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Analyst DFC: 'Question is not if Microsoft will exit the game business, but when'
- Thread starter chadskin
- Start date
DryvBy
Member
I play both and I don't see the "hook it up and play" thing being an issue or has been in years. PC plays nice in the living room. The issue I had before as a PC gamer was always PC gaming cost more to keep up. Well, now that excuse may be a thing of the past for both consoles. I honestly don't see a real reason to buy another Xbox console since everything is coming to my PC and I can now cross-play.
wapplew
Member
We say they don't care about hardware sales with this initiative, what happen when software fail too?
MS sure not happy if they got bomb after bomb right? What if first party fail to gain traction for Windows store?
How long until MS cut the funding for game development?
Not doom and gloom, but their software did see a downward trend lately.
MS sure not happy if they got bomb after bomb right? What if first party fail to gain traction for Windows store?
How long until MS cut the funding for game development?
Not doom and gloom, but their software did see a downward trend lately.
LordRaptor
Member
But then we're back to what I said on page 1 - if people think a Steambox that only runs SteamOS and is limitd only to the selection of SteamOS compatible titles is a thing nobody wants, a W10Xbox that only runs titles from the W10 appstore is even less desirable
GinoFelino
Member
Exactly.
No way is Microsoft exiting the games business, but they're going to be more Valve than Nintendo.
Running the W10 store, Xbox-branded
PC
Developing and publishing games....less so.
Yoda
Member
Xbox was suppose to be the harbinger for Microsoft to capture the home PC "migrating to the living room". That never happened, Apple decided the home pc was going in your pocket and consumers agreed. What's left is the traditional gaming market with subsidized hardware in the hopes that software margins will payoff in the long run. Game development has followed the normal economic paradigm of concentrating around a few major players, with the bulk of profit coming from giant AAA titles which take years to produce.
Xbox will always make money, but it will never have the stratospheric growth that investors want from tech companies like Microsoft. The only problem I see w/trying to spin it off, is that who would realistically buy it? The XboX division is worth billions and Microsoft's first party line-up is loaded with third-party timed exclusives, which may transfer contract wise, but the new buyer will have to pony up even more down the line... Without access to Microsoft's bottomless checking account.
Xbox will always make money, but it will never have the stratospheric growth that investors want from tech companies like Microsoft. The only problem I see w/trying to spin it off, is that who would realistically buy it? The XboX division is worth billions and Microsoft's first party line-up is loaded with third-party timed exclusives, which may transfer contract wise, but the new buyer will have to pony up even more down the line... Without access to Microsoft's bottomless checking account.
Microsoft would obviously prefer that people game on Xbox hardware. I don't know why anyone would think that they don't care.
They make so much more money from someone buy an Xbox, loads of games, and an Xbox Live gold subscription than they do from someone gaming on a PC and buying the occasional MS published titles from the Windows 10 App Store.
They are putting their games on PC because the Xbox division isn't doing very well, and the upper management at Microsoft see's more value in using Xbox to push Windows 10 adoption than as a standalone product.
Clearly some customers will always prefer a console to game on, but for those on the fence (which is a lot of people), Microsoft are taking steps that will push them away from Xbox hardware, and towards PC. This is to the detriment of Microsoft's games business, but to the benefit of their Windows business.
Edit: and I don't think Microsoft will sell the division any time soon, they'll just continue to focus on cost saving, and avoid any expensive outlays that aren't reasonably certain to generate a return. They are probably done with investing big in new ip.
They make so much more money from someone buy an Xbox, loads of games, and an Xbox Live gold subscription than they do from someone gaming on a PC and buying the occasional MS published titles from the Windows 10 App Store.
They are putting their games on PC because the Xbox division isn't doing very well, and the upper management at Microsoft see's more value in using Xbox to push Windows 10 adoption than as a standalone product.
Clearly some customers will always prefer a console to game on, but for those on the fence (which is a lot of people), Microsoft are taking steps that will push them away from Xbox hardware, and towards PC. This is to the detriment of Microsoft's games business, but to the benefit of their Windows business.
Edit: and I don't think Microsoft will sell the division any time soon, they'll just continue to focus on cost saving, and avoid any expensive outlays that aren't reasonably certain to generate a return. They are probably done with investing big in new ip.
The 2TB version that launches in August is $399, though. Still a good deal compared to similarly priced UHD players, as in you effectively get a console "for free", but not really a steal.
Seeing how expensive UHD players still are, perhaps margins are razor thin on the $399 slim and they'd potentially make a loss on the $299/$349 tiers if they were to launch them at the same time.
Would also explain why they barely even advertise the fact the slim has an UHD drive.
I'm the perfect example, I have a PS4 as my primary console. I'm watching the MS conference thinking, hey, maybe I'll pick up a slim - it's got some nice upgrades. It'll be tight with the PSVR releasing, but ..
Then they go into a spiel about their next system, and I immediately think I'll wait and see how that turns out -- I'll use my saved budget for more VR games at launch.
