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[onQ123]

me being the bored man thst I am, I’m watching the original Xbox one reveal from 2013. It is truly incredible how they never really recovered from that. Like 15 minutes in and it’s all tv and movies. It still blows my mind how massively they missed the mark there.

TV TV TV was not Xbox downfall


The real problem was as consoles became closer to PCs in hardware & software Xbox became redundant as a hardware.

Kinect is actually the last time Xbox consoles even had a reason to exist.

I risked being banned to tell you all how things were going to be

Xbox Series X - $349 (clearing stock for refresh?)

There are a multitude of agreements between manufacturers and retailers that we are not privy to including clauses and commitment breaches. My point is that there is little use arguing as to who is taking the hit, as we'll probably never know. True, I’m sure they have some agreements, but I...

www.neogaf.com

 

[Frwrd]

>Doesn't block the merger
>Still kills Xbox
Jimbo really was too powerful.

 

[Mobilemofo]

Incoming partnership with Aldi confirmed. God, the Xbox division are cutting edge..

 

[Frwrd]

Purple kingdom in shambles. Banned for THAT? lmao

Oh I’m getting banned-BANNED then lol

 

[mckmas8808]

They didn't find themselves, they created it and then jumped in with no life jacket hoping the water would disappear all on its own.

I can't believe they did the "we hear you" thing. Like really?

 

[bender]

I can't believe they did the "we hear you" thing. Like really?

I hear you.

 

[mckmas8808]

Flight Sim 2024 PS5 Pro launch title in PSVR2

I could only dream!!!! I'd buy Flight Sim day one on PS5 Pro if so.

 

[Slimboy Fat]

I think Microsoft should release a "controller" or "gaming mode" for Windows that can be set to the default launch. Then the next "Xbox" should just be a PC at a good value which you plop down next to your TV and which acts basically like a console with the option to enable "desktop mode". If the rumors are true they're done with the console wars anyway but Windows is still going strong. They could develop their games to run well at that hardware. It might be a way for them to finally get some guys into their windows storefront on PC (if they give it an overhaul) and there they would finally have all that middleman and gamepass money they wanted so bad.

I guess the memory for such a powerful APU would be a bit unusual. Afaik there is no precedent among modern Windows PC's for a large gaming APU running GDDR as a unified pool. However, AMD is releasing "Strix Halo" which is rumored to use 256-bit lpddr5.

Microsoft has a chance to get rid of the Xbox dead weight and go all in on windows while competing against both valve and Sony for the high margain gaming revenue they've always wanted: that sweet 30% cut from the store. Some serious competition might do Steam good as well.

 

[danklord]

"We heard you, we want to bring Xbox games to more gamers so everyone can experience the great worlds we're creating. That's why today we're launching Xbox Games on more platforms than ever before. For GamePass members, Xbox will still be the BEST place to play Xbox games, and we're committed to making sure you still get all our great games on Day 1, only on Xbox.

And for new players on PC, PlayStation, and Nintendo, this is your opportunity to play some of the best titles in gaming, for the first time, on your console of choice."

 

[Topher]

 

[WitchHunter]

They will announce the MS simulator. Control the company, it's yours.

They will buy EA. And FIFA will fuel gamepass .

 

[Topher]

Microsoft is not the sort of environment that enjoys 'measured' approaches. Most often, voicing concerns, even data-driven concerns, gets your loyalty questioned. Its a very kool-aid drinking work environment. Its a large reason why so many of their issues wind up coming out to the public after being unaddressed.


My opinion is that their approach to hardware is going to be far looser than the regimented generational approach we are used to. I don't really see them trying to make consoles at the volume or reach of any generation that they've delivered thus far, in large part because of how costly it is to actually launch hardware at a WW scale and get it to sell. If they weren't already doing the hardwork when they had a nearly unlimited budget to work with (XS generation), then I doubt they are gonna pour the resources necessary for the next go around.

Besides, within 18months, their software revenue is gonna be so giant that they are gonna basically pretend it was ever a question that they'd go in this direction. Remember how much trepidation they had with releasing titles day 1 on Steam eroding the value perception of the Xbox Ecosystem? Now Steam has been their largest revenue driver prior to the ABK buyout, and you would never see anyone at Microsoft suggest they should not do Steam Day 1 just to prop up a Windows/Xbox store on PC.

Yeah, once they get that revenue stream coming in, it is hard to let it go.

