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MS Financial Briefing: Xbox Live biggest gaming network, E3 "Next Wave of Big Hits"

Home was more of a social hub than anything. I'm talking consoles. Pokemon go is mobile. How are Fire Emblem hereos GAAS for console?

I'm talking games for home console that are GAAS like fable legends or something similar. Where it was made to be microtransactions or is a AAA game that generates a shit ton of revenue via Microtransactions such as GTA V.

Like 2 seconds of thinking and I can think of a decent amount:

Uncharted
Driveclub
Kill Strain
MLB The Show
DCO (when sony owned them)
Fat Princess
Guns Up
Drawn to Death
Planetside 2 (when sony owned them)
SingStar

Like come on lol. I'm sure those won't count because "reasons" though
 
Nadella probably doesn't even know what Neogaf is

It's not aimed at GAF. The CEO of MS couldn't give a shit about this forum much less make a statement at a meeting like this "aimed" at it

For fuck's sake people, it was a joke about people on here who regard Xbox as just a console. Chillax.

Woops. Posting is hard.

You edited your post before I could reply, but the site you linked to was 500% more aggressive than the ads it was trying to show on Xbox! xD
 

m23

Member
Joke post, right?

Yes Halo 6 will be undoubtedly be announced, but i think we will see a new Ori as well or something different. Studio Gobo has partnered with MS on a new game, Rare is working on more than Sea of Thieves and who knows what else is in the pipeline.

The Studio Gobo game, whatever it is, most likely won't be at e3. We don't know which stage development is at, could be very early still.
 

oti

Banned
Why does it feel like this quote:



... is specifically aimed at Gaf and not just people at BUILD?

Itr's funny how MS is ready to move on from the traditional console business with UWP and people on here go "WHY SHOULD I BUY AN XBOX THEN DON'T THEY WANT TO SELL XBOXES????!"
 
I really think it's the ad sales. I see a lot more advertising on my Xbox and i bet that makes up a large percentage of their live income. It's be fascinating to see the live segment income broken down into it's various components.

Yeah you could be right. I didn't really factor that in but it would make sense especially as aggressive as they are with advertising on the dashboard.
 

NolbertoS

Member
All I see is Nadella asking for patience to investors. In the end, investors determine the fate of the division, not Nadella, no matter how much he spins MAU. I do agree that Xbox as a software developer makes money to juatify it, as a hardware maker, its up in the air. Again they don't reveal hardwarw numbers to investors. If I were an investor, I'd adk that question since hardware and MAU go together. Maybe they think lumping up console abd PC divisions, they can tell investors that gaming is OK.
 
Is this just me or did none of those slides actually mean much?

Reminds me of trying to decipher old Kutaragi slideshows.

The metaverse reminded me of jacking into The Matrix.
 

Zedox

Member
You'll see a hard push for Game Pass. I think people don't realize how big of a pillar it is for Xbox. That's why I think we will see a AAA single player game on it (maybe not this E3, but prolly next year). I think they will start with ReCore: Definitive Edition.
 

blakep267

Member
You'll see a hard push for Game Pass. I think people don't realize how big of a pillar it is for Xbox. That's why I think we will see a AAA single player game on it (maybe not this E3, but prolly next year). I think they will start with ReCore: Definitive Edition.
Yeah. The fact that it's seemingly being saved for an E3 launch rather than dropping it whenever means it's important.

I still stand by my prediction that Cuphead, ori 2, Recore all launch in the game pass

Also I foresee Gears 4 being added to it before the end of the year. Forza Horizon 3 probably not because it's way too lucrative
 

Papacheeks

Banned
Like 2 seconds of thinking and I can think of a decent amount:

Uncharted
Driveclub
Kill Strain
MLB The Show
DCO (when sony owned them)
Fat Princess
Guns Up
Drawn to Death
Planetside 2 (when sony owned them)
SingStar

Like come on lol. I'm sure those won't count because "reasons" though

No they are totally valid, but I would like to know if the numbers are out there what they actually generate revenue wise from Microtransactions and DLC or however they have them setup service wise.
 

