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Phil Spencer: The Xbox business will become ‘untenable’ if it remains ‘irrelevant’ on mobile.

Ozriel

M$FT
Then, uh, why isn't he making mobile games. Yeah they have Game Pass streaming but the mobile crowd has spoken and they want F2P gachas, not whatever Phil has.

…and now you know a big reason why they’re trying to buy Activision Blizzard King.

And they’ve started with Mobile. Slow so far (Gears POP failed, for example), but there’s an Age of Empire mobile game coming out next year.
 

Punished Miku

Gold Member
Phil doesn't lie though, we get told this all the time.

So I'm not sure what the takeaway is from all of this. If he's using words like "untenable" with regard to their current business model then that's pretty ominous.
Its not a statement about their current model. Read the OP again. He said over time if current trends continue. Try to embrace a little nuance guys
 

Ozriel

M$FT
Some data

ij4kotk.png


You can see the growth trends for mobile significantly outstrips console and PC. Consoles spiked in 2020 but seems to be flattening post COVID.

And if projections are correct…

adoK6AV.jpg


Mobile growing to $338bn by 2030 will leave other platforms as relatively niche performers if trends remain flat.

Sony’s well ahead of MS in the mobile game. Tencent is far ahead of everyone else.
Phil is playing catch up
 
This would make me nervous if I was one of the many, many console-focused studios that got purchased by Microsoft over the last couple years. "Am I going to get put on a mobile game that I don't want to work on?". Console games make so much damn money, like just look at Nintendo. Or, Elden Ring. It's Xbox's weak lineup that's hurting them, not the lack of presence on mobile. Maybe put out some games that people want to play?

I probably sound overly critical, but it's because I bought a Series X over a PS5, on the promise of Xbox first-party and Game Pass. Still waiting for Avowed, Fable and Starfield....
 
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feynoob

Member
Phil doesn't lie though, we get told this all the time.

So I'm not sure what the takeaway is from all of this. If he's using words like "untenable" with regard to their current business model then that's pretty ominous.
He saw Sony plan, and got scared a bit.

Even with a company like Sony, who are having success are going after mobile and live service market.

That should tell us something about the current console model.
 

adamsapple

Or is it just one of Phil's balls in my throat?
I swear they barely mentioned mobile when this acquisition was announced. Now they are making it seem like it’s their main focus lmao.

They've literally been saying it since February.



Instead Spencer insists that the move was centred around a decision within Microsoft and Xbox to expand into the “mobile and casual” market. King, the owners of Candy Crush, are also part of the Activision Blizzard deal and hold a huge part of the mobile market.

“The board of Microsoft, on the day that we got approval for ZeniMax, asked, ‘What was next?’ And the constant conversation had always been about mobile and casual.
 
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DeepEnigma

Gold Member
Phil doesn't lie though, we get told this all the time.

So I'm not sure what the takeaway is from all of this. If he's using words like "untenable" with regard to their current business model then that's pretty ominous.
It's almost as if, now hear me out, almost as if throwing all these day 1 AAA bangers from what were traditional third party publishers, onto a sole subscription rental service where you admit has stagnated, I mean, "reached saturation" (his words), will need a mobile gatcha revenue stream and internal book cooking to remain sustainable under than umbrella.
 

Stuart360

Member
As much as i hate mobile gaming, and it will be something i never invest in, Moble gaming does make up something like 70% of the gaming market, with PC and the consoles making up the other 30%.

It would be stupid for everyone, not just Xbox, to not get involved in the mobile sector.
Of course Phil said it so it must be something weird and ridiculous he's said.
 
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Elios83

Member
Papa Phil playing 4D chess in this interview. What a boss.
And he's so smart that even random people on message boards can call out the nonsensical diversion aimed at throwing smoke at regulators :messenger_tears_of_joy:
Things must be getting really tense about the Activision deal internally.
 

DeepEnigma

Gold Member
He saw Sony plan, and got scared a bit.

Even with a company like Sony, who are having success are going after mobile and live service market.

