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

Nolbertos

Member
Dec 9, 2017
1,440
Well, I’ll be first to admit that I’m not part of the Engagement demographic for Xbox. I hardly even touch that expensive paper weight. Although this is PR speak for investors, the way MS keeps “inventing” qualitative metrics speaks alot of how the Xbox Division’s status of trying to keep investors confident that they’re doing OK in some categories, but the one that matters most (eg consoles sales, 1st party sales and 3rd party sales) they’re behind Sony and Nintendo. I honestly don’t see now how MS will convince investors about being the best in engagement will lead to Xbox success down the road
 

OneBadMutha

Member
Nov 2, 2017
4,926
"highest engagement" is a clearly a spin to me.
Fortunately he’s not talking to you, me or anyone in this forum so it doesn’t matter how we take it. If the investors need more clarification, I’m willing to bet a person at that level is willing and able to explain it.

At that position you learn how to speak high level and simplify your communication but also don’t throw out anything that you’re unable to clarify or define. General best practices in business communication
 

SprachBrooks

Banned
Oct 28, 2017
1,353
Holy shit, I’m so dizzy from reading all that spin. Never has something been more vacuous than Microsoft’s gaming division’s PR.
 

X1 Two

Banned
Oct 26, 2017
3,023
Wonder how much the longer existence of Xbox Live, Xbox Live Arcade and a payed online subscription play into this. They sure taught us that spending money is ok. And they are at least five years ahead in that regard. If Sony sits at 43 % digital now I think MS is closing in on 50 %. And it all started with horse armor.
 

c0de

Member
Oct 28, 2017
5,378
This may be possible (if he means more profit per user), taking into consideration that the Xbox is selling at least twice worse than ps4, but anyways, it's a pretty strange statement from them. They don't give us any exact numbers (how much consoles Ms sold, the number of gold subscribers, total software sales, atach ratio), also what about Switch (since it's considered a console).
Will take this with a grain of salt.
For the thousands time, this is not an article to convince Sony fans of buying a Microsoft console. It's a metric important to them as it is reaffirming for them to invest more into Xbox to make even more money. The justification is that people not only buy the hardware but also software and spend more money on a game per average as gamers on competing consoles.
Calling this false or spin or whatever tells more about the people saying you than about microsoft. Hell, even a mod came to this thread to explain what it actually means and people still play dumb. How is that even possible?
 

OneBadMutha

Member
Nov 2, 2017
4,926
Well, I’ll be first to admit that I’m not part of the Engagement demographic for Xbox. I hardly even touch that expensive paper weight. Although this is PR speak for investors, the way MS keeps “inventing” qualitative metrics speaks alot of how the Xbox Division’s status of trying to keep investors confident that they’re doing OK in some categories, but the one that matters most (eg consoles sales, 1st party sales and 3rd party sales) they’re behind Sony and Nintendo. I honestly don’t see now how MS will convince investors about being the best in engagement will lead to Xbox success down the road
They’re growing and profitable. Engagement leads to monitization. Monitization leads to profits.

On the other hand, hate leads to the dark side. You’re entitled to you tastes but let go of the hate.
 
Oct 25, 2017
3,734
Well, I’ll be first to admit that I’m not part of the Engagement demographic for Xbox. I hardly even touch that expensive paper weight. Although this is PR speak for investors, the way MS keeps “inventing” qualitative metrics speaks alot of how the Xbox Division’s status of trying to keep investors confident that they’re doing OK in some categories, but the one that matters most (eg consoles sales, 1st party sales and 3rd party sales) they’re behind Sony and Nintendo. I honestly don’t see now how MS will convince investors about being the best in engagement will lead to Xbox success down the road
Holy shit.
 

Ge0force

Self-requested ban.
Banned
Oct 28, 2017
5,265
Belgium
Microsoft is truly master in PR spins. But while their console is being outsold by both competitors and their PC gaming efforts also keep struggling, other services like Azure and Simplygon are doing fine. Microsoft is becoming more important in the games industry.
 
