• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Next-Gen PS5 & XSX |OT| Console tEch threaD

Status
Not open for further replies.
D

Deleted member 775630

Unconfirmed Member
Gamernyc78 said:
We've broken this supposed "infinite war chest" narrative down before, thts not how business goes. All depts have budgets and constraints regardless of over arching income of company. Microsoft has no infinite war chest and definitely aren't in a better position. Sony has destroyed them in profits in gaming and have a bigger war chest to pull from in respect to gaming. Stop the fallacious, nonsense narratives only kids would believe that.

PS has full backing of company as it is now the face of Sony and most money maker or one of. Xbox doesn't have that luxury lol regardless of what others say.
Click to expand...
I agree with your first two sentences, everything after is pure guessing on your end because we just don't know.
 
Andodalf

Andodalf

Banned
whoever81 said:
I was pretty sure the Geoff hype is about the Alienware portable console reveal. I posted some pages ago the Alienware official tweet but didn't get many reactions. What am I missing here?
Click to expand...

The fact that Alienware revealed this already means it probably would've been referenced by some other players. All the signs point to something that effects MS and Sony tangentially, which makes many people think software.


Also, Alienware made "consoles" before, and no one cared
 
Last edited:
xacto

xacto

Member
Gamernyc78 said:
We've broken this supposed "infinite war chest" narrative down before, thts not how business goes. All depts have budgets and constraints regardless of over arching income of company. Microsoft has no infinite war chest and definitely aren't in a better position. Sony has destroyed them in profits in gaming and have a bigger war chest to pull from in respect to gaming. Stop the fallacious, nonsense narratives only kids would believe that.

PS has full backing of company as it is now the face of Sony and most money maker or one of. Xbox doesn't have that luxury lol regardless of what others say.
Click to expand...

Reading comprehension these days, mate, I swear...

This is also for you, G Goliathy

"Microsoft recently reported its Q4 and yearly earnings for the Xbox division, and despite a quarterly dip, the results aren't too bad. Xbox gaming made roughly $11.4 billion in Fiscal Year 2019, once again accounting for less than 10% of Microsoft's total revenues for the period ($125.84 billion). Xbox's Q4 revenues dipped by 10% year-over-year to $2.05 billion, but Xbox One hardware sales crashed tremendously by nearly 50%."

So Microsoft's gaming division accounts for less than 10% of total revenues and you're still running around with the "war chest" narrative? I know economics is a tough subject, but there's some good reading out there which will put things in perspective.
 
Delpij

Delpij

Member
Let's not forget that Ace Combat, Borderlands, Soul Calibur, Spyro, Gears of Wars, Rocksteady's Batman, FF VII R and more are Unreal Engine games.
 
G

Goliathy

Banned
Gamernyc78 said:
We've broken this supposed "infinite war chest" narrative down before, thts not how business goes. All depts have budgets and constraints regardless of over arching income of company. Microsoft has no infinite war chest and definitely aren't in a better position. Sony has destroyed them in profits in gaming and have a bigger war chest to pull from in respect to gaming. Stop the fallacious, nonsense narratives only kids would believe that.

PS has full backing of company as it is now the face of Sony and most money maker or one of. Xbox doesn't have that luxury lol regardless of what others say.
Click to expand...

what are you talking about? MS is a TRILLION dollar company, of course they have much more money than Sony and the CEO of MS even confirmed that they have tons of money for Xbox:

"We're getting incredible support from Microsoft. Satya Nadella, the CEO, my boss, Amy Hood, the CFO, they're very linked in to what our plans are. We're going to make sure that we stay agile on our pricing and that we have a good plan going into launch."
Click to expand...

www.gamereactor.eu

Microsoft is flexible on the Xbox Series X price tag

Phil Spencer says the next Xbox is supported by MS leadership and they can "stay agile" with the planned pricing for the console.
www.gamereactor.eu www.gamereactor.eu

MS has 136.6 billion in CASH:

www.cnbc.com

Here are the 10 companies with the most cash on hand

Several companies, including Microsoft, Berkshire Hathaway, Alphabet and Apple are sitting on more than $100 billion dollars of cash, which is leading some on Wall Street to question why America's largest companies aren't spending.
www.cnbc.com www.cnbc.com

so, if the CEO and CFO say: Xbox is important to us and we are willing to invest as much as possible, then it's easily possible, because MS has tons of money, as you can see.
It's all about being the new Netflix of gaming. Just look at how much money Netflix invested, or in the past Amazoon invsted, or Uber, AirBnB etc.


