Woopah
Member
When you sell someone a price of hardware, you get a cut of all future games, DLC and microtransactions. That's why Sony's revenue is so high.
Low Xbox console sales has a direct, negative impact on their third party royalties.
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Microsoft CEO Comments On Xbox Games Coming To PlayStation/Switch
Low Xbox console sales has a direct, negative impact on their third party royalties.
Fess
Member
I’m an iOS user. What’s Microsoft’s successful business there?
diffusionx
Gold Member
Office 365
DeltaPolarBear
Member
He is now the head of Microsoft Gaming. His old job is given to a woman who is like to have to fall on her sword due to the glass cliff. Phil is ready to run the 3rd party gaming division without Xbox.
reinking
Gold Member
That is what many are saying, Xbox consoles are on their way out. I do not see many people saying that Xbox games will not make money on competing platforms. I think most people agree they will.
DragonNCM
Member
They don't care about console when they can sell games to Sony & Nintendo (where money is at this moment) & make huge profits.
All is about who grab most money & looks like MS will take crown here as publisher.
panda-zebra
Member
They'll make money by managing all these studios well and having them run steady production lines producing content people want to engage with day one, day 366 and so on.
None of that is a given when considering how they've managed their studios over the past 15 years.
A decade from now we'll see if they're sitting pretty, crown atop Satya's head, Kings of Content.
Fess
Member
So, to relate to gaming, will they do a COD 365 subscription?
Or a launcher/subscription model for their whole gaming division?
The last thing is kinda what I think will happen, within a decade or so. Accessed on TVs, tablets, mobiles, PCs, etc. Every screen like they say. Unfortunately I expect them to do exclusives like we see with TV subscriptions, only way to lock people in for new subs.
I don’t think they’ll start yet though, first big move will be to kill Xbox as we know it and merge with PC. That’ll happen in 2 years.
RJMacready73
Simps for Amouranth
I gotta be honest, I'd play the shit out of a Gears remastered collection on my PS5, absolutely loved the first and second one back in the day
RCU005
Member
Of course they have to bring their games to other consoles. Their hardware is not selling.
Mario Kart 8 Deluxe is the best selling Switch game and it has sold like 40 million copies. That's like 30% of Switch install base, aprox. So a game that sells 10 million is 10% of the instal base.
For Xbox, if a game sells 10% of install base, that's like 3 million. Square Enix wants their games to sell more than 5 million to even consider them a moderate success.
Xbox cannot reach the expected sales for a good ROI for making the game. They need to go outside of their ecosystem to make a profit.
With that said, I will be incredibly surprised if they don't become third party for next gen. If they release a new console it would be hard to believe. They have the studios and the "ability" to become a huge force as a third party. Many changes have to be done, but they can at least try.
Mario Kart 8 Deluxe is the best selling Switch game and it has sold like 40 million copies. That's like 30% of Switch install base, aprox. So a game that sells 10 million is 10% of the instal base.
For Xbox, if a game sells 10% of install base, that's like 3 million. Square Enix wants their games to sell more than 5 million to even consider them a moderate success.
Xbox cannot reach the expected sales for a good ROI for making the game. They need to go outside of their ecosystem to make a profit.
With that said, I will be incredibly surprised if they don't become third party for next gen. If they release a new console it would be hard to believe. They have the studios and the "ability" to become a huge force as a third party. Many changes have to be done, but they can at least try.
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Woopah
Member
Low console sales directly impacts their ability to male money, hence why they are putting games on Playstation and Nintendo.
ChorizoPicozo
Member
GOW Ragnarok made more money that Cyberpunk 2077.
no giving up the 30%
and having a strong platform
Xbox game Studios + ZENIMAX + releasing games day one on PC + play everywhere (ecosystem) + Game Pass =
a decline of 4 or 5% in revenue
MAKE IT MAKE SENSE
diffusionx
Gold Member
I think they would love to do something like EA Play on PlayStation, but they need more than Pentiment and Sea of Thieves to do it.So, to relate to gaming, will they do a COD 365 subscription?
Or a launcher/subscription model for their whole gaming division?
The last thing is kinda what I think will happen, within a decade or so. Accessed on TVs, tablets, mobiles, PCs, etc. Every screen like they say. Unfortunately I expect them to do exclusives like we see with TV subscriptions, only way to lock people in for new subs.
