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Phil Spencer admits defeat in console space, and doesn't think great games would help Xbox's market share.

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MeisaMcCaffrey
The only reason PlayStation didn't collapse after PS3 was because they kept releasing good games even during the dark times - MGS4, God of war 3, Uncharted 2 etc. Stuff like this creates goodwill and they were able to carry this over to the PS4 for which they went back to the basics and released a uncomplicated console.

Xbox needs one massive hit like Gears of War and they will claw back the market share in North America at least.
 

GrayFoxPL

Member

season 3 episode 10 GIF
drunk season 4 GIF
 

Mr.Phoenix

Member
The only reason PlayStation didn't collapse after PS3 was because they kept releasing good games even during the dark times - MGS4, God of war 3, Uncharted 2 etc. Stuff like this creates goodwill and they were able to carry this over to the PS4 for which they went back to the basics and released a uncomplicated console.

Xbox needs one massive hit like Gears of War and they will claw back the market share in North America at least.
They will need a lot more than one massive hit. Especially being that anything they make is on PC and gamepass.
 
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Robb

Gold Member
Have they been trying though?

My impression is that they’re all in on GamePass. Console sales haven’t seemed to be very important to them for years.
 

Heisenberg007

Gold Journalism
You touched on something very critical here, I think Redfall has perfectly encapsulated why the mass buying-out of publishers strategy is a limited strategy:
  • When MS buys something like a Bethesda, and takes games that are still in the reveal stage into their pipeline as "1st Party", they are not really doing 1st party, they are just doing "3rd party on a single ecosystem", which sounds similar initially, but is vastly different in practice, games like HiFi Rush or Starfield or Redfall were greenlit with budgets that reflect the markets Bethesda was targeting as an independent publisher, locking them into your ecosystem will cause imbalances in those assumptions, with varying results. Starfield might not be super affected by PS5's exclusion, but Redfall just lost a massive chunk of its prospective playerbase.
  • When you buy everything that moves for IP, you also inherit the failings of past games of their franchises, Psychonauts 2 is reportedly fantastic, but it's no system seller because Psychonauts 1 is too outdated graphically to have any appeal (Psychonauts 1+VR never sold well during its time). The same goes for Dishonored, which had very soft sales on its 2nd installment.
  • Despite the attempts by astroturfers to convince you otherwise, players DO know the histories of their favorite IPs, so locking up something like the next DOOM or the next Dishonored isn't necessarily gonna make them switch to your ecosystem, there's the possiblity that the opposite happens: People might wait for you to fail and have to port that stuff over to wherever they already were playing! This is exactly what happened when Xbox locked up Rise of the Tomb Raider, and people just waited out that shit and bought it on PS4 when it came out there. You can definitely tell that something similar is happening now, some people are most definitely waiting out for Starfield to come to PlayStation in like, 2027 or whatever. Plus, if I already knew that DOOM isn't for me, then why would you think that the next Doom being exclusive to Xbox is something that would bring you my dollars? I already know that I don't like it, but if you bring something new to the market and surprise me with its quality, then I might be more amenable to giving it a try or reading about it etc.
Exactly. I said this before that Bethesda/Zenimax will be the downfall of Xbox.

The higher you climb, the faster you fall.

Xbox One survived because it didn't have a lot of baggage that was bleeding money. So there wasn't much scrutiny. If it didn't succeed, it didn't succeed. We'll try next time.

It's not the case with Xbox Series X|S (or Xbox in this generation). Because the question would be "why didn't you succeed despite buying a $7.5 billion publisher?"

And that brings all kinds of pressure. One of those pressures is to release a game, which was made with a multiplatform budget and is now not releasing on the console with the most number of buyers, even though it is not finished and you had to cut lots of corners to save the budget that it is now not even a proper AAA.
 
I think the redline has been drawn.

They are not banking on Starfield's success or failure anymore; that's what Phil said in this interview, i.e., even if it's 11/10 it does not matter.

The only thing that I believe they are waiting for is the ABK deal -- which can potentially extend their lifeline by a few years. But, let's say, if EU also blocks it, then that's it for either Phil or Xbox hardware or both.

The process of winding up one or both of them may already have been started -- which is what led Phil to say all this.
No watch interview again.