Now the problem with sony is, that they simply don't have the money, just look at the recent earnings report:

The Japanese electronics and entertainment conglomerate reported group profits down by 36% to $5.34 billion (JPY582 billion) for the 2019-2020 financial year that ended in March.
Click to expand...

Totoki said Sony is "concerned and looking closely at the slowdown of the smartphone market," as demand shrinks due to the coronavirus.
Click to expand...

Sony said it is also seeing an impact on its movie and music business due to COVID-19 as productions are put on hold and other companies trim their marketing expenses, which will limit music licensing fees Sony earns.
Click to expand...

asia.nikkei.com

Sony reports annual profit drop after coronavirus disruptions

Weak sales in electronic products and gaming drag profit down amid lockdowns
asia.nikkei.com asia.nikkei.com


Now, if the gaming division is the ONLY division at the Sony Group that generates profit.... then where does the money come from? how can they invest and stop focussing on profit with the gaming division?
MS has Azure, Windows, Office 365 etc. they can easily offset the investments in the gaming division, they want to become the netflix of gaming and they have easily the money to be there.. but sony? how? where would they get the money from? their gaming division has to be profitable from day one.. especially now considering how corona disrupts their movie industry and their smartphone industry.
 
Gamernyc78

Gamernyc78

Banned
xacto said:
Reading comprehension these days, mate, I swear...

This is also for you, G Goliathy

"Microsoft recently reported its Q4 and yearly earnings for the Xbox division, and despite a quarterly dip, the results aren't too bad. Xbox gaming made roughly $11.4 billion in Fiscal Year 2019, once again accounting for less than 10% of Microsoft's total revenues for the period ($125.84 billion). Xbox's Q4 revenues dipped by 10% year-over-year to $2.05 billion, but Xbox One hardware sales crashed tremendously by nearly 50%."

So Microsoft's gaming division accounts for less than 10% of total revenues and you're still running around with the "war chest" narrative? I know economics is a tough subject, but there's some good reading out there which will put things in perspective.
Click to expand...

Add to tht Microsoft strategically and purposely don't speak much of profit while Sony shouts it to high heavens. Revenue is not profit so what they are really adding to Microsoft as a whole isn't much. Plus Xbox gaming now of course includes the pc space 😊 Sony is owning them in the gaming space and gave way more profit and resources.
 
xacto

xacto

Member
Goliathy said:
what are you talking about? MS is a TRILLION dollar company, of course they have much more money than Sony and the CEO of MS even confirmed that they have tons of money for Xbox:



www.gamereactor.eu

Microsoft is flexible on the Xbox Series X price tag

Phil Spencer says the next Xbox is supported by MS leadership and they can "stay agile" with the planned pricing for the console.
www.gamereactor.eu www.gamereactor.eu

MS has 136.6 billion in CASH:

www.cnbc.com

Here are the 10 companies with the most cash on hand

Several companies, including Microsoft, Berkshire Hathaway, Alphabet and Apple are sitting on more than $100 billion dollars of cash, which is leading some on Wall Street to question why America's largest companies aren't spending.
www.cnbc.com www.cnbc.com

so, if the CEO and CFO say: Xbox is important to us and we are willing to invest as much as possible, then it's easily possible, because MS has tons of money, as you can see.
It's all about being the new Netflix of gaming. Just look at how much money Netflix invested, or in the past Amazoon invsted, or Uber, AirBnB etc.


Now the problem with sony is, that they simply don't have the money, just look at the recent earnings report:







asia.nikkei.com

Sony reports annual profit drop after coronavirus disruptions

Weak sales in electronic products and gaming drag profit down amid lockdowns
asia.nikkei.com asia.nikkei.com


Now, if the gaming division is the ONLY division at the Sony Group that generates profit.... then where does the money come from? how can they invest and stop focussing on profit with the gaming division?
MS has Azure, Windows, Office 365 etc. they can easily offset the investments in the gaming division, they want to become the netflix of gaming and they have easily the money to be there.. but sony? how? where would they get the money from? their gaming division has to be profitable from day one.. especially now considering how corona disrupts their movie industry and their smartphone industry.
Click to expand...

