the most by the book "managing" which has been the cycle since the start of late stage capitalism and fragmented ownership (shareholders).
It's absolutely nothing new or strange that's happening from this viewpoint.
It's the most under qualified people doing the most by the book "managing" which has been the cycle since the start of late stage capitalism and fragmented ownership (shareholders).
It's absolutely nothing new or strange that's happening from this viewpoint.
LavitzSlambert
Member
Microsoft is going to be making assloads of money publishing games that sell like crazy across all platforms. They will be rolling in it.
Codeblew
Member
It's going to take many, many years to recoup that 70 billion dollars.
onnextflix5
Member
Not sure why ur confused, they want more gampass subs and more consoles sold but they don’t have a strategy to achieve it hence why employees are confused.
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Kacho
Gold Member
Well, it’s pretty obvious Xbox is in the process of collapsing. They bought up major publishers to bolster the Game Pass catalog and it didn’t lead to the growth they were looking for. Now they’re in the process of publishing their games on competing platforms, eliminating the reason to jump into their ecosystem altogether.
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semiconscious
Member
extas1s? take it to the bank...
HeisenbergFX4
Gold Member
They really think the new Call of Duty will move the needle with Gamepass but rumor has it if it doesn’t changes will be made
LavitzSlambert
Member
It will take some time, but not as long as one might think. ATVI alone made $1.5 to 2 billion in net income every year since 2019. On top of that, the reduced costs by operating as part of Microsoft and the revenue it will bring to their platform. Turn your company into the largest publisher out there and pay it off in the next couple decades, that is not a bad deal.
MrTired
Member
Any insight
S
SneakersSO
?
Yet so far under Microsoft Activision has been posting operating losses. As of right now since the merger they've posted 1.5 Billion in losses. Being the storefront people go to is way more profitable than being a publisher.
However I guess being a publisher is more profitable than fighting and losing at being the go-to storefront.
Yet so far under Microsoft Activision has been posting operating losses. As of right now since the merger they've posted 1.5 Billion in losses. Being the storefront people go to is way more profitable than being a publisher.
However I guess being a publisher is more profitable than fighting and losing at being the go-to storefront.
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Matsuchezz
Member
I read somewhere that when Phil Spencer gets explosive diarrhea he doesn’t flush and a shaman and a witch go to his house and they both interpret the symbols within the shit and then phill Spencer calls a meeting and they dictate the strategy moving forward. And that is how they got where they are now and it shows….
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Ashamam
Member
Yeah well, perhaps they should have tried to capture those potential subs BEFORE putting the price up and slipping in a screw you tier. Someone at MS is not taking excuses and wanting revenue increases right f..ing now.
Bernardougf
Member
Theres two ceos baffling stil in charge in the entertaiment industry the is beyond my capacity of understanding... Kathleen Kennedy and Phil Spencer.... I wish I was on the board of this companys just so I could see what a meeting with them looks like and How in the world they keep their jobs.
And
HeisenbergFX4
I know you must know ... one day you might tell us
I mean seriously... Jimbo oversaw the very successful launch of ps5 and was shown the door after his gaas/first party strategy was and is a failure. And dont @me saying he retired... bullshit.
And
HeisenbergFX4
I know you must know ... one day you might tell usI mean seriously... Jimbo oversaw the very successful launch of ps5 and was shown the door after his gaas/first party strategy was and is a failure. And dont @me saying he retired... bullshit.
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DaGwaphics
Member
MS playing 4D chess and avoiding leaks by not having a strategy.
Seriously, I think their strategy is clear at this point, they want to focus on gaming software and services and have basically sacrificed the hardware business to that end. As long as they keep getting interesting things on GP it's all good for me, time will tell what their recent decisions will do to MS gaming and Microsoft as a whole.
Seriously, I think their strategy is clear at this point, they want to focus on gaming software and services and have basically sacrificed the hardware business to that end. As long as they keep getting interesting things on GP it's all good for me, time will tell what their recent decisions will do to MS gaming and Microsoft as a whole.
EverydayBeast
thinks Halo Infinite is a new graphical benchmark
Microsoft's strategy? The fact is they launched two straight bad consoles and people now have chose SONY two generations in a row. Microsoft can put the spot light on cloud gaming, game passes and at the end of the day they're running out of time on releasing new games.
Raven117
Member
Eye roll. We got rid of the politics board dude.
LavitzSlambert
Member
Of course they're posting operating losses, that is paying back the cost of the acquisition. They need to realize $22 billion of intangible assets over 15 years, which works out to a $1.5 billion hit per year. In actuality their operating loss this past year end was around $1.4 billion, so even with the deal costs included, Activision's income was favorable by $100 million compared to the amortization.
Heisenberg007
Gold Journalism
I can totally see that.
At one point, they thought Starfield would move the needle for Game Pass. It didn't, and there were repercussions. We saw a ton of changes in Xbox after Starfield failed to make an impact.
And Starfield wasn't even half the game COD is. I can only imagine the 'changes' they will make after this.
And so far, I haven't see any indicators that COD is creating any impact on Xbox or GP.
JerryinSoCal
Member
I just don't know how it would, most COD players on Xbox already have gamepass, they have to if they want to play online. I'm not sure what the percentage is from core to ultimate but if all you play is COD it's cheaper to go with core and buy the game than to switch to Ultimate, $70 is a lot cheaper than $119.00
Fortress of Regrets
Member
Best thing they did was put their games on Steam day one. They don't have a lot that interest me, but Flight Sim, Forza Horizon 5, Psychonauts 2, Hellblade 2 and a few others were all enjoyable and sit nicely in my Steam library where I want them.
Give me games where I want to play them and I will buy them. Simple.
Consoles, subscriptions, clouds... all meh to me. Couldn't care less.
Give me games where I want to play them and I will buy them. Simple.
Consoles, subscriptions, clouds... all meh to me. Couldn't care less.
PeteBull
Gold Member
BlackTron
Member
What's confusing is how to act natural and casual while getting there. They have this "big plan" and are struggling to deal with all the small parts along the way, like pretending to give a shit. That's why Phil is the right man for the job because it's 98% bullshitting.
RetroGamingUK
Member
I think the big shift to go multiplatform came from Satya Nadella, not Phil.
Look at the new role he gave to Phil, head of Microsoft Gaming, not Xbox.
Look at the new role he gave to Phil, head of Microsoft Gaming, not Xbox.
Skifi28
Member
Sounds about right. I think it's quite clear they're going full third party soon, but it's like half the company refuses to admit it so you have very mixed messaging. Currently they appear to be at the stage where they want to have their cake and eat it too. Let's see how long it lasts.
balls of snow
Member
They are cutting the fat and transforming into activision games studios and friends.
Wildebeest
Member
It's obvious what the strategy is, since it is the same strategy as any tech company.
1. Offer a new sort of business model that seems to be just way more convenient and affordable to the user. (In this case, game pass subscriptions and game streaming).
2. Capture a large part of the market and get them to rely on your product and watch alternate models be strangled to death.
3. Make the product really shit and expensive now that users have no alternative.
4. Profit.
1. Offer a new sort of business model that seems to be just way more convenient and affordable to the user. (In this case, game pass subscriptions and game streaming).
2. Capture a large part of the market and get them to rely on your product and watch alternate models be strangled to death.
3. Make the product really shit and expensive now that users have no alternative.
4. Profit.
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