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Microsoft FY19Q4 financial results: Gaming Revenue $2.05bn (down 10%YoY) | Xbox Live MAU 65M (up 14%YoY)
- Thread starter Deleted member 49804
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Wow, hey guys gather around. We have here the one person who's indicative of casuals as a whole, looking to share their wisdom with us. Forget all that sales data - we have the real deal right here.
Minecraft, Mario Kart, The Last of Us, Halo MCC, Uncharted Collection, Borderlands and many more, that was a very poor counter. That's just 1m sold lol (a lot less if we don't include the 30-40m it sold last gen). It was also just an extreme example, just go look at something like Steams or Xbox most played list, you'll find plenty of older games.
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Xbox boss Phil Spencer on the future of gaming: “The business isn’t how many consoles you sell”
A deeper look at xCloud and Project Scarlett.
www.theverge.com
Per Phil spencer, 'THE BUSINESS ISN'T HOW MANY CONSOLES YOU SELL'.
Xbox boss Phil Spencer on the future of gaming: “The business isn’t how many consoles you sell”
A deeper look at xCloud and Project Scarlett.
Per Phil spencer, 'THE BUSINESS ISN'T HOW MANY CONSOLES YOU SELL'.
Well of course he's saying this. In reality Sony is hitting record revenues every quarter on the back of consoles sold, not because of the console itself, but because of the games the same person buys and PS+ he'll buy eventually.
It's such a shock that he says this during a terrible quarter in which console sales are declining at such a rate...Xbox boss Phil Spencer on the future of gaming: “The business isn’t how many consoles you sell”
A deeper look at xCloud and Project Scarlett.
Per Phil spencer, 'THE BUSINESS ISN'T HOW MANY CONSOLES YOU SELL'.
I feel the issue isn't so much the lack of drive, but I agree the price is wrong. If there is a sale on this unit that puts it at $150 or less, I'll buy one for my 7 year old son to share my 3 year game pass sub with him. Otherwise he gets my X next year when I upgrade to the new hotness.
Did you just read the first line and quote that part? I already said they would focus their messaging around games and services because they are so far behind..... that's like Sony saying "we are thinking of the children" or "PS4 is the best place to play" when asked about crossplay. It is pr talk.Xbox boss Phil Spencer on the future of gaming: “The business isn’t how many consoles you sell”
A deeper look at xCloud and Project Scarlett.
Per Phil spencer, 'THE BUSINESS ISN'T HOW MANY CONSOLES YOU SELL'.
If Gamepass was meant to "turn everything around" for the console they wouldn't offer it on PC. Sony hasn't gone all in but they see the same writing on the wall which is why they have PSNow and offer it on PC.
Xbox consoles will not sell more than Playstation for the foreseeable future. The very nature of MS putting its services and games on PC day 1 prevent that.
But I already said that the consoles will be sold to hardcore Xbox fans..... we both agree on that. The issue is that most people won't even know that they exist with a 10 million niche consumer base. Look at the Wii U and PSVita, for example.
The best case scenario is that MS sells their future consoles online no matter how much their console business declines.
We dance around this topic in a number of ways in every/any thread where the prospects of next generation are brought up. Yet we never really give this specific debate the attention it deserves. There are two schools of thought/ narratives on this.
Narrative A: Next generation is a complete hard reset. All momentum and mind share comes to a complete halt and both the hardcore and casuals see each device as equal.
Narrative B: All mind share and momentum carries over.
We focus more on specs and power here but in my humble opinion the hard reset debate is perhaps the most important aspect of next generation.
Lol. Why don't you wait to see how they execute the strategy before going doom and gloom? If Xbox got to 45 million doing just about everything wrong for the first 2/3rds of this gen, they aren't going down to 10 million anytime soon. If there's over 60 million MAUs on XBL, it means either Xbox consoles are staying out of the closet or they've greatly expanded their PC presence. Either way it's a sign of good health and as long as they don't lay an egg in 2020, should continue to be in good health. Even if half their base went with a PC over gaming console next gen due to exclusives being there, they'll be in great shape...and there will be reason to keep making consoles.
That's said, the likelihood of half their base or more leaving for PC is extremely unrealistic. Most people who bought Xbox this gen did so because they like consoles and are used to Xbox...not due to the exclusives.
I don't know, gen 7 seemed like a hard reset. Nintendo anencephaly Microsoft went from a 22-24 mil gen to a 84-100 mil gen whereas Sony went from a 155-160 to a 87 mil gen.
Complete turnaround from gen 6. Now gen 8 was another hard reset imo where Sony goes back to their usual 100+mil gen and Microsoft going back to a sub 50 mil gen.
Anything can happen. Sony can charge $700 for PS5 and lose to a $499 Scarlett. We don't know. Nothing is certain when it comes to one gen to the next.
Complete turnaround from gen 6. Now gen 8 was another hard reset imo where Sony goes back to their usual 100+mil gen and Microsoft going back to a sub 50 mil gen.
Anything can happen. Sony can charge $700 for PS5 and lose to a $499 Scarlett. We don't know. Nothing is certain when it comes to one gen to the next.
This is not a hard reset, Sony before 2009 had nothing for them and they sold a good number of console just with the brand. If it was a hard reset Sony would have sold 20 to 30 millions consoles...
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I'd argue that they did this by focusing on games and content you couldn't get elsewhere. They were firing on all cylinders for most of the generation.
That aside, Hard Reset VS Continuation of momentum and mind share is really where the next generation's line in the sand is drawn. If everything they (Microsoft) are doing including what others have referred to as a "collapse" in hardware revenue then this report really isn't anything to talk about.
If that narrative is wrong then there is real cause for alarm here.
