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Microsoft needs more exclusives throughout the year

Well, we've already established that MS doesn't really have any interest in expanding their first party right now.

My question is, what do you think the breaking point will be? What series of circumstances do you think MS will have to find themselves in before they decide they need change?

Or do you think there's nothing that will change MS's current trajectory?

Ever since Nadella took over, MS has been gradually reducing investment in properties which have only lost money or have declining market share. We have seen this with Windows Phone which is all but on it's deathbed and we are seeing it with Xbox. Nadella wants MS to focus on things which make MS money or are growth markets, and this means Windows, Office, and Azure. Stuff which was always flushing good money down the drain after bad like Bing and Windows Phone are being put out to pasture, and it looks like they are looking hard at whether Xbox is worth continuing to piss away billions of dollars on. (It's not.)

MS's shareholders have generally been happy with the reign of Nadella, as evidenced by the stock price marching upwards after Ballmer left. So I expect this paring down of the useless consumer products portfolio to continue so MS can get back to doing what it's good at, which is fucking up everyone's computers every time a new Windows 10 major update is released.
 

gamz

Member
Ever since Nadella took over, MS has been gradually reducing investment in properties which have only lost money or have declining market share. We have seen this with Windows Phone which is all but on it's deathbed and we are seeing it with Xbox. Nadella wants MS to focus on things which make MS money or are growth markets, and this means Windows, Office, and Azure. Stuff which was always flushing good money down the drain after bad like Bing and Windows Phone are being put out to pasture, and it looks like they are looking hard at whether Xbox is worth continuing to piss away billions of dollars on. (It's not.)

MS's shareholders have generally been happy with the reign of Nadella, as evidenced by the stock price marching upwards after Ballmer left. So I expect this paring down of the useless consumer products portfolio to continue so MS can get back to doing what it's good at, which is fucking up everyone's computers every time a new Windows 10 major update is released.

Bing is not being out out to pasture and is a billion dollar business. Wtf???
 
Bing is not being out out to pasture and is a billion dollar business. Wtf???

Bing's share of search has been continuously declining since it was launched in 2009. This is primarily because of the decreasing usage of Internet Explorer and the non-existence of Edge, the only two browsers where Bing is the default search engine. Therefore it belongs in the category of declining products that I am talking about.
 
Same here. If you have a pc there is zero reason to buy one. Tbh even if I didnt own a pc, I would have no reason to buy one, because I still havent played any of the xbox store games anyway. The only reason why anyone I know owns an xbone is because they had friends that play on xbox live

I have a gaming PC but still own an Xbone. I also own a PS4. If I had to choose between the two consoles I'd keep my Xbone without a moments hesitation. I mostly play MP games, in fact I love the games as a service approach MS seems to be embracing. I haven't cared for hardly any of Microsofts own games this gen, and I don't think I've cared for a single one of Sonys that I have played. But I'd keep my Xbone for the controller, UI, and superior network. My most played games this gen are Battleborn, Evolve, Titanfall 1, Smite, Witcher 3, Wolfenstein, Mordor, Hand of Fate, Destiny, and The Division. Among others. I don't lose anything by playing these on Xbone over PS4. I gain multiple elements that I prefer the Xbone flavor over the PS4.
 
Good job, thank you for following up and investigating this. Appreciate the footwork.

I agree that Amy Hood's statement is ambiguous, and the fact that it is embedded in articles that seemed to have mis-stated the facts in several ways does tend to discredit the whole thing.

However, if pressed, I'd say the Amy Hood does seem to refer to Xbox, or at least to MS's gaming division as a whole, because she does use the words "us" and "we" ("if you think about us, we've got a multibillion dollar business that is profitable..."). The sentence before that is referring to the whole industry, but then she seems to narrow it to "us." However, I agree, it's not crystal clear.

Maybe. If you listen to the video, she does seem to stress "us" as if talking specifically about Xbox

Still, I feel that if they were really profitable, they would say that in a less ambiguous way, plus not hide it away in financial statements.

