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Will Microsoft’s acquisitions improve market share?

Having CoD as a day 1 on game pass every year is going to push a lot of people over to xbox no doubt. A fried of mine who if notoriously tight with his money, text me this morning to say he just bought 2 years of gamepass upfront and will buy another year in April when his current year expires. The last game he bought was MW19, but he plays everything on gamepass and the new CoD being there got him to splash out, he would have resubbed anyway but after the activision purchase he wanted to stock up before the price increase.
 

JCK75

Member
I don't think anything will at this moment, both are selling as many as they can produce and unless they produce way more than Sony..I dunno.
 

oldergamer

Member
Hmm I’m not sure if Microsoft owning one of the best selling and known franchises in the gaming world along with a bunch of other massively popular and money printing franchises will improve their market share when they all become exclusive.

What a silly question lol.
MS won't make any game exclusive that is already selling incredibly well on other platforms. I don't know why people think market share is important. Its not. MS got the hint after Gamecube, despite selling less units then the original Xbox, went on to make money while they were losing money.

Market share is only important if its the single factor in making profit. When spencer took over and MS stopped reporting consoles sold, they shifted nearly all first part games to PC day 1 and have done extremely well in doing so. Xbox has been profitable for a long time, despite have a smaller share of the market.

So will these moves increase market share? possibly. will they increase gaming division profits? 100%
 

Rudius

Member
So you think market share...the markets has more than one frikken person wont change because you....one guy....who clearly represents a small portion of people did a thing?
How important or close to being mainstream did you think your opinion was?
I think there are millions like me who just play Microsoft games on PC, often through piracy, which is very easy on the platform, instead of buying into the Xbox ecosystem and spending money there, with first and third party games.

Sometimes a single game or series is the system seller, but it leads to further spending on the platform.

I have a PS5, but the same is valid for Sony. They may be getting good sales on PC, but will start loosing potential costumers that would have bought a PS5 for the exclusives and stay there buying third-party and services.
 

DaGwaphics

Member
This is no different then asking if sony will maintain market share with there exclusives.

But to answer OPs question, yes, Xbox jas already gained marketshare, by this time last gen the xbox one only sold 3.9 million.

That don't sound right. Xbox One outsold 360 in the first year and 360 was at around 6m by the end of year one. I think X1 did around 10m in year one.
 

DrJamesOxford

Neo Member
The BIG Question/ Answer is Starfield - Bethesda was a struggling company chasing gaas dreams with a failing gaming engine. They have been bought out by Microsoft (obviously) and the quality of Starfield is going to be a major lesson. Activision/ Blizzard is once again a company worth a small percentage of what they were - if once again Microsoft can step in and help them we all must admit things are better off with Phil
 
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I don't think so, Xbox isn't as popular a brand as Playstation (worldwide, not just US), people will just ignore the IPs they purchased because they aren't on Playstation.

You think the people that basically only play COD/Fifa/GTA are going to stay on that console when one of those becomes Xbox exclusive? COD isn't an IP that can just be ignored unless you're in a bubble like Neogaf where games like COD or sports games are niche titles nobody likes. It's constantly the top selling Playstation game basically every year, millions of people would switch in a heartbeat.

They may have brand loyalty to Playstation (doubtful but possible), but they almost certainly have way more brand loyalty to COD, so they'll go where they can play COD
 

Black_Stride

do not tempt fate do not contrain Wonder Woman's thighs do not do not
I think there are millions like me who just play Microsoft games on PC, often through piracy, which is very easy on the platform, instead of buying into the Xbox ecosystem and spending money there, with first and third party games.

Sometimes a single game or series is the system seller, but it leads to further spending on the platform.

I have a PS5, but the same is valid for Sony. They may be getting good sales on PC, but will start loosing potential costumers that would have bought a PS5 for the exclusives and stay there buying third-party and services.
Ah the old im a pirate and there are millions of pirates so my opinion is scripture.

Mate sit down.
 

Sosokrates

Report me if I continue to console war
That don't sound right. Xbox One outsold 360 in the first year and 360 was at around 6m by the end of year one. I think X1 did around 10m in year one.