Admodieus

Member
Yeah. The fact that it's seemingly being saved for an E3 launch rather than dropping it whenever means it's important.

I still stand by my prediction that Cuphead, ori 2, Recore all launch in the game pass

Also I foresee Gears 4 being added to it before the end of the year. Forza Horizon 3 probably not because it's way too lucrative

I enjoyed Recore but I don't see that as a title that will sell Game Pass subscriptions.

Also I bet each Forza game is added as the new entry comes out....so Game Pass will launch with Forza 6 this year to help sell Forza 7, then Horizon 3 will join it next year to help sell Horizon 4...
 

Papacheeks

Banned
Why is Sony being brought into this topic again? What's the debate going on now?

GAAS. I disagree inf thinking it's the way going forward.

I think it is important as the industry grows and changes. But I think Microsoft's approach is the wrong approach and I brought up SOny and Nintendo that yes have games with microtransactions. But my argument is they are not selling millions of copies of Zelda, Mario KART,Horizon,Uncharted off of Microtransactions, nor do I believe for those type of titles the revenue created by Microtransactions is bigger than revenue created by the initial sale of the game via retail/digital.
 

Zedox

Member
I think people forget that Xbox Live is trying to reach everyone...on every platform, iOS, Android, PC, Xbox, (through Minecraft) PS4/Switch, and get lock-in and engagement to sell stuff. They aren't going third party on the console/pc, but they will do so when it is smart (Minecraft/Steam) for them. It's all about lock in to the Windows ecosystem, powered by Azure. Why is that important? Cuz it gets developers to use MS tools that MS sells and services that MS sells (cloud enabled tools) and sell their apps on their platform. It also gets businesses to use their platform because of the amount of customers THAT USE their product (MS also talks about MAU with Windows which is at 500 MILLION). But also get those customers who don't use that device but other products (office)...and would you look at that, Office has a place for developers as well to make apps and the circle continues.

MS is literally just doing the Google route where you can be everywhere but still have your own stuff. (Google is just fucking up right now and forgetting where they came from)...well I should say that they are going the old school MS route before Windows got huge.
 
i fit so well in the graph from windows central about the majority of people playing xbox between the ages of 25-35 and living with spouse.
 

shandy706

Member
Double amount doesn't equal to double revenue, Xbox users might more willing to spend on in app purchases, average spending per user might be higher on Xbox live.

I wonder why this is?

People having more spending/disposable income in the US?? (the largest X1 fanbase)

If I remember stats correctly on the Xbox 360 and PS3, even when they had a similar install base the "attach rate"/spending on 360 was far more than PS3.

Granted, I have like 20 games on my PS4 and like 150 on my Xbox One..haha.
 

Chris1

Member
You'll see a hard push for Game Pass. I think people don't realize how big of a pillar it is for Xbox. That's why I think we will see a AAA single player game on it (maybe not this E3, but prolly next year). I think they will start with ReCore: Definitive Edition.

Game pass will be massive if they get the games catalogue right

It's easy to see why hype might not be here on Neogaf, as most people here probably buy their games on day 1. But Game pass will be huge for families/casuals/poor people.
 

blakep267

Member
I enjoyed Recore but I don't see that as a title that will sell Game Pass subscriptions.

Also I bet each Forza game is added as the new entry comes out....so Game Pass will launch with Forza 6 this year to help sell Forza 7, then Horizon 3 will join it next year to help sell Horizon 4...
Well no it's not meant to be the main seller. It's the sum of a bunch of games for $10 that sells it
 

Kill3r7

Member
GAAS. I disagree inf thinking it's the way going forward.

I think it is important as the industry grows and changes. But I think Microsoft's approach is the wrong approach and I brought up SOny and Nintendo that yes have games with microtransactions. But my argument is they are not selling millions of copies of Zelda, Mario KART,Horizon,Uncharted off of Microtransactions, nor do I believe for those type of titles the revenue created by Microtransactions is bigger than revenue created by the initial sale of the game via retail/digital.