He said PS4 gen was the worst gen to lose coz in that generation people on PS made their big digital library and now they will not abandon it even if Starfield is 10/10 game.


Will u sell PS5 and buy Xbox if Hellblade 2 is like God of War? No, you will just make it secondary console or most probably invest in Game pass through PC.


I dont think he meant that good games not needed and xbox shouldn't focus on good games. He saying just good games wont help Xbox console take PS share away in world market. They need new way to compete just like Nintendo doing with Switch by carving out their own Path backed by quality games.



This is how i took his statement. I watched whole interview.
 
They wi need a lot more than one massive hit. Especially being that anything they make is on PC and gamepass.
Exactly. They dont have console only exclusives to push hardware. You can play all of their games on PC day n date. So obviously it will hurt hardware sales.

He was strictly talking about good games will not push hardware sales in current scenario unless they are true hardware exclusive.
 

PeteBull

Member
Nintendo games don't have to compete with 3rd party games unlike on PS5 and Xbox.
Thats super shitty take, good games, exclusives at that are system sellers and ppl buy those in drowes, u are part of gaf community so u should know how gamer feels seeing/wanting new high quality game- hype is unreal, and nothing stops that train, certainly no 3rd party game , u see good game, u want it, need it in ur veins and u simply buy it, together with the console if u didnt have that console yet, its as simple as that.

Thats the feeling long forgotten among xbox users/microsft unfortunately, till they go back on the right track(early/mid xbox360 times, like every1 here pointed out many times) it will only get worse.
 

DryvBy

Member
And we want our CEO saying that?

"Listen, I know we just released a terrible game that we've been touting as a new pillar for the Xbox brand, but, honestly, it's not a big deal. People are going to stick with their console of choice either way. And for most, that isn't Xbox. Nothing can be done about that."
A bigger issue is that this interview comes off as,"Well, we can't make these 11/10 games all the time to get market share. You're stuck with the good games on Sony and Nintendo but stuck with meh from Microsoft".

I know there's someone going "that's not what he's saying" but at one point, he does say they expect to sell stuff reviewed at 60 and some at high 80s. Mix that with his statement that sounds defeated and it's why people that have ears understand what he's saying.

What I noticed about Microsoft is they put out early access stuff, service type games, and they have this mentality of fixing things later. You can have some GaaS games, but out out some big budget AAA games that have substance. When Fable hit, it had a disappointing ending and I still had a blast with it. It's one of my favorite Xbox memories. Halo, Conker's remake, Crimson Skies, MechAssault, the Madness series, just so many good old games and we end up promises more than products.

On top of that, everyone hates on The Don for ruining Xbox with TV TV TV. Phil was different and we ended up with a TV show budget inside the Halo Infinite game that won gamer's GOTY!! but didn't have legs yet again.

Xbox fand, this is you chance right now. This is your Boston Tea Party. You can flip the game and put a fire under the brand and demand Gamepass be another reason for Xbox but not the reason.
 

Heisenberg007

Gold Journalism
@Heiesenberg


Also even if Starfield is 10/10, u can play it on PC or cloud or whatever. U dont need console. So its still not pushing hardware much.
And that is a strategic problem that also came from Phil.

He started the day-1-on-PC initiative. He even berated Sony for not releasing their games on PC on day one. Now he is complaining that they are unable to sell enough Xbox consoles and capture the market share.

That's ... extremely odd.
 

reksveks

Member
Now he is complaining that they are unable to sell enough Xbox consoles and capture the market share.
Is he complaining?

Stating that network effects or whatever the term around digital library lock-in are real isnt the same as complaining as those two.
 
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reksveks

Member
Yes, in very passive aggressive ‘just curious’ corporate America kind of way.
His statement amounts to ‘no matter what i do we cannot win’. Wouldn’t you be frustrated in his place?

Again you are implying there.

He shouldn't have said things that could have been read that way but let's not pretend we aren't implying things here.
 