Yes I had a brainfart.
I read this and for some reason thought that was a yr later 😆
"In their Q2 2014 earnings report on January 23, 2014, Microsoft announced that 3.9 million Xbox One units had been shipped worldwide."
 
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Dane

Member
Yes, they are getting ahold of the best selling franchise since 2009, and Xbox is getting a very positive image since the dawn of gamepass.
 
I remember when Microsoft first announced they would be entering the gaming industry with the Xbox, many people thought they would ruin the industry because they would just buy studios instead of making their own games.

In the 360 generation, Microsoft was bully in terms of making Sony lose exclusivity and/or paying for exclusives. This was the strongest generation for Microsoft, however Sony turned out to do a good job and were neck to neck at the end.

If you notice, the 360 was a huge success at the expense of Sony making huge mistakes with the PS3, and the PS4 was a huge success at the expense of Microsoft making huge mistakes with the Xbox One.

I wonder if all these recent acquisitions would actually help Microsoft gain market share. Sony does an incredible job with their own exclusives, as well as Nintendo. I fear that these acquisitions turn out to be a restriction for gamers to play these games el anywhere, more than making people actually buy an Xbox console.

Of course, for Xbox owners, this is a huge deal because they will have these games on Game Pass. However, Microsoft needs to entice people to buy into their ecosystem. Even though the Series X/S are the best selling consoles for them, they are still low on market share.

I’m interested in knowing how many people buy PlayStation for CoD (for example), that will “have” to buy an Xbox because they don’t care as long as they play their favorite game.

IMO, as things are now, these acquisitions seem just a good deal for people that are already Xbox owners. For me personally, what would make me buy an Xbox are new IPs. Also, I believe many of third party games (specially Activition games) were played more in Xbox already.

What do you think this will turn out? Will there be a switch in market share this generation, or will it be noticeable until the next one?

Please comment, make your predictions or just state your opinions. Thanks!
The acquisitions don’t restrict gamers compared to if Sony did them because at least with Xbox all of the games will be on PC. So gamers can chose to buy a Xbox or PC to play these games. Also I think game pass will be available on smart TVs at some point plus you have the xcloud stuff.

As for the comment about “these acquisitions only being a good deal for people who already own a Xbox,” this isn’t true because Xbox has been getting a lot of big third party games in game pass day one and new IP that will launch day one in game pass. I can definitely see causals looking at game pass as a reason to buy into Xbox to play third party games at a cheaper price, especially when Call of Duty becomes exclusive and/or available day one in game pass.

Game Pass is Xbox’s killer app now, it use to be Halo and Gears but those games are no longer what they use to be. The game pass service will be what makes people buy into Xbox’s ecosystem.

As for if they will take a bigger market share, I think this depends on how Sony responds. IMO all of the moves MS is making will not benefit them much until at least 2024 because around that time is when the contracts will be cleared and we will start to see more big exclusives from their acquisitions like Call of Duty for example.

This year they have Starfield but it’s a new IP and no one has a clue to how the game will do review and sales wise.
 

yurinka

Member
Ms has billions in the bank collecting interest. 80 billion in the bank makes them less money collecting interest then it does buying these studios/publishers. Activision generates 8 - 9 billion in revenue from its holdings. Bethesda generates less but you get the picture. This was the thought process when paying 2 billion for minecraft.

If they can grow the business they get a faster return on investment.

This is why i dont see them moving the large titles away from playstation. They wont leave money off the table that is steadily generating revenue.

Starfield is an exception as sony was going to pay to prevent it arriving on xbox. It hasnt generated any revenue or released on any platform. They can make it console exclusive without impacting the numbers. Ms wont block the yearly rev generating games from doing so. New unreleased, unproven, or revived dead ip games are a investment and different story.
We also have to remember that Zenimax and Activision make a lot of revenue, but that PS is their main console market, where they make more revenue with AAA games. So by keeping their main games out of PS they would be getting rid of their main revenue source.

