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

NickFire

Member
I'm not a fan of the tone I felt reading that interview. Struck me as testing the water for a high priced X, laying the seeds for claiming S is to help people out due to economy, and getting ahead of bad news or market research or something. And worst of all, possibly laying groundwork for a delay. I might be getting worried about nothing since I'm itching to try out these next gen experiences and starting to wonder how much of the delayed conferences (industry wide) are due to disrupted work conditions for around 4-5 months depending on locale (as opposed to for the reasons stated). Who really knows?
 

Nikana

Go Go Neo Rangers!
I'm not a fan of the tone I felt reading that interview. Struck me as testing the water for a high priced X, laying the seeds for claiming S is to help people out due to economy, and getting ahead of bad news or market research or something. And worst of all, possibly laying groundwork for a delay. I might be getting worried about nothing since I'm itching to try out these next gen experiences and starting to wonder how much of the delayed conferences (industry wide) are due to disrupted work conditions for around 4-5 months depending on locale (as opposed to for the reasons stated). Who really knows?

No way it's being delayed.
 
Because the suggestion that the strategy isn't to sell a ton of Xboxes is fucking dumb on its face and irresponsible and insulting for people who've put their eggs in the Microsoft basket and partnered up with them.
It's not dumb at all. From a cost perspective if you can eliminate the biggest loss which is the box, you do it. They are creating an eco system that doesn't require their box to enter. Basically if you sell an XSX at 500$ but it cost 600$ to manufacture you are selling at a 100$ loss, but if you can get that same customer on a pc they build, and have them buy your software and gamepass you reap basically all the gains. From a business perspective it makes the most sense even if it's something us gamers can't gully get since we have in our mind "you only win by selling the most boxes." Just not the case anymore. I'm sure they'd rather have 50 million game pass users than 30 million XBSX in houses.
 

MacReady13

Member
Ruining console game? do you hear yourself?? My lord that is one of the worst statements in this thread. I think you just negated any option you have with that statement.

To be fair, I think once the generation of consoles that started with the 360 and PS3 was the end of traditional consoles (constant updates, downloading games, DLC). This is just furthering the end of console gaming. I HATE fucking streaming. I HATE the "Netflix" of gaming. This is disposable gaming and it's not what I want. That is my opinion.
 
So why release a console? Why not just be a streaming service?

People here acting like Ms doesnt care how many consoles they sell? Well lets put it this way.
If MS sell under 30 million I doubt they will sell another console again......
More console = more subscriptions, more software sales.
I think they would if the backlash wouldn't kill the brand. Last gen Xbox jumped the gun trying to push digital too hard and it bit them. In the end yea most gamers buy games digital now, but being too far ahead the curve isn't good either for a business. Humans are stubborn and hold on to the past even when it's past being convenient. It's about timing. If in 5-10 years we see a similar shift where most gamers are playing Xbox on the eventual Xcloud smart TV app I'm sure they'll slowly phase out the box and it'll just be an optional thing you can buy they keep on hand in limited quantity.
 

BlueHawk357

Member
These statements from Xbox people have really put me off buying the Series X. It really feels like they don't care about pushing games forward in quality, and would rather just have quantity amoungst all devices kinda like a mobile way of doing games. It feels anti next gen in a weird way. Hope they prove me wrong but even they seem to be saying don't bother upgrading themselves tbh.
 

NullZ3r0

Banned
The more Xboxes you sell, the more people you can sell your services and games? I guess Spencer came up with the name for Xbox 360.

And it's not like MS is a 1st party games powerhouse that can sell a truckload of their games on other platforms. Very odd strategy.
Not true. With Xcloud you don't even need an Xbox.
 

oldergamer

Member
To be fair, I think once the generation of consoles that started with the 360 and PS3 was the end of traditional consoles (constant updates, downloading games, DLC). This is just furthering the end of console gaming. I HATE fucking streaming. I HATE the "Netflix" of gaming. This is disposable gaming and it's not what I want. That is my opinion.
First that is pure nonsense. The consoles now were doing the same things as Xbox 360 and PS3. Title updates, downloading games, and DLC were all no different on those consoles then they are now, outside of the size of downloads.