 

[mckmas8808]

I wanna jump on your post to add to it - the idea that any of this is in a reversible position is nothing but wishful thinking at best. You have to be the most blinded, die-hard fan to believe that this can be reversed with enough fan outcry.

Games don't just magically come out on consoles because you want them to, especially if they are big games. Yes, Hi-Fi Rush is a big game in this context.

Each publisher signs a series of agreements to put a title out on a console in order to release it. These agreements are binding. Yes, you can do something like say, cancel your game, but if you're planning on releasing it on a platform, there are a myriad of terms you must agree to. Sony and Nintendo have known for a long time now that this was happening - the other 3rd parties did not (this is becoming a big deal for 3rd parties behind the scenes btw...).

MS did not adopt this position neither lightly, or with the notion of reversing course. This is a maneuver born from fiscal responsibility, not due to choice.

I totally understand why Jim Ryan retired now. He's conquered the beast and knew it! WOW!

 

[mckmas8808]

No, its not the dev kits im referring to here.

I'll explain whats happening with an analogy - back when EA was pushing Origin, did you see Ubisoft or Take-Two releasing titles into Origin? Ofc not. Those publishers are in direct competition with one another - why would they release their games on a rival Publisher's platform and give them a 30% cut, which would then be used against them.

Platform holders and 3rd party publishers enjoy a symbiotic fiscal relationship. What happens when a platform holder transitions into arguably one of the largest 3rd party publishers, while telling none of them about it?

In plain English, I am expecting 3rd party support to pull out somewhat quickly. Xbox is right now the most expensive console to develop for (2 dev workflows for 2 different consoles), with the lowest RoI potential unless you get a Game Pass deal, which will also become fewer and far between outside of the ones already signed.

I am even expecting some rather large upcoming games to have their Xbox versions potentially cancelled in light of this.

This is CRAZY if true! Gamepass really screwed Xbox big time, like some of us said it will. Never thought it would this fast.

 

[TheUndeadGamer]

Phil just doing what he envisioned. Microsoft is swimming in profits, they already quietly stopped their Surface line.

There’s no Xbox, only Gamepass /ghostbuster

What do you mean? Another surface device is supposedly coming out this year. I’m confused .

 

[bender]

I totally understand why Jim Ryan retired now. He's conquered the beast and knew it! WOW!

A rock with the shape of Jim Ryan's head and wearing his glasses could have conquered this "beast".

 

[TheUndeadGamer]

See see. This guy ain’t worried at all. Nothing to see here folks!

 

[TheInfamousKira]

TV TV TV was not Xbox downfall


The real problem was as consoles became closer to PCs in hardware & software Xbox became redundant as a hardware.

Kinect is actually the last time Xbox consoles even had a reason to exist.

I risked being banned to tell you all how things were going to be

Xbox Series X - $349 (clearing stock for refresh?)

There are a multitude of agreements between manufacturers and retailers that we are not privy to including clauses and commitment breaches. My point is that there is little use arguing as to who is taking the hit, as we'll probably never know. True, I’m sure they have some agreements, but I...

www.neogaf.com

We even have the weathered guy with the sign that says the end is near shouting that we didn't listen! Shit, Xbox needed this energy decades ago.

 

[onQ123]

This is CRAZY if true! Gamepass really screwed Xbox big time, like some of us said it will. Never thought it would this fast.

There is a locked onQ123 Thread for that lol

Opinion - Game Pass is hurting day one software sales on Xbox could this push publishers & devs away from Xbox Scarlett or will they wait it out?

Right now Game Pass is hurting software sales on Xbox but if Microsoft is successful in creating the Netflix of gaming it could benefit games in the post physical media era when people are not willing to pay $60 for a download.

www.neogaf.com

 

[ChorizoPicozo]

No, its not the dev kits im referring to here.

I'll explain whats happening with an analogy - back when EA was pushing Origin, did you see Ubisoft or Take-Two releasing titles into Origin? Ofc not. Those publishers are in direct competition with one another - why would they release their games on a rival Publisher's platform and give them a 30% cut, which would then be used against them.

Platform holders and 3rd party publishers enjoy a symbiotic fiscal relationship. What happens when a platform holder transitions into arguably one of the largest 3rd party publishers, while telling none of them about it?