It was kind of surprising how fast they turned me in and off of getting a slim.
And Sony is releasing Neo to exist with PS4 in the same way. They will also likely release a cheaper 'slim' version of PS4 as well. They are both taking the same approach here. The only difference being that Microsoft is integrating with and embracing PC, while Sony is not.
Monty Mole
Member
All Microsoft is doing is finally making Xbox what they wanted it to be back in 2001. At some point in the 360 generation they got carried away with being a strong PlayStation competitor and forgot why they entered the console space in the first place.
CrimsonEclipse
Member
They just keep on coming, I seriously think these are generated to get the clicks and nothing more.
Spend money/resources on a revision of X1 and spend money/resources on a brand new console and just exit huh? If the Xbox division was bleeding that bad, doubt Scorpio would even be prototype stages right now. Just don't get it.
Also...lol @ the LinkedIn correlation.
Well then MS and Sony are now Sega in your opinion.
Why is everyone so hungry for MS to get out of the game? Lopsided console wars by their very nature are anti-consumer, it might give you warm fuzzies to feel the device connected to your TV is the ubiquitous one, but ubiquity leads to complacency. What's going to happen if there's no competition at all next gen? It will be arrogant Sony all over again and then some.
Anyone who wants the PS5 to be everything that it can be should hope for a viable competing platform even if they don't personally plan on investing in it.
Shh, its innovation when Sony does it.
Anyone who wants the PS5 to be everything that it can be should hope for a viable competing platform even if they don't personally plan on investing in it.
Shh, its innovation when Sony does it.
Who says we're hungry for it? That's irrelevant to whether or not we think it will happen.
SEGAvangelist
Member
Yup. Makes sense!
You're on gaf, we knew about Scorpio launching next year like 2 months before E3. Leaks would only get more detailed from here on out as devs get kits and sdks with performance target information.
The best one is the article where Phil Spencer looked away from the camera during E3 because he felt too guilty about lying
Bitch Pudding
Member
There are always rumors about spin offs of diversified corporations like MS. And who knows, maybe it will even happen at some point.
Thing is, if anything, the MS E3 conference showed us that right now they are still investing in their XBOX brand.
LordRaptor
Member
No, I'm referring to a hypothetical W10-but-closed-system box that people are suggesting as a future product.
Shtof
Member
To reach the no consoles future, the one console future is a natural step. Sony, Microsoft and Nintendo are all aware of this. They just want to keep going as long as they can.
SEGAvangelist
Member
AHA-Lambda
Member
I'd like to think that a financial analyst would be able to realise that even with PC being more popular the brunt of sales is still with consoles and that the average consumer will not find gaming on PC as it is on an Xbox >_>
And the LinkedIn mention reads like ridiculous conspiracy theory nonsense.
tinfoilhatman
all of my posts are my avatar
Merging Console and PC gaming...YES(duh)...getting "out of the gaming business" no
What a dumb analysis, how could they possibly come to this conclusion?
What a dumb analysis, how could they possibly come to this conclusion?
They keep forgetting casual and average gamers, they won't never rather a PC over a easy plug and play console, also PC will always be more expensive compared to the base Xbox One model, and i'm talking as mainly a PC gamer who also has the Xbox One to play multiplayer with friends and brother on Xbox Live and some console exclusives like Final Fantasy XV or Destiny.
Also Microsoft won't leave the gaming business, Xbox brand is huge, and they know PC gaming is even bigger and they're fully committed on PC with Windows, so in some way or another to me Microsoft is the most likely company to remain into gaming market even in the future compared to Sony and Nintendo
Also Microsoft won't leave the gaming business, Xbox brand is huge, and they know PC gaming is even bigger and they're fully committed on PC with Windows, so in some way or another to me Microsoft is the most likely company to remain into gaming market even in the future compared to Sony and Nintendo
Dude, in 10 years who knows what the gaming consoles will be like. That's a lifetime in tech.
Ah, yeah, that isn't happening. Maybe a Roku-like device, but that would be the expected nature of such a device.
Bitch Pudding
Member
XBOX S w/ 500 MB HDD has a good price compared to non 4k-capable vanilla PS4. Yet according to amazon.com it will be available in December. I suppose MS is skimming the market with that $399 2 TB edition, which will get smacked by PS4 Neo should this one also cost $399.
"His eyes flicked away from the camera, betraying him!"
It actually read like something from some fanboy blog. Yet it came from an outlet like Eurogamer. Go figure.
No way, Eurogamer wrote that? Lol, wtf.
All Microsoft is doing is catering to both with options, while merging the platforms.
December what?
What date of December?
AHA-Lambda
Member
Wait, no games division by next year?
I thought DFC was a respected analytical firm? Cos wtf is this nonsense?!
I thought DFC was a respected analytical firm? Cos wtf is this nonsense?!
FUD.
Hey, I'd actually thought the same about Sony, but I digressed. Carry on.