The biggest IP they had on PS was CoD, and each CoD gets bought by less than 10% of the PS userbase. Many of these less than 10% would continue in PS if CoD would go exclusive, pretty likely they wouldn't steal even a 5% of the PS userbase, which keeps growing.

So to make CoD console exclusive wouldn't change basically anything, it would only make some CoD fans angry and they would take longer to recoup the investment via mostly GP fees than with extra money from PS revenue. This is why MS and Spencer said they want to keep CoD on PS and they mentioned in the SEC filling they want to keep their existings IPs where they already were showing Minecraft as example (which got all its post acquisition game updates and newer console games on PS & Switch).
 
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fart town usa

Gold Member
It's hard to say. If the next generation is still console based, I think Sony will be fine.

If the next generation is like a firestick type dongle and controller where you just stream everything, I can see MS gaining the edge and potentially dominating because the streaming selection they'll have will be massive and those games definitely won't be on Sony consoles. Internet speed is a huge factor too. We don't have fiber optic internet in my region for home use, just businesses at the moment. So not sure if cable internet speeds would be able to handle gaming at that level.
 
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yurinka

Member
They sold 50 million xbox units without first party games support. My prediction is they are going to sell at least 40 million XSX plus 30 million XSS this gen alone. Not to forget that they are releasing games on PC day one and that market is hard to count.
Sounds realistic (but I'd say they sold around 60M XBOs).

I'd add 130-140M for PS5 seeing that PS4 seems to end at around 120M, that they have been growing in many areas and that they are pushing harder to grow more there plus in newer areas.

It's hard to say. If the next generation is still console based, I think Sony will be fine.
As I remember Nintendo confirmed to be working on a Switch successor and Sony confirmed to be working on a PS5 successor.

MS instead seems to be more focused on subscription and to expand their focus harder beyond their own consoles. With specially Minecraft, Zenimax and ABK now they have a big presence in PC, mobile and even the non-MS consoles as 3rd party.
 
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Vangellis

Member
Microsoft doesnt really care whether you play these games on an actual Xbox or on Steam or on the Microsoft Store or the Cloud or on your Samsung TV.
As long as you are playing said games.
The actual hardware is but one avenue...basically another entry point to the Xbox ecosystem.

I dont think Sony or Microsoft are catching up to Nintendo any time soon on the hardware/software side.
But i think in the coming years userbase and revenue might swing into Microsofts favor.


I doubt these last few moves have been even 5 years looking forward.
MS is likely looking atleast 10 years forward to a time when every TV comes with a processor good enough to use the Cloud.
They have cloud ported basically their whole catalog so you dont even need a controller to play Gamepass games.
Their IPs are synonymous with whatever genre they are in i.e

  • Open World Racing game = Forza Horizon.
  • Circuit Racing = Forza Motorsport.
  • First Person RPG = ElderScrolls.
  • RPG in Space = Starfield.
  • "Classic" WRPG = Fable.
  • Twitch First Person Shooter = Call of Duty.
  • Arena Shooter = Halo.
  • MMORPG = Warcraft.
  • BattleRoyale = Warzone.
  • Platformer = Crash Bandicoot/Spyro/Whoever.
This. Consoles at some point will be completely irrelevant do to streaming. All companies want are subscriptions, it's all about reoccurring consistent revenue streams. Most subscribers also lead to more data points on you. Content is what is valuable here, not the hardware.
 

MrFunSocks

Banned
MS won't make any game exclusive that is already selling incredibly well on other platforms. I don't know why people think market share is important. Its not. MS got the hint after Gamecube, despite selling less units then the original Xbox, went on to make money while they were losing money.

Market share is only important if its the single factor in making profit. When spencer took over and MS stopped reporting consoles sold, they shifted nearly all first part games to PC day 1 and have done extremely well in doing so. Xbox has been profitable for a long time, despite have a smaller share of the market.

So will these moves increase market share? possibly. will they increase gaming division profits? 100%
They absolutely will make games exclusive. Once they own Activision, the next cod that releases won’t be on PlayStation. They won’t remove games that are already released, but you can bet your bottom dollar all future games will be exclusive. COD 2024 isn’t already selling well on PlayStation because it’s not released on PlayStation.