That should tell us something about the current console model.
Sony owns the number 1 (or was the number 1) revenue mobile game for years now.
 

feynoob

Member
It's almost as if, now hear me out, almost as if throwing all these day 1 AAA bangers from what were traditional third party publishers, onto a sole subscription rental service where you admit has stagnated, I mean, "reached saturation" (his words), will need a mobile gatcha revenue stream and internal book cooking to remain sustainable under than umbrella.
Why don't you talk about the cost of making those games?

PS and Xbox don't really have the same userbase. So both won't have the same sales.

If God of war was on xbox, it would have done 10m due to userbase.

Xbox needs to have a higher userbase, if they want the to make close to what Sony makes from their 1st party.

This is just business. Subscription makes sense for them, unlike Sony.

Business isn't a charity.
 

DeepEnigma

Gold Member
Business isn't a charity.
Never said it was. You don't need to lecture me, nor does anything you say detract from what I said. In fact, what you said reinforces my take even more.

That was only for fate.
Now they are doing full investment like Nintendo.
Yep. And some of the very same proponents in here, raked Jimbo Sony over the coals when that were announced.
 
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Ozriel

M$FT
I wish he would stop doing these bits of interview, and have less public appearances.

He is getting little bit annoying for me now.

I think you should stop letting console warriors dictate how you view these things.

These interviews bring a pretty good transparent window in what Xbox plans and strategy are. And they’re perfectly fine.

Take this interview. While VGC and OP went with a small portion for clickbait, the full interview goes deep into their plans for Call of Duty on PlayStation/Switch, some talk about regulators and narrative about how the delays for Starfield and Redfall came about.

https://www.theverge.com/23459189/p...box-playstation-candy-crush-apple-fortnite-vr

You should take a read.
 

feynoob

Member
Never said it was. You don't need to lecture me, nor does anything you say detract from what I said. In fact, what you said reinforces my take even more.
If people wants those games, then xbox has to get the investment from somewhere. And that is where gamepass is coming for them. It's already a part of their business now.

Yep. And some of the very same proponents in here, raked Jimbo Sony over the coals when that were announced.
People here like to hate. They have super closed minds.
 

feynoob

Member
I think you should stop letting console warriors dictate how you view these things.

These interviews bring a pretty good transparent window in what Xbox plans and strategy are. And they’re perfectly fine.

Take this interview. While VGC and OP went with a small portion for clickbait, the full interview goes deep into their plans for Call of Duty on PlayStation/Switch, some talk about regulators and narrative about how the delays for Starfield and Redfall came about.

https://www.theverge.com/23459189/p...box-playstation-candy-crush-apple-fortnite-vr

You should take a read.
He could have made a small public post on their website.
That would have been enough.
 

mansoor1980

Gold Member
Spencer added: “As a percent of the overall gaming business, the console business is shrinking, because the overall business is growing and console stays relatively flat as a business, same thing with PC.

73WU.gif
 

Banjo64

cumsessed
Phil read the GAF thread about Apple making more money on mobile gaming than everyone else combined. Always knew he was a GAFER.
He has said in the past they monitor social media channels. Considering his age and tech background and NeoGAF’s size - it wouldn’t surprise me at all if he knows of the forum and checks in from time to time.

Like Taylor Swift browsing 4chan.
 

Interfectum

Member
Some data

ij4kotk.png
The problem with this is MS is only trying to buy one big mobile publisher (King) and there is no guarantee lightning will strike again for them.

Mobile gaming is an extremely tough nut to crack and none of the developers MS has is capable of competing in this space. Hell even mobile titans like SuperCell is having a tough time creating the next big mobile game and they made CoC and Clash Royale.

You either go for console gaming experiences or casual mobile games. You aren't really going to be able to do both.
 
The problem with this is MS is only trying to buy one big mobile publisher (King) and there is no guarantee lightning will strike again for them.

Mobile gaming is an extremely tough nut to crack and none of the developers MS has is capable of competing in this space. Hell even mobile titans like SuperCell is having a tough time creating the next big mobile game and they made CoC and Clash Royale.

You either go for console gaming experiences or casual mobile games. You aren't really going to be able to do both.
You underestimate King and Activision as a whole. They had the biggest mobile AND console games at the same time. MS will absolutely benefit from this acquisition.
 