Who cares if you hate streaming. if you hate it, don't use it. I don't use it and it does nothing to make me thing MS should leave the games biz! Disposeable gaming? you're not making sense. You're playing the same games on streaming services that you could by physically.
 
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Back in the day Microsoft actually made computers. They quickly went away from that model though to just offer Windows OS to computer manufactures. Nowadays Microsoft makes their money off of software and OS (although yes, I know they do still sell computers and other electronic devices.)

It really does sound like they are wanting to turn XBOX into the Windows OS model. The model that makes them the big bucks. They want to replicate that, even though it may not be successful. They just want to turn XBOX into that, no matter what the cost really.

This makes me sad. Gone will be the days of a dedicated box, made for a dedicated purpose.
How can you say gone are the days of a dedicated box.. What alternate reality are you living in. Series X is a an all out gaming tour deforce. You cannot argue that.
 

MacReady13

Member
First that is pure nonsense. The consoles now were doing the same things as Xbox 360 and PS3. Title updates, downloading games, and DLC were all no different on those consoles then they are now, outside of the size of downloads.

Who cares if you hate streaming. if you hate it, don't use it. I don't use it and it does nothing to make me thing MS should leave the games biz! Disposeable gaming? you're not making sense. You're playing the same games on streaming services that you could by physically.

I said in my original argument that the 360 and PS3 consoles starting this bullshit trend. I thought I made that pretty clear...

Who cares if I hate streaming??? I care! I'm happy if it is done alongside console/PC gaming, but we ALL know that streaming is what the console/PC devs all want. They want us to want it as well. I'm not down for that shit. The more we just let it happen and "who cares, don't play streaming games" won't make a lick of difference because they will creep it in to our gaming services and it will definitely be the end of gaming for many of us purists.

As for disposable gaming... If we head down the games pass route (the "Netflix" of gaming") then yes, that is disposable gaming. Play these games whilst we have them up for you but once they're gone, they're gone for good. We have a MASSIVE issue with not preserving our past games, and we will have similar problems in the future if everything turns into streaming and games pass (and it fucking will if it's successful).
Microsoft have stated time and again they don't give console numbers for sales as they are interested in "services" to distribute games. Call me old fashioned, but I love the new console near the TV playing games like the old days. There is nothing wrong with that and nothing stating we can't do that for the long term. If it ain't broke, don't fucking need fixing...
 
If I was trying to compete with PS5’s best in class SSD, I/O solution and stable of first party developers, I’d be downplaying sales expectations to Wall Street and my bosses as much and as soon as possible also.

He knows what he’s doing here folks.
Do you really think they are afraid of an SSD when they have RT.. What would you prefer Running fast in a game or super realistic worlds with no extra hit to the GPU because there are dedicated RT cores to handle the lighting and audio?
 

Panajev2001a

GAF's Pleasant Genius
Do you really think they are afraid of an SSD when they have RT.. What would you prefer Running fast in a game or super realistic worlds with no extra hit to the GPU because there are dedicated RT cores to handle the lighting and audio?

Beside ray / triangle intersection acceleration, lighting for RT is still running in the shader cores on both consoles (same thing on RTX GPU’s), both consoles seem to support the same RT solution and one of them has 18% or so more overall rendering performance. Some people may oversell the disk, some oversell the GPU difference.
 
