I don't feel the industry's ready for Xbox to go full multi plat and it wouldn't go well. Xbox hardware will continue to exist but I don't think it would sell very well.
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Xbox FY24 Q3: Total Gaming Revenue (+51%), Content and Services Revenue (+62%) Hardware Revenue (-31%) / Xbox Gaming made $5.451B in revenue
- Thread starter --R
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It doesn't really matter if the industry is ready or not. It's happening.
They didn't even bother making cinematic 3rd person finishers or stealth kill.
You're gonna see the character 2% of the game, and visually it looks underwhelming compared to virtually every AAA action adventure, with hellblade 2 setting a very high bar a few months prior.
Gonna be a much harder sell than it should have been.
I just mean specifically a risk in what that person was saying, namely making exclusive sequels to sell hardware. If they see more success as a multiplatform publisher who also has a console of some description then great, I'm a bit sceptical they can do both but time will tell.
just note this is the impact of ABK and isn't the gaming OI in total as we don't know the other number.
Oh yeah I agree in terms of success it's one or the other. Personally I think going to multipatform route will do wonders for them.
We're literally watching in real time how this strategy doesn't work (see recent Final Fantasy sales… or Starfield even). I bet it wouldn't even work for Elder Scrolls.
Only chance is with COD, and they're legally not allowed to do that for 10 years anyway. Plus it would be a stupid decision depriving MS of literal billions.
I think the reality of the situation is that game dev is extremely expensive and Microsoft has too many studios to try to tie them all to a failing plastic box now. Maybe a "make everything exclusive" strategy might pay off eventually, but they run the same chance of making many of their IP irrelevant instead.
Don't worry. You'll still be able to get hardware. As long as they make games, they'll be making hardware for you to play them on.
The decline in hardware in massively offset by the profits generated by software and services. It is actually a means of diversifying and managing risk, which is something MS do really well, actually.
At this point I'm more curious about the economics of Gamepass and what will happen when they drop COD day one on the subscription. COD is even more successful on Xbox than it is on Playstation, making it "free" on the Xbox will be a massive loss of revenue for Activision/Microsoft. Unless it drives the number of subscribers up to a degree none of past Microsoft's move have managed.
This will be the true, definitve test to see whether the subscription model for AAA games is viable. Everything else that happened until now was mere foreplay, COD on Gamepass is the biggest business move of the industry since the start of the generation, which is why it was the focus of the ABK trial.
This will be the true, definitve test to see whether the subscription model for AAA games is viable. Everything else that happened until now was mere foreplay, COD on Gamepass is the biggest business move of the industry since the start of the generation, which is why it was the focus of the ABK trial.
Not sure what you mean by even more successful on Xbox than PlayStation. I think you're saying that the proportional spend is higher on Xbox due to audiences/size of user base? Because it doesn't make more revenue in total vs PlayStation right?
I don't really see this impacting Xbox console COD players much in terms of revenue. If you have the typical Joe Bro buying COD yearly for $70 only and maybe a few others like Madden, they are at best subscribing to GP Core for $5-10 / month to play online. If they want to play COD on Game Pass, they will have to get Ultimate for $17 / month. It basically evens out at 5 months. If they are consistent COD MP player throughout the year, they will spend more on COD via GP (without actually owning the title) than they would otherwise.
Factor in things like perks, 10-20% discounts on MTX, and the spend on MTX may even grow from engaged COD console players that play via Ultimate.
PC is a different story if it says $10/mo, but COD isn't as popular on PC comparatively and most buy through Steam or play F2P Warzone anyway.
don't recall that information coming out. Given Warzone exists, it has to come from MTX more than the full retail game
Personally, I'd be more worried investing in one now with the rumours of an early 2026 "next-next" gen console release. I'd feel pretty hard done by investing in refreshed hardware if 2 years later they're releasing even newer and from their words, much better hardware.
That being said, those are just rumours, so I don't know how seriously one should take them. Honestly, the communication from the Xbox side is so confusing these days, it makes it very difficult to think about commiting to anything on this platform at the moment. I already have a Series X with Game Pass Ultimate for years still, so my choices aren't really tested lol, but I'd honestly think of other avenues at the moment if I'd be in your place (I assume you don't have an X already), like maybe investing more long term in a PC (I know it's a much bigger investment).
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I'm famous now.
But yeah, Nadella definitely saw that article regarding Microsoft being the top publisher on the PS Store.
I am pretty sure Xbox division's overall numbers isn't significantly lower
Most probably MTX. Any cod in recent years went on sale in December already and is constantly on sale during spring summer etc sales. Most people are on Warzone probably.
I believe even putting the game on GP should not have that big of a impact on revenue. It's a mtx beast.
You use the word 'profit' when there's zero mention of profits in this quarterly report.
We see Nintendo and Sony openly revealing their profit margins, yet I haven't seen Xbox (and the gaming side of Microsoft) come attached with any mention of profits for almost a decade now.
That's why the Activision/Blizzard acquisition was so important for them.
COD usually charts better on Xbox monthly than it does on Playstation.
Here is for example the NPD chart for April 2022, you can see there were a whopping 4 COD games in the Xbox top 10 while there was only 1 on Playstation.
I was not saying that there are more players on Xbox than Playstation, but it seems that COD has more popularity among the Xbox playerbase.
