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[Mr Hyde]

Microsoft has had somewhat of a rough gen. Xbox One didn´t pan out to be the great successor to the mighty 360, and while the system has reached admirable numbers, it still drags behind its main competitor, PS4. But that´s okay. We all have a bad day at work. I mean, Nintendo is just fresh off the boat that recently sailed from the deepest pits of the Wii U-hell. And who can forget Sonys legendary fuck up launch of the PS3? I certainly will not.

To redeem their fumblings with the Xbox One, Microsoft has loaded up their guns, or should I say cannons, in order to blast off some serious fireworks for the next generation of console wars. They have adressed the number one main complaint about their lack of exclusives by acquiring promising studios from left to right. They have corrected the weak stature of the original One, and launched some impressive tech wizardry in Xbox One X. But above all, they have pushed their Game Pass subscription service as the Second Coming of Christ.

Phil Spencer recently told us in a interview that he wants Game Pass to be "on every device". That is a statement that can be interpreted in just about any way you want, so it got me thinking. Is Microsoft cooking up a Plan B from Outerspace if they fail next generation too? Game Pass seems to be a sweet deal. And streaming seems to be the way of the future. If Microsoft doesn´t succeed with Scarlett and comes in second, or third place, in the race about customers, is it really necessary for them to be making hardware? Why not do as Phil Spencer says and put Game Pass on every device instead. Correct me if I´m wrong, but aren´t Microsoft already losing money on each box? Isn´t the revenue coming from software and subscription services like Xbox Gold and Game Pass?

For it to work, competitors needs to give the green light of course, but if Microsoft calls it quits in the console making business, then maybe the likes of say, Sony, wouldn´t mind Game Pass on their system. If that doesn´t work then they have PC. And maybe tablets and phones too in the future, when they are strong enough.

What do you think GAF? What is Microsoft and Phil Spencer cooking up with the "Game Pass on every device" statement? Is it to end console hardware and rule the world with their streaming subscription service?

 

[Von Hugh]

No. All big three have got billions of dollars to carry on in the console making business for the the couple of decades.

 

[JordanN]

Doesn't their hardware still turn a profit?

We are long past the PS3/360 days where consoles were super expensive boxes being sold for razer thin margins.

Exiting the console hardware is basically just giving Sony 100% complete control without any effort. Even if MS only controlled 20%, that is still mindshare going to them they can use to sell other products (i.e Windows, PC, mobile).

 

[JareBear: Remastered]

I don’t think they will ever abandon the X-Box

 

[Mr Hyde]

Doesn't their hardware still turn a profit?

I don´t know if it´s true but I have read here and there that Microsoft has never made profits with their consoles, wether it be due to low sales or hardware failure such as the ring of death on the 360. It´s the software and online services that brings in the dough.

 

[xviper]

if they are gonna keep the Xbox and PC fusion then i do hope they fail, what made consoles superior was the exclusives and Microsoft denied the xbox one from that

 

[120v]

it's going to be sony vs ms in the "$500 game box" business for as long as its a thing

 

[Dice]

Being a small share of the market never stopped them from making laptops. Don't see why consoles would be different.

 

[The_Mike]

For many gaming fanboys it matters to be number one. If you ain’t, shit you better leave the industry.

For companies, while of course being number one is something to strife for, being profitable is what counts. As long as it’s profitable and makes sense, then why not continue? It’s like saying if other musicians can’t earn as much as the most popular ones, then they shouldn’t make music.

 

[GenericUser]

They will never leave the entertainment business, whether their consoles are a "success" or not. They making a shitton of money with their entertainment section, and they would be total morons if they would get rid of the xbox brand. And the folks over at microsoft are anything but morons.

 

[JordanN]

They will never leave the entertainment business, whether their consoles are a "success" or not. They making a shitton of money with their entertainment section, and they would be total morons if they would get rid of the xbox brand. And the folks over at microsoft are anything but morons.

*cough* Ballmer

Even though I agree with the rest of your post.

 

[Shin]

Isn't the Xbox division good for 2B or something, it was in their last conference call/quarterly results.
They aren't going anywhere nor should any sane person want that, it's because of guy A that guy B makes progress and vice versa.

 

[Iced Arcade]

oh I have seen an "xbox is doomed" thread in a month or 2. lets ignore the profitable xbox reports lol

 

[SaviourMK2]

Xbox won't die simply because they get off on making sure I hate them.