I searched some more, and the Nadella has talked about Xbox specifically in 2017

"Our gaming business now is more than $9 billion and growing profitably. The gaming world is growing faster than ever before from gameplay across multiple devices, to the explosive growth in streaming and eSports, to new subscription services and mixed reality scenarios...We launched...new services (Mixer and Xbox Game Pass) to broaden our reach and enrich our gaming experience, both of which are off to a very strong start."

But again. Weird wording was used. What does "growing profitably" even mean? Does it mean that you are profitable? He never actually says that. Known MS inxider, Paul Thurrott, also seems to think that wording was weird:

Gaming is ”growing profitably"? Wait. What?

One of the dirty little secrets of Microsoft's Xbox/gaming business is that it has never actually turned a profit. So I was curious to hear Mr. Nadella utter these contorted words last night: ”Our gaming business is now more than $9 billion, and growing profitably." So. $9 billion is revenues, not profits. So growing means that revenues are growing. And growing profitably means ... what? That the business is ”becoming profitable"? Or is it just growing revenues positively? Was this a misstatement? What does that mean? Here's my guess. He means usage and engagement are growing. Because I can state this with certainty: Microsoft's gaming business is not profitable. In fact, it's undergoing a digital transformation of its own.

Actually, while nearly a month old, that Thurrott quote may be new thread worthy
 

Humdinger

Member
Known MS inxider, Paul Thurrott, also seems to think that wording was weird[/URL]:


Actually, while nearly a month old, that Thurrott quote may be new thread worthy

Wow. "One of the dirty little secrets of Microsoft's Xbox/gaming business is that it has never actually turned a profit." "I can state this with certainty: Microsoft's gaming business is not profitable."

That's pretty strong language, coming from an MS insider. You're right, it may be worth a separate thread. It's new information, from just 3 or 4 weeks ago. It's off-topic here. It would be interesting to have a discussion where everyone gets their evidence on the table. It'll get contentious, I'm sure.

I'll leave it to you. ;)
 

Lady Gaia

Member
And yet would still not convince many of the people here to get one. They've got no intention, regardless of what MS does.

There may actually be some die-hards who would act as you describe, but there are plenty of lapsed Xbox gamers here who would gladly give Microsoft another chance given sufficient motivation in the form of compelling exclusive titles. I'm one of them.

I had an Xbox One preordered and cancelled in part because I wasn't seeing any evidence that they had learned their lessons regarding Kinect and why it didn't really work for a broad range of games and living room configurations. Once Kinect was unbundled I planned to wait for a slim hardware revision without an external power brick and if the Xbox One S had arrived a year earlier I might well have jumped on it. By the time it did launch, though, there were reasons to be concerned about the software lineup and Scorpio was on the horizon. In the meantime Microsoft wasted their potential advantage of my existing investment in the 360 ecosystem by prohibiting use of the Rock Band MIDI adapter with Rock Band 4 on the Xbox One. I had assumed something amazing was being held back to be announced alongside the Xbox One X. Not so much.

You can't attribute lack of Xbox ownership this generation to bias when there are plenty of valid reasons to be underwhelmed by what has been offered. Especially if you're not into competitive multiplayer.
 

gamz

Member
Bing's share of search has been continuously declining since it was launched in 2009. This is primarily because of the decreasing usage of Internet Explorer and the non-existence of Edge, the only two browsers where Bing is the default search engine. Therefore it belongs in the category of declining products that I am talking about.

Ummm. What are you talking about? It's been increasing forever. It's 30% market share.

Bung is the back bone of MS analytics. It's not just a browser thing.
 

JoeLT

Member
If someone owns a PC I can't think of a reason to own X1. Then again I'm older Rarely play with real life friends anymore. I'd feel the same if all Sony games went to PC. I would build a PC and my Ps4 Would be out of here.
So according to NeoGAF everyone wants to play on PC given the chance apparently. It's quite shocking how consoles have managed to be so popular if this logic were even remotely accurate. Not everyone wants to game on a PC, I hate the PC gaming experience.

