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[Draugoth]

"It's a bit of a change of strategy," Microsoft admits.

Microsoft wants to bring Xbox Game Pass to PlayStation and Nintendo. Xbox CFO Tim Stuart said during the Wells Fargo TMT Summit this week that the goal is to make first-party games and Game Pass available on "every screen that can play games," and this includes rival consoles.

"It's a bit of a change of strategy. Not announcing anything broadly here, but our mission is to bring our first-party experiences [and] our subscription services to every screen that can play games," Stuart said. "That means smart TVs, that means mobile devices, that means what we would have thought of as competitors in the past like PlayStation and Nintendo."

Stuart said Game Pass is a "high margin" business for Microsoft, along with first-party games and advertising. These are all areas that Microsoft plans to expand into significantly in the time ahead, Stuart said. The executive added that buying Activision Blizzard helps Microsoft get there faster than it might have been able to on its own.

For the advertising part specifically, the Candy Crush mobile game series from King--which is now owned by Microsoft--is deeply embedded with ads and microtransactions.

Via Gamespot

 

[HeisenbergFX4]

They approached Playstation right away about putting gamepass there but I have said that years ago here already

 

[Lucifers Beard]

Playstation will absolutely not allow that to happen. End of story.

 

[BennyBlanco]

They are praying that legislation gets passed to allow sideloading on consoles and phones.

 

[MarkMe2525]

How is this a change of strategy when MS has been expressing interest in bringing gamepass to Nintendo and Sony platforms for years now? Maybe I should read OP

 

[graywolf323]

Playstation will absolutely not allow that to happen. End of story.

yeah I don’t see that happening unless Game Pass becomes like EA Access & it’s just Xbox Studios games (at least on PlayStation)

 

[Calverz]

This isnt news lol.

 

[Godot25]

It's no secret that Phil's wet dream is to have Game Pass on PlayStation and Switch.

But Sony and Nintendo won't allow it.

 

[analog_future]

I mean they've been saying this for literally years at this point.

If it were up to Microsoft, Game Pass would be available on both Switch and Playstation.

 

[Salty Popsicle]

Every single game maker wants to be able to sell their games to as large a consumer base as possible. The only difference is that Microsoft has the infrastructure to do so, if the other two industry titans (Sony and Nintendo) allowed it, which they won't. Hell, even Jim Ryan believes in this philosophy...

Jim Ryan, head of Sony Interactive Entertainment, recently expressed that he would like to see Sony games become more accessible to a much larger audience of players.

 

[iHaunter]

I too would want my Sub service on 200+ million consoles. Unlikely that will happen. I personally wouldn't mind.

 

[dem]

 

[Mibu no ookami]

yeah I don’t see that happening unless Game Pass becomes like EA Access & it’s just Xbox Studios games (at least on PlayStation)

Really big difference between GamePass and EA Play and EA Play Pro.

Subscription	Primary Content	Content from other Publishers	Day 1 Titles	Price
EA Play	Y	N	N	$4.99/m
EA Play Pro	Y	N	Y	$14.99/m
GamePass	Y	Y	Y	$14.99/m

Content from other publishers is a non-starter to appear on PlayStation, but the only way Microsoft would be able to turn a profit (profit sharing with Sony) would be to have a first-party-only subscription at a cost that no one would want it.

 

[mansoor1980]

"It's a bit of a change of strategy," Microsoft admits.

 

[Topher]

More and more Microsoft sounds like a third party publisher.

 

[Sushi_Combo]

They are trying to leave the console space and become the next Sega.

 

[jroc74]

"It's a bit of a change of strategy. Not announcing anything broadly here, but our mission is to bring our first-party experiences [and] our subscription services to every screen that can play games," Stuart said.

Huh....interesting.

 

[nemiroff]

Old news. Most of us knew. And we've also known for a while (we've been discussing this since the 360) that MS doesn't really really want to be in the hardware business.

But it is a way to build a platform robust enough to make a profit on its own via multiplatform services (which (software and services) made them one of the biggest companies in the world in the first place).

I do still think we'll get another generation of consoles from them, it's too early to abandon that strategy. They don't need to have the largest piece of the cake, they only need it to be large enough to keep promoting the brand until they are ready to go multiplatform with their services.

 

[Kerotan]

Playstation will absolutely not allow that to happen. End of story.

Why not? They'll get 30% revenue so all profits. It will lose MS money not them. And the addition of all those first party games will be big.

It would probably also soften up the siege mentality at MS and start up Bethesda games at least coming back to playstation. I honestly think this could be a big moment for the industry if it happens and Sony shouldn't be too stubborn.

Same for Nintendo.

 

[Rippa]

More and more Microsoft sounds like a third party publisher.