I don’t think they’ll start yet though, first big move will be to kill Xbox as we know it and merge with PC. That’ll happen in 2 years.
Little Chicken
Banned
Remember when Kinect released and people insisted Microsoft were leaving the gaming business?
Still having the same conversation 13 years later
Still having the same conversation 13 years later
UltimaKilo
Gold Member
You’re too focused on titles. In the corporate world, that could be meaningless. The way I took it, Sarah Bond is either above him, or brought in to let him know they already have his replacement on deck.
Oppoi
Member
Xbox is a failure that simply won't go away no matter how many times they are repelled because MS has the money and want to kill the competition. Cool I guess.Remember when Kinect released and people insisted Microsoft were leaving the gaming business?
Still having the same conversation 13 years later
IDKFA
I am Become Bilbo Baggins
FIREKNIGHT2029
Member
The whole slate is coming. Anyone who believes that it it's only Sea of Thieves and the the four initial games is lyiing ti themselves. Halo and Gears will grace Playstation at some point and so will games like even Starfield and Hellblade 2.
This confusion comes mainly from strange influencers and journalists trying to make those games selling sound like a succeeding 'xbox platform' to mask this hardware decline. They don't really explain how games are "a platform" though. It's not a platform for anybody. Third parties can't sell games through SoT or Hifi Rush.
Woopah
Member
MK8 has sold to 44% of Switch owners, but your main point still stands!
No?Remember when Kinect released and people insisted Microsoft were leaving the gaming business?
Still having the same conversation 13 years later
Kinect on 360 gave MS some of their strongest years in gaming.
mckmas8808
Mckmaster uses MasterCard to buy Slave drives
This is incorrect.
iHaunter
Member
Failed to compete. Trying to save face and redirect.
Little Chicken
Banned
This forum was convinced that Microsoft would leave the gaming industry because Kinect would be a massive failure.
Skifi28
Member
Who said that Microsoft is leaving the gaming business? If anything, they're more invested than ever. Just not in hardware that is dying a slow painful death.Remember when Kinect released and people insisted Microsoft were leaving the gaming business?
Still having the same conversation 13 years later
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Oppoi
Member
It was the most probable outcome you dimwit. Are you even aware there are two Kinects? Gosh this fucking chicken...
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Woopah
Member
The difference is that those thoughts were based on an Xbox performance that didn't happen.
These comments are based on actual Xbox performance.
intbal
Member
No. Look at his career.
He's been obsessed with AI for the majority of it.
He thinks he's a character in a Scifi novel with his " Nadella's Rules of AI".
Hudo
Member
Oh for fuck's sake. I Googled it, this is really a thing. I thought you were joking...
All these Silicon Valley companies should go die in a ditch somewhere, man. Fucking hell.
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Little Chicken
Banned
Microsoft are doing just fine
Notice how that post said Xbox and not MS?Microsoft are doing just fine
Oppoi
Member
The way you suck up to MS is the same way a broken huspand sucks up to a cheating wife.Microsoft are doing just fine
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Little Chicken
Banned
You don't see reason when you have an emotional investment in something. They would sooner have eight PS5's in their house than a single Xbox.
And yet we see them clamoring for Xbox games to play! It's ridiculous behavior. Just buy every console if you don't want to miss out.
TheThreadsThatBindUs
Member
This is where you made your mistake.
Oppoi
Member
Why don't people just buy two products that do the same thing? Jesus what a fucking mystery. You have a microwave? Guess what! Thanks to Microsuch you're gonna have to have two Microwave ovens if you want to nuke all the frozen products you buy at your super market! Better get that other microwave that absolutely noone wants. You don't have a choice!
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Exclusives solves that mystery. Or they have up unril now. Why do I own a Switch? it does the same thing.
Varteras
Member
Either there is a singular game they'd like to play and they didn't want to buy another console for it, they're just saying it to gloat that Xbox is dead, or they're genuinely excited about the idea of not having to buy both an Xbox and PlayStation for more options. That's pretty much the answer you'll ever need for that question. If I were you, I'd just let it go. Railing against it isn't going to get you anywhere. The people that are saying it to get a rise aren't interested in anything more than annoying someone. The rest have legit reasons for not wanting to buy an Xbox.
Oppoi
Member
Sadly I agree. It's just a matter of time now.