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Why are so many PlayStation fans 'concerned' about what MS and the Xbox is doing.? It's clear you don't like the console or the games or the marketing or the PR people or the executives. You don't like BC because its holding back the next generation. Game pass is bad because the games on it will be cheap! The SSD is too slow! All they have is Halo, Gears and Forza! The games come out on PC so its bad! And in this case Phil Spencer is planning on dropping the Xbox because he said that during an economic downturn he isn't going to be focused on the number of sales of the new Xbox. Wow! It doesn't seem like some here are gamers at all. There is nothing wrong with what Phil said and while I do have some issue with the Xbox not getting the premium treatment for the premium price I think they have made significant moves to be pro consumer and I as a gamer and a consumer can stand behind that. I hope some of you guys get back to enjoying games and get away from the conspiracy theories and lame 'concerns'.
 

Nikana

Go Go Neo Rangers!
I said in my original argument that the 360 and PS3 consoles starting this bullshit trend. I thought I made that pretty clear...

Who cares if I hate streaming??? I care! I'm happy if it is done alongside console/PC gaming, but we ALL know that streaming is what the console/PC devs all want. They want us to want it as well. I'm not down for that shit. The more we just let it happen and "who cares, don't play streaming games" won't make a lick of difference because they will creep it in to our gaming services and it will definitely be the end of gaming for many of us purists.

As for disposable gaming... If we head down the games pass route (the "Netflix" of gaming") then yes, that is disposable gaming. Play these games whilst we have them up for you but once they're gone, they're gone for good. We have a MASSIVE issue with not preserving our past games, and we will have similar problems in the future if everything turns into streaming and games pass (and it fucking will if it's successful).
Microsoft have stated time and again they don't give console numbers for sales as they are interested in "services" to distribute games. Call me old fashioned, but I love the new console near the TV playing games like the old days. There is nothing wrong with that and nothing stating we can't do that for the long term. If it ain't broke, don't fucking need fixing...

This sounds like a whole lot of FUD. Everything you want as a consumer is still available. Having more options doesn't take away your options.

Streaming hasn't killed owning media. You can still get it. Game Pass hasn't don't a single thing to stop you from being able to do what you call old fashioned.
 
Sega or Amazon need to get into the console business. I don't know for how much longer the Xbox brand is gonna keep lingering like this... it's like they're looking forward to the knockout punch but no one volunteers.
 

Xplainin

Banned
Meh, they dont care about how many systems they sell, but have a strategy on how they are going to win the console sales war next gen.
Sales rule Number 1 - Under promise, and over deliver.
 

LarknThe4th

Member
They may be moving towards a model where they want subscriptions over sales, but they do need a significant amount of boxes out there in the wild

1st party needs to be fire, will see in July, exciting times!
 

RespawnX

Member
He is simply responding to a question he has been asked. Phil Spencer was asked how he evaluates the impact of the pandemic and the economic uncertainty and miracle of miracles, he shows understanding that people can have different priorities. Incredibly, the strategy of the Xbox Series X with a projected life cycle of 6-8 years and the strategy of the entire Xbox department does not depend on 3 months in one of the most socially difficult and uncertain years of the last century.

Some people here should really get some fresh air and a good dose of reality. Maybe also some understanding of the fact that for 99.999999% of the world's population, life is not about video games. There are already enough people who have to turn over pennies every day, many children will not have the desired presents under the tree this Christmas due to salary cuts and layoffs due to economic instability. And this is the half of the world that can even think about something like gifts and video games. Be glad you live in this side. If you have nothing more than stupid comments and fanboy wars to post under any topic, just shut up and get some help.
 
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LixhulHot

Banned
Sorry to break it to Spencer but consoles rely on the network effect, i.e., the fastest out the gate in terms of sales always wins. This is a ridiculous argument and they're already writing it off.
 

Nikana

Go Go Neo Rangers!
Sorry to break it to Spencer but consoles rely on the network effect, i.e., the fastest out the gate in terms of sales always wins. This is a ridiculous argument and they're already writing it off.

Good thing he didn't say that.

Some of you need to learn reading comprehension.
 

//DEVIL//

Member
Thankfully this only apply for xbox and not Sony. Not ignoring the guys in the US but Sony PlayStation isn’t just in the US . Which means they can still have a successful release worldwide outside USA unlike Microsoft where they count on the US sales primary .
Hope things go back to normal very soon. This year has been crazy since it started .

