Microsoft wants Xbox to 'reach industry leadership' by 2030, plans to double Xbox revenues

I mean every publisher they purchase they also get that revenue I'm not shocked they're in second they own Zenimax that's part of the strategy to buy new revenue. Activision made 8 billion last year so if they purchase them they'll be higher than Sony in revenue.
 
TheThreadsThatBindUs said:
Nah, their plan is self-evident. They buy existing publishers. Activision, TT, EA, Sega... all those companies' revenues would be added to Xbox post-sale, meaning a quick surefire way to doubling your revenue in a short space of time.
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With their current management those revenues won't last long.
 
Mr Reasonable said:
If Starfield reviews well, Xbox sales will increase, no doubt. If the next couple of exclusives review well that'll bring more people in, etc.
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If Starfield review wells then it will sell millions... on PC!

Microsoft will need to release consistently good exclusives games on a regular basis (2 or 3 per year) to have any chance of dominating Nintendo or Sony in the videogames market in my opinion. They could do this but they need to commit to making good games rather than telling everyone what great value GamePass is!

They had that momentum in the Xbox 360 era but lost it all with the disastrous unveiling of the underpowered and expensive Xbox One (TV! TV! TV!) vs. the PS4 because of Kinect (look how well that went!) and a slow decline in the number of exclusive games in favour of focusing on their core Gears/Halo/Forza releases and live services. Microsoft could have been a market leader now in the videogames industry if they had actually built on the success they had with the 360, despite that system having a bad start with the red ring of death fiasco.

Just look at Sony and the PS3. It was expensive, heavily criticised for being hard to develop for and yet they still went on to huge success with the PS4 and PS5. Sony had built up a strong reputation with gamers and a large catalogue of quality releases from the PS1 and PS2 which certainly helped the PS3 through the initial rough patch. The Xbox One was Microsoft's PS3 in many ways but instead of making amends, they just became complacent and decided to focus on GamePass and backward compatibility for the Xbox Series consoles instead of quality exclusive game releases.

I say good luck to Microsoft. I would absolutely love them to return to being that company that released the original Xbox, a console I have very fond memories of because it felt like a spiritual successor to the underrated Dreamcast.
 
Didn't we just hear that they missed their revenue targets?
youre-gong-the-wrong-way.gif

(Although I guess it might still be an increase)
 
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Del_X said:
It was $8BN in 2013 so about a double in a 8-9 years already. Seems feasible.
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But since then they have also acquired 18 studios since then and merged their revenue with the Xbox division.

They can get to that revenue if they continue to acquire more and more companies, but that's not really "growth" in the truest sense and does not necessarily reflect the true efficiency and efficacy of a business division.
 
Heisenberg007 said:
But since then they have also acquired 18 studios since then and merged their revenue with the Xbox division.

They can get to that revenue if they continue to acquire more and more companies, but that's not really "growth" in the truest sense and does not necessarily reflect the true efficiency and efficacy of a business division.
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Growth is growth.

They also just hiked game pass, started shipping at $70, and seem keen on selling $100-300 collector's editions with early access.
 
SuperSaiyanWithDreads said:
And that's good, hope to hear some announcements after Thursday
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What's happening on Thursday?


solidus12 said:
I thought Xbox was already the market leader?


z0iOjX2.jpg


Yikes
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Does this guy even undertand that MS doesn't care too shits about the Xbox as a console and the whole point for MS is to completely dominate the videogame subscription market through mobile gaming and cloud streaming? The Xbox as a piece of plastic means nothing to MS. This guy is in for a rude awakening. Either that or he's on MS's payroll (maybe both).
 
Del_X said:
Growth is growth.

They also just hiked game pass, started shipping at $70, and seem keen on selling $100-300 collector's editions with early access.
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I disagree. That's not really growth when a business division is missing internal revenue targets and subscription growth targets consistently.

The overall revenue may still go up if they spend billions of dollars and merge the revenues of the acquired companies, but it will all be superficial and temporarily hide any serious issues that may only fester.
 
Heisenberg007 said:
But since then they have also acquired 18 studios since then and merged their revenue with the Xbox division.

They can get to that revenue if they continue to acquire more and more companies, but that's not really "growth" in the truest sense and does not necessarily reflect the true efficiency and efficacy of a business division.
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lol, it is growth in the truest sense. Revenue is revenue.

What you're describing is actually just emotional console warz, not real world stuff. Another example, Sony's acquiring of all their studios was "organic" and "natural". Just meaningless buzz words people throw out, like you just did there with "truest sense".

Anyway, isn't MS at 16B now? Add ABK's 8B if we are assuming this 30B goal includes the deal going through… it would require them to get their shit together in terms of the game pipeline but they can do it. Steady stream of games means a lot more revenue, it's possible.
 
Gorgon said:
Even if it is, why would Sony make aquisition announcements that day or soon after?
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I don't think they would, just my best guess as to what the user was referencing

I doubt we'll get more from Sony before a possible second showcase in the fall after Spider-Man 2 is released? maybe a state of play before then

edit: and acquisition wise I'd think they'll hold off on anything until after the CAT appeal is over unless it's more small studios like they have done recently
 
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And how do they plan to get there? In a nutshell, buy their way there. If this deal goes ahead, there'll be another and another and another. Allowing it to go ahead sets a frightening precedent.
 