 

[magnumpy]

this is a stupid thread

 

[meirl]

Every week a stupid anti-Xbox thread on SonyGAF. Nothing new

 

[pr0cs]

if they are gonna keep the Xbox and PC fusion then i do hope they fail,

This is pretty sad. We should be encouraging companies to reduce exclusives not make more of them. Make them work harder at getting our business via price and services not cordon off gaming experiences via exclusive games on perhaps inferior hardware

 

[Threeshotgamer]

I personally prefer my PS4 but to think that Xbox is in jeopardy to fail and just disappear is a little bit of a stretch. That being said I hope they continue to expand their PlayAnywhere titles of the game pass. I'm a Sony fanboy but i gladly renew my Xbox Gamepass every month to play the playanywhere titles on my PC.

 

[Mr Hyde]

I have seen an "xbox is doomed" thread in a month or 2.

This is isn´t an "Xbox is doomed"-thread. The Xbox-brand is very healthy and much of that is thanks to Game Pass which has millions of subscribers. I was simply pondering if Microsoft may think that console hardware isn´t the way to go if they don´t reach certain numbers, and that they would take their Xbox-brand in a different direction with Game Pass. But maybe you can´t read all that good?

 

[ThatOneGrunt]

I really think there’s no way they will fail with the next console. They’ve lreaned their lesson with the X1 and you can already see their interest in making better, more developer friendly hardware with the X.

When there X1 was first announced it was during a time when it seemed that consoles could possibly be dying off, free to play games on mobile were flourishing, and everyone was coming out with their own streaming media services. Remember the Halo channel and that documentary on finding the ET cartridge landfill? They were focused on more than just games and that hurt them.

 

[EssKayZee]

Not being in the lead does not mean a business is failing. It's not a race. It's not a war. It's a business and as long as it is profitable and financially viable to Microsoft, Xbox isn't going anywhere.

 

[phil_t98]

microsoft have sold 30-40 million consoles , why would they abandon it? imagine having a product that sold 30-40 million and people thinkiong its a failure, yes it hasn't sold as much as playstation but still sold a lot

 

[Akuza89]

Honestly?

Given how dominant they showed they can be at making a powerful console (the one X), they should do very well next generation.

Especially with all the studios they've just bought, they have it in the bag.

 

[Azelover]

I can only imagine what would happen if they dropped the Xbox.

Sony would probably go comfortable to say the least. Even though Microsoft haven't been leading, they deliver good competition. PlayStation wouldn't be so good without Xbox.

 

[kyussman]

I think they'll do fine next gen.......not sure if gamepass is gonna end up with billions of users though......are there that many people even interested in vidoes games on the earth,lol.

 

[Mr Hyde]

Holy shit, are you guys even reading the fucking OP? I´m not saying that Xbox will disappear nor being abandoned entirely, I´m saying that Microsoft will take their brand in a different direction with Game Pass, ditching consoles if they don´t succeed with them, and instead bringing their streaming service to other devices. Xbox will be alive and well, it has just taken another shape.

 

[DunDunDunpachi]

I don't think success or failure in the hardware space will prevent this from happening anyway. It's clearly in line with what Microsoft wants to do overall as a company (be a service provider instead of a product provider).

 

[StreetsofBeige]

I don’t think they will ever abandon the X-Box

I don't think so either.... at least not any time soon. Considering how much time and money they've sunk into new strategies and studios lately, I'd say at minimum they have two more generations.

As long as they hum along at what they are doing now, it looks like that is good enough to keep the division going. This division has a low benchmark to keep whereas something like Cloud and Office divisions surely have much higher sales and profit goals.

Another reason why Xbox will be kept is that it's their most consumer facing and fun division. They need something to keep people interested which they can link to other products.

MS is willing to go gung-ho for certain things even if they don't do great compared to the #1 marketshare companies out there....... Bing, web browser revisions, Xbox. I don't see them abandoning any of these consumer centric products even if they are second or third in them.

As for Game Pass, it will be linked to Xbox. So if Xbox dies, so will Game Pass. If Xbox goes away, they might keep the studios around and go multiplat, but I still don't see them trying to do a Netflix thing unless they got the Xbox hardware and brand behind it. If Xbox goes away (both hardware and studios), zero chance of Game Pass being a focal point for platforms.

 

[Fuz]

We can only hope.

 

[BusierDonkey]

I think Microsoft will be doubling down on Gamepass regardless of how the next console does, in fact I think the bigger picture pushes the console itself to the side. If you look at the cost involved in producing a console, and the fact that a console is a crapshoot, it makes sense to move your business to devices people already use. If they can make the same games available with minimal lag, the prospect of gamepass is enticing. If I'm a guy that just moved away from home, is in college/Uni, or am just not making a high enough income to afford a $500 box, being able to stream to something I already own is a great opportunity to keep that $500 and still be able to play games. The massive studio acquisition that has been going on lends itself to this theory as well. You can't become the Netflix of gaming without a library on offer. Just like Netflix started producing and purchasing movies and shows, Microsoft will need to have a constant fresh library of games for the service to really gain traction.