I’ve been saying the same thing since the dwindling popularity of the Xbox one consoles.

Playstation will absolutely not allow that to happen. End of story.

PlayStation will budge when MS makes it mandatory to subscribe to GamePass in order to be able to play COD titles in the future.

 

[systemr123]

Why not? They'll get 30% revenue so all profits. It will lose MS money not them. And the addition of all those first party games will be big.

It would probably also soften up the siege mentality at MS and start up Bethesda games at least coming back to playstation. I honestly think this could be a big moment for the industry if it happens and Sony shouldn't be too stubborn.

Same for Nintendo.

How would Sony get 30%. How does that calculation work? The goal of Gamepass is that you can play any game in de sub anywhere, so you don’t sort of sub to Gamepass from the Sony story but from MS just as now, but can play on Sony devices in this example.

Nintendo and Sony would never allow this to happen as others say, unless the sub would mean it’s only tied to PlayStation exclusively for example, but in that case why would anyone sub when you already have ps plus?

 

[Interfectum]

Microsoft's objectives with Game Pass and Xbox's necessities for Game Pass are fundamentally at odds. Microsoft is largely indifferent to console sales, whereas Xbox relies on these sales to validate its relevance and presence in the market.

 

[Mibu no ookami]

Why not? They'll get 30% revenue so all profits. It will lose MS money not them. And the addition of all those first party games will be big.

It would probably also soften up the siege mentality at MS and start up Bethesda games at least coming back to playstation. I honestly think this could be a big moment for the industry if it happens and Sony shouldn't be too stubborn.

Same for Nintendo.

Sony could do their own GamePass. They don't want to. It debases software sales which in turn reduces their revenue from royalties and conditions consumers into not purchasing games.

That's why all the games recently on PS+ have been trash. Sony doesn't want people waiting to buy good games just because of PS+.

 

[Astray]

More and more Microsoft sounds like a third party publisher.

If that happens then prepare for an absolute bloodbath in their studios, especially the smaller more niche ones like Double Fine.

 

[jm89]

More and more Microsoft sounds like a third party publisher.

People think some of us are trolling when we say MS are heading towards third party publisher.

We are just seeing the writing on the wall.

 

[ShaiKhulud1989]

More and more Microsoft sounds like a third party publisher.

Looking at current ratios, I stil lthink that this wave of dedicated hardware from MS would be the last. But hey, who knows how much money Satya is willing to burn.

 

[Salty Popsicle]

If that happens then prepare for an absolute bloodbath in their studios, especially the smaller more niche ones like Double Fine.

Why would any Xbox studio be on the chopping block after their games are made available to a much wider audience? Makes no sense whatsoever.

 

[ByWatterson]

More and more Microsoft sounds like a third party publisher.

Exactly. Could he be referring only to COD and Minecraft? I suppose? But then why would he say he's "not announcing anything broadly" before talking about how they want to be on every screen? Microsoft's future just isn't as a dedicated platform holder, and I personally think they know that.

And why would Playstation care about Gamepass on Playstation? It's not like Playstation Plus Extra or Premium are profit drivers for them. Why not just charge Microsoft an exorbitant 40% subscription take and PS+ can just piss off?

The very day Microsoft stops making dedicated hardware is the day Sony will absolutely think about Gamepass on its platforms.

 

[StueyDuck]

But... windowscentral said I shouldn't buy a ps5

On topic, it shouldn't have to be said, but what a pr person says and what big corpo does is two different things... so, we'll see

 

[mckmas8808]

PlayStation will budge when MS makes it mandatory to subscribe to GamePass in order to be able to play COD titles in the future.

Will COD be that important 10 years from now?

 

[Salty Popsicle]

Looking at current ratios, I stil lthink that this wave of dedicated hardware from MS would be the last. But hey, who knows how much money Satya is willing to burn.

Consoles are just prefabricated gaming PC's that are sold at breakeven (Loss at the start of gen; Profit towards end of gen) that serve as vehicle for game purchases. Why would Xbox games being available on Sony or Nintendo hardware change that equation?

 

[Mibu no ookami]

If that happens then prepare for an absolute bloodbath in their studios, especially the smaller more niche ones like Double Fine.

The day they go 3rd party is the day they immediately use a different formula for revenue and profit.

Right now, Microsoft is okay with subsidizing unprofitable studios because they are looking for as much content as they can muster to maintain engagement in GamePass.

When Microsoft says GamePass is a high margin or that it is profitable, I assure everyone that they are being misleading. They're certainly not factoring in the cost of game development and they'll justify that as games are still released stand alone, but the reality is there is a cost related to reduced sales. The fact that they're vague around the numbers reveals the truth.