Want proof? How’s that Starfield PS5 version that Sony tried to buy timed exclusivity of looking right now?

You’re going to be sorely disappointed if you’re banking on the yearly COD releasing on PS5 still. Crash bandicoot is never setting foot on PlayStation again either.

It's hard to say. If the next generation is still console based, I think Sony will be fine.

If the next generation is like a firestick type dongle and controller where you just stream everything, I can see MS gaining the edge and potentially dominating because the streaming selection they'll have will be massive and those games definitely won't be on Sony consoles. Internet speed is a huge factor too. We don't have fiber optic internet in my region for home use, just businesses at the moment. So not sure if cable internet speeds would be able to handle gaming at that level.

Cable internet is significantly more than is needed for cloud streaming. They recommend something like 25mbps iirc for xcloud. Cable is typically 4x that at least.
 
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oldergamer

Member
They absolutely will make games exclusive. Once they own Activision, the next cod that releases won’t be on PlayStation. They won’t remove games that are already released, but you can bet your bottom dollar all future games will be exclusive. COD 2024 isn’t already selling well on PlayStation because it’s not released on PlayStation.

Want proof? How’s that Starfield PS5 version that Sony tried to buy timed exclusivity of looking right now?

You’re going to be sorely disappointed if you’re banking on the yearly COD releasing on PS5 still. Crash bandicoot is never setting foot on PlayStation again either.



Cable internet is significantly more than is needed for cloud streaming. They recommend something like 25mbps iirc for xcloud. Cable is typically 4x that at least.
Dude you are clearly wrong. You're going to see Call of duty on playstation 5 until the end of this console generation
 

DaGwaphics

Member
Dude you are clearly wrong. You're going to see Call of duty on playstation 5 until the end of this console generation

Certainly true that we don't exactly know the toxicity/stickiness of the existing agreements in place. Spencer said he would try to get as many games on GP as he could, there could even be some stipulations here that some games can't go on there due to these agreements with Sony. We'll just have to see what we get and when.
 
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MikeM

Member
They absolutely will make games exclusive. Once they own Activision, the next cod that releases won’t be on PlayStation. They won’t remove games that are already released, but you can bet your bottom dollar all future games will be exclusive. COD 2024 isn’t already selling well on PlayStation because it’s not released on PlayStation.

Want proof? How’s that Starfield PS5 version that Sony tried to buy timed exclusivity of looking right now?

You’re going to be sorely disappointed if you’re banking on the yearly COD releasing on PS5 still. Crash bandicoot is never setting foot on PlayStation again either.



Cable internet is significantly more than is needed for cloud streaming. They recommend something like 25mbps iirc for xcloud. Cable is typically 4x that at least.
Latency is the issue. Not bandwidth.
 

MrFunSocks

Banned
Dude you are clearly wrong. You're going to see Call of duty on playstation 5 until the end of this console generation
Just like I’m going to see Starfield, Elder Scrolls, and Redfall on PlayStation 5, right?

How are you guys doing this again?! Why do you think things will be different this time? They bought zenimax and instantly made all new games, even in existing franchises, exclusive to Xbox. Why do you think they won’t do the same with COD? What business sense does it make to keep feeding the biggest game in the world to your competitor, helping them to stay ahead of you?

Latency is the issue. Not bandwidth.
Latency isn’t a problem with cable any more than it is with fibre or any other hardwired solution.
 
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MikeM

Member
Just like I’m going to see Starfield, Elder Scrolls, and Redfall on PlayStation 5, right?

How are you guys doing this again?! Why do you think things will be different this time? They bought zenimax and instantly made all new games, even in existing franchises, exclusive to Xbox. Why do you think they won’t do the same with COD? What business sense does it make to keep feeding the biggest game in the world to your competitor, helping them to stay ahead of you?


Latency isn’t a problem with cable any more than it is with fibre or any other hardwired solution.
I have been unimpressed with it through my Series X with a fibre optic connection that averages 20- 30ms on COD CW.
 