- fire on Australia . Volcanos . Covid 19. BLM . God knows what else I forgot and we are just half of the year .
Here is hope for a better second half ! Cheers
 

//DEVIL//

Member
Sorry to break it to Spencer but consoles rely on the network effect, i.e., the fastest out the gate in terms of sales always wins. This is a ridiculous argument and they're already writing it off.
I don’t get this . Yeah this was applied before when higher console sales means more exclusives . Now third party games are on every console possible even stadia . The only exclusives are first party games and those games will be great / bad regardless if the console has 1 million sold or 100 million.

Buy the fucking console that has the first party exclusives you want the most . And if you don’t like either buy the one that plays your third party the best regardless of sales numbers . Cmon guys this is not 2000 anymore
 
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SynTha1

Member
I really can't understand how there are still fans of Microsoft and xbox after getting scraps since the second half of the 360 era and all of this generation I really can't understand it smdh but hey I guess people really love mediocre output from a as the fans would say " trillion dollars company". Like seriously don't y'all have any pride.
 

Nikana

Go Go Neo Rangers!
I really can't understand how there are still fans of Microsoft and xbox after getting scraps since the second half of the 360 era and all of this generation I really can't understand it smdh but hey I guess people really love mediocre output from a as the fans would say " trillion dollars company". Like seriously don't y'all have any pride.

I can't understand how there are still people on neogaf who get butt hurt over people liking something they don't.

Like seriously, don't y'all have any brains?
 

EDMIX

Writes a lot, says very little
Well, let's stick with the topic and discuss why it makes sense to anyone that if a company is going to go into hardware and develop partnerships based at least (probably more) on that hardware, to say that they're not concerned with how many they sell in its launch year.

Agreed.

At this point, if Series X fails, I think they need to consider just going 3rd party if they are in love with those subscription numbers soooooooo much.
 

SynTha1

Member
I can't understand how there are still people on neogaf who get butt hurt over people liking something they don't.

Like seriously, don't y'all have any brains?
Not butt hurt in the slightest do u just trying to understand that all ✌🏿
 
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Nikana

Go Go Neo Rangers!
Agreed.

At this point, if Series X fails, I think they need to consider just going 3rd party if they are in love with those subscription numbers soooooooo much.

Going third party gives them way less wiggle room on controling the service as well as less money because the platform holder will want their cut.
 
HW sales don’t matter
Software sales don’t matter
Exclusives don’t matter
Next gen exclusives don’t matter

tumblr_n18whoxr6l1rd1kpko2_r1_500.gif


Reminds me of a Metallica song.
 

Guilty_AI

Member
They may be moving towards a model where they want subscriptions over sales
Yeah, their approach is lagely based around costumer services while sony's revolves around new tech.
In a way it sort of reflects the nature of their own companies, which i find kind of interesting.
 
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godhandiscen

There are millions of whiny 5-year olds on Earth, and I AM THEIR KING.
This is a reasonable strategy. However, they still need to beat their competition for that small initial next-gen user base. Those are the users who will get other users excited.
 

deriks

4-Time GIF/Meme God
Well, the biggest money Microsoft has is with Office, so... yeah. I don't know

But I think that his heart in the right way
 
"People find real value in the investment that they make in gaming. You can buy a console, buy some games, and it can literally provide your family with hundreds of hours of entertainment. Even when we went back and looked at 2008-09, in that recession, to see what the impact was on gaming - gaming did OK. It was durable.

We want to make sure we're providing the right value to customers.

Price is going to be important.