The money Microsoft has squandered on Xbox is astounding. It’s a testament to how horribly mismanaged the Xbox brand has been that they haven’t seen success given the almost unlimited resources at disposal. Phil has had his chance. Ultimately, it’s all about the games and there hasn’t been a single system selling game released under his watch. In fact, it’s much worse, the release cadence and roadmap has been sparse and unenthusiastic for years. The ‘Series’ consoles *terrible name btw Phil* launched with no real showcase title. It was the most uninspired console launch ever. The business model of Xbox is at odds with itself. On the one hand Microsoft designed a great device packed with next-generation technologies. On the other hand, even first-party releases are cross platform and don’t utilize most of the advanced feature set that would set Xbox apart. Ultimately, the most damning thing of all is that Xbox has lost its identity. They have no swagger. They are as milk-toast as it gets and a far-cry from who they were in the early days. Sad.
 
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Ronin_7

Member
The money Microsoft has squandered on Xbox is astounding. It’s a testament to how horribly mismanaged the Xbox brand has been that they haven’t seen success given the almost unlimited resources at disposal. Phil has had his chance. Ultimately, it’s all about the games and there hasn’t been a single system selling game released under his watch. In fact, it’s much worse, the release cadence and roadmap has been sparse and unenthusiastic for years. The ‘Series’ consoles *terrible name btw Phil* launched with no real showcase title. It was the most uninspired console launch ever. The business model of Xbox is at odds with itself. On the one hand Microsoft designed a great device packed with next-generation technologies. On the other hand, even first-party releases are cross platform and don’t utilize most of the advanced feature set that would set Xbox apart. Ultimately, the most damning thing of all is that Xbox has lost its identity. They have no swagger. They are as milk-toast as it gets and a far-cry from who they were in the early days. Sad.
Facts.
 

skit_data

Member
The whole
”11/10 Starfield won’t make anyone go sell their PS5 to get an Xbox”
comes off as a sort of freudian slip (for lack of a better expression) because that shouldn’t be the end goal. Especially coming from someone who previously said
1. The other console makers aren’t the the main competition
2. Playstations strategy is to make Xbox smaller and claiming that’s not their way
 

James Sawyer Ford

Gold Member
The whole
”11/10 Starfield won’t make anyone go sell their PS5 to get an Xbox”
comes off as a sort of freudian slip (for lack of a better expression) because that shouldn’t be the end goal. Especially coming from someone who previously said
1. The other console makers aren’t the the main competition
2. Playstations strategy is to make Xbox smaller and claiming that’s not their way

He also didn’t really give Sony credit for why they are as successful as they are

He passed it off as them always making exclusive deals when he went out and bought Bethesda for $7B to take away from PlayStation which is way bigger than any of the timed (or non timed) deals Sony does

So hypocritical of him as usual, and seemingly can’t admit that the primary reason they are in their position is great exclusive games from their own first party rather than these side deals
 

DenchDeckard

Moderated wildly
@Heiesenberg


Also even if Starfield is 10/10, u can play it on PC or cloud or whatever. U dont need console. So its still not pushing hardware much.

This is exactly what Sony guys have been saying for like 10 years.

I would bet a huge amount of money that even if starfield was the highest rated game this generation and Phil hadn't have made these comments. 99 percent of comments would be. " I'll buy it on PC or might try cloud gaming to try it out "

We all know this is true, I'm sure most won't admit it but its facts and we know it.

Saying that, Phil better get some good games out ASAP or why are any of us fans invested in the platform outside of game pass? No defending this weak leadership.
 
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Kumomeme

Member
But only on Xbox and on GamePass... it's very limited, they couldn't keep delaying the game and they needed something out there... it was the wrong choice likely, and that is why he had to come out to eat crow.

Phil is just running out of time and he knows it.
THIS.

i believe right now, biggest obstacle toward them is not Sony, not Nintendo, not PC, not supply constrainct etc anymore, but TIME itself.

they need games for their console and gamepass. but game development take time. it take years. the reason why XSX launch without any other exclusive other than Halo Infinite and no others proper first party exclusive for first 2 years is because those games is not ready yet. their development roadmap not ready in time compared to Sony's studios for example. they also aware that they cant risk to just rushed the games development or let it take long time too. both option, either too soon or much later could bite them back. they need it fast, but could not risk buggy, unoptimize game. they also cant let the devs get enough longer time too because they need it ASAP since in time, the brand fall behind rapidly against their main competitor. they simply in bind.

not to mention there is rumors that at beginning of launch some of those game still in preproduction phase. AAA game nowdays took around 3-7 years. usually 4-5 years. console generation cycle is around 5-7 years. now we already in 3rd year of this generation. there not much of time left honestly.