The extra revenue is what makes them insanely profitable. IIRC, GTAO generated something like $500 dollars in revenue. How many SP games do you think they would have to sell to make that kind of money? GaaS does not work if you don't have a popular product but it can be highly profitable if you do.
 
The Studio Gobo game, whatever it is, most likely won't be at e3. We don't know which stage development is at, could be very early still.

Yes that is very likely the case here. But who knows, maybe MS has been keeping some things close to the chest in terms of game announcements like they did for BC. That didn't leak at all. Not saying i have high expectations but it certainly isn't impossible.
 
I'm in the US. No ads except for games with gold or games on sale. No external ads that I can remember. Just engagement ads which exist on every service.

Maybe it's rotating? I know for a fact I've seen non game ads on the dashboard before but my memory could be a bit fuzzy on when exactly that was. I wouldn't be surprised if it is a special subset of consoles that get these non-game ads on a rotating basis to track effectiveness versus rolling them out to the whole population.
 

Zedox

Member
GAAS. I disagree inf thinking it's the way going forward.

I think it is important as the industry grows and changes. But I think Microsoft's approach is the wrong approach and I brought up SOny and Nintendo that yes have games with microtransactions. But my argument is they are not selling millions of copies of Zelda, Mario KART,Horizon,Uncharted off of Microtransactions, nor do I believe for those type of titles the revenue created by Microtransactions is bigger than revenue created by the initial sale of the game via retail/digital.

Every industry has changed on how it is going to monetize it's product when going to digital. Music has done it, Movies/TV have done it, Games are in that process right now. Those games are far and few in between. Only this year is when we had "bangers" roll out constantly. Competition is growing with 3rd parties. The games are getting bigger and more expensive to make. The return on investment isn't as lucrative as it once was. Some form of servicing a game after it has been released will happen in almost all games. You may think it's the wrong approach, but you'll be crying for the rest of time cuz the 90s aren't coming back.
 

NolbertoS

Member
Every industry has changed on how it is going to monetize it's product when going to digital. Music has done it, Movies/TV have done it, Games are in that process right now. Those games are far and few in between. Only this year is when we had "bangers" roll out constantly. Competition is growing with 3rd parties. The games are getting bigger and more expensive to make. The return on investment isn't as lucrative as it once was. Some form of servicing a game after it has been released will happen in almost all games. You may think it's the wrong approach, but you'll be crying for the rest of time cuz the 90s aren't coming back.

The day ALL of gaming goes GAAS or F2P, I'm out. I'm sure there's millions more people that agree. GAAS or F2P work in mobile because the game is "free" 9/10 times but you can't progress without spending more. If the console industry adopts that motto, well good luck surviving long term.
 
42% of Xbox Owners are girls? That is waaaay more gender diverse than the Switch, I wonder why.

believe it or not, but Xbox ist the most diverse platform (consoles only), when it comes to it's customers
many women. many childen.

It's amazing on Xbox Live today when I watch, we see that spike when kids come home from school.  And they get on Xbox Live with their voice chat microphones on, and they don't all play the same game.  They actually just sit and discuss.  It's their hangout, it's their digital hangout.

just the Wii had a more diverse audience
 

cakely

Member
Another wave of big hits sounds great.

I'd be happy if I never saw another XBL avatar again, though. Like Kinect, it's just another holdover from when Microsoft was trying to cash in on Wii madness.
 

spannicus

Member
Well I mean with studio closures, game cancellations and the quietness of the company, I'm not sure they're best poised to be talking about the next wave of hits. Unless they drop some significantly huge megatons at E3, they'll be exactly where they were before. It's like SEGA syndrome. A monster machine isn't going to win the games crowd over, the games are. I myself haven't had a reason to buy a PS4 Pro but as a gamer, Microsoft haven't done enough to make me want an XBOX. I guess that is their real problem. They haven't given PlayStation owners a significant reason to buy one.

