Well, the steep hardware sales decline stands out, hence the attention.
Also it still needs Hardware to sell Software. That's the reason PlayStation makes about twice the revenue with an install base about twice as big.
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Forbes Contributor: Microsoft's Xbox Revenue Is Plummeting, And Here's Why That's Fine
- Thread starter Neat
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Also it still needs Hardware to sell Software. That's the reason PlayStation makes about twice the revenue with an install base about twice as big.
Yeah if only ms did something like spend $billions on new 1st parties doubling the 1st party studios, make the best value videogame rental service in history and commit to make a next gen console with its main focus being the best gaming box it can be.
So if the 1x did not release those same people would of bought a 1S?
Also if talking about revenue, the 1x will increase it a lot because its a lot more expensive.
While there's obviously a plan to transition to service based models and subs, the results are just bad, even if somehow logical late into the generation.
The only thing that MS had sure as positive is the narrative, at least on US media. From being poised to dominate upcoming generation articles, to ones like this to downplay negatives and highlight positives.
The only thing that MS had sure as positive is the narrative, at least on US media. From being poised to dominate upcoming generation articles, to ones like this to downplay negatives and highlight positives.
There was a surge at launch, but it's impossible to quantify, cause Ms never gives numbers.
The One X also released Nov '17 and these are numbers for April-June '18 so the "big" launch surge was over anyway.
People focus on hardware sales not because of direct revenue from those sales, but because hardware drives software and service sales - the actual profit drivers.
After most copies sold? Do you even look at monthly npds or realize it didn't become the greatest selling game of all time until a couple years after MS bought it? Not to mention the toys, clothes and merchandise lol.
You have no idea what's better, that's why they are the most valuable company in the world. Armchair critics make me laugh. The driving point is engagement on any device, not just Xbox.
Some of y'all are so transparent. Why do you get off on this kind of angle?
That also explains why Sony as a company is not nearly as big as they used to be while Microsoft is the most valuable company in the world. Focusing solely on Xbox hardware metrics is small potatoes.
That's funny because to the other side we have to worry as sony has already send to dead the ps5. Vg journalism. Serious business.
Yeah isn't this the first time this has happened to the Xbox division?
We are moving away from hardware metrics used as the driving force to sell software, hence why Google is now getting involved. Putting xCloud and Game Pass on any device also shows they don't need to sell hardware to make revenue.
Everything Microsoft has done as of late has been in preparation for the next generation. If Microsoft is still dropping the ball 2-3 years into the next generation, then there's cause for concern.
The writing was on the wall this past December. Xbox was $100 cheaper than PS4 the whole month and only was able to outsell them by a small 100k. When PS4 is $199 they can't make enough of them.
As far as subscriptions go, it's a nice addition but without hardware being healthy those subscriptions won't be anywhere near their potential.
Translation, Microsoft has a healthy future and are setting themselves to be much more competitive.
This would actually be an interesting discussion, mainly around how aggressive MS has been with game pass pricing. Since that service launched, I've probably been subscribed at least 70% of the total time and I've maybe paid at most $10 with all the three month and one month offers that pop up every quarter or so. That sort of up-front marketing tactic does wonders for an active userbase, but I'm curious to see how the transition is handled to more sustainable marketing initiatives.
I'd also love to see a breakdown of revenue between Gold and Game Pass, but I suspect we won't ever get that.
Wait so you want them to monetize their titles more? The hell? And get out of here with the marketing deal crap. You think anyone expected FO76 and BFV to literally shit themselves out of the gate? Anthem maybe. Besides Bethesda and BioWare always partner with MS.
Oh I'm sorry, I must be mistaken. I must have missed all those first party game announcements and the Gears 5 campaign reveal.
Strange way to look at it, and quite the "shots fired" approach. If MS sees Xbox division underperforming, they're less likely to dump more money I to it.
Goes hand in hand with the "MS has more money than sony so they can just buy everything." If that's how it worked, why hasn't MS done so?
If Xbox performs, which we know it will, MS will be more willing to send more resources their way.
Of course, MS is super healthy. But I'm sure they'd like to sell as many consoles, games and subscriptions as Sony or Nintendo, so they are heavily investing to catch up next gen.
MS chose those partners, they ran promotions/commercials/bundles = it did not work out because partners failed MS. Even if this is outside of MS's control, it contributes to the hardware sales when PS4 is blasting best-selling 2018 games promotions and Xbox has stinker meme-games promotions.
Lol, they aren't going to say no to selling 100 million next gen Xbox systems but they are braodeing themselves to be much more than just Xbox hardware.
Didn't Microsoft just do exactly this? They threw money at the Xbox by allowing seven (was it seven?) studio acquisitions the past year.
Nothing Xbox can do about this right now. They are in second place thus get second place games. COD > Battlefield, Red Dead > Fallout, Destiny > Anthem
I've been reading these excuses for the Xbox division since 2004. Sometimes a bad quarter is just a bad quarter.
That was in direct response to someone saying Phil's job was under threat over declining current gen sales.
Also, nobody was making any 'excuses' for Xbox performance during the last gen. They did extremely well last gen, in terms of hardware revenue.
But you already knew that.
You haven't heard? Xbox is doing 'fine' and the PS5 is dead on arrival. Try to keep up with the narrative!
Second place has nothing to do with marketing deals, unless you're bidding for outright exclusivity. A marketing deal on Xbox won't stop devs from selling their games on PS4.
Truth be told, Microsoft has been extremely incompetent in securing these marketing deals. They'd be in a much better place if they had secured Destiny rights and not made the foolish mistake of letting the COD marketing rights go.
I mean Nintendo and Playstation make the most in gaming revenue currently and they both are selling gaming hardware in order to achieve that. Not sure if just adding services to more platforms will always equal more revenue.
Well, 1$ is obviously great value, but that is not financially sustainable, devs must be payed, and by the cost of less of a game per user a year i fail to see how we can get a healthy ecosystem, unless everything is f2p or shovelware.
Maybe the target is to 'destroy' competition using MS's money from other sections that are profitable.
The thing is some people seem to be happy with that, but once competition doesn't exist anymore.. well be prepared. Seems a very short term perspective to me
Maybe if you own the product, the games, but with almost everything being 3rd party... That can be available on other platforms... Imagine if Nintendo offered a similar product with their first party plus 3rd party, why would you choose Microsoft one?
Not to mention that, like Netflix, many players will probably offer similar deals, since no hardware barrier is there any more.
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I'm simply glad they are finally playing the long game.
Console sales are important but people seem to act like all of their diversification and alternate gaming cash flows aren't important. Their deals like PS going to azure, PC gamepass, selling their games on Steam, and Minecraft are huge. xCloud could be giant or a flop but we won't know for a while. They also acquired/built/expanded 15 studios to fill their 1st party content void. All this is to say that console sales are important but they do not convey their current situation at all.
Console sales are important but people seem to act like all of their diversification and alternate gaming cash flows aren't important. Their deals like PS going to azure, PC gamepass, selling their games on Steam, and Minecraft are huge. xCloud could be giant or a flop but we won't know for a while. They also acquired/built/expanded 15 studios to fill their 1st party content void. All this is to say that console sales are important but they do not convey their current situation at all.
Yah we do.
Is not armchair critics, just because you cant see it does not make it wrong.
Selling a console allows Microsoft to charge for online, gamepass and take 30% cut.
On pc, they can sell you gamepass and have to compete with steam, epicagames and gog for the 30% cut.
Whitch option is the better option?
Just because they are trying to reach as many gamers as they can does not mean that the console stop being the best option for max revenue.