this partially one of reason lead to them buy Zenimax. BUT, turn out Bethesda also still in deep development and cant release any big hit within first 2 years too. there is rumors at beginning claim that Starfield supposed to be launch much later but end up need to rush to launch it sooner because Xbox need it very bad. again, time still become main obstacle for them and they seems to be cant escape it. at beginning people thought Bethesda's game would solve the issue by temporary fill loophole of game release so their others first party studio can take their time to finished development but turn out it also face same issue, which is time.

so right now they currently racing against time and we see the result.

time not gonna be much an issue if they foresee and planned their studios development roadmap beforehand in advance properly at the very beginning. they also might no need to buy Zenimax at first place if that is the case too. this is should be not their first rodeo in this industry either.
 
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Chiggs

Gold Member
This is honestly the most embarrassing shit I've ever read from a leader. A passive-aggressive pity-party.

I honestly don't even want to invest one more dollar in any Xbox product or service, knowing these phonies might very well bail on the whole thing.

Sony and Nintendo have taken their licks and persevered in the face of adversity; Xbox just whines and cries.
 

Go_Ly_Dow

Member
The only reason PlayStation didn't collapse after PS3 was because they kept releasing good games even during the dark times - MGS4, God of war 3, Uncharted 2 etc. Stuff like this creates goodwill and they were able to carry this over to the PS4 for which they went back to the basics and released a uncomplicated console.

Xbox needs one massive hit like Gears of War and they will claw back the market share in North America at least.
Precisely I remember back in the day the fanboys would laugh at the sales of Uncharted etc... saying PS3 exclusives don't sell well.

Sony took the long approach and has built goliath 1st party titles that have cut through into the mainstream. As well as a reputation and certain level of standard in these games to the point that even new IPs like Ghost of Tsushima are a success from the get go.
 

DenchDeckard

Moderated wildly
This is a loser mentality. Sony didn't do that with the PS3. Even though it cost $200 more and came out 2 year later.

Yes, he should show more strength I agree, but I don't think he is admitting defeat. it does seem he is saying that the business strategy for Microsoft is not just in the console space and that they will be focusing on what works for them. Which is seeing them have the most succesful xbox business they've had.

Now, onto games. That's a big one. Like I've said time and time again from the start of this year, 2023 is crucial and they must show games and release dates next month. Great start with hi fi rush...flop with redfield and hopefully a success with forza and starfield plus an extra surprise for late this year or quarter 1 2024.
 
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H-I-M

Member
Is he complaining?

Stating that network effects or whatever the term around digital library lock-in are real isnt the same as complaining as those two.


'we lost the worst Gen to lose'
'at this point not even 11/10 games will move market share'

Also keep in mind that no one told him to make those statements. It wasn't an answer to a question asked on the podcast. So yes he's frustrated and yes he's complaining.

To the people focused on literally interpreting 'no one will sell their PS5 for an Xbox', well duh obviously, cause that's not what he meant.
Again, both can coexist, that's why there's a cheap Series S, but even that isn't convincing the players and that's what's frustrating him.
 

mxbison

Member
Even Phil doesn't believe the "soon" anymore. Damn.

At least Microsoft has infinite money so I hope they'll put some more good multi plat stuff like Wo Long on GamePass day 1.
 

Tams

Member
This is honestly the most embarrassing shit I've ever read from a leader. A passive-aggressive pity-party.

I honestly don't even want to invest one more dollar in any Xbox product or service, knowing these phonies might very well bail on the whole thing.

Sony and Nintendo have taken their licks and persevered in the face of adversity; Xbox just whines and cries.

'Bid Daddy Money' from Microsoft is probably the main cause of that.

For Nintendo it really is do or die.

For PlayStation, while part of a megacorp, they were pretty much told, 'you have one chance to sort this out or you get the axe like our other divisions that fucked up their last chances'.

Microsoft just their money down the pit because they can. There's nowhere near the same pressures to do well.
 
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reksveks

Member
'we lost the worst Gen to lose"

'at this point not even 11/10 games will move market share'

First statement is rather bland.

Second statement I would go with the quotes in the OP.