Doctor Hades said:
If Starfield review wells then it will sell millions... on PC!

Microsoft will need to release consistently good exclusives games on a regular basis (2 or 3 per year) to have any chance of dominating Nintendo or Sony in the videogames market in my opinion. They could do this but they need to commit to making good games rather than telling everyone what great value GamePass is!

They had that momentum in the Xbox 360 era but lost it all with the disastrous unveiling of the underpowered and expensive Xbox One (TV! TV! TV!) vs. the PS4 because of Kinect (look how well that went!) and a slow decline in the number of exclusive games in favour of focusing on their core Gears/Halo/Forza releases and live services. Microsoft could have been a market leader now in the videogames industry if they had actually built on the success they had with the 360, despite that system having a bad start with the red ring of death fiasco.

Just look at Sony and the PS3. It was expensive, heavily criticised for being hard to develop for and yet they still went on to huge success with the PS4 and PS5. Sony had built up a strong reputation with gamers and a large catalogue of quality releases from the PS1 and PS2 which certainly helped the PS3 through the initial rough patch. The Xbox One was Microsoft's PS3 in many ways but instead of making amends, they just became complacent and decided to focus on GamePass and backward compatibility for the Xbox Series consoles instead of quality exclusive game releases.

I say good luck to Microsoft. I would absolutely love them to return to being that company that released the original Xbox, a console I have very fond memories of because it felt like a spiritual successor to the underrated Dreamcast.
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This.

They made their own bed but its totally fixable. All we want is a fair amount of good games. Take risks, explore new genres, create new games.
They have the money to do it, yet they spend it on big publishers so they will make GamePass more attractive.

People might be happy they are only paying the value of 2-3 full game priced games per year and have access in a catalogue, but the cost is much higher and it will only be clear down the line.
 
But Phil told us they are suffering in third place? Oh, its temporary. Phil didn't explain that piece.

Is the method to obtain that revenue figure to just buy everything?
 
Bumblebeetuna said:
lol, it is growth in the truest sense. Revenue is revenue.

What you're describing is actually just emotional console warz, not real world stuff. Another example, Sony's acquiring of all their studios was "organic" and "natural". Just meaningless buzz words people throw out, like you just did there with "truest sense".

Anyway, isn't MS at 16B now? Add ABK's 8B if we are assuming this 30B goal includes the deal going through… it would require them to get their shit together in terms of the game pipeline but they can do it. Steady stream of games means a lot more revenue, it's possible.
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Fake revenue. When you buy a studio, you buy the IP. But you need to be a good owner to keep the talent. If the talent walks, you end up with Halo Infinite. The studio you buy would end up as empty shells if the talent no longer works there, and the IPs themselves are not like patents that have a useful function. Just as Westwood and Bullfrog loses their value once absorbed by EA.

You can't buy talent if your workplace is terrible. You can buy the company but the Talent has no reason to stay. And with the speed talent escapes after MS bought Arkane Austin, it is just a waste of money.
 
Gorgon said:
What's happening on Thursday?




Does this guy even undertand that MS doesn't care too shits about the Xbox as a console and the whole point for MS is to completely dominate the videogame subscription market through mobile gaming and cloud streaming? The Xbox as a piece of plastic means nothing to MS. This guy is in for a rude awakening. Either that or he's on MS's payroll (maybe both).
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Shid Thursday is the closing statements on the Xbox Activision merger
 
It's possible, they fucked up gen 8 but arguably won Gen 7. By 2030 Game pass will be a leviathan and cloud should be stable for Sony and MS
 
How about they earn it buy creating new games or reworking their existing I.Ps like Nintendo and Sony did from their existing studios? Why should they be allowed to buy up the gaming industry just because they're now taking gaming seriously again.
 
Nydius said:
They went from 9b to 16b in 7 years but expect to double their revenue —growing another 16.22b — in the next eight years?

Yeah…
Han Solo Good Luck GIF by Star Wars
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So they almost doubled in the last 7 years and you think it's impossible to do it in the next 8 years? Why?
 
Three said:
I mean for third party games if revenue is the cut they get then it is just profit rather than revenue.
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If someone downloads a $60 third party game through PlayStation, Sony counts the full $60 as revenue.

If someone downloads a $60 game through the eShop, Nintendo only counts their % cut as revenue.
 
SuperSaiyanWithDreads said:
Aight bruh I feel like you're being disingenuous and tryna play gotcha … Imma yield with replying to you
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Mate, whatever, but I'm not being disingenious. If you check the post to which I originally replied you'll see that that was the whole point, not "what happens on Thursday" per se. But whatever. No need to continue this. Peace.
 
The last time Xbox was "on top" they pivoted to TVTVTV.

Why would anyone think the next time is going to be any different? Their ambition is simply too big for "just" gaming. Its just a means to an end for them.
 
Represent. said:
Buy everything, manage them all poorly, put it on a subscription service. Yay?
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This is how MS will reach their goal of $32 Billion a year in revenue. They feel like governments all over the world are too weak to say no to them acquiring most of the 3rd party publishers. And I think they are right. Nobody wants to stand up to a $2.5 Trillion company.
 
It's feasible but i think it depends on the market if people play more games or not
Covid boosted the market but we won't know for 2030
 
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