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The whole reason people want Nintendo to go third party is because they make great software. It would be HUGE to be able to play the new Mario on Steam. Outside of Halo MCC I can't think of anything MS could release on PC or PS4 that would actually excite people. Also Microsoft hardware doesn't completely blow every time so there's even less of an incentive there, people want to play Nintendo games with good graphics. No one wants Nintendo to go third party because they hate them, they want their high quality software on high quality hardware which is something that Nintendo won't do.

 

[Okami Haundo]

If Microsoft did anything "third party", I'd want them to dole out their software/networking expertise. What they accomplished with Xbox One BC is nothing short of pure magic, and Xbox Live has sturdy bones. As for games... I love Halo and Gears, but I don't think I'd be dying for those experiences on a Sony or Nintendo platform.

 

[AntraxSuicide]

On the whole, and for Microsoft, yes. In its best years, Xbox made around $1 billion in profit. For a regular company that's an amazing amount of money, but it's not that impressive for Microsoft. Especially when you consider that Xbox makes a lot less most of the time, and can lose substantial amounts of money in the really bad years. Overall, Xbox has barely made any money for Microsoft over its lifespan, if it's even broken even. When Microsoft was counting on it to be a linchpin to grander plans that kind of weak performance is acceptable, but they've given up on that now, so Xbox's position has become a lot more in doubt.

You've answered the question here though. The Xbox division is entirely a footnote for the company. MS is massive (infinitely more massive than Nintendo, and a sizable difference larger than Sony). They could set the cash they spend on this division on fire, TDK-style, and it wouldn't matter to them.

Much like Hololens, this division is a patent farm. It's why they have Live (and their server farm for business), it's why they bought Minecraft, etc... It's good for companies to keep their businesses diverse, and a bit risky (in the sense that you're not betting on sure things, not the sense that you're betting the whole company on pagers coming back or something). Kinect, for example, was a big gaming failure (long-term, the first one's sales were insane). But the tech inside of it is going to stick around for decades, and MS is going to suck up all of those licensing fees and other revenue streams.

In fact, I'd argue that the division is going to get merged with the Surface folks, and just get Phil to run the software side while the Surface team builds the hardware. Those tablets (and the Surface Books) are insanely well-reviewed, and it's a good brand within the company (as is Xbox itself, much as GAF would disagree).

Hell, they changed their company logo (first significant logo change in the company's 20+ year history), and Xbox is featured as one of their 4 core businesses. Contrast that to something that they actually shut down (partly, rest to come I'm sure), the Windows Phone division. That division was noticeably left out of their core businesses when they announced the logo change, and here we are; it's dead. But Xbox getting shut down would be pretty awkward from a branding perspective.

 

[Gromph]

Removed the image

 

[ZeroMaverick]

I firmly believe the Scorpio will be Microsoft's last gaming console.

 

[WadeitOut]

God, how shit would it be if Microsoft left hardware with Sony having no viable competition. People shouldn't want this, at all.

I'm cringing at the thought of how many more shovelware Japanese games I'd have to watch people pretend to like.

 

[FUNKNOWN iXi]

Nintendo Xbox [NX]

 

[Josh5890]

I hope not. I've never owned an Xbox system but the industry is always better when there is strong competition to keep everyone on their toes.

 

[Platy]

The whole reason people want Nintendo to go third party is because they make great software. It would be HUGE to be able to play the new Mario on Steam. Outside of Halo MCC I can't think of anything MS could release on PC or PS4 that would actually excite people.

RARE.
Banjo, Killer Instinct (fuck you games for Windows), Battletoads, Jet Force Gemini, Conker, Blast Corps, sea of thieves

Also Forza and ... Gears of War and Sunset Overdrive are first party, right ?

 

[qko]

The whole reason people want Nintendo to go third party is because they make great software. It would be HUGE to be able to play the new Mario on Steam. Outside of Halo MCC I can't think of anything MS could release on PC or PS4 that would actually excite people. Also Microsoft hardware doesn't completely blow every time so there's even less of an incentive there, people want to play Nintendo games with good graphics. No one wants Nintendo to go third party because they hate them, they want their high quality software on high quality hardware which is something that Nintendo won't do.

I gotta give to Microsoft, Forza has become a must own for any platform. If they ever went third party, I would be really excited at that prospect (not that I have to since I own an XBOne).

 

[wapplew]

MS studio games was best when they don't have a console.
Since they release all game on PC, it felt very third party for me already.

 

[Mass Effect]

oh my god

come on people

 

[Cerium]

The whole reason people want Nintendo to go third party is because they make great software. It would be HUGE to be able to play the new Mario on Steam. Outside of Halo MCC I can't think of anything MS could release on PC or PS4 that would actually excite people. Also Microsoft hardware doesn't completely blow every time so there's even less of an incentive there, people want to play Nintendo games with good graphics. No one wants Nintendo to go third party because they hate them, they want their high quality software on high quality hardware which is something that Nintendo won't do.

Sega made great software too once upon a time and now their output is kind of a shell of its former self.

If they hadn't acquired Atlus they'd be, what, a Yakuza and Sonic factory? Not that Yakuza isn't great but really...