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gcwy

Member
Oct 27, 2017
7,697
Michigan
Interesting. An anecdote, but my friends who own Xbox are always subbed to Live, not so much for my friends who own a PS4.
 

NSA

Avenger
Oct 27, 2017
2,980
How is that even possible?
Because people don't read, love to give uninformed hot takes, and show their loyalty to a brand.

Satya has been saying this kind of stuff for a bit, and shown his commitment to Xbox. It's not lighting the world on fire like the Cloud, yet, but they see potential. I feel like they finally got ahead of the curve with Office 365 and Azure after many, many misses. They're combining what they've learned with Xbox with what they've learned elsewhere to foster an ecosystem that's heavy on user choice and forward thinking experiences.
 

BlacJack

Banned
Nov 6, 2017
1,021
It's funny how all these "Xbox is the most/best" comments always come from Microsoft themselves.

It's so hard to like these guys, even when they do well. If they just never had these pressers and just released games man I would have so little bad to say of them, and would simply get to enjoy my X1X without all the eye rolls.
 

Jenea

Banned
Mar 14, 2018
1,568
For the thousands time, this is not an article to convince Sony fans of buying a Microsoft console.
What does this have to do with my comment ? Of course you can't sell your console with PR statements.
Calling this false or spin or whatever tells more about the people saying you than about microsoft. Hell, even a mod came to this thread to explain what it actually means and people still play dumb. How is that even possible?
I see some people still can't read. I didn't call it lie or spin, i just have my doubts because we still have NS with a small userbase (for now) and great software sales. Ms don't give us any real numbers, all we get from them are PR statements, that's my problem with it.
Yeah, some people still play dumb in order to defend their favourite company and their statements.
 
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DrDeckard

Banned
Oct 25, 2017
5,603
UK
It's funny how all these "Xbox is the most/best" comments always come from Microsoft themselves.

It's so hard to like these guys, even when they do well. If they just never had these pressers and just released games man I would have so little bad to say of them, and would simply get to enjoy my X1X without all the eye rolls.
This is not a presser it's an investment call. They are required to do it.
 

BlacJack

Banned
Nov 6, 2017
1,021
This is not a presser it's an investment call. They are required to do it.
Fair enough, maybe its that people feel the need to make threads of everyone of them and bring more attention to it than necessary. I never have to constantly be reminded by Sony or Nintendo about what they do the best. It's even more eye roll when it's always a new metric that is never tracked normally in the public eye.
 

wapplew

Banned
Oct 25, 2017
1,163
I find it hard to believe how can Xbox have higher engagement than Switch, when a gamer can engage with switch anywhere, any time.
 
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Pancracio17

Avenger
Oct 29, 2017
7,656
Why are xbox threads so shit regardless of the topic.


Anyways, that explains the gaming investment. I expect a lot of the money being thrown at more stuff to keep users engaged like perpetual games ala SoT.
 
Oct 27, 2017
3,918
Florida
Keep dreaming MS. I know already 2 persons in my class who are jumping now to Playstation because of Sony's constant games output. They had Xbones this gen but GoW seems to make such a huge impact that they now want a Pro. One of them is even selling his Xbone with 5 controllers and dozens of games so that he has the money right away. MS can talk all they want but gamers have eyes and the flow of constant critical-acclaimed games that you can only find on Playstation will drain even more MAUs from the "highest-engagement" console over the time.
This just sounds so childish and petty. Congrats on flipping your friends I guess. Maybe Sony will give you a reward
and let you change your user name.

Why can't folks see the value in all 3 consoles? I will never understand it.

Fair enough, maybe its that people feel the need to make threads of everyone of them and bring more attention to it than necessary. I never have to constantly be reminded by Sony or Nintendo about what they do the best. It's even more eye roll when it's always a new metric that is never tracked normally in the public eye.
I'm so sorry you have to sit through MS quarterly reports which is the only place they talk about this so they can report to their investors. And surely you see the stream of Sony gaming ads on TV, sporting events, billboards, etc. telling you the message Sony wants you to see. Also engagement is far from a new metric. Maybe I'm too old to understand young people's arguments.
 