So basically you're saying every other division in Microsoft is there to keep the gaming division afloat? That's a good one.
 
G

Goliathy

Banned
xacto said:
Reading comprehension these days, mate, I swear...

This is also for you, G Goliathy

"Microsoft recently reported its Q4 and yearly earnings for the Xbox division, and despite a quarterly dip, the results aren't too bad. Xbox gaming made roughly $11.4 billion in Fiscal Year 2019, once again accounting for less than 10% of Microsoft's total revenues for the period ($125.84 billion). Xbox's Q4 revenues dipped by 10% year-over-year to $2.05 billion, but Xbox One hardware sales crashed tremendously by nearly 50%."

So Microsoft's gaming division accounts for less than 10% of total revenues and you're still running around with the "war chest" narrative? I know economics is a tough subject, but there's some good reading out there which will put things in perspective.
Click to expand...

so what? thats exactly the point, they have tons of other divisions, like Azure, Office etc that make tons of money and now they try to get another cash cow.. just look at google and their google cloud platform.. same thing, they want to be the new gaming of netflix and they can easily invest a lot of money and as long as the game pass numbers are growing everything is good... it's all about growing and it's all about having recurring revenue
 
xacto

xacto

Member
Goliathy said:
so what? thats exactly the point, they have tons of other divisions, like Azure, Office etc that make tons of money and now they try to get another cash cow.. just look at google and their google cloud platform.. same thing, they want to be the new gaming of netflix and they can easily invest a lot of money and as long as the game pass numbers are growing everything is good... it's all about growing and it's all about having recurring revenue
Click to expand...

Actually you had me at "so what." Moot point, but thanks for insisting.

I am out of this, it's just too rich for me.
 
Agnostic2020

Agnostic2020

Member
Goliathy said:
so what? thats exactly the point, they have tons of other divisions, like Azure, Office etc that make tons of money and now they try to get another cash cow.. just look at google and their google cloud platform.. same thing, they want to be the new gaming of netflix and they can easily invest a lot of money and as long as the game pass numbers are growing everything is good... it's all about growing and it's all about having recurring revenue
Click to expand...
So your mentality is ms will use funds from profitable divisions and invest in smaller segment but sony will not invest in its most profitable divisions and expects more return . Good thing u dont have a large business with few programs and portfolios .
 
Last edited:
IntentionalPun

IntentionalPun

Ask me about my wife's perfect butthole
Microsoft does have tons of money to throw at Xbox; because they believe it to be an area with tons of GROWTH potential. That's how large multi-faceted businesses work. You focus on what brings in large profit margins, and what has large growth potential.

Problem IMO is a lot of that is tied to their belief in game streaming taking off. If 5 years from now they haven't expanded their leaders aren't going to be as kind to the division. At the very least it needs to show steady growth and actually be making money by then (as in not giving away access for pennies.)

And I really don't think game streaming is going to take off like MS hopes it will, so for me the long term future of Xbox is still a big question mark. If they can achieve a HUGE customerbase of people actually paying $10 a month for GamePass that's another path I think to successful long term funding for them too, but will it be enough? Not sure... their leaders have repeatedly talked about reaching BILLIONS of people with gaming and I think they are fucking smoking crack.
 
Last edited:
ResilientBanana

ResilientBanana

Member
Neo Blaster said:
Money warchest excuse again?

em5.gif
Click to expand...
Didn't Nadella promote and give Spencer a fairly large budget in 2017 which resulted in multiple game studio purchases, a new console, gamepass, and cloud gaming? The $1 Billion for Minecraft seemed crazy at the time too. I don't know, just shooting from the hip here.
 
Agnostic2020

Agnostic2020

Member
IntentionalPun said:
Microsoft does have tons of money to throw at Xbox; because they believe it to be an area with tons of GROWTH potential. That's how large multi-faceted businesses work. You focus on what brings in large profit margins, and what has large growth potential.

Problem IMO is a lot of that is tied to their belief in game streaming taking off. If 5 years from now they haven't expanded their leaders aren't going to be as kind to the division. At the very least it needs to show steady growth and actually be making money by then (as in not giving away access for pennies.)