This shit right here is nonsense. Many Playstation fans were bummed some of their favorite studios were closed by Sony. Games get cancelled or turn into vaporware shit happens. The company has been very vocal, havent you seen all the Phil Spencer threads? Game pass, refunds on digital games, mixed reality, Scorpio and talks of expanding 1st party and japanese support? If anything Sony has been pretry quiet on where Playstation is going in terms of the future and what services they will have for customers. It seems a drought of 1st party games have created this Microsoft is useless thing around here. Every console will or has had a drought.
 

Papacheeks

Banned
The extra revenue is what makes them insanely profitable. IIRC, GTAO generated something like $500 dollars in revenue. How many SP games do you think they would have to sell to make that kind of money? GaaS does not work if you don't have a popular product but it can be highly profitable if you do.

I get that. But GTA V is the outlier. It's a brand that has seen giant numbers in the past pre-online.

What other game has sold 65 Million copies on console? The answer is not many but many companies MS included see those along with Minecraft and think because of the revenue/profit generated that it's the way going forward. When outside of a few games it's really not.

Games that are tailored that way like CS GO, MOBA's and F2P games are what this GAAS work best for. Not AAA games from established franchises.
I highly doubt Nintendo when they decided on zelda thought about putting ton's of microtransactions in the game was going to generate the most revenue instead of revenue/profit from people just buying the game.

I get it that it's a way to keep business going, people employed like with MLB, gears. Forza, GTA, and others. But it's not part of someone's buying decision when they buy a console.
Switch has only couple competitive multiplayer games that I see GAAS working for and currently their sales so far are not based on that type of revenue stream. People just want games.
Sony also to an extent has shown that. It's long term gain. You think the revenue generated when Halo 5 launched via in-game purchases is the same as it is now?
That stuff dies out quickly. GTA and a few others are the outlier's where it continued for a long time.

I don't see people buying xbox's to play service based games. But I could be totally wrong, 'm just looking at switch and it's attach rate for software currently and it kind of shines evidence that MS approach is 100% sound.

The day ALL of gaming goes GAAS or F2P, I'm out. I'm sure there's millions more people that agree. GAAS or F2P work in mobile because the game is "free" 9/10 times but you can't progress without spending more. If the console industry adopts that motto, well good luck surviving long term.

Yep that's been my whole point couldn't agree more. I'll just go into motorcycles hardcore if this is the way going forward for consoles. It's not smart for long term since not everyone plays or spends that kind of money Microtransaction wise on games.
 

Par Score

Member
Xbox live is the biggest gaming social network, and monetizes far more than any other gaming social network.

There's no way this can be true, right?

Unless you absolutely tortuously twist what could be understood as a "gaming social network" to discount the other players that are obviously bigger than and make more money than Xbox Live. Or you could equally torture what counts as monetizing a gaming social network. Either way, I'm not sure it adds up.

I guess in the end if you don't give out any hard numbers then you can never really be wrong.
 

wapplew

Member
The day ALL of gaming goes GAAS or F2P, I'm out. I'm sure there's millions more people that agree. GAAS or F2P work in mobile because the game is "free" 9/10 times but you can't progress without spending more. If the console industry adopts that motto, well good luck surviving long term.

People love Spotify and Netflix, the day we buy individual retail games is counting down, one sub will get you all the game and none of the game.
 

Zedox

Member
The day ALL of gaming goes GAAS or F2P, I'm out. I'm sure there's millions more people that agree. GAAS or F2P work in mobile because the game is "free" 9/10 times but you can't progress without spending more. If the console industry adopts that motto, well good luck surviving long term.

So what game nowadays doesn't have DLC? Most games have DLC before they are even announced or shortly after release. Games are already GAAS. GAAS doesn't mean MTX, it's just an overarching term that means servicing your game after release to get more money out of your customer (but now) trying to do it in a way that a player may want.