In plain English, I am expecting 3rd party support to pull out somewhat quickly. Xbox is right now the most expensive console to develop for (2 dev workflows for 2 different consoles), with the lowest RoI potential unless you get a Game Pass deal, which will also become fewer and far between outside of the ones already signed.

I am even expecting some rather large upcoming games to have their Xbox versions potentially cancelled in light of this.

damn I haven't even thought about that aspect.

 

[Killjoy-NL]

No, its not the dev kits im referring to here.

I'll explain whats happening with an analogy - back when EA was pushing Origin, did you see Ubisoft or Take-Two releasing titles into Origin? Ofc not. Those publishers are in direct competition with one another - why would they release their games on a rival Publisher's platform and give them a 30% cut, which would then be used against them.

Platform holders and 3rd party publishers enjoy a symbiotic fiscal relationship. What happens when a platform holder transitions into arguably one of the largest 3rd party publishers, while telling none of them about it?

In plain English, I am expecting 3rd party support to pull out somewhat quickly. Xbox is right now the most expensive console to develop for (2 dev workflows for 2 different consoles), with the lowest RoI potential unless you get a Game Pass deal, which will also become fewer and far between outside of the ones already signed.

I am even expecting some rather large upcoming games to have their Xbox versions potentially cancelled in light of this.

Hadn't even thought about that.

If that happens, Xbox is royally fucked.

 

[SneakersSO]

This is CRAZY if true! Gamepass really screwed Xbox big time, like some of us said it will. Never thought it would this fast.

I'm just gonna go ahead and connect the dots for some folks so they can understand why GP perks will change.

Keep a few facts in mind about Game Pass:

-Its subscription numbers are largely driven by console users by an overwhelming majority.
-Users in the Xbox eco. have changed their purchasing habits as a result of Game Pass.
-User growth for Game Pass subs is largely attributed to Xbox console sales.
-Game Pass has the highest user churn rate in entertainment subscription services, meaning MS has to sell more and more consoles who then hopefully subscribe to Game Pass to make up for the users they are losing.

There is no way to do a proper cost analysis of a move where you start publishing exclusives on rival consoles without accounting for the fact that this is going to impact your future console sales potential. Even going by their latest quarterly projection, they do estimate that console sales are going to be down, and they were already significantly down last year from where they should be, even at massively reduced MSRP in some of their strongest regions.

Game Pass has always been a loss leading service, with the goal that it will ultimately reach its scale point in the future by burning capital to increase the value proposition in the present. But MS is now making decisions from a position where they accept that console sales are only going to decrease, not increase. That means, you have to then also accept that your ability to grow your subscribers is going to be severely hampered by this, meaning, why continue to maintain that level of capital investment if the prospect to reach your growth/scale point is even smaller than it already was?

Changing their publishing strategy was not their only fiscally-conservative decision. As most folks have noted, the advertising spend that MS has budgeted for gaming was significantly reduced in one of the periods where they needed it the most, driven by the fact that they knew they were making this strategic change, and pushing hardware with exclusives was no longer going to be their primary strategy.

 

[James Sawyer Ford]

Microsoft is not the sort of environment that enjoys 'measured' approaches. Most often, voicing concerns, even data-driven concerns, gets your loyalty questioned. Its a very kool-aid drinking work environment. Its a large reason why so many of their issues wind up coming out to the public after being unaddressed.


My opinion is that their approach to hardware is going to be far looser than the regimented generational approach we are used to. I don't really see them trying to make consoles at the volume or reach of any generation that they've delivered thus far, in large part because of how costly it is to actually launch hardware at a WW scale and get it to sell. If they weren't already doing the hardwork when they had a nearly unlimited budget to work with (XS generation), then I doubt they are gonna pour the resources necessary for the next go around.

Besides, within 18months, their software revenue is gonna be so giant that they are gonna basically pretend it was ever a question that they'd go in this direction. Remember how much trepidation they had with releasing titles day 1 on Steam eroding the value perception of the Xbox Ecosystem? Now Steam has been their largest revenue driver prior to the ABK buyout, and you would never see anyone at Microsoft suggest they should not do Steam Day 1 just to prop up a Windows/Xbox store on PC.

Speculating about next week's announcement of business strategy - how exactly do they roll this out?

1. Do they announce their future hardware roadmap? Yes, I think they must to assure fans they aren't leaving altogether, but to what extent? Do they announce a future OEM approach that's more PC-like?
   