The pressures of a publisher business model would force Nintendo to focus on only the most profitable franchises and probably on mobile. That's good for no one.

 

[Spyder_Monkey]

Here's what would happen, either Xbox closes down and all their studios/IPs get sold off, or the entire company gets sold off. There's no situation where Microsoft just develops for other platforms unless it's Minecraft because gaming isn't Microsoft's bread and butter so there's no incentive to continue developing games.

 

[Cerium]

Here's what would happen, either Xbox closes down and all their studios/IPs get sold off, or the entire company gets sold off. There's no situation where Microsoft just develops for other platforms unless it's Minecraft because gaming isn't Microsoft's bread and butter so there's no incentive to continue developing games.

Serious question, which IPs do they have that would be worth a major investment?

Halo is still bankable, obviously. Forza. Gears of War. Then the Rare catalogue, whatever that's worth these days...

I have a bad feeling that Activision or EA would end up with most of it.

 

[VlaudTheImpaler]

Oh,
hey,
how's
it
going
bro?

 

[Cuburt]

I think Microsoft has to make games to be able to go third party.

 

[Nutter]

I think it's only a matter of time.

You would absolutely love it from your post history.

 

[duckroll]

But my understanding was that after they cancelled Scalebound, Microsoft officially became a turd party.

 

[TheSpaceBetween]

Microsoft would need to have more than two or three actual good development teams to do that. They don't, so no.

 

[Chuck Norris]

MS could get out of the console business. But They'd go PC exclusive

And honestly do you see MS investing a whole lot to be a 3rd party publisher? There is no growth opportunity in it for them

 

[allan-bh]

Doesn't make sense for Microsoft become third party.

 

[Spyder_Monkey]

Serious question, which IPs do they have that would be worth a major investment?

Halo is still bankable, obviously. Forza. Gears of War. Then the Rare catalogue, whatever that's worth these days...

I have a bad feeling that Activision or EA would end up with most of it.

The fact that Microsoft does have valuable IP is probably why they haven't killed Xbox yet.

 

[z0m3le]

Microsoft already publishes its biggest game on other platforms, I don't think the Xbox platform matters while they continue to push all their exclusives to PC.

Xbox is still a vibrant ecosystem for third parties because people are attached to Xbox live, whether that will lead to hardware after Scorpio that isn't directly tied to Windows is anyone's guess.

 

[Crayon]

Doesn't make sense for Microsoft become third party.

They're a software company. They used to make games and just ... sell them. It was actually pretty sweet if you can remember back that far.

 

[Cerium]

The fact that Microsoft does have valuable IP is probably why they haven't killed Xbox yet.

Their most valuable IP (Minecraft) is on all their competitors' platforms though.

 

[timetokill]

Much like Sony, Microsoft is not in it for the games, they're in it for the foot into the living room. If these companies stopped making consoles they'd probably get out of gaming altogether, outside of maybe mobile app development.

 

[Windforce]

Third party for what/who? They have pretty much no games to put out, this makes no sense.

 

[Unknown Soldier]

Microsoft wouldn't go third party. They would just quit the industry. That's how MS operates, either they can crush all competitors and monopolize or they'll just take their ball and go home.

 

[Crayon]

Much like Sony, Microsoft is not in it for the games, they're in it for the foot into the living room. If these companies stopped making consoles they'd probably get out of gaming altogether, outside of maybe mobile app development.

Sony is making good money of licensing fees on games selling. They tie in media and services but that's a secondary focus.

 

[Illucio]

To be honest if Scorpio/XB1 fails to meet their expectations or is a loss to them I wouldn't be surprised for them to leave the console game.

But I think Microsoft sees more money in the digital distribution like Steam, which I feel organically is something they would had been better at then trying to sell people hardware.

Microsoft's goals for Xbox One was to take over your living room entertainment, but that flopped since people wanted a game system and not a entertainment system.

So I can see them still funding their games, but being strictly a Microsoft Store on PC's in order to rival Steam.

So it's not so much going third party, but more moving out of consoles and going to a different format.

 

[Mr Swine]

Doesn't that depend completely on how Scorpio performs? If it does not better than Xbone then it's a flop right? Hell isnt the Xbone somewhat of a flop for MS?

I guess they would dump the Xbox brand and start a new one before leaving the market

 

[Ataru]

If Rare was third party, could we finally get an HD remix of N64 Goldeneye?

 

[watership]

Seriously.

http://www.fool.com/investing/general/2013/09/21/will-microsoft-sell-off-the-xbox-brand.aspx

Investors have wanted MS to break up since the 80s. It's been the biggest constant in MS investor suggestions, way before the Xbox. Sell off Office, sell off Windows, sell off Azure and enterprise. This has nothing to do with performance, it has to do with investors making huge money from stock splits and sell-offs.

 

[Mooreberg]

They would just publish games through the Windows store before they started putting games out on other systems. The type of games they used to put out on GBA or DS would be mobile releases now. So I don't see them going third party in the traditional sense.