But our strategy is centred around the player, not the device"


More at the source

Considering the approach PlayStation has already committed to aka fast conversion to PS5 the contrast will be stark and I'm guessing if Sony touts their sales, this type of sentiment kinda falls flat. THe problem is XBOX has always touted console and games sales and while they may be trying to move on from a metric of success that they created, I don't think the broader audience cares, understand, or gives a fuck about these new metrics, especially when XBOX refuses to say how many PAYING subscribers they have for any of their services.
Lmao, JFC
Yes, the broader audience won’t care about Gamepass or xCloud metrics, but they’ll care about console sales??? No one outside of gaming forums gives a flying fuck about console sales, it’s the most asinine bullet point for no reason other than to win the great imaginary digital console war. As others have already posted, they’ve got over 10 mil Gamepass subscribers. The obsession with some people about having such extreme concern for the success of a platform they clearly were never interested in is pretty gross.

The interview reiterates the plan MS has already clearly outlined for months if not years now not to mention Phil is making a pretty clear statement about how new gen console adoption might take a hit or be slower than anticipated due to the worldwide recession. If you think PlayStation is magically immune to this cause “muh Sony, muh Cerny, muh brand strength” then you’re in for a rude shock.
 
I really can't understand how there are still fans of Microsoft and xbox after getting scraps since the second half of the 360 era and all of this generation I really can't understand it smdh but hey I guess people really love mediocre output from a as the fans would say " trillion dollars company". Like seriously don't y'all have any pride.
The fact you even link console choice to pride is pretty telling.
People prefer MS/Xbox for multiple reasons, such as; Gamepass, controller preference, Back Compat, generally playing 3rd parties better (X1X), even preference of 1st party titles. It’s not as hard as you and others make it out to be.
 
This is so flipping weird. Despite releasing a next-gen console, everything about the Xbox's messaging and strategy almost feels like they DON'T want you to hurry out and buy their new device, which makes no sense. If you're going to go through the troubles of spending millions in R&D to make a new console, then you'd think they would want to sell the box as well. If all they care about is streaming and game pass subscriptions, maybe they don't need to be in the hardware business anymore, and instead can try to leverage the huge install base of Windows to sell those subscriptions.

From what they are doing, they are basically serving the platter up to Sony to gain a potentially huge lead in early adopters for next gen, which as we saw with the PS4 had a cascading effect later on in the gen. There're no 1st part exclusives that would really compel someone to get the new xbox and their messaging suggests no urgency in even buying the new box. Whatever their strategy is, it just doesn't make any sense to me, while Nintendo and Sony seem to understand the need of exclusive software to push new hardware.
 
Great selling point for XSX.
Wow, almost like it’s trying to sell xCloud and not XSX. Almost like they’d rather have service subs than console sales. Almost like they’ve clearly stated that as their goal for months if not years now.
Having a clown as your profile picture is very appropriate.
 
Starting to think SSD stands for Super Super Dense, hence the PlayStation warriors relate to it so much. Far out.

Is a services-based approach really this hard for you guys to understand? It could absolutely fail but we don’t know yet.
 

EDMIX

Writes a lot, says very little
Going third party gives them way less wiggle room on controling the service as well as less money because the platform holder will want their cut.

It allows them to be on legit, 160 million more units though.....

Plus on PC or even XB if they still continue it, its not as if they'd be charging themselves or something.
 

Dory16

Banned
To be fair, I think once the generation of consoles that started with the 360 and PS3 was the end of traditional consoles (constant updates, downloading games, DLC). This is just furthering the end of console gaming. I HATE fucking streaming. I HATE the "Netflix" of gaming. This is disposable gaming and it's not what I want. That is my opinion.
why disposable? You have the option to buy any game available on game pass and at a discounted price at that. If owning the game forever is what you want and not just playing it, then that's covered too, unlike Stadia.
 

Nikana

Go Go Neo Rangers!
It allows them to be on legit, 160 million more units though.....

Plus on PC or even XB if they still continue it, its not as if they'd be charging themselves or something.

Not sure what the second part of your comment means.

More devices is better, if you don't have your own eco system. 160 million more devices sounds great but not nearly as enticing when you have to lose 40-50 percent of your revenue plus abide by everyone else's rules.
 
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