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woodcutter

Banned
Oct 27, 2017
1,185
nj
The number of MAU's didn't increase compared to last quarter, so now Microsoft is taking in engagement. Incredible.

This being said: while their console is being outsold by both competitors and their PC gaming efforts also keep struggling, other services like Azure and Simplygon are doing fine. Microsoft is becoming more important in the games industry.
sony and Nintendo will continue to shit all over xbox. which company is more pc friendly though?
 
Oct 27, 2017
7,287
If the average Xbox player spends more money than a PlayStation player, does that necessarily mean more money is spent on Xbox?

If there is 79M PS owners and 35M XB owners, won’t the numbers be dragged down by so many more users on one end vs the other? More money, in total, has to be spent on PS4 right or am I doing math wrong?

I’d wonder if there are stats on the breakdown of money spent per platform for people who own both too
 
Oct 25, 2017
1,203
There’s lots of ways to obtain data. Often times companies outsource data and analytics specialists to provide the market metrics. Just because they aren’t sharing with the public doesn’t mean it’s not obtainable in other ways.
So, Sony has definitely given away that data. It's definitely not a company making an unverifiable claim.
 
Oct 27, 2017
3,918
Florida
If the average Xbox player spends more money than a PlayStation player, does that necessarily mean more money is spent on Xbox?

If there is 79M PS owners and 35M XB owners, won’t the numbers be dragged down by so many more users on one end vs the other? More money, in total, has to be spent on PS4 right or am I doing math wrong?

I’d wonder if there are stats on the breakdown of money spent per platform for people who own both too
Of course Sony is making more money right now. What MS is reporting is that the gap in physical sales does not mean an equal gap in software sales.
 

Kilgore

Member
Feb 5, 2018
2,970
On one side Xbox has some services that favor playing and spending money on it, on the other side Sony have all the casual gamers this gen, even if they have also the majority of hardcores too, the average engagement on that platform is probably lower than Xbox One.
 

BlacJack

Banned
Nov 6, 2017
1,021
This just sounds so childish and petty. Congrats on flipping your friends I guess. Maybe Sony will give you a reward
and let you change your user name.

Why can't folks see the value in all 3 consoles? I will never understand it.



I'm so sorry you have to sit through MS quarterly reports which is the only place they talk about this so they can report to their investors. And surely you see the stream of Sony gaming ads on TV, sporting events, billboards, etc. telling you the message Sony wants you to see. Also engagement is far from a new metric. Maybe I'm too old to understand young people's arguments.
Nice try, but I'm pretty old, and if you think a commercial from any of the big three is the same as hearing "we have most hours played monthly!" or "our users spend more money than any other platform" then I don't know what to say to you.

You trying to assume my age says pretty much all I need to know though, haha.
 

Red Alert

Banned
Mar 25, 2018
644
Member has been banned (24h): thread whining. Console warring.
Microsoft usual PR trash is so bad it doesnt even need its own thread
 

Matt

The Terror that Flaps in the Night
The Fallen
Oct 24, 2017
4,148
To those asking about the Switch: its engagement numbers are also very impressive. If it had a popular paid online plan and more full-priced games, it would probably overtake the XBO (though I imagine that would reverse again considering how fast and how large its userbase will continue to grow).
 

Deleted member 17952

User requested account closure
Banned
Oct 27, 2017
1,980
Can't you make anything look amazing if all you take into account is averages?

Given hypothetical scenario below where Set A has 4 users and set B has 8 users, with {n,...} where n is engagement value of a user, 1 being the lowest and 10 being the highest:
  • A = { 8, 6, 9, 5 }
  • B = { 9, 8, 10, 10, 7, 5, 4, 2 }
If we then take the averages (total engagement / number of users = average engagement per user):
  • A: 28 / 4 = 7
  • B: 55 / 8 = 6.875
As shown in the above scenario, even with higher total engagement, as well as having more engaged users overall, set B will still appear to have a lower average engagement, as long as a user with very low engagement appears on the pool.