I own a gaming PC, a PS4, PSVR and still own an Xbox One which is my primary gaming console. Surely I shouldn't exist according to most people here?
 
Wow. "One of the dirty little secrets of Microsoft’s Xbox/gaming business is that it has never actually turned a profit." "I can state this with certainty: Microsoft’s gaming business is not profitable."

That's pretty strong language, coming from an MS insider. You're right, it may be worth a separate thread. It's new information, from just 3 or 4 weeks ago. It's off-topic here. It would be interesting to have a discussion where everyone gets their evidence on the table. It'll get contentious, I'm sure.

I'll leave it to you. ;)

welp, i made the thread

may god have mercy on us all
 
I feel like MS is slowly wrapping up Xbox, honestly.

If I was to assume the current software situation was the new, permanent status quo, then it feels less like that and more like that they've given up on trying to take the market leadership position and want to transition towards safe bets and long term profitability. But their current software weakness seems to be at odds with their current aggressive hardware push - they clearly feel like it's an advantage for them to retake the performance crown.

I guess the real question is does Microsoft have a continued interest in contracting external developers to make games for them? Unless they're beefing up their internal studios (which I haven't seen indication of), that's the only way they are going to be bringing out more exclusive software. It's sort of unfortunate for them that their external studio bets this gen didn't seem to have paid off - Ryse, Sunset Overdrive and Quantum Break are the main ones that could easily have become franchises if they had seen major commercial success.
 

Humdinger

Member
welp, i made the thread

may god have mercy on us all

lol

There may actually be some die-hards who would act as you describe, but there are plenty of lapsed Xbox gamers here who would gladly give Microsoft another chance given sufficient motivation in the form of compelling exclusive titles. I'm one of them.

And I'm another. I'm a "lapsed Xbox gamer," too. I'd love for MS to give me something to really win me back, but they just aren't delivering (for me). I'd love to have them pumping out great exclusives. That would be great for gaming and great for me. I like their controller, I like their services, I like their hardware ... I just don't find their exclusive catalog attractive. I'm a guy who loved his Xbox, back in the day.

I'd love to "jump back in," but I can't find the reason.
 

Ricky_R

Member
I'm talking US. Bing isn't even global.

Bing has a 30 percent share. It's been growing per quarter with share and revenue.

Did a quick search and they don't seem to be over 10% in the US.

Edit: If that number is true then they have more share than I honestly believed. Would be a nice share considering how big Google is.
 
If I was to assume the current software situation was the new, permanent status quo, then it feels less like that and more like that they've given up on trying to take the market leadership position and want to transition towards safe bets and long term profitability. But their current software weakness seems to be at odds with their current aggressive hardware push - they clearly feel like it's an advantage for them to retake the performance crown.

I guess the real question is does Microsoft have a continued interest in contracting external developers to make games for them? Unless they're beefing up their internal studios (which I haven't seen indication of), that's the only way they are going to be bringing out more exclusive software. It's sort of unfortunate for them that their external studio bets this gen didn't seem to have paid off - Ryse, Sunset Overdrive and Quantum Break are the main ones that could easily have become franchises if they had seen major commercial success.


Not sure about ryse but I'm pretty confident sunset overdrive and quantum break would have become franchises if they came to PS4. Those really seem like the kinda games PlayStation excels in.
 
Ummm. What are you talking about? It's been increasing forever. It's 30% market share.

Bung is the back bone of MS analytics. It's not just a browser thing.


"Bing is heading to $5 billion revenue per year, beating many Internet stalwarts like Twitter, and has had 30-40% YoY growth over the last year, largely driven by the growth in Windows 10 deployment, according to Steve Sirich General Manager of Bing Ads"

Growth is not the same thing as market share.

Growth is good, however.
 

scoobs

Member
Yep, I do not understand why people are so excited about X, it is going to have the same barebones catalogue.