And I really don't think game streaming is going to take off like MS hopes it will, so for me the long term future of Xbox is still a big question mark. If they can achieve a HUGE customerbase of people actually paying $10 a month for GamePass that's another path I think to successful long term funding for them too, but will it be enough? Not sure... their leaders have repeatedly talked about reaching BILLIONS of people with gaming and I think they are fucking smoking crack.
Click to expand...
Very good post and true. But if it takes off then it will be great for xbox division. xbox usually goes extremely hard on a specific goal . At a point it was online gaming another point it was kinect , one point it was game as services and now its game pass and xcloud. Sometimes it pays off and sometimes it doesn't
 
Neo Blaster

Neo Blaster

Member
Sycomunkee said:
Didn't Nadella promote and give Spencer a fairly large budget in 2017 which resulted in multiple game studio purchases, a new console, gamepass, and cloud gaming? The $1 Billion for Minecraft seemed crazy at the time too. I don't know, just shooting from the hip here.
Click to expand...
Except for Minecraft, looks like Nadella is still waiting for return of investment. Shareholders will soon step at Phil's door to collect.
 
D

Deleted member 775630

Unconfirmed Member
Agnostic2020 said:
Its new unreal engine running on ps5(the stream for summer fest today)
Click to expand...
If this is the case, Microsoft dropped the ball again. You are going to get comparisons of an amazing tech demo on PS5, with Dirt 5 on Xbox Series X
 
DaGwaphics

DaGwaphics

Member
Goliathy said:
so, if the CEO and CFO say: Xbox is important to us and we are willing to invest as much as possible, then it's easily possible, because MS has tons of money, as you can see.
It's all about being the new Netflix of gaming. Just look at how much money Netflix invested, or in the past Amazoon invsted, or Uber, AirBnB etc.
Click to expand...

This is the thing that flies over the head of many here. When a company invests in a new area, they could spend billions where they made $0 before. Also, a company can dabble in an industry for decades and then suddenly make a powerplay. By the logic of some, Sony would have never been in the gaming business to begin with, nor Microsoft. It's within reason that Gamepass and the synergies that exist with that platform and their cloud ambitions could result in greater investment, that is not guaranteed, but easily possible.

This notion that major corporations divide their revenue proportionally and always grow organically in each division is foolhardy.
 
Neo Blaster

Neo Blaster

Member
IntentionalPun said:
Microsoft does have tons of money to throw at Xbox; because they believe it to be an area with tons of GROWTH potential. That's how large multi-faceted businesses work. You focus on what brings in large profit margins, and what has large growth potential.

Problem IMO is a lot of that is tied to their belief in game streaming taking off. If 5 years from now they haven't expanded their leaders aren't going to be as kind to the division. At the very least it needs to show steady growth and actually be making money by then (as in not giving away access for pennies.)

And I really don't think game streaming is going to take off like MS hopes it will, so for me the long term future of Xbox is still a big question mark. If they can achieve a HUGE customerbase of people actually paying $10 a month for GamePass that's another path I think to successful long term funding for them too, but will it be enough? Not sure... their leaders have repeatedly talked about reaching BILLIONS of people with gaming and I think they are fucking smoking crack.
Click to expand...
Yep, Nadella didn't give a blank check to Phil. With all this subsiding to Gamepass, Xbox desperately need Xcloud to succeed so they can spread subscriptions to a much larger userbase. There's no way for this model to be sustainable without a huge amount of subscribers.
 
Status
Not open for further replies.

Similar threads

Was 8 CPU cores enough for 9th gen consoles? Strix Halo, the prefect console.
Opinion Analysis 2
62
3K
Tertullian replied
Tom Warren - Sony’s PS5 Pro is real and Sony is asking developers to get games ready over the summer, with a push for ray-tracing support
News Hardware Hype 2 3 4
186
12K
DanielG165 replied
Report: Upcoming 'Turin' Zen 5 CPUs will support 4TB of RAM at 6000 MT/s
Rumor Hardware
43
3K
OverHeat replied
Leak - Zen 5 is now in mass production, release in late 2024
Hardware 2
61
5K
CuteFaceJay replied
PS5 Pro Specs Leak are Real, Releasing Holiday 2024(Insider Gaming)
41 42 43 44 45
2K
137K
nemiroff replied
Top Bottom