   
2. Do they announce everything is third party from here on out, with Xbox hardware having some advantage with GamePass? Or do they trickle it at first to only a handful of select titles? It's weird how the rumor mill has been spinning for all the major releases Xbox has (outside of Forza).
   
   
3. Are they third party day and date, or console exclusive for a window?

So many questions, it almost just makes sense to rip the bandaid off and go full third party and be 100% transparent about their plans. None of this "well, some titles may or may not" nonsense. But going full bore basically signals to consumers that you might as well get a PS5 instead of an Xbox. So can we really expect them to fully relinquish console competitiveness to such a massive degree? Maybe yes, if Microsoft is raising the white flag after so much failed investment.

 

[Three]

me being the bored man thst I am, I’m watching the original Xbox one reveal from 2013. It is truly incredible how they never really recovered from that. Like 15 minutes in and it’s all tv and movies. It still blows my mind how massively they missed the mark there.

If you understand the inner workings of MS you understand their behaviour. Steve jobs said it best.

MS is not a creative entertainment company, they were never really good at creating art. They mostly buy already popular entertainment to fulfil other financial goals and drive certain metrics. They're decisions are often driven from other outside goals and chasing emerging markets. They're a bunch of bean counters after new markets and data, constantly chasing the likes of Google and Amazon too instead of thinking about creating cool art/entertainment to sell. It was obvious what they wanted to do with TV on xbox at the time it was built for advertising:

"The Microsoft employee added that Nuads, transform passive TV advertising into something interactive, immersive, and actionable, redefining the relationship between consumers and brands with amazing new advertising opportunities"

They ended up doing this with a netflix deal in the end:

How Microsoft will power Netflix's new ad-supported tier | Microsoft Advertising

In July, Netflix named Microsoft as the exclusive technology and sales partner to help power their first ad-supported tier. Today, we celebrate the announcement of Netflix's Basic with Ads lower-priced, ad-supported plan. Learn more.

about.ads.microsoft.com

Don't be surprised if they start chasing similar things with gamepass and chasing engagement metrics.

 

[SneakersSO]

Speculating about next week's announcement of business strategy - how exactly do they roll this out?

1. Do they announce their future hardware roadmap? Yes, I think they must to assure fans they aren't leaving altogether, but to what extent? Do they announce a future OEM approach that's more PC-like?
   
   
2. Do they announce everything is third party from here on out, with Xbox hardware having some advantage with GamePass? Or do they trickle it at first to only a handful of select titles? It's weird how the rumor mill has been spinning for all the major releases Xbox has (outside of Forza).
   
   
3. Are they third party day and date, or console exclusive for a window?

So many questions, it almost just makes sense to rip the bandaid off and go full third party and be 100% transparent about their plans. None of this "well, some titles may or may not" nonsense. But going full bore basically signals to consumers that you might as well get a PS5 instead of an Xbox. So can we really expect them to fully relinquish console competitiveness to such a massive degree? Maybe yes, if Microsoft is raising the white flag after so much failed investment.

I don't necessarily think we are gonna get the full picture on what their future hardware plans are outside of making a vague commitment to still delivering quality Xbox hardware for the millions of fans around the world who enjoy playing on them, in part because so much of those plans are still in flux.

I do think that they are going to be forced to be very clear on what those software plans are, however, both from the media and from their other business partners. Publishers are going to want significant assurances that its still worth releasing the titles they have in their development pipelines that are currently slated to hit Xbox, and even before these plans were leaking out to the public, there was a ton of publisher concern on how viable releasing on the Xbox platform actually was for anything except for the biggest AAA 3rd party projects.

I do know that some of the projects in the near term are going to be timed exclusive, but only as a consequence of the PS/Nintendo SKUs starting development so late in comparison to the Xbox version. But there are a number of games that are a bit further out that have already been converted to multiplatform day-and-date releases, as well as titles yet announced that are also multiplat day and date releases from their inception.

 

[Killjoy-NL]

Speculating about next week's announcement of business strategy - how exactly do they roll this out?

1. Do they announce their future hardware roadmap? Yes, I think they must to assure fans they aren't leaving altogether, but to what extent? Do they announce a future OEM approach that's more PC-like?
   
   
2. Do they announce everything is third party from here on out, with Xbox hardware having some advantage with GamePass? Or do they trickle it at first to only a handful of select titles? It's weird how the rumor mill has been spinning for all the major releases Xbox has (outside of Forza).
   