It'll still be a great place to play 3rd party games at ~4K. Its probably/definitely not going to sell gangbusters, but for the people that want to play CoD/AC/GTA at 4K someday its an enticing offer.
 
To be honest, and I consider myself a pretty hardcore Xbox fan - I'm now on the fence about getting an X - the lineup at the moment is really poor, I wondering if I might be better served just saving my money and seeing how it all pans out..
 

Crayon

Member
It is more and more looking like the x1x isn't actually intended to grow the audience but custom made for a core base that is on board no matter what. That's the only way the price makes sense.
 

ElNino

Member
It is more and more looking like the x1x isn't actually intended to grow the audience but custom made for a core base that is on board no matter what. That's the only way the price makes sense.
Was that ever in doubt? That's precisely what it is, and always has been.
 
Agreed. It's hilarious to learn from other people that there is no reason to buy an Xbox.

I have
- no PS4
- no Switch
- no capable PC

- an Xbox One
- an Xbox One S
and will buy an Xbox One X next year.

I must be doing this for no reason.
Every heard of the phrase 'the exception that proves the rule'? ;)
 
for me personally, i'd love to see more exclusives for xbox. i have a xbox one but it doesn't get much play other than the exclusive they do have. I'm a big fan of all three (ps4, switch and xbox) and i hope microsoft lets some of these devs loose. More games means more fun for me so I'm rooting for them with the xbox one x.
 

Purest 78

Member
So according to NeoGAF everyone wants to play on PC given the chance apparently. It's quite shocking how consoles have managed to be so popular if this logic were even remotely accurate. Not everyone wants to game on a PC, I hate the PC gaming experience.

I own a gaming PC, a PS4, PSVR and still own an Xbox One which is my primary gaming console. Surely I shouldn't exist according to most people here?

I don't know or care about what others think I'm talking about me. Only thing holding me back from PC it doesn't have my favorite games. Mutliplats aren't enough To switch Multiplats and my favorite games absolutely yes I'd switch.
 
It is more and more looking like the x1x isn't actually intended to grow the audience but custom made for a core base that is on board no matter what. That's the only way the price makes sense.
That is precisely what it is and I think that is MS' strategy going forward - tend to the base that is already there since significant base expansion is out the window.
 

Ricky_R

Member
It is more and more looking like the x1x isn't actually intended to grow the audience but custom made for a core base that is on board no matter what. That's the only way the price makes sense.

That has been the target since it was announced. Event if they had priced it at $400.
 

ElNino

Member
Uh yeah. I believe there was a time when the idea of x1x doing something interesting was not exactly an outlandish concept.
Who says it isn't interesting?

For those who like the Xbox ecosystem, controller, exclusives (yes, there are some who do), etc, why wouldn't a more powerful version of their current system be interesting?
 

bede-x

Member
Yep, I do not understand why people are so excited about X, it is going to have the same barebones catalogue.

Think about it this way: It'll be the most powerful console thus making it a great way to play third party games. There's some potentially good games coming if you're into co-op/multi player in addition to some smaller single player games like Ori 2 or Super Lucky's Tale. And if you were into previous Xbox machines it'll play some of those games as well, in many cases running better than they did on the original hardware, without you having to buy them again if you already own them.

AAA single player aside I find it quite compelling.
 

cakely

Member
I'm talking US. Bing isn't even global.

Bing has a 30 percent share. It's been growing per quarter with share and revenue.

https://mspoweruser.com/you-would-be-surprised-how-much-bigger-bing-is-than-you-think/

You may want to reconsider your sources. The search engine market share for Bing in the US as of July is low. 6.5% according to this site. 30% is certainly outrageously high.

http://gs.statcounter.com/search-engine-market-share/all/united-states-of-america

But really, I'm not so sure why you're so concerned. Does your brand loyalty to Microsoft extend to their search engine? That seems a little ludicrous.

It is more and more looking like the x1x isn't actually intended to grow the audience but custom made for a core base that is on board no matter what. That's the only way the price makes sense.