Bernkastel

Ask me about my fanboy energy!
Sounds like lose/lose if you're an Xbox gamer. Last thing I want is the big three putting their focus toward mobile.
Two of the big three already way too deep into mobile(Pokemon or Aniplex stuffs like Fate Grand Order). Xbox is just the last one.
 

Ozriel

M$FT
The problem with this is MS is only trying to buy one big mobile publisher (King) and there is no guarantee lightning will strike again for them.

Mobile gaming is an extremely tough nut to crack and none of the developers MS has is capable of competing in this space. Hell even mobile titans like SuperCell is having a tough time creating the next big mobile game and they made CoC and Clash Royale.

You either go for console gaming experiences or casual mobile games. You aren't really going to be able to do both.

Not really. They’ve dabbled with mobile gaming on their own. I mentioned Gears Pop and AoE mobile, for example. Lots of other IP they could try to switch to mobile.

But aside that, ‘mobile’ for them also refers to the always-with-you screen and gaming on the go, and they’re pushing XCloud streaming to mobiles for that.

Not to mention that aside King, Activision also makes a ton of cash from COD mobile.
 

GHG

Member
Invest in mobile to get a footprint in the largest growth market.

I'm not sure how that's of interest to the majority of people who post on this board.

He's basically saying that the market for the games and types of experiences we like are becoming increasingly niche. Personally I don't give a fuck, I have no problem participating in markets that are considered "niche" provided I continue to get enjoyment out of them.

Also selecting mobile as a potential growth vector is a curious one. It's a market that is already dominated by the established players (Google and Apple) and it's a space that is already showing signs of stagnation:




What are they going to (and what can they) offer in the way of disruption that will a) result in them being taken seriously by mobile gaming consumers and b) result in a much needed shot in the arm for the mobile gaming space?

People better hope that it never amounts to anything more than a small side project compared to their current offering.

A new revenue stream since their current one has reached "saturation" for them.

Well I did say that was the case, doesn't take a genius to work out the console market is approaching saturation considering it's now very much a mature industry:

The industry is also mature, the idea that there's this whole untapped market of gamers out there waiting for these companies is quite simply delusional. Pretty much every person on earth now has access to a device that is capable of playing videogames. It then just comes down to whether or not said person actually wants to play video games and if yes what types of experiences do they want.

It's like they are scrambling around looking everywhere for potential industry growth when it doesn't exist. I don't understand why.
 
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Interfectum

Member
You underestimate King and Activision as a whole. They had the biggest mobile AND console games at the same time. MS will absolutely benefit from this acquisition.
King has Candy Crush. Phil literally wants to buy Candy Crush so he can put the "Xbox" or "MS" logo at the top. There is no guarantee that King will ever make another hit like that again.

Call of Duty Mobile was made by a Tencent studio.
 
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ungalo

Member
Xbox is already not sustainable, it's ONLY sustainable because Microsoft deep pockets, I wouldn't be surprised if losses are in the billions yearly.
I mean that's probably his point. He wants to stop losing money.

Depends on the way he's saying that. If he intends to use some divisions like the mobile to counterbalance what he's losing with the traditional games, that works for me.
 
I think people think only candy crush when they hear mobile and not cloud. Cloud seems to be the primary focus for Xbox mobile. If you. An get say sea of thieves as an accepted mobile game as well that’ll dwarf the amount of users on console. Xbox does a good job with their cloud and touch controls offering. Not for me at all but it hasn’t been intrusive on my home console preference yet. Pentiment might be their first game I play primarily mobile.
 
King has Candy Crush. Phil literally wants to buy Candy Crush and say "this is Xbox now." There is no guarantee that King will ever make another hit like that again.

Call of Duty Mobile was made by a Tencent studio.
There is no evidence Xbox is going to transition to a 'Candy Crush' platform. MS wants to EXPAND to mobile not replace traditional gaming to mobile.

At this point unless Candy Crush stops being popular it doesn't need to be replaced anymore than CoD needs to be replaced.
 
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