   
3. Are they third party day and date, or console exclusive for a window?

So many questions, it almost just makes sense to rip the bandaid off and go full third party and be 100% transparent about their plans. None of this "well, some titles may or may not" nonsense. But going full bore basically signals to consumers that you might as well get a PS5 instead of an Xbox. So can we really expect them to fully relinquish console competitiveness to such a massive degree? Maybe yes, if Microsoft is raising the white flag after so much failed investment.

I wonder what they expect if they continue selling hardware one way or another.

Bringing their games to Playstation and Nintendo will effectively kill their hardware sales. So whatever they decide to do with HW, they will have a worse time selling those than they do now.
And if 3rd party decides to abandon GP, there is no way GP will be sustainable.

I don't even think their 1st party games will be really successful on PS and Nintendo, because the quality is mediocre.

The more I think about it, the more it seems like there is no way forward, really.

 

[James Sawyer Ford]

I don't necessarily think we are gonna get the full picture on what their future hardware plans are outside of making a vague commitment to still delivering quality Xbox hardware for the millions of fans around the world who enjoy playing on them, in part because so much of those plans are still in flux.

I do think that they are going to be forced to be very clear on what those software plans are, however, both from the media and from their other business partners. Publishers are going to want significant assurances that its still worth releasing the titles they have in their development pipelines that are currently slated to hit Xbox, and even before these plans were leaking out to the public, there was a ton of publisher concern on how viable releasing on the Xbox platform actually was for anything except for the biggest AAA 3rd party projects.

I do know that some of the projects in the near term are going to be timed exclusive, but only as a consequence of the PS/Nintendo SKUs starting development so late in comparison to the Xbox version. But there are a number of games that are a bit further out that have already been converted to multiplatform day-and-date releases, as well as titles yet announced that are also multiplat day and date releases from their inception.

So do you think there's going to be a mass exodus of third party games to only release on PS5, perhaps the smaller ones? How does Microsoft maintain ANY third party support on their own hardware?

 

[bender]

Speculating about next week's announcement of business strategy - how exactly do they roll this out?

1. Do they announce their future hardware roadmap? Yes, I think they must to assure fans they aren't leaving altogether, but to what extent? Do they announce a future OEM approach that's more PC-like?
   
   
2. Do they announce everything is third party from here on out, with Xbox hardware having some advantage with GamePass? Or do they trickle it at first to only a handful of select titles? It's weird how the rumor mill has been spinning for all the major releases Xbox has (outside of Forza).
   
   
3. Are they third party day and date, or console exclusive for a window?

So many questions, it almost just makes sense to rip the bandaid off and go full third party and be 100% transparent about their plans. None of this "well, some titles may or may not" nonsense. But going full bore basically signals to consumers that you might as well get a PS5 instead of an Xbox. So can we really expect them to fully relinquish console competitiveness to such a massive degree? Maybe yes, if Microsoft is raising the white flag after so much failed investment.

1. They'll be vague. Might mention R&D and plans for the Xbox hardware to continue past Series. I still think that will be something akin to a Game Pass player and much closer to a Series S than a Series X but we'll see no details on this.

2. I think they'll try to maintain some value in the Series consoles by porting existing games and then announcing some sort of exclusivity period for new releases with the benefit of Day 1 on GamePass with some exclusions (COD?). It would take time to port the back catalogue but I'm sure a lot of the acquisition games from Zenimax already had some groundwork done on Playstation. Those are easier ports. Then they can work on ports that would benefit with larger communities or that have GAAS components.

3. See above.

 

[FoxMcChief]

You’d have to be a crazy person to buy a game on an Xbox at this point. At this point, they’re only good for game pass, until MS’s next business update.

 

[laynelane]

I still don’t think people understand Microsoft’s long term vision here.

They absolutely will foreclose on PlayStation…one day

That day will come whenever everyone moves completely to the cloud through streaming. Could be decades off, but they’ll wait patiently

In the meantime, they need to make their gaming studios relevant and competitive. They can only do that by going third party

I can see what you're saying but, as with other MS gaming strategies, I have doubts on whether they will be able to successfully execute such a plan. There have been far too many fumbles already and, I think, a lack of deeper understanding of the overall gaming market. As well, competitors will not be standing still in the intervening time between now and then.