That does seem pretty likely. The target market for the X1X is people that already own an X1, and are looking for a nice power upgrade. It's a substantial, multi-million market but it's not going to come out of prospective buyers for another brand of console.
 

gamz

Member
But really, I'm not so sure why you're so concerned. Does your brand loyalty to Microsoft extend to their search engine? That seems a little ludicrous.

I was replying to the person who mentioned Bing. So take issue with him/her.

*Shrugs*
 
Ever since Nadella took over, MS has been gradually reducing investment in properties which have only lost money or have declining market share. We have seen this with Windows Phone which is all but on it's deathbed and we are seeing it with Xbox. Nadella wants MS to focus on things which make MS money or are growth markets, and this means Windows, Office, and Azure. Stuff which was always flushing good money down the drain after bad like Bing and Windows Phone are being put out to pasture, and it looks like they are looking hard at whether Xbox is worth continuing to piss away billions of dollars on. (It's not.)

MS's shareholders have generally been happy with the reign of Nadella, as evidenced by the stock price marching upwards after Ballmer left. So I expect this paring down of the useless consumer products portfolio to continue so MS can get back to doing what it's good at, which is fucking up everyone's computers every time a new Windows 10 major update is released.
You're comparing the Windows phone with the Xbox? Uh okay then. The Windows phone was never going to take off given how monstrous Android and iOS have been. Windows phones barely made a dent in the phone market when they came out, which is in stark contrast to the xbox and the console industry. I have no idea why you are so dead set in your belief that the xbox is being done away with. News flash: it's not going anywhere. And rofl at saying that MS is pissing away billions of dollars. Thats some serious spin, but feel free to keep trying.
 

Keinning

Member
The die hards are from what I've seen but how many of them there are in the grand scheme of things I can't say.

I'm not excited at all and I consider myself a Xbox fan despite what the likes of gamz says.

I'm not a die hard but i'm looking forward to the chance of playing my stuff in a better, stronger hardware. Not enough to throw a party or shoot some fireworks so maybe that doesn't count as being excited? I mean, people were hardly bursting of joy for the PS4pro either.
 
I wonder if everyone would still be demanding more exclusives if it meant that it causes more losses to the Xbox division and hastens an exit from the industry?
 

Josman

Member
If Bing is growing I'm not surprised, it's very shitty that they force you to use it on the W10 search bar, had to use Chrometana to bypass it.
 
I feel like MS is slowly wrapping up Xbox, honestly.

Yep, I do not understand why people are so excited about X, it is going to have the same barebones catalogue.

Honestly I feel the same way even with the existence of Xbox One X.

I don't think anyone is excited about the One X.

Absolutely no one, I tell you.



This is fkn amazin, and plain disgusting to read.. all you nead is an xbox thread, and the cycle repeats itself....
 
I'm not a die hard but i'm looking forward to the chance of playing my stuff in a better, stronger hardware. Not enough to throw a party or shoot some fireworks so maybe that doesn't count as being excited? I mean, people were hardly bursting of joy for the PS4pro either.

That's cool, hope you enjoy it. Was talking about from I have seen, talking to fellow fans and browsing social media. Not saying no one is interested.

Have no interest in the Pro either, content with regular PS4.
 
It is more and more looking like the x1x isn't actually intended to grow the audience but custom made for a core base that is on board no matter what. That's the only way the price makes sense.

Thats exactly who the X1X is ultimately for. Its to keep fans who may be tempted to leave due to power differences in the later years of the platform's lifespan into the platform. For example, a core user that may have purchased a X1 at launch for $499 is going into 2018, and might now be looking to purchase another console. The X1X is there to entice that user into basically 'reupping' into the platform by taking away one of the competitions major selling points to the audience who cares about power in the console userbase (which isn't that big to begin with).
I feel like MS is slowly wrapping up Xbox, honestly.

Theres a good chance this is going to seem surprisingly prophetic 20 months from now.
 
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