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Microsoft: Xbox One is the “Highest-Engagement Console” in the Market; Explains Strategy for Gaming
- Thread starter Rychu
- Start date
https://www.microsoft.com/en-us/investor/earnings/FY-2018-Q3/press-release-webcast
Maybe I should have said revenue or gross income instead of income, but I don't know if it have much to do with the questions I was answering to you.
This seems like a nice way of saying 'we haven't achieved the market penetration of our competitors, and the demographic breadth that implies'.
I mean it's a true point that they're at probably the higher-value end of a console's market penetration, so on average 'engagement' would be higher, but if Sony segmented their audience, they'd probably find in absolute terms a group as large or larger that are equally high-engagement. Averages can mask a multitude of detail.
Nintendo ought to be at a similar stage of 'high-engagement'/hardcore market adoption with Switch, but maybe the demo is slightly different there, or maybe he's not even thinking of the Switch.
Anyway, for investors, there is maybe a point there. But I think they'd be more happy to take returns from less 'engaged' customers.also, if MS could reach them, regardless of whether those returns are a bit lower per user.
I mean it's a true point that they're at probably the higher-value end of a console's market penetration, so on average 'engagement' would be higher, but if Sony segmented their audience, they'd probably find in absolute terms a group as large or larger that are equally high-engagement. Averages can mask a multitude of detail.
Nintendo ought to be at a similar stage of 'high-engagement'/hardcore market adoption with Switch, but maybe the demo is slightly different there, or maybe he's not even thinking of the Switch.
Anyway, for investors, there is maybe a point there. But I think they'd be more happy to take returns from less 'engaged' customers.also, if MS could reach them, regardless of whether those returns are a bit lower per user.
It does because it completely changes the implication of your statement: "What nadella said is an explanation to investors of why income of the division increased this quarter without a dramatic increase in hardware sales". If it referred to net income then I would have to agree with you and the discussion ends there because, yes that would mean MS is very successful in what they are doing. If it's just revenue, then it goes back to everything else, that it's a meaningless metric on its own, and you're just guessing same as everyone else.
For a platform holder that all in on game subscriptions, it's strange they never shed a light on actual subscriber numbers.
No, it doesn't make a difference on this subject. He needs to explain why revenue grow, how is he planning to keep growing, and why is he spending more on the gaming division. It's all part of the same subject.
Worst selling console? 2nd console in market is worst ?
40m + is not the worst. Xbox division made over 2b in latest earnings. So yeah stop with Doom n gloom. They are not financially weak like Sega to quit market. Xbox is the only popular hardware brand they have and they will never abandon it .
I know right... we must preserve the sanctity and purity of MS thread with only positive posts. No negativity towards MS is allowed.... /s
It's not 40M+ . And using MS metrics like the one mentioned on the op, yes is the worst selling console.
How do you know it's not at 40M? Is that just something you WANT to believe because you don't like MS? Do they even release the numbers anymore? I could swear they stopped giving out total hardware sales figures.
Microsoft is one of the richest companies on the planet lol.
How are they not stable?
They did, because they are behind. Also why they announce silly things like this. It's unfortunate cause they aren't even doing bad, but they way they announce things it seems like they are.
They don't have to be #1 to announce sales numbers.
It was 35 last year according Zhuge. Pretty sure it's close 40m now.
Thats good enough install base for games to be successful.
Yeah. I feel like they should be proud of whatever number they've sold. 30-40M is not anything to be ashamed of. Sony just had them by the balls the entire generation. They've won and that's ok. Try again next gen. *shrugs*
I can agree with this. Maybe for some time the gaming division was at risk, and it was better to avoid comparisons with sony, but right now they must simply report sales from time to time. Is not like report sales stops you for still talking about other metrics.
Is all the engagement coming from the inordinate amount of lag that console UI has? One button press on the other consoles is quick and you are done. On theirs you press and laaaaaaag. I can see that making people use their Xbox longer. I kid obviously. Or do I?
Posts like this are why Microsoft are right to not disclose exact sales. Large sections of the gaming industry are made up of children (especially grown up ones!) who don't understand the first thing about business beyond very simple "who won?" terms. And obviously, anything else is "spin".
Microsoft can't come out and say they're outselling the competition because they're not. But they are entitled to publish any other metrics where they are successful, especially when it's stuff that shows players are still using their platform and making them a lot of money. Shock horror, there's more to business than "winning" a hardware race every 5 years.