 

[Killjoy-NL]

Nvm

 

[James Sawyer Ford]

I can see what you're saying but, as with other MS gaming strategies, I have doubts on whether they will be able to successfully execute such a plan. There have been far too many fumbles already and, I think, a lack of deeper understanding of the overall gaming market. As well, competitors will not be standing still in the intervening time between now and then.

True, I think this is just their "dream" and they are willing to sacrifice the Xbox hardware platform to achieve greater short term success with their studios. If they can gain prominence with their studios, then by the time Cloud is technically feasible (may be a long time, if ever), they can easily try and assert control over the Cloud market.

But they will be patient. In the meantime, I don't think Microsoft is willing to piss money away on this project any longer, so they need to gain success for their games both from a popularity standpoint and monetary standpoint

 

[MasterCornholio]

Oh nooooooo not RISKIT and KLOBRILLE!

Whatever will we fucking do?

Adopt them?

Eeeewwwwwwwwwwwwe

 

[James Sawyer Ford]

Just imagine MS starting to focus on mobile and moving away from core gaming.

Look at the revenue COD makes from mobile (51%).

Now, that would be something.

That's not revenue, that's just daily users

 

[Fredrik]

”We hear you”
Start a stand-up comic show Phil, you’d do great.

 

[Three]

Speculating about next week's announcement of business strategy - how exactly do they roll this out?

1. Do they announce their future hardware roadmap? Yes, I think they must to assure fans they aren't leaving altogether, but to what extent? Do they announce a future OEM approach that's more PC-like?
   
   
2. Do they announce everything is third party from here on out, with Xbox hardware having some advantage with GamePass? Or do they trickle it at first to only a handful of select titles? It's weird how the rumor mill has been spinning for all the major releases Xbox has (outside of Forza).
   
   
3. Are they third party day and date, or console exclusive for a window?

So many questions, it almost just makes sense to rip the bandaid off and go full third party and be 100% transparent about their plans. None of this "well, some titles may or may not" nonsense. But going full bore basically signals to consumers that you might as well get a PS5 instead of an Xbox. So can we really expect them to fully relinquish console competitiveness to such a massive degree? Maybe yes, if Microsoft is raising the white flag after so much failed investment.

It probably isn't as drastic as people think and it's mostly vocal xbox diehards having a comical meltdown because they've lost some exclusives.

My complete guess is this:

They will announce xbox games coming to PS. They will continue to keep some of the games, at the dev direct, exclusive. They will continue to make "consoles" but possibly not subsidise them anymore hence why OEMs are back in the running. I suspect they will even make some somewhat shitty moves like timed exclusive dlc/games for multiplatform games to appease the fans. What is happening with Gamepass is more of a mystery to me but I suspect they're reluctant to add everything on there now.

 

[Killjoy-NL]

That's not revenue, that's just daily users

Oh yh, lol. My bad.

 

[farmerboy]

Can't wait for the inevitable SkillUp video that goes through this whole Xbox saga. Will make for great viewing.

 

[HofT]

In the end, Microsoft is sticking to its basis which is a software company

 

[ChuckeRearmed]

Oh nooooooo not RISKIT and KLOBRILLE!

Whatever will we fucking do?

Yeah, it is the most annoying thing - making some tragedy over nothing.

 

[farmerboy]

|OT| - |OT| Xbox Power King Memes

www.neogaf.com

Too afraid to bump it. You do it.

 

[Killjoy-NL]

That's not revenue, that's just daily users

Found this though, because the DAU for COD made me think about it. 51% on Mobile has to account for something.

Mobile is the top performer for ABK (43% revenue) . At this point, I wouldn't be surprised if MS would shift focus to mobile and keep COD and WoW primarily going irt core gaming.

43% of Activision Blizzard’s Q2 2023 revenue came from mobile

Activision Blizzard generated $2.46 billion in net bookings in the second quarter of 2023, according to the company’s latest financial report . This represents a 50% increase from $1.63 bill...

www.pocketgamer.biz

 

[three_muffins]

They will make a stealth switch. XBox hardware has to go. PC will be the new XBox hardware

 

[NeverYouMind]

"We heard you, we want to bring Xbox games to more gamers so everyone can experience the great worlds we're creating. That's why today we're launching Xbox Games on more platforms than ever before. For GamePass members, Xbox will still be the BEST place to play Xbox games, and we're committed to making sure you still get all our great games on Day 1, only on Xbox.