MrFunSocks

Banned
I have been unimpressed with it through my Series X with a fibre optic connection that averages 20- 30ms on COD CW.
I can’t speak highly enough about it on my fibre to the home connection at home, even when I play it via my phone on wifi. I have zero troubles getting top of the table in MP on Halo Infinite while I’m on the toilet haha.

I played super lucky tale the other day via xcloud just to get a Microsoft reward quest and it was flawless, could’ve fooled me that it was running locally.

My latency in online games is 15-25ms too. Nearest azure server farm is over 1000km away.
 
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MikeM

Member
I can’t speak highly enough about it on my fibre to the home connection at home, even when I play it via my phone on wifi. I have zero troubles getting top of the table in MP on Halo Infinite while I’m on the toilet haha.

I played super lucky tale the other day via xcloud just to get a Microsoft reward quest and it was flawless, could’ve fooled me that it was running locally.

My latency in online games is 15-25ms too. Nearest azure server farm is over 1000km away.
Yeah not sure what the deal is for me. I run a gigabit line so there shouldn’t be any issues but its laggy on my end. Meh
 
I can’t speak highly enough about it on my fibre to the home connection at home, even when I play it via my phone on wifi. I have zero troubles getting top of the table in MP on Halo Infinite while I’m on the toilet haha.

I played super lucky tale the other day via xcloud just to get a Microsoft reward quest and it was flawless, could’ve fooled me that it was running locally.

My latency in online games is 15-25ms too. Nearest azure server farm is over 1000km away.
We’ve stumbled across the only person in AU for whom cloud gaming works flawlessly.
 

gow3isben

Member
Yes it will. Still not enough to overtake PlayStation which is still number 1. However one more major move and it will be top.
 

Neo_game

Member
Hopefully we will get numbers from Activision, Microsoft and Sony. I think out of the 25million GP users it already has those interested in COD. We will know when 2024 COD get released. Similarly for TES and other big franchise if sales of the console and GP user spike up it probably means due to these games.
 
Hell yes they will. The lineup of games looks way too damn good. And things have changed. This is about more than just console sales alone now, which seems to be a primary focus of many. It's pretty much about the games, services, value, and how healthy their gaming division is.
 
I'm sure it will. To what extent though, I'm not sure.

I will say that Xbox clearly laid out their strategy for everyone way back around 2017, and haven't deviated from it since. It shows their ability to plan and execute strategies over the long term. I can't say the same for Sony, and I'm not sure they even care to do so.

Compared to a decade ago, Xbox and Playstation have swapped roles on so many points, I wouldn't have thought it even possible a couple years ago. The only significant factor that hasn't changed though is console sales numbers. But looking at all the various factors... indications suggest that they will gain marketshare at the Playstations expense. How much is anyone's guess.
 

DaGwaphics

Member
Once they have streaming built out and that is no longer in beta it will be interesting to see how they market that and what the product is. Does it just stay as it is where it is a way to play most of the GP console library via streaming or do they create an additional GeforceNow type XSX in the cloud sku with no games just a small monthly fee to rent access to a system and then you buy what you want to play (likely would be just a subset of the full Xbox store, if GeforceNow is any example some devs don't like the idea but some will accept it).
 

Excess

Member
I fear that these acquisitions turn out to be a restriction for gamers to play these games el anywhere, more than making people actually buy an Xbox console. However, Microsoft needs to entice people to buy into their ecosystem. Even though the Series X/S are the best selling consoles for them, they are still low on market share.
Why must this be repeated ad nauseum?

The goal is not to sell consoles. The goal is to sell Game Pass on any device that can play games. This is why they inserted themselves in the recent Epic v. Apple suit. They want you to be able to use Game Pass on mobile devices.
 
Why must this be repeated ad nauseum?

The goal is not to sell consoles. The goal is to sell Game Pass on any device that can play games. This is why they inserted themselves in the recent Epic v. Apple suit. They want you to be able to use Game Pass on mobile devices.
MS just launched two new consoles that ain’t cheap to make. I agree that it isn’t the most important element of their strategy, but it is foolish to think they “don’t care” about selling their own hardware.
 