I see commentary that if you just build great games, everything would turn around. It's just not true that if we go off and build great games, all of a sudden you're going to see console share shift in some dramatic way.
There is no world where Starfield is an 11 out of 10 and people start selling their PS5. That's not going to happen.
There is a disconnect between those two and "at this point not even 11/10 games will move market share". Obviously great games will increase market share but how much is an unknown and it's why I asked what is dramatic.

I think his frustration is more about the console focus of the general gaming discourse.

Again, both can coexist, that's why there's a cheap Series S, but even that isn't convincing the players and that's what's frustrating him.
I do agree that's probably the bigger frustration. The rise of big GAAS that span gens I think is having impacts on the industry that's may be unseen, both on PS and Xbox. Obviously more so on xbox cause of the lack of a "killer app" which again is Xbox's and Phil's responsibility.
 

Heisenberg007

Gold Journalism
Is he complaining?

Stating that network effects or whatever the term around digital library lock-in are real isnt the same as complaining as those two.
Yes.

Blaming Don Mattrick once again instead of taking ownership of his 10-year period in which he hasn't been able to recapture the market share -- despite setting it as a goal and laying the plan.


Now he says, "oh no, we can't because of this, this, and this."

And the inability of Xbox to capture the market share is mainly because of the wrong strategies that Phil Spencer deployed, e.g., day one PC launches.
 
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People thinking creating great games won't change anything are fucking morons.
Millie Bobby Brown Reaction GIF by Converse

Imagine an alternate reality where instead of Take Two being the creators of the GTA and RDR, it was a Xbox IP and was developed by their own internal studios, so every GTA and RDR ever made was a first party Xbox exclusive.

Do you think the market split wouldn't be a bit different?

Step into fucking reality.
Come Austin Powers GIF


Halo 1/2 alone propelled the original Xbox and made the 360 even possible and that console gained marketshare.

Why? Because great exclusives games matter.

Nintendo literally to this day lives off of Mario, Zelda and a few other IP.

Why? Because great exclusives games matter.

This is kind of scary, it seems some of you guys have literally been fucking brainwashed by this campaign Xbox has been on for a while now.

Wake the fuck up.

Great games or the absence of them is really the only thing that matters in this industry.
go away gtfo GIF
Absolutely agree, "gamers" today arent as savvy as they used to be. Largely because of this line of thinking from the developers.

Its always starts with games.

You make a gaming console...why the fuck would great exclusive games not be a game changer. Im a consumer right? Well if xbox had an amazing exclusive title thats ALL that would make me want one.

Like when 360 had bioshock and mass effect, before we knew it was timed. I literally bought my first xbox for those games specifically. Unbelievable
 

PSlayer

Member
I find it insane that he would come out and make a statement like this.

It's the complete opposite of what has, and will always be true in the gaming industry (and by extension, the entertainment industry). Content is king.
Things change. He mentioned the importance of digital library and he is right. Last gen was the one were people shifted from physical to digital so if you have a bunch of digital games on PS4 it makes sense to buy a ps5 with retrocompatibility to keep having access to these games. Then later you're going to buy a PS6,a PS7,etc...

People who are locked on playstation ecosystem won't dump it to buy an xbox,the most likely scenario is they will buy MS exclusives on PC.

As depressing as it is to listen to the guy say that,he is right.
 

H-I-M

Member
Yes.

Blaming Don Mattrick once again instead of taking ownership of his 10-year period in which he hasn't been able to recapture the market share -- despite setting it as a goal and laying the plan.

[/URL][/URL][/URL]

Now he says, "oh no, we can't because of this, this, and this."

And the inability of Xbox to capture the market share is mainly because of the wrong strategies that Phil Spencer deployed, e.g., day one PC launches.

And this is what he was saying a year ago :
https://www.eurogamer.net/xbox-series-x-s-is-microsofts-fastest-selling-xbox-console-generation-despite-supply-constraints

Either Phil is lying and damage-controlling, or they changed their strategy only this year, after a whole decade of learning nothing from the Xbox One era.
 
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Darsxx82

Member
The opposite.

If these words were for CMA and EU, he wouldn't be talking about console sales. As both the CMA and (apparently) EU have already disregarded console SLCs. Cloud gaming is their concern.

And Phil Spencer is here saying that they will invest and can beat their competitors in Cloud gaming. If anything, these statements will work against Microsoft in regards to ABK acquisition.

The opposite.