Who in their right mind would pick a console manufacturer? Xbox without MS would be pointless their funds would be to low.
Krisprolls
Banned
The least we can say is their strategy doesn't make much sense :
- closing game studios
- announcing a Xbox One Slim AND telling people there will be another more powerful console soon (I can see why, it's all about PS4 Neo, but you kill your own sales by doing so)
- telling every game will be on PC too (but why would I buy your console if you tell me it'll get zero exclusive ?)
Xbox brand always suffered from this mixed messaging (adding Kinect, removing Kinect, going all TV TV TV, then games again and so on...). You just don't understand what they're doing because they're not sure themselves about it either. As a consumer, I never understand why I should buy a MS product and I'm not even sure they understand what they try to do.
I think they definitely want to get out at some point now that taking back market share from Sony will be nearly impossible (after all, they closed a lot of studios...), but for some reason the ultimate decision to do so is still not there.
I'm not even sure Scorpio will be released before they close for good. On a business standpoint, releasing Scorpio makes zero sense with their lack of market share and studios... If Xbox was to become a global brand, it would already have happened long ago.
All they had to do was investing in exclusive games and studios like Sony did, but no, that would be too simple so they failed at that too...
- closing game studios
- announcing a Xbox One Slim AND telling people there will be another more powerful console soon (I can see why, it's all about PS4 Neo, but you kill your own sales by doing so)
- telling every game will be on PC too (but why would I buy your console if you tell me it'll get zero exclusive ?)
Xbox brand always suffered from this mixed messaging (adding Kinect, removing Kinect, going all TV TV TV, then games again and so on...). You just don't understand what they're doing because they're not sure themselves about it either. As a consumer, I never understand why I should buy a MS product and I'm not even sure they understand what they try to do.
I think they definitely want to get out at some point now that taking back market share from Sony will be nearly impossible (after all, they closed a lot of studios...), but for some reason the ultimate decision to do so is still not there.
I'm not even sure Scorpio will be released before they close for good. On a business standpoint, releasing Scorpio makes zero sense with their lack of market share and studios... If Xbox was to become a global brand, it would already have happened long ago.
All they had to do was investing in exclusive games and studios like Sony did, but no, that would be too simple so they failed at that too...
There will always be a market for consoles for the Xbox crowd. The stereotypical college-aged male who plays Xbox for their yearly CoD and NBA/NFL releases is probably not building their own high end PC for crossplay.
The argument that they'll suddenly jump ship to PC is faulty and no argument of "you can build a good PC for <500" includes maintenance or any other aspect of maintaining an actual computer.
They will instead jump ship to Sony.
The argument that they'll suddenly jump ship to PC is faulty and no argument of "you can build a good PC for <500" includes maintenance or any other aspect of maintaining an actual computer.
They will instead jump ship to Sony.
The S is a simple slim version with a 4K video (etc.) feature.
The Scorpio is more of a Steam. Well Xbox is becoming a PC service. So I "get" what this dude here is thinking.
I think you are all going to be surprised when this in eventuality does happen.
MS is definitely going out at some point.
Nothing at this E3 is going to help them course correct where the X1 and their brand in general is at right now.
They don't have the excitement behind their established IPs like they used to. PC gamers don't really care that they can play the next Halo or Sea of Thieves on PC. They have more than enough games in those genres that are both superior and don't require UWP.
Existing console gamers are not jumping in to purchase the current X1 or XS. Microsoft did nothing to sway those on the fence.
Whatever Scorpio launches with it will be a smattering of games available also on the X1, XS and PC. The incentive to purchase one will not be driven behind some exclusive but the tiny fragment of the market that wants to stay in the Xbox ecosystem and doesn't want to upgrade their PC.
The only people that are going to go out and buy a XS right now are the Xbox Loyalists. The gamer who just loves anything Microsoft does and already has a Xbox One and can't wait to get a XS and then Scorpio. That is probably a decent amount but its not what MS needs to stay viable.
So yeah I absolutely think its just a matter of time.
MS is definitely going out at some point.
Nothing at this E3 is going to help them course correct where the X1 and their brand in general is at right now.
They don't have the excitement behind their established IPs like they used to. PC gamers don't really care that they can play the next Halo or Sea of Thieves on PC. They have more than enough games in those genres that are both superior and don't require UWP.
Existing console gamers are not jumping in to purchase the current X1 or XS. Microsoft did nothing to sway those on the fence.
Whatever Scorpio launches with it will be a smattering of games available also on the X1, XS and PC. The incentive to purchase one will not be driven behind some exclusive but the tiny fragment of the market that wants to stay in the Xbox ecosystem and doesn't want to upgrade their PC.
The only people that are going to go out and buy a XS right now are the Xbox Loyalists. The gamer who just loves anything Microsoft does and already has a Xbox One and can't wait to get a XS and then Scorpio. That is probably a decent amount but its not what MS needs to stay viable.
So yeah I absolutely think its just a matter of time.
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