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Mozza

Member
Just like I’m going to see Starfield, Elder Scrolls, and Redfall on PlayStation 5, right?

How are you guys doing this again?! Why do you think things will be different this time? They bought zenimax and instantly made all new games, even in existing franchises, exclusive to Xbox. Why do you think they won’t do the same with COD? What business sense does it make to keep feeding the biggest game in the world to your competitor, helping them to stay ahead of you?


Latency isn’t a problem with cable any more than it is with fibre or any other hardwired solution.
Every time Microsoft buy a publisher we will see the same delusional posts, outside of existing contractual agreements COD will be a Microsoft exclusive going forward, fail to see why people do not understand this.

Btw, welcome back.
 
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Mozza

Member
MS won't make any game exclusive that is already selling incredibly well on other platforms. I don't know why people think market share is important. Its not. MS got the hint after Gamecube, despite selling less units then the original Xbox, went on to make money while they were losing money.

Market share is only important if its the single factor in making profit. When spencer took over and MS stopped reporting consoles sold, they shifted nearly all first part games to PC day 1 and have done extremely well in doing so. Xbox has been profitable for a long time, despite have a smaller share of the market.

So will these moves increase market share? possibly. will they increase gaming division profits? 100%
Elder scrolls has sold slightly well.
 

Majukun

Member
if they keep the games exclusive, definitely.

not sure about the amount of said impact, since the games will be also available on pc anyway
 
Microsoft is The Spoony Experiment of consoles. Behold one generation.
fnsaPhC.jpg
 

Ozriel

M$FT
Why must this be repeated ad nauseum?

The goal is not to sell consoles. The goal is to sell Game Pass on any device that can play games. This is why they inserted themselves in the recent Epic v. Apple suit. They want you to be able to use Game Pass on mobile devices.

The goal is to sell consoles AND increase Gamepass subscribers. Consoles are by far the most effective means of converting customers to Gamepass, and Spencer is on the record as saying that they’re seeing very good conversion figures for the next gen consoles.
Additionally, console install base is a critical part of the conversation for 3rd party ports. MUCH easier to get some games ported over if the install base is quite large.


Hardware sales aren’t as important as they used to be, by its Still very important
 

Excess

Member
The goal is to sell consoles AND increase Gamepass subscribers. Spencer is on the record as saying that they’re seeing very good conversion figures for the next gen consoles.
Let's dispense with the obvious. We both agree that hardware will always be available in some form because of the switching costs and a risk-adverse market. Nobody is arguing otherwise.

What I am arguing is that Game Pass is now the primary focus.

Spencer is also on record saying "Were not driven by how many consoles we sell'.

Additionally, console install base is a critical part of the conversation for 3rd party ports.
Was. It won't be the physical hardware anymore; it will be subscriber counts that play a part in that.
 
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hlm666

Member
We’ve stumbled across the only person in AU for whom cloud gaming works flawlessly.
I've used xcloud on a 50/5 connection in the outter suburbs of queensland and didn't have any problems, it's not as good as geforce now but being from aus I was expecting both those services to be unusable and they were surprisingly good.
 

oldergamer

Member
Just like I’m going to see Starfield, Elder Scrolls, and Redfall on PlayStation 5, right?

How are you guys doing this again?! Why do you think things will be different this time? They bought zenimax and instantly made all new games, even in existing franchises, exclusive to Xbox. Why do you think they won’t do the same with COD? What business sense does it make to keep feeding the biggest game in the world to your competitor, helping them to stay ahead of you?


Latency isn’t a problem with cable any more than it is with fibre or any other hardwired solution.
Use your head man. 70% of the sales for Call of duty are on playstation. You think they are just going to throw that away? Stop talking about games that haven't released and aren't currently generating revenue (Starfield, Elder Scrolls, and Redfall) are all not making significant money on playstation, so there is no reason for them to bother releasing those games on that platform. Like I said, existing titles that are selling large numbers on playstation will continue to be sold on playstation until end of this generation.
 
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