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Microsoft: Xbox One is the “Highest-Engagement Console” in the Market; Explains Strategy for Gaming

Rychu

Rychu

Member
Oct 25, 2017
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Mod Edit: If you're only here to console war, don't post.

From Microsoft's investor Q&A, someone asked Satya Nadella and Amy Hood about growth in gaming. A lot of information here.

Asked to explain the large growth registered in gaming revenue, Nadella explained that Microsoft has a strategy for the gaming segment that really helps the company articulate both the growth opportunities as well as the investment across the various layers of the business.
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According to Nadella, the Xbox One is the "highest-engagement console in the marketplace." Any time a new game releases, whether it's first or third-party, "the fact that Xbox is where the best engagement is driven benefits" Microsoft. As a platform owner, that's a "great growth area" for the company.
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Yet the strategy doesn't stop there, because of Microsoft has Xbox Live, Game Pass, and Mixer are all additional opportunities to "really serve the gamers" as they play more games or watch games on different platforms.
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The last element, which Nadella thinks is new and is already paying its dividends on the Azure growth side is that Microsoft has taken all the knowledge of what it means to build first-party games, and has built it into services in Azure for game developers. The PlayFab acquisition speaks directly to that. Those are the levers Microsoft has in gaming, and investors will see the effects on the More Personal Computing segment and overtime on Azure.
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Hood added that she expects to see in the current quarter a continuation of the growth seen in the past quarter in Xbox software and services. Part of this is consistent even going back a few quarters. It has been a double-digit growing factor for a while, and it'll continue to be, despite the fact that there might be some volatility in the numbers.
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https://www.dualshockers.com/xbox-one-engagement-strategy-gaming/

EDIT: Some clarification from Matt.
Matt said:
What this means is the average Xbox player spends more money then the average Playstation player. Which is true, and is absolutely a bright spot for the brand.

But it's also pretty normal. The more a console sells, the more it sells to a less "hardcore" player base, which means the spend per player will be diluted. The first 10 million people to buy a system will always be more valuable than the next 10 million, and so on.
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NSA

NSA

Avenger
Oct 27, 2017
3,892
But 2nd place is the first loser! /s

That makes a lot of sense, and I don't really see it stopping anytime soon.
 
Derrick01

Derrick01

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Oct 25, 2017
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I think the person who comes up with these bizarre business terms to mask how badly they're getting outsold on all fronts this gen needs a promotion. They've had their work cut out for them and they've more than delivered.
 
Vinc

Vinc

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Oct 25, 2017
7,387
Not to downplay, but I remember reading similar things about the Vita. When a product is more niche, you tend to see higher engagement from the people who DO have it.

It's always a good sign when people love a product though.

Edit: To be very clear, I'm not saying the Xbox One is like the Vita, just giving an extreme example to say that consoles that sell less tend to sell to a more hardcore crowd who buy more games on average. So by virtue of the console not being the most mainstream choice this gen, it has the highest engagement.
 
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Deleted member 6263

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I'm not trying to be snarky or anything but what does
the Xbox One is the "highest-engagement console in the marketplace." Any time a new game releases, whether it's first or third-party, "the fact that Xbox is where the best engagement is driven benefits" Microsoft.
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even mean?

Edit: understood, thank you for the clarifications.
 

SirVilhelm

Member
Oct 27, 2017
393
Dynomutt said:
I'm gonna ask my PS4 to marry me...

How's that for engagement...
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KZXcellent said:
Marriage is perfect for the Switch.
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Dynomutt said:
If I have relations with my console is that considered market penetration?
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Kieli said:
What would Satya know about the gaming division anyway. His head is in the clouds.
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This is what I expected from this thread. Good job.

OT: let's see what MS brings to e3 and the rest of 2018/2019.
 
Kieli

Kieli

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What would Satya know about the gaming division anyway. His head is in the clouds.
 

Dark Cloud

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Oct 27, 2017
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MS has the highest engagement? What does he mean exactly? Like players staying engaged to their games?
 
JINX

JINX

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SLUYm.gif

I assume it's the average playtime, monetisation and activity etc of a Xbox user compared to the competition?
 

Deleted member 249

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I can see that being an appropriate strategy (higher engagement means you can derive more profits from a smaller base, meaning you end up functionally equivalent to having a larger base: see also, Nintendo with N64, Sony with Vita), but without actual numbers or metrics shared, this is a meaningless fluff statement.

CountAntonius said:
Thread has gone pretty much as expected. Typical.
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Please tell me what a reasonable response to a nebulous term without any hard, tangible numbers shared to fuel discussion would be.
 
Garrett 2U

Garrett 2U

Banned
Oct 25, 2017
5,511
Gamers use the Xbox console the most out of any other console.
It makes sense as most Xbox first party titles have extremely engaging multiplayer experiences.
It is a benefit to Microsoft because it allows them to further invest in services.

This really isn't a tough concept to connect.
 
Fisty

Fisty

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Oct 25, 2017
20,214
Gotta be best at something, might as well be something immeasurable i guess lol
 
MetalBoi

MetalBoi

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Dec 21, 2017
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Microsoft wants Xbox One X to be the go to console for 4k users. I guess that's the only niche they fit in these days, so might as well talk it up while they can.
 
abrasivemurk

abrasivemurk

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Nov 2, 2017
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Worst selling console still finds a way to come out as successful? With this mentality Xbox might not survive next-gen.
 

D65

Member
Oct 26, 2017
6,862
It makes sense when PS4 is in many households that don't have any gamers in it. In comparison, Xbox would have a higher percentage of buyers who continue to use the system.

I think this is true of any platform that is less popular overall.

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Fucking hell the fanboys in this thread...
 
DriftingSpirit

DriftingSpirit

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Oct 25, 2017
17,897
This aligns with what folk like Zhuge have said before. The Xbox userbase is really active despite the smaller overall pool of people relative to PS4.

On the other hand, PS4 users aren't as active individually, but it is made up by the sheer amount of users.
 
Memento

Memento

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Oct 26, 2017
8,129
How would they know Sony and Nintendo "engagement" numbers?

Also they should explain what engagement means?

That is some PR alright...
 
CountAntonio

CountAntonio

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