There are people on this forum who are absolutely gutted Microsoft aren't just quietly fading out of the gaming industry.
Yeah. It's pretty disgusting. They just want Sony and Nintendo. As if that would be good for consumers. Sony would pretty much control most AA(what's left of them)and AAA games. No different than if it were only MS. Bad for gamers. Not good
Just to be clear Sony got hammered when they lost the plot with the PS3 and they ended up responding by bringing the gaming rain.
MS on the other hand whilst making every effort to improve games we've already played to death in all fairness seems to have forgotten that people want new gaming experiences too, which is odd seeing as they are in the games business.
It is unbelievable, how badly ERA is moderated - with actual mods in this very thread.
The CEO explains to investors, why revenue grew without substantially more hardware being sold; and the thread is full of console warriors screaming 'PR spin'.
This is embarrassing not only for those posters, but for the site as a whole.
The CEO explains to investors, why revenue grew without substantially more hardware being sold; and the thread is full of console warriors screaming 'PR spin'.
This is embarrassing not only for those posters, but for the site as a whole.
I don't think Microsoft should be bothered for post like this, or haters on forums. Is not like not reporting sales avoid people trashing them, or even believing they are doing worse than they are actually doing.
Indeed. This was an investor call and has nothing to do with PR.
Ok, moving away from the dumb fucking console wars nonsense, how exactly does Microsoft know they have superior engagement? Obviously they know their own metrics, which I presume are impressive, but how would they do how they compare to Sony?
Also was engagement defined? We have our own general understanding of what it means, but do we know exactly what it means for this specific context?
Also was engagement defined? We have our own general understanding of what it means, but do we know exactly what it means for this specific context?
Have they? Sea of Thieves has issues but it feels fresh enough to me. They're pretty much the only major publisher not to have given up on arcade racers (and Infact thrives on it). They're the only gig in town when it comes to console RTS'..
Also, innovation and new experiences doesn't start and end at first party output. Game Pass and their back compat strategy - particularly the X Enhancements - have been the most transformative elements of this gen for me. Total game changers. I feel like it's some of this stuff that's more relevant to the thread, and to Microsoft's current business growth, than more debate over first party output. That's a road well travelled elsewhere on the forum. This thread (and my response to it that you quoted) is more about the business side of what MS are doing, and how badly some misunderstand that just to constantly parrot a load of shit about "losing"..
I think in this context engadgement means "giving us their money". Maybe he's speaking about how much time is spending playing on Xbox but for investors that's a bit irrelevant.
Seems to be the way most Microsoft threads go. Either this or screaming DOA at the top of their lungs.
I don't think time spent is irrelevant. With how much gaming is micro transactions based now, there is likely a positive correlation between time spent and monetisation
We are seeing plenty of fumes already. They are not great to see.
Pretty much. Anything MS executive say that is remotely positive is a PR spin. Even when taking to a group of investors.
Because people think Satya is answering as a console warrior and not as a CEO. It is ridiculous how bad this thread is.
Some of you guys need to stop bashing the website and its mod and community because you can't handle the facts MS will be called out for Pr spin.
Why aren't you guys mad they never tell it straight up. They use verbiage that sounds positive to hide the obvious negative parts. Even XBox X which probably is selling, they don't provide any numbers.
Why aren't you guys mad they never tell it straight up. They use verbiage that sounds positive to hide the obvious negative parts. Even XBox X which probably is selling, they don't provide any numbers.
Soon "Xbox is the console towards which players feel the most love" then "Xbox the most time spent thinking about at work console"
It was at 35 million in February according to Zhuge, no way its managed to get close to 40 million over the past few months.
Soon these threads will only consist of high quality sarcastic, ironic or just obvious shitposting because reading the actual op and the respective article is too much to understand or comprehend.
When are you going to realise that the CEO of MS on an investor call having reported growth across virtually all areas isn't doing PR. He doesn't care about console fanboy wars. He's providing information to investors.
He doesn't have to spin anything. MS make more money than any other console manufacturer and have growth in gaming. He's reporting their strategy to investors. That is it period. They are a vastly more successful company than Sony and Nadella has improved their position even further. The fact that they are selling less consoles than Sony is barely significant in the context of what was being discussed. Sony would walk over hot coals to reverse positions with MS and be second in the console space but have the MS revenue and profits.