And for new players on PC, PlayStation, and Nintendo, this is your opportunity to play some of the best titles in gaming, for the first time, on your console of choice."

How did you get his teleprompter notes?

 

[skit_data]

The time to adress this was yesterday, but it's possible they might want things to cool down and settle a bit.

 

[VaultBoy101]

Well, this week will bring some interesting tidbits.

I'm very curious now, as our previous poster alluded to, if any third party companies start taking the initiative this week. That would mean that it's all true.

Either way, I feel the damage to the brand and faith in the console is irrevocably shaken now, honestly.

Similar to the Mattrick debacle in 2013, but this is much more severe. I still can't believe they allowed all that to go out, didn't deny anything and put everyone on pins and needles for a week.

Ridiculous, imo. Still--tis been clear for a while now that Xbox was never going to make any headway, no matter how many billions they chucked out.

Reeks of their go-to "Tried to buy our way to market dominance. Didn't work, so we quit."

Reminds me of the Mixer situation. Remember when they paid that Ninja dude $50 million to leave Twitch and come to Mixer? Then they shut down Mixer mere months later, and he went back to Twitch.

 

[mckmas8808]

I'm just gonna go ahead and connect the dots for some folks so they can understand why GP perks will change.

Keep a few facts in mind about Game Pass:

-Its subscription numbers are largely driven by console users by an overwhelming majority.
-Users in the Xbox eco. have changed their purchasing habits as a result of Game Pass.
-User growth for Game Pass subs is largely attributed to Xbox console sales.
-Game Pass has the highest user churn rate in entertainment subscription services, meaning MS has to sell more and more consoles who then hopefully subscribe to Game Pass to make up for the users they are losing.

There is no way to do a proper cost analysis of a move where you start publishing exclusives on rival consoles without accounting for the fact that this is going to impact your future console sales potential. Even going by their latest quarterly projection, they do estimate that console sales are going to be down, and they were already significantly down last year from where they should be, even at massively reduced MSRP in some of their strongest regions.

Game Pass has always been a loss leading service, with the goal that it will ultimately reach its scale point in the future by burning capital to increase the value proposition in the present. But MS is now making decisions from a position where they accept that console sales are only going to decrease, not increase. That means, you have to then also accept that your ability to grow your subscribers is going to be severely hampered by this, meaning, why continue to maintain that level of capital investment if the prospect to reach your growth/scale point is even smaller than it already was?

Changing their publishing strategy was not their only fiscally-conservative decision. As most folks have noted, the advertising spend that MS has budgeted for gaming was significantly reduced in one of the periods where they needed it the most, driven by the fact that they knew they were making this strategic change, and pushing hardware with exclusives was no longer going to be their primary strategy.

Do you think good think the thing that really slowed Gamepass' growth was also the change away from the $1 a month deal? Or was it completely about the slowing growth of Xbox console sales mainly?

 

[TheBomb]

Reminds me of the Mixer situation. Remember when they paid that Ninja dude $50 million to leave Twitch and come to Mixer? Then they shut down Mixer mere months later, and he went back to Twitch.

I wonder if he walked away with the full amount.

 

[VaultBoy101]

I wonder if he walked away with the full amount.

My understanding is that it was a "pay up front" situation because luring the biggest Twitch streamer away from Twitch was no small ask.

 

[ChuckeRearmed]

Well, this week will bring some interesting tidbits.

I'm very curious now, as our previous poster alluded to, if any third party companies start taking the initiative this week. That would mean that it's all true.

Either way, I feel the damage to the brand and faith in the console is irrevocably shaken now, honestly.

Similar to the Mattrick debacle in 2013, but this is much more severe. I still can't believe they allowed all that to go out, didn't deny anything and put everyone on pins and needles for a week

Personally I don't think it that bad - Xbox One was bad because Xbox got a negative reaction from mass consumer market. This one? Does not change much - Xbox as a console (or brand) does not appeal to mass consumer in the current form, so you actually have positive discussions about Xbox games now lol

The only thing is that it made me embarrassed as a Xbox how Xbox folks reacted to it.

Reminds me of the Mixer situation. Remember when they paid that Ninja dude $50 million to leave Twitch and come to Mixer? Then they shut down Mixer mere months later, and he went back to Twitch.

As we saw with Twitch debacle, streaming is not profitable. If even YouTube is not the money maker and Twitch is losing money - imagine how much money Mixer was losing. All while people did not want to use it.