Curiously there doesn't seem to be a middle ground. Either historically or in the arguments for and against.
Show me your sales data showing casuals drive console sales around launch. I'd love to see it. If you're going to be a smart ass, you should be able to back it up.
Yet MS are in a different league when it comes to revenue and profit overall.... So perhaps to MS as a whole their strategy for being in gaming is not about selling consoles but about a long term move to services and subscriptions...
I think people need to understand that MS are in gaming for different reasons to Sony. Sony a lot of their business is propped up with the success of gaming. MS their business is far more successful and far larger and gaming is a part of it that fits in to their wider cloud/services strategy. You can't really analyse the positions of the two without taking their relative strength and success into account. The PS4 was critical for Sony. The Xbox One hasn't stopped MS reaching $1Bn market cap - albeit briefly. The success of Spencer and Nadella is making Xbox central to MS and selling it as part of the vision. There is very little talk now of Xbox being let go and that was all the rage a few years back.
They're going to suffer massively for the next year and a half I bet. Then the fun starts. They had better have a smoking E3 next year.
I find it funny that people say hardware doesn't matter anymore because it's all about services and subscriptions now. Without a big number of Xbox consoles out there is no services business. MS can't sell XBL Gold subs on PC and they don't make a lot of money off of 3rd party game sales on PC, too, because of Steam and all the other stores. Game Pass alone won't safe them, especially in its current state where i bet they are taking a loss to get people to subscribe. If Scarlett isn't a success they are in trouble especially after those big investments in acquiring studios.
All I know is the incoming generation of gaming will be radically different to this one, from a hardware, services and software point of view. The way we consume will change.
Also I'm a strong believer of hardware being just as critical to services. In gaming, they are reliant on each other.
Also I'm a strong believer of hardware being just as critical to services. In gaming, they are reliant on each other.
Hardware sales will matter the first 9 months of Scarlett being on the market and then not matter again after that.
It is funny to see that the "doom & gloomers" ultimately turned out to be right about MS strategy going forward after the X1 collapse at the beginning of the gen. What once was considering trolling is now considered a genius master plan by MS.
Trying to do the netflix model in gaming is stupid from a business perspective. There is sooooooo much more tv watchers than videogame players, and the way it is consumed is different also.
I already expressed my opinions on Gamepass on a different thread that the model is stupid and harmful from a business POV, and i got laughed at and called crazy. Good thing im locked in 3 years.
I knew i was right and the writing was on the wall.
I already expressed my opinions on Gamepass on a different thread that the model is stupid and harmful from a business POV, and i got laughed at and called crazy. Good thing im locked in 3 years.
I knew i was right and the writing was on the wall.
Where did I say they drive console sales? What I said was they'll pick it up in the first year - and they do. They're after that new Madden or Call of Duty.
It isn't doom and gloom, it is the very future they are preparing for. And I really don't know what you are arguing here, I already said that they will stay afloat even with losing most their console business since they will be on PC and streaming.
You seem to be really defensive about MS and keep insisting that they are in good health and will still make consoles, and I have said that from the start. I just can very well see Xbox consoles being sold as a fan product, not a product for the masses since they have created a lot of avenues to still get their games.
It costs a lot to market a console and keep it competitive. The Xbox One has had what feels like so many turnarounds this gen and still the momentum it gets is short lived and it defaults to a base selling power that is weaker than it's competitors. If MS can stay in the gaming business and actually see notable profits this time by making their consoles a small part of their business, they are going to do it and stop burning through money to chase their competitors.
Very few of them will "pick it up in the first year". It's been shown time and time again that the hard core are the early adopters. The more casual the gamer, the later they change generations. Why do you think Madden and COD are cross generation for so many years? You could buy Madden on the PS3 up until like 2 years ago.
Because they see a userbase they can target with nearly zero investment thanks to 'legacy edition' releases? If Activision could release whatever the newest Call of Duty is just by updating the names in a five year old game, they'd do it too.
The PC initiative has been going on since 2016, yet the console has continued to sell. That's because for the most part the people who buy a console buy one to play console games. Outside this forum there isn't that much overlap for high end PC gaming and console gaming.
The XB1 is a platform as you have mentioned has had many turnarounds this gen. The system with all it's mess ups, lack of exclusives and exclusives announced to appear on PC since 2016 has managed to sell 40+ million. PC has devalued the box for someone who has a higher end PC capable of running the games. That happened a while ago and for the most part the system still sells. The system is a failure compared to the 360 but 40+ million for a console is still solid.
The streaming argument killing consoles has yet to even take place in the market. It's the same thing as the mobile audience killing consoles, there isn't data on it. With the U.S having terrible internet infrastructure to support widespread streaming, it would take longer to even determine it's effect of killing console sales. Xbox console sales aren't about to drop from 40+ million to 10 million outside a colossal mess up next gen. You can argue a decline but you can't argue a decline to 10 million units outside some crazy mess ups.
A system that is considered the worst Xbox for exclusives will likely have a successor with a higher quantity of console exclusives released.
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Xbox boss Phil Spencer on the future of gaming: “The business isn’t how many consoles you sell”
A deeper look at xCloud and Project Scarlett.
Per Phil spencer, 'THE BUSINESS ISN'T HOW MANY CONSOLES YOU SELL'.
And? That does not mean "they don't care about console sales."
It means they care about more than just console sales; that's all that quote means. They care about 1st party software/subscription sales and 3rd party software sales that happen through their digital stores... but guess where there most popular gaming digital store lives? On Xbox consoles.
Really ridiculous that anyone would repeat that anyone who manufacturers ANY product doesn't care about how much that product sells, particularly a product that comes with a built in store that makes them more money by default. Complete and utter nonsense.
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