The issue right now is internet speeds outside major centers. I'm in the middle of a frozen wasteland, but live in a major center with fiber and a competing cable internet provider. For hundreds of our money, I get 600Mb/s, if I go back home to the small town I came from, my parent's house gets 500Kb/s and a ping you can measure in mississippis. Game streaming and downloading there is a non-option so anyone there will be looking for a console. If Microsoft wants to attract people in rural areas they are going to need the internet connections available to be fast, and uncapped. As crazy as it seems, a lot of butt-fuck nowhere towns still use internet download caps, and with games in the 100GB range now, you're breaking the cap with a single game that will take a month to download.

Until the internet is capable world-wide, there will be a need for consoles and physical copies. The other factor is a lot of people will not go digital and want to own the console and discs for a variety of reasons. Phil referred to this as the "premium console experience" as you'll be paying just as much as the streamers for the online services, but also have to buy your console and games. This is how the console itself will remain a revenue generator despite the cost of building it. If Game Pass does well enough, it may even become a way to subsidise the consoles themselves. Microsoft could build a console worth $750, and sell it for the same cost as the competing console as the money pouring in from phone and tablet users is covering the cost difference ten-fold. Win-win for both the streaming customer and the console players. It also gives Microsoft a feather in their cap as having the more powerful hardware at the same price point which could serve to attract even more customers.

 

[michaelius]

They will change x-box into streaming box for game pass sooner or later. It's a matter of when not if.

 

[Gavon West]

Literally the fact that they've invested so much just in studios relinquishes any validity or concerns about them leaving the console business. Plus, you dont invest billions into growing your brand and shut down because the results you were expecting didnt pan out in the beginning. Big corps like Microsoft plan YEARS in advance. I'm pretty sure they wouldnt be buying up studios if they were thinking of exiting the console business in any way.

They also said that they wouldnt be abandoning traditional consoles. It's just not smart. They want both markets for the traditional console customers and the customers who arent interested in buying the hardware. Microsoft nor their hardware arent going anywhere.

 

[Gavon West]

this is a stupid thread

SO, so, so stupid.

 

[octiny]

Every week a stupid anti-Xbox thread on SonyGAF. Nothing new

This, It's sad to see & pushes me away from the neogaf....but I guess that's the intent?

 

[Gavon West]

Holy shit, are you guys even reading the fucking OP? I´m not saying that Xbox will disappear nor being abandoned entirely, I´m saying that Microsoft will take their brand in a different direction with Game Pass, ditching consoles if they don´t succeed with them, and instead bringing their streaming service to other devices. Xbox will be alive and well, it has just taken another shape.

There's no way this would happen though. It just doenr make sense. GP isnt the end, its another stepping stone to something else. Just like the hardware.

 

[Mr Hyde]

I'm pretty sure they wouldnt be buying up studios if they were thinking of exiting the console business in any way.

I´m thinking it has more to do with adding more quality content to their Game Pass that makes it more attractive. Microsoft leaving the console industry wouldn´t impact the studio acquisitions, they would still add their games exclusively to the MS online service.

The issue right now is internet speeds outside major centers. I'm in the middle of a frozen wasteland, but live in a major center with fiber and a competing cable internet provider.

This is a good point that I often forget. I live in a very connected town and thus, I tend to forget how peoples internet is in rural areas. To go full streaming, or full digital, would be a dick move to people who don´t have access to a stabile internet connection. A lot of good points in your posts btw.

 

[Mr Hyde]

This, It's sad to see & pushes me away from the neogaf....but I guess that's the intent?

How is this an anti Xbox-thread? Is it just because you saw the word "fail" in the headline? I´m talking, hypothetically, about MS taking another approach in the gaming industry if their console hardware fails to gain any traction and thus, them betting all their horses on Game Pass which is very successful at the moment. I´m talking about Spencer and his "Game pass on every device"-statement. You guys in the Xbox-camp is always talking about how streaming is the future and Game Pass is the most revolutionary thing that happened to gaming industry in the past 20 years, so what the fuck are you so defensive about?

 

[SirTerry-T]

We can only hope.

What's the point of this, really? What sort of gaming utopia did you envision when writing that reply out?

 

[Gavon West]

I´m thinking it has more to do with adding more quality content to their Game Pass that makes it more attractive. Microsoft leaving the console industry wouldn´t impact the studio acquisitions, they would still add their games exclusively to the MS online service.



This is a good point that I often forget. I live in a very connected town and thus, I tend to forget how peoples internet is in rural areas. To go full streaming, or full digital, would be a dick move to people who don´t have access to a stabile internet connection. A lot of good points in your posts btw.