Zelda has DLC, Nioh, Horizon, Witcher 3...all those games are/were GAAS. It's not anything new. But like I said, you can keep thinking that you'll get the 90s again...it's already changed underneath you and you prolly ain't even notice.
 

Kill3r7

Member
I get that. But GTA V is the outlier. It's a brand that has seen giant numbers in the past pre-online.

What other game has sold 65 Million copies on console? The answer is not many but many companies MS included see those along with Minecraft and think because of the revenue/profit generated that it's the way going forward. When outside of a few games it's really not.

Games that are tailored that way like CS GO, MOBA's and F2P games are what this GAAS work best for. Not AAA games from established franchises.
I highly doubt Nintendo when they decided on zelda thought about putting ton's of microtransactions in the game was going to generate the most revenue instead of revenue/profit from people just buying the game.

I get it that it's a way to keep business going, people employed like with MLB, gears. Forza, GTA, and others. But it's not part of someone's buying decision when they buy a console.
Switch has only couple competitive multiplayer games that I see GAAS working for and currently their sales so far are not based on that type of revenue stream. People just want games.
Sony also to an extent has shown that. It's long term gain. You think the revenue generated when Halo 5 launched via in-game purchases is the same as it is now?
That stuff dies out quickly. GTA and a few others are the outlier's where it continued for a long time.

I don't see people buying xbox's to play service based games. But I could be totally wrong, 'm just looking at switch and it's attach rate for software currently and it kind of shines evidence that MS approach is 100% sound.

Overwatch
Destiny
The Division
Sports Titles (EA/2K)
Fighting games MKX/Injustice
Wildlands
For Honor
COD
R6S

I would argue that maybe 1 or two of the best selling games each year do not rely heavily on MT, DLC or other paid content.
 

Ushay

Member
Thank you. Subscription then DLC was the beginning of GaaS. F2p and MTs we're the next step. It's just a term that means extending monetization by supporting the game with regular updates and new content through a longer life-cycle. The extended monetization part can come in many forms and configurations: free DLC/maps with MTs (Halo 5, Overwatch) paid DLC and MTs (Uncharted, CoD, Destiny), or just straight f2p.. all GaaS tactics.

If GaaS means more high quaity DLC, frequent updates and longer lasting franchises then I'm in.
What worries me the most with GaaS, is losing any importance narrative has in campaigns and story heavy games. I'm talking about the WRPGs, the open world games and the action oriented story games.
 
okay, look: i'm not really sure what this is saying, exactly, okay? but, i mean, who cares, right? :) ...

The content part is about exclusive content, to get people to buy your devices and become part of the social network.

The social network part is something to keep those people engaged in your network by offering services others don't networks don't have.

Once people are invested in your social network you get some loyalty from the customer.
Aka people will buy content on Xbox live instead of steam or psn when given the option for multi platform games.

This is also the commerce part, to keep the circle going Microsoft needs to deliver devices the gamer will buy before buying the device from the other party like Sony or Nintendo.
 

blakep267

Member
The day ALL of gaming goes GAAS or F2P, I'm out. I'm sure there's millions more people that agree. GAAS or F2P work in mobile because the game is "free" 9/10 times but you can't progress without spending more. If the console industry adopts that motto, well good luck surviving long term.
I highly doubt it. What are the most purchased games every year? Madden FIFA nba 2k, COD, GTA. Know what they have in common?
 

Papacheeks

Banned
Overwatch
Destiny
The Division
Sports Titles (EA/2K)
Fighting games MKX/Injustice
Wildlands
For Honor
COD
R6S

I would argue that maybe 1 or two of the best selling games each year do not rely heavily on MT.

Right those are online made games with GAAS part of their content delivery. But not every call of duty this gen has generated as much as lets say Destiny. For honor has dropped like a rock. Rainbow six numbers are not gigantic as their launch to my knowledge was bad only when they updated did they see it increase, and even still it's not huge liek destiny or call of duty.

Only a couple of those have hit big numbers, and from those only a couple have made a hug amount through in game purchase or service based DLC's like COD map packs/seas pass.
 
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