Unless Xbox division getting special treatment in their FY reports otherwise it's not like they hide it, it happens with whole company, not just one division
There'll always be some kind of Xbox hardware even with it tanking but I wouldn't be surprised if they go for a less subsidized box next time trading in an even more declining hardware base for making a profit on consoles from day 1. The real question when that happens will be how that affects 3rd party games that come to the platform
i am of the same opinion that sticking the full game on GP probably has a smaller impact that some think in regards to costing full game revenue.
You wrote something 50m+ and I was just giving you the exact number. Basically additional info.
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OP
This doesn't really mean anything. The same amount of players in both platforms would get higher positions on an emptier chair, and that's assuming the PS / Xbox playerbase is 50:50 between both platforms, which Phil Spencer already said it's not true, and that PS accounts for a majority.
Can't really agree it's a good video but I don't really like Kyle's content to begin with
The cost to bring a new console to market must be astronomical. I wouldn't even bother if I were MS and just go third party at the end of the generation. Cut your losses.
After two successive poor generations I just can't see the scenario where MS is competitive when it comes to sales, irrespective of how good their next box is.
I teach 6th Grade Business & Information Technology. We are currently talking about Revenue & Expenses. Just this week we were talking about how Revenue doesn't equal profit and Revenue by itself doesn't mean much without knowing a companies expenses. Just pretty awesome timing for my kiddos to use these tweets to show them what we were discussing in class since they can all relate to video gaming and Xbox somewhat. Thanks for sharing the information OP!
It is also somewhat amusing to see some people in this thread who are obviously confusing Revenue as meaning Profit. Remember, if you have $100 in Revenue but $200 in expenses, that $100 in Revenue isn't that impressive.
It is also somewhat amusing to see some people in this thread who are obviously confusing Revenue as meaning Profit. Remember, if you have $100 in Revenue but $200 in expenses, that $100 in Revenue isn't that impressive.
Pretty sure they lumped Xbox and/or the gaming division with Surface when the latter used to be a more popular and compelling product six or seven years ago, as a way to obfuscate how badly the Xbox One was doing at the time.
Anytime someone uses the word 'profit' as a means to summarise or argue their point in these Xbox quarterly or yearly threads, I expect a reference to said profit, not from one's oft wishful imagination.
This isn't aimed at you by the way!
Pretty sure they lumped Xbox and/or the gaming division with Surface when the latter used to be a more popular and compelling product six or seven years ago, as a way to obfuscate how badly the Xbox One was doing at the time.
Anytime someone uses the word 'profit' as a means to summarise or argue their point in these Xbox quarterly or yearly threads, I expect a reference to said profit, not from one's oft wishful imagination.
This isn't aimed at you by the way!
Lol! I am doing my best, they are 10-12 year olds too!
I would argue you shouldn't really assume much about profitability either way really. Apple also doesn't show profit beyond Products and Services. I just think its a known unknown.
We could ultimately have a conversation about why MS doesn't show profitability on Xbox gaming and equally others could have that conversation about the iPhone/MacBook Pro every time the earnings coming.
Someone correct me if i am wrong, we did get a graph with profits from the FTC case, right?
I would not be shocked if it was a powerful handheld. 'largest technical leap ever'
But I expect some kind of traditional console.
And thats the dilemma some are not factoring in.
So I guess it depends on what one cares more about....them starting a new gen early....or Series consoles hitting 50 million in sales.
Agree.
I expect a big drop for Sony, but ti will not be in the same context.
they probably care about total MAU's as thats probably going to correlate to store usage, not sure what means in terms of strategy.
re the sony hw comparison, agreed, its very different contexts. the only thing i am interested in is the software revenue and potentially the mau's.
We have gone over this enough in sales threads that people should be aware.
I never understood the logic behind this. What would be the benefit of losing 30-50m store customers and gamepass subscribers?
Full multi plat would mean day-and-date Nintendo/PS5 releases, which I think wont happen anytime soon. They'll probably handle it like Sony does handle PC, ports at least a year or so later.
What reality? last year COD was 2nd worse one in recent 5 years, if this year's COD Black Ops doing okay, it probably will get better result
It's not like ABK titles are going to suddenly stop making money. They've got a new CoD coming (a Treyarch Black Ops, no less) and a major Diablo expansion.
I wouldn't be surprised if Xbox's endgame goal is a Steam adjacent service. 3rd party presence on the consoles of others while bolstering their PC/mobile presence via Gamepass and a serious store revamp. Maybe even still make a small digital only console line of their own designed for enthusiasts like Valve and a few other companies do. It makes the most sense especially considering what they should be able to do with the Windows OS/store if they are serious about it. Valve and Epic and a few other companies already did a lot of the work for them regarding what they should do (or not do) for features and accessibility and whatnot.
That being said, MS absolutely does not have the same amount of community goodwill as Valve does regarding the long term accessibility of a digital library in this scenario, and they have a LOT of work to do to make something like that a reality, so I'm not sure how realistic (or good) all that would actually be.
That being said, MS absolutely does not have the same amount of community goodwill as Valve does regarding the long term accessibility of a digital library in this scenario, and they have a LOT of work to do to make something like that a reality, so I'm not sure how realistic (or good) all that would actually be.