They are going to have to improve internal game development at some point though. Look at the top ten for each system in December, it is the same damn games except for The Last Guardian and FH3. Gears 4 appears to have no staying power. The worldwide gap will keep expanding if it is mostly the same games and a handful of exclusives that sell a lot less than they used to.

That said, it would be beneficial for them to see how the Switch pans out. If it does not usurp them for second place, and it does not get much third party support, then Xbox + Live + royalties should be able to justify their continued presence in the market. So long as they do not go full mental and start publishing games that do not run on the Xbox One. They would be self sabotaging the brand at that point.

 

[Crayon]

Doesn't that depend completely on how Scorpio performs? If it does not better than Xbone then it's a flop right? Hell isnt the Xbone somewhat of a flop for MS?

I guess they would dump the Xbox brand and start a new one before leaving the market

The truth: Xbone does alright. Scorpio is just going to keep it going for a awhile. 400 dollar consoles will still sell with a bit of a power bump. 400 dollar console business is good business.

The myth: Scorpio is an alien that will come from heaven and set the world right.

 

[Bioshocker]

With what? Microsoft has barely got any IP. Nintendo does, and that's why people keep wishing for them to go thirdparty.

 

[Crayon]

With what? Microsoft has barely got any IP. Nintendo does, and that's why people keep wishing for them to go thirdparty.

They have a ton of good IP. Sitting in a dungeon somewhere.

 

[4Tran]

You've answered the question here though. The Xbox division is entirely a footnote for the company. MS is massive (infinitely more massive than Nintendo, and a sizable difference larger than Sony). They could set the cash they spend on this division on fire, TDK-style, and it wouldn't matter to them.

That's precisely it. It doesn't matter to Microsoft so why would they invest the money. Right now, there are whispers that Xbox has been getting smaller budgets, which would be a sign that Greater Microsoft is given them more scrutiny.

 

[kennyamr]

Does OP know anything about business models?

Just wondering.

 

[FingerBang]

I think Microsoft is just going to give up first party and keep on trying to unify PC and Xbox. After all, if they can convince PC developer to use the UWP, they're gonna have a bunch of games out for the Xbox.

...but in the end it's the PC that will benefit the most from this situation. The PC is the future for Microsoft (and for us, before game streaming gets really good and affordable).

 

[bobbytkc]

They will sooner give up gaming than go third party. They are in the console sapce to own the ecosystem. Earnings from their own software is peanuts.

 

[AntraxSuicide]

That's precisely it. It doesn't matter to Microsoft so why would they invest the money. Right now, there are whispers that Xbox has been getting smaller budgets, which would be a sign that Greater Microsoft is given them more scrutiny.

Again, so little (relatively) is why they don't care to even investigate it. If you were at a meeting internally and brought Xbox to Nadella, he'd think it was as important as you bringing up chicken or steak at the company picnic. "Just buy both and shut up" is the attitude for that stuff.

Think about your own budget; if you were looking to save money to improve your own personal profit, would you really even care about the $8 you spend a month on Netflix? Of course not, cutting that wouldn't make a dent. The time it would take to end the subscription wouldn't be justified.

Now think about wasting time cutting Netflix, but add in the headlines about how you just laid off a bunch of people, and how you're shutting down a business you just said was one of your 4 key divisions, and how anyone looking in would view such a move.

All over like <1% of the company's value.

 

[Wedzi]

Oh,
hey,
how's
it
going
bro?

Oh my.

Microsoft would soon sell off their IP to EA or just release it on the Windows Store if that were the case. I would have to imagine they'd hold onto Halo though given the name of their AI assistant.

 

[Saucycarpdog]

Came in expecting the OP to be a certain fanboy. Turned out I was right.

 

[Sojiro]

Remember folks, it always makes since for another company to go third party to make games for my favorite company.

 

[RayearthRob]

MS would support pc gaming.

 

[killatopak]

but pc is already third party.

 

[cripterion]

As much as they suck this gen, it would be awful if they left the gaming biz. Hopefully they can regroup for next gen and learn from their mistakes.

 

[4Tran]

Again, so little (relatively) is why they don't care to even investigate it. If you were at a meeting internally and brought Xbox to Nadella, he'd think it was as important as you bringing up chicken or steak at the company picnic. "Just buy both and shut up" is the attitude for that stuff.

Think about your own budget; if you were looking to save money to improve your own personal profit, would you really even care about the $8 you spend a month on Netflix? Of course not, cutting that wouldn't make a dent. The time it would take to end the subscription wouldn't be justified.

Now think about wasting time cutting Netflix, but add in the headlines about how you just laid off a bunch of people, and how you're shutting down a business you just said was one of your 4 key divisions, and how anyone looking in would view such a move.

All over like <1% of the company's value.

You're thinking in terms of Microsoft not really caring if they spend some money for the payoff, but I'm talking in terms of Microsoft not valuing the payoff to begin with. Microsoft's current leadership isn't invested in the success of Xbox, and Xbox's potential revenues don't mean a lot to them. So given this, why would they be interested in putting more money into the segment? Wouldn't it make more sense to subject it to performance metrics and adjust the budget based on how well Xbox performs on those metrics?