If these words were for CMA and EU, he wouldn't be talking about console sales. As both the CMA and (apparently) EU have already disregarded console SLCs. Cloud gaming is their concern.

What???

FTC affirms SLC in console space and there is an administrative judgment to close. There is also the "gamer" demand that is based basicly on the damage to the console market and Sony specifically. That's enough to want to look poor against Sony on consoles.

The EU and another dozen regulators have not clear in this regard also
And Phil Spencer is here saying that they will invest and can beat their competitors in Cloud gaming. If anything, these statements will work against Microsoft in regards to ABK acquisition.

No, regarding cloud gaming, his only statement is that it is part of the gaming business along with PCs and consoles and that he disagrees with the CMA's decision since it is not a market by itself yet or is in its infancy and it is not understandable make predictions about it.

At no time does he say that he is going to continue investing with the purpose of beating or hitting his competition...

It is very clear that their statements are very handicapped by the Acquisition process and the appeals.

The US FTC is key as it is the market where sales of consoles are more adjusted.
 

Heisenberg007

Gold Journalism
And this is what he was saying a year ago :
https://www.eurogamer.net/xbox-series-x-s-is-microsofts-fastest-selling-xbox-console-generation-despite-supply-constraints

Either Phil is lying and damage-controlling, or they changed their strategy only this year, after a whole decade of learning nothing from the Xbox One era.
I think they tried with Series X|S and gave it their best attempt, even bought a publisher, and tried buying another. Essentially invested (or tried to invest) $100 billion in an attempt to win this generation.

Then realized it's not working and just accepted the defeat.

There is a strong possibility that before Phil, it was Microsoft that accepted this defeat. I've been saying for some time now that it's only a matter of time before MS realizes this and pulls the plug, on the hardware at least.

Jeff Grubb also said that Microsoft leadership is not happy with Xbox's performance.

Just my theory: but I think that message has been conveyed to Phil Spencer, and that's why Phil seems a bit defeated and basically accepting that they are not gonna win this generation, and that the plan they said they have in 2020 before the XBS launch, failed.
 

DragonNCM

Member
Watching this was painful & I agreed with everything he told.....man have dignity & big balls to admit everything in front of camera in live unedited interview. The core problem was market penetration on world market as new console maker. You need to fight for food with well established lions like Sony & Nintendo & in the end you will always get leftovers.
That Xbox one fiasco almost ended Xbox console brand & damage was done beyond repair. The momentum to establish high in console space was lost forever. Now only thing that is left for them is gamepass, the last stand for MS & Xbox as console maker.
 
Watching this was painful & I agreed with everything he told.....man have dignity & big balls to admit everything in front of camera in live unedited interview. The core problem was market penetration on world market as new console maker. You need to fight for food with well established lions like Sony & Nintendo & in the end you will always get leftovers.
That Xbox one fiasco almost ended Xbox console brand & damage was done beyond repair. The momentum to establish high in console space was lost forever. Now only thing that is left for them is gamepass, the last stand for MS & Xbox as console maker.
Contrary to what Phil says, releasing great games actually does make you competitive as one of the big players. They can do it again if they so want to. The original Xbox and 360 were very successful and not trailing other consoles by much at all, and why was that? Because of great games!

Agreed, it will take years to a decade to fix what Phil has done to the brand in the last decade, but if they would want to, they can start releasing a constant stream of great games again and once more become a big player.

Problem seems to be, no one has the ambition or drive at MS to do so, and the problem is not that they make more money than ever before, because maybe they do, but would you buy the next Xbox with this reputation for MS? Probably not, and that is why this console is a failure. You can make a lot of money now, but next gen no one will buy your console anymore.

You can actually see it already now, with console sales going down more than 30% already. It seems that the patience and good will of people is finally finished. Even MS shills admit that the situation is dire now and MS has to fix things. Then you know the brand is in serious trouble.
 
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And that is a strategic problem that also came from Phil.

He started the day-1-on-PC initiative. He even berated Sony for not releasing their games on PC on day one. Now he is complaining that they are unable to sell enough Xbox consoles and capture the market share.

That's ... extremely odd.
Is that Phill strategy or he was told from top to push subscription and PC/Cloud more but still somehow convinced MS that we also need console.

Im 100% MS hates console, they want all cloud shit. Only Phill keep convincing them to make console.
 
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