PlayGround Games had several key department heads from Forza Horizon leave.
Turn10 closing would not be a surprise after the failure of Forza Motorsport.
Arkane could easily have been closed after the disaster which was Redfall.
Bethesda's Starfield has absolutely underperformed expectations across the board.
343i had major layoffs as did The Coalition.

Cuts are going to become more and more aggressive as Microsoft has to show its board that this is a profitable endeavor.

 

[Tiago Rodrigues]

Microsoft's objectives with Game Pass and Xbox's necessities for Game Pass are fundamentally at odds. Microsoft is largely indifferent to console sales, whereas Xbox relies on these sales to validate its relevance and presence in the market.

I mean if you want your subscription service on your own competitor's consoles says a lot about you business model tbh.
Sony and Nintendo will never want a subscription service on their consoles that may cut their own userbase from buying those "free" games, that is all.

They have nothing to gain.

 

[Saber]

And compete with their own PS plus? Not a chance.

 

[ChorizoPicozo]

Sony will be dumb to let GP on PS. MS is being a parasite.

 

[Pelta88]

I thought PS and Nintendo were already part of the team?

 

[Mr Moose]

PlayStation will budge when MS makes it mandatory to subscribe to GamePass in order to be able to play COD titles in the future.

They wouldn't, they wouldn't get the 30% of the sale of the game, making it pointless.

 

[mckmas8808]

Microsoft's objectives with Game Pass and Xbox's necessities for Game Pass are fundamentally at odds. Microsoft is largely indifferent to console sales, whereas Xbox relies on these sales to validate its relevance and presence in the market.

Exactly! Most people don't seem to realize that Xbox from 2001 to 2012 used to be "Xbox brought to you by Microsoft", but now it's "Microsoft presents......Xbox."


And that change has meant BIG things needed to change within the Xbox brand. Microsoft is running the Xbox show now. It wasn't that way before. Before it was clear that the Xbox brass did what they wanted due to research within the gaming community. Now......the big umbrella of Microsoft is injecting all the big MS goals and plans into Xbox, regardless if it makes the brand watered down or not.

 

[digoutyoursoul]

Pardon my ignorance, wouldn’t that devalue Xbox as a console?

 

[Lupin25]

It could work, but it could also overshadow PS Plus/NSO once those install bases finally have access without needing Xbox/PC.

It’s the best way to increase XGP subscriptions, but obviously screams/implies 3rd party ambitions.

 

[NickFire]

They wouldn't, they wouldn't get the 30% of the sale of the game, making it pointless.

They could still charge 30% of whatever the cost to play is. And still charge for multiplayer.

 

[Mibu no ookami]

Looking at current ratios, I stil lthink that this wave of dedicated hardware from MS would be the last. But hey, who knows how much money Satya is willing to burn.

I think we'll see them release a streaming device and they'll move to a cloud-only strategy for the Xbox platform and just try to upgrade things on the back end like GeforceNow.

But yeah, at this rate, I don't see another generation console.

They've already partnered with Samsung to have an Xbox app on their TVs, but Sony will never follow suit on their TVs. Next they'll have to work something out with LG and others, but putting out their own streaming device circumvents difficulties around making deals with companies like Sony or companies who will want a cut of GamePass revenue in exchange for the app being on their TVs.

 

[graywolf323]

But... windowscentral said I shouldn't buy a ps5

On topic, it shouldn't have to be said, but what a pr person says and what big corpo does is two different things... so, we'll see

the CFO isn’t a PR person

 

[adamsapple]

They've been talking about wanting this for year(s) now.

 

[ShaiKhulud1989]

the CFO isn’t a PR person

He's counting money tho, so his words (unlike Phil's) actually hold some weight.

 

[StueyDuck]

the CFO isn’t a PR person

They are all mouthpieces. There's a PR team behind them.

 

[JohnnyFootball]

Playstation will absolutely not allow that to happen. End of story.

Sony absolutely would allow Microsoft games on PlayStation. I doubt they will allow day 1 AAA games, but PS already allows Ubisoft+ and EA Play. No reason they couldn’t adjust for Xbox.

 

[Killjoy-NL]

Will COD be that important 10 years from now?

Playstation is just as important to COD as COD is important to Playstation.
People seem to forget that.

 

[Salty Popsicle]

Will COD be that important 10 years from now?

Even if COD sales cratered to only 50% of the numbers sold today, that's still 12 - 15 million copies of the game sold for each iteration. This doesn't even include the mobile aspect which has already nearly outgrown the console/PC games in terms of revenue.

 

[Victor Omega]

Sweeney Todd tried to pull this on Apple store through the courts and socially get fan to side with them emotionally.

Nintendo and Sony fans are buying switch and PS to play exclusive. when will Microsoft understand that will never change?