Same reason ppl didnt get a Wii U but bought all those Wii U games ported to the Switch.
¯\_(ツ)_/¯
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Stooky
Banned
they could have had both. Making profit from selling software there will always have its ups and downs. Putting games on a subscription service cannibalize that as well. Collecting a percentage on everything sold on your hardware and online store is tried and true business model thats why everybody does it.
elmos-acc
Member
You are way too close to the point to "not get it".
Those games do not mean anything at all to most of us. Maybe here, in this video game discussion forum, people might even acknowledge the thought of getting to play Gears without buying an Xbox, but I doubt the average gamer even knows that the franchise (still) exists. I think a significant of the gamers who used to buy Xboxes play on PC now anyway.
If Halo Infinite MP released right now on PS4 and could be played for free I would probably give it a shot. But it doesn't mean anything to me. Neither does Sea Of Thieves. Pentiment and Hi-Fi Rush I am happy to buy soon, but they are definitely not worth buying a console for.
Zelda does mean something to us. The Last Of Us does mean something to us. Maybe Halo used to mean something to us, but it doesn't anymore, at least not like in 2007.
March Climber
Member
Here's the difference:
1)For Xbox-only owners, these games are their main attraction, so they want/need them to be good.
2) PlayStation-only owners can live without those games and be just fine. To them, the listed games are a nice bonus feature. So regardless of if they're good or not, it's just more games available to play.
Pretty much what
elmos-acc
said above.
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Gamer_By_Proxy
Member
But only those 4 right?!?
rm082e
Member
I haven't seen any credible rumors since the last round that resulted in the business update podcast. At this point it seems like any additional Xbox exclusives being discussed are just assumption.
Phil said in that podcast that this first round of titles was going to be a sort of beta test. They were going to put those four games out and see how well they did, then think about future titles. Given Sea of Thieves has been high on the PS5 pre-order list, I think we can assume the results are positive, so it's going to encourage them to put more on PS5.
And like people were saying two months ago, if having exclusive games on Xbox hasn't given them enough business to justify keeping them exclusive, then why would any future titles justify remaining exclusive? Xbox hardware sales just keep getting worse and worse, so it's not like that exclusivity is helping them. It's hard to come up with any reason why all new titles won't eventually come to PS and/or Nintendo consoles.
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Woopah
Member
Well Xbox hardware is in major decline, and that's clearly impacting their content and software sales growth. I wouldn't say that is fine.Microsoft are doing just fine
Fess
Member
They want exclusivity for the same reason as Sony and Nintendo. No 30% cut by another platform holder and it’ll help selling their hardware and lock people into their ecosystem and services.
But Sony port all their games to PC now once they’ve stopped selling on PS and I assume MS will use Playstation and Nintendo consoles for this since they’re already on PC.
rm082e
Member
I get why they want to keep games exclusive. My point is, if they can't sell enough copies on Xbox to break even and they have to start selling on PlayStation & Nintendo, there's no reason to think all their future games won't also come to those platforms.
Fess
Member
Depends what their longterm goal is. If their plan is to have a launcher/subscription platform on every screen, then they’ll be absolutely everywhere with everything. But then it’s in their interest to lock people into their subscription so then we’ll likely see subscription exclusives. Think, Netflix Originals. Still available on all boxes but annoyingly locked to their sub.
Shortterm they’ll likely do just like Sony on PC. Delay games on other platforms, and never tell the plan, do whatever they can to get people to double dip, keep one or two games as exclusives just to piss people off.
Humdinger
Gold Member
No. I was an Xbox-only guy at the time, and I was listening closely to what the forum crowds were saying. I don't recall anyone saying that Kinect meant MS were leaving the gaming business. They were saying that MS was chasing the motion-control trend of the Wii, going after the casual market, and deprioritizing the core gamer. That's what they were concerned about.
And in retrospect, they were right to be concerned, because that's exactly what happened. The good exclusives started to dry up and were replaced by a bunch of lame Kinect titles. A few years later, we got the Xbox One and "TV TV TV." Phil came in later and tried to right the ship, but he just sailed it into a different iceberg.
Still having the same conversation 13 years later
No one is saying MS is "leaving the gaming business." They are saying MS is shifting to becoming effectively a third-party publisher, rather than a competitor in the console hardware space. They are referring to the decline of the Xbox console, not to MS in the gaming business.
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