In other words, with "average engagement" alone, we cannot claim that user A has "more" engaged users. Without the other numbers, there is nothing to derive from the statement itself. You know, just like inferring data from "increase of 5% to A, B, and C", when we don't even know the base value, nor do we know the breakdown.
 

TehPotentialz

Banned
Oct 30, 2017
2,362
I do love how people on here spin almost the most actually important figures as "PR spin", like they know better than multibillion dollar companies and their investors.

First it was MAU, which was instantly laughed at despite being one of, if not the the main metric for success for service based companies. Now it's user engagement, a term that is pretty self explanatory and is definitely important.
 
Oct 27, 2017
3,918
Florida
Nice try, but I'm pretty old, and if you think a commercial from any of the big three is the same as hearing "we have most hours played monthly!" or "our users spend more money than any other platform" then I don't know what to say to you.

You trying to assume my age says pretty much all I need to know though, haha.
You're missing the forest for the trees. The point is that no one is force feeding you any lies or hitting you over the head with it constantly. When did MS talk to you about this? Seems like you just read it on this thread right?
 

GHG

Member
Oct 26, 2017
6,648
News in at 11 forum goers use the word "spin" for any business communication to investors.
To be honest in order to inspire confidence in your investors you need to use some metrics to show you are improving and/or doing well, and thus make the spend you are making within a particular area of your business seem justifiable.

Last year they used MAU as a metric to get a similar message across:

“Xbox software and services revenue grew 7 percent driven by continued adoption of digital distribution and a strong game lineup,” Microsoft explained in a note to investors.

...

“Xbox Live monthly active users grew 13 percent year-over-year with continued growth across Xbox One, Windows 10, and mobile platforms,” reads Microsoft’s earnings report.

https://venturebeat.com/2017/04/27/microsofts-xbox-gaming-division-generated-1-9-billion-last-quarter/
"spin" is the wrong word to use in this instance but there is a huge element of putting yourself in the best light possible.
 

Kilgore

Member
Feb 5, 2018
2,970
I do love how people on here spin almost the most actually important figures as "PR spin", like they know better than multibillion dollar companies and their investors.

First it was MAU, which was instantly laughed at despite being one of, if not the the main metric for success for service based companies. Now it's user engagement, a term that is pretty self explanatory and is definitely important.
Because some people think that Satya Nadella, while running a multi billion company cares for console wars and speak to them. What Nadella did is nothing but explain how can Xbox increase income without selling gangbusters on hardware, and that's so easy as explain that the Xbox userbase play a lot, and spend a lot of money too.
 
Oct 27, 2017
3,918
Florida
Because some people think that Satya Nadella, while running a multi billion company cares for console wars and speak to them. What Nadella did is nothing but explain how can Xbox increase income without selling gangbusters on hardware, and that's so easy as explain that the Xbox userbase play a lot, and spend a lot of money too.
Bingo. Glad some folks get it.
 

Zappy

Banned
Nov 2, 2017
3,738
This is the CEO of MS responding to an investor question about gaming. Some responses on here are plain embarrassing.

MS have growth all across their various divisions and make more money (in total not gaming specifically) than any company involved in gaming. Nadella doesn’t need to spin anything.
 
OP
OP
Rychu

Rychu

Member
Oct 25, 2017
6,420
Utah, USA
According to several sources, MAU's are 59 million, which is as much as last quarter. What am I missing here?
MAUs always suffer a big drop after the holidays are over. So normally we would’ve seen a drop to 56 million or something like that. That number stayed even after the holiday season for the first time is what you’re missing.
 

Heisenburger

Attempted to circumvent ban with alt account
Banned
Oct 26, 2017
518
User Banned (2 Days): System Wars, previous warnings
We still haven’t got any games so let’s use vague marketing speak to sound good.
 

cowbanana

Member
Feb 2, 2018
3,644
Traveling without moving
Why can't folks see the value in all 3 consoles? I will never understand it.
One console has nothing I can't get on other consoles/PC. I love single player games most of all, and I hate GaaS. And one console is heading straight in the opposite direction, so why would I want that console?

Do you see now, why some people don't see the value in all of the three consoles?