You have to keep in mind that Microsoft makes their money via software. That's why they turned into a services company to begin with. They need every feasible way for customers to plug into their ecosystem - hence why the public gets player engagement #'s - hardware isnt the end-all-be-all like it is for fanboys, but it's still an extremely viable trojan horse to get people plugged in.

 

[Gavon West]

What's the point of this, really? What sort of gaming utopia did you envision when writing that reply out?

LOL. The hate is strong with that one.

 

[Mr Hyde]

Less money coming in effects the whole operation.

But if MS managed to actually bring Game Pass to every device, then that surely would open up a huge potential customer base. Maybe even more so than they would´ve reached if they just sold consoles. Huge customer base beyond the regular hardcore fan base = huge profit margin.

 

[Gavin Stevens]

MS isn’t going anywhere, neither is Sony or Nintendo.

And you know what? You better hope to god they don’t either. Because you really, really don’t want less competition in this area.

 

[12Dannu123]

The winning of next Gen will no be determined by sale numbers of consoles. It will be determined by how accessible your ecosystem is. If the Scarlett traditional console sells around 70 million but XCloud/GP has 200 million on all devices. Developers and publisher will pick Xbox and not PS.

That's the angle Microsoft is going at with Xbox.

 

[Gavon West]

But if MS managed to actually bring Game Pass to every device, then that surely would open up a huge potential customer base. Maybe even more so than they would´ve reached if they just sold consoles. Huge customer base beyond the regular hardcore fan base = huge profit margin.

Thats exactly what they're doing now. GP is going to every device - even those who prefer Playstation or Nintendo but dont want to buy the Xbox hardware. Most have phones, tablets, smart TV's etc. The line of static hardware is blurring with their new initiative. Playstation and Nintendo fans can still play Xbox games - just not on competing platforms. Every other way is an open door policy though via stream (XCloud) and Play anywhere.

It's actually pretty damned smart, too!

 

[meirl]

if they are gonna keep the Xbox and PC fusion then i do hope they fail, what made consoles superior was the exclusives and Microsoft denied the xbox one from that

No, it was never that. There are tons of great exclusives on PC, so ...
The best part about console is convenience. Just put in the disc/download and play. No need to check drivers, install this, install that. Just play.
Also, consoles are optimized. Games will work for years, on pc you would have to buy a new graphics card etc every now and then.
Also you can put a console under your tv and relax on the couch and play.

Of course, we now have mid-gen refreshes and PCs that can fit in the living room, but Still.

 

[Elenchus]

MS just reported 10bil in gaming revenue and this is GAF’s reaction? Seriously. This thread is too stupid to be organic. Reads like classic astroturf.

 

[JLB]

They wont fail. Theres not a chance. But if that scenario happens, my guess is that they will double down on pc + mobile with gamepass.

 

[JLB]

The winning of next Gen will no be determined by sale numbers of consoles. It will be determined by how accessible your ecosystem is. If the Scarlett traditional console sells around 70 million but XCloud/GP has 200 million on all devices. Developers and publisher will pick Xbox and not PS.

That's the angle Microsoft is going at with Xbox.

I agree, though its one reason among others(exclusives, price, technical edge and marketing/storytelling around the service)

 

[JLB]

MS isn’t going anywhere, neither is Sony or Nintendo.

And you know what? You better hope to god they don’t either. Because you really, really don’t want less competition in this area.

Everything points to a next gen with more than a big three. Amazon and Google seems to be serious on this business moving forward.

 

[urmie]

Phil Spencer has a bigger vision than Sony or Nintendo in terms of gaming. Microsoft is in a unique position thanks to Windows/Office/Azure/etc to make it happen. Despite the "fake concern" topics since the X1 launch, Xbox is still moving forward despite the naysayers and arm-chair analysts. You know how folks say "just Google it" instead of other phrasing? That's Phil's goal, the brand "Xbox" will be that for gaming. (which in my opinion will be the name for the next console, their videos on youtube used to end with "Xbox One" or "Xbox One | Windows 10", now its just "Xbox")

Nintendo has failures (WiiU) and Sony has plenty of failures in other divisions thanks to competition (Samsung TVs, etc), it's quite amazing when it comes to MS, despite having more money than both and Satya Nadella getting behind Phil's efforts with Xbox, there's always these "doom and gloom" topics under the guise of "I'm being serious guys! I care!"

As an example, think about Sony not going to E3 next year, how did the media/zealots spin it? They made it sound like some master chess move and applauding the decision. If this was MS, I guarantee the "games media" and the Sony zealots would've said "MS has given up on Xbox", "Xbox is done", etc.

Competition is good, Xbox will be around for a long time.