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[ManaByte]

Microsoft’s Xbox boss says Amazon and Google are “the main competitors going forward”

Future console wars could be held in cloud servers.

www.theverge.com

“When you talk about Nintendo and Sony, we have a ton of respect for them, but we see Amazon and Google as the main competitors going forward,” says Spencer. “That’s not to disrespect Nintendo and Sony, but the traditional gaming companies are somewhat out of position. I guess they could try to re-create Azure, but we’ve invested tens of billions of dollars in cloud over the years.”

“I don’t want to be in a fight over format wars with those guys while Amazon and Google are focusing on how to get gaming to 7 billion people around the world,” says Spencer in the Protocol interview. “Ultimately, that’s the goal.”

This could explain why Sony is also using Azure now. They realize the same thing and just won't admit it publicly. Better to sign yourself with your "competitor" MS in order to fight the two cloud giants.

 

[mejin]

so, they are going to the ocean after almost killed in the lake.

 

[Whitecrow]

Well, looks like someone will lose some serioius shit if the cloud gimmick fails. Thing that can perfectly happen.

 

[Mr Hyde]

I think it's good that the big three tries to carve out their own niche in the gaming space. Nobody wants three companies doing the exact same thing.

 

[ManaByte]

Well, looks like someone will lose some serioius shit if the cloud gimmick fails. Thing that can perfectly happen.

The PS5 is using cloud gaming too. It was on the slide of features.

What he's saying is that Amazon and Google have massive cloud services they're using for gaming.

Microsoft has Azure. They don't need to invest to make what Amazon and Google already have. Sony signed on to use Azure.

So instead of investing billions making their own cloud service, Sony is using Microsofts. Likely because they realize what Spencer just said about investing to make the infrastructure.

 

[Hobbygaming]

Stadia is comatose and we'll see about Amazon

I'm team consoles for life lol

 

[CyberPanda]

The PS5 is using cloud gaming too. It was on the slide of features.

What he's saying is that Amazon and Google have massive cloud services they're using for gaming.

Microsoft has Azure. They don't need to invest to make what Amazon and Google already have. Sony signed on to use Azure.

So instead of investing billions making their own cloud service, Sony is using Microsofts. Likely because they realize what Spencer just said about investing to make the infrastructure.

Yep. Bingo

 

[Agnostic2020]

This billions of gamers wanting to play hardcore games On their tiny mobiles like assassin creed or gears of war don’t exist . They want candy crush . Mindless easy to play games for free .

 

[PlayStaytion]

"Finish the fight"


Master Chief

 

[Vawn]

And people wonder why Xbox keeps failing time and again.

Thata boy Phil. Give up on the type of gamers that play stuff like Zelda, God of War, Mario and Uncharted. Go after that sweet, sweet Candy Crush market.

Count me out though.

 

[EMP88]

Microsoft’s major revenue generator going forward will be cloud. There will only be a handful of suppliers worldwide with enough coverage.

Spencer’s job is to bring cloud business to Microsoft. Sony now use Azure. I wouldn’t be surprised if Nintendo do in time.

But this article is more about cloud wars rather than gaming itself. It’s why I’m certain Microsoft will bring their titles to all platforms. With the possible exception of Google & Amazon for reasons stated above.

 

[Whitecrow]

The PS5 is using cloud gaming too. It was on the slide of features.

What he's saying is that Amazon and Google have massive cloud services they're using for gaming.

Microsoft has Azure. They don't need to invest to make what Amazon and Google already have. Sony signed on to use Azure.

So instead of investing billions making their own cloud service, Sony is using Microsofts. Likely because they realize what Spencer just said about investing to make the infrastructure.

'Using' does not equal to 'base it on'.

MS failed at everything they tried. Kinect, the power of the cloud, and console sales.
You really think Sony will in any way follow MS steps?

 

[DanielsM]

 

[Blond]

so, they are going to the ocean after almost killed in the lake.

Alan Wake 2 confirmed

 

[DanielsM]

Sony signed on to use Azure.

So instead of investing billions making their own cloud service, Sony is using Microsofts. Likely because they realize what Spencer just said about investing to make the infrastructure.

Actually, Sony did not sign up to use any services (Azure). They have an agreement to possibly work on some technology, maybe.... most probably the virtualization of consoles.

Either way game streaming is generally dead, so the point is mostly moot.

(another day, another silly Microsoft market bit)

 

[ManaByte]

'Using' does not equal to 'base it on'.

MS failed at everything they tried. Kinect, the power of the cloud, and console sales.
You really think Sony will in any way follow MS steps?

You'll be able to access your PS5 library via the internet just like on XCloud. Sony is using Azure to do that. They didn't spend billions of dollars to build the infrastructure for it. That's what Spencer is talking about.

People here like to laugh and mock "the cloud", but Amazon's AWS is taking over the planet. Hell, my best friend who was a software engineer for 18 years is now pivoting and getting certified on AWS because that's what people demand now. MS realizes that.

 

[Slings and Arrows]

The enemy of my enemy must be my friend

 

[DeepEnigma]

Of course. Services.

 

[Iced Arcade]

makes sense why they are all working together more.

 

[Hobbygaming]

This billions of gamers wanting to play hardcore games like assassin creed or gears of war don’t exist . They want candy crush . Mindless easy to play games for free .

This. Good luck converting those people who just want simple mobile games

 

[M1chl]

I mean, something which is nice, is that MS does not close servers, so if that means that, I am all for it. I hope, that since Sony uses Azure too, that they can keep their games running as long as Azure exists, since it can scale for the needs and don't take valuable resources.

But also like... Google is your competitor, Phil are you watching the news? Well maybe so, because it's not like there are any news about Stadia...

 

[DanielsM]

I mean, something which is nice, is that MS does not close servers, so if that means that, I am all for it. I hope, that since Sony uses Azure too, that they can keep their games running as long as Azure exists, since it can scale for the needs and don't take valuable resources.

But also like... Google is your competitor, Phil are you watching the news? Well maybe so, because it's not like there are any news about Stadia...

But they are not virtualized machines. All Microsoft and Sony are doing is stacking consoles in racks.

You can virtualized PCs but MS only just now rolled out their VD.

 

[M1chl]

But they are not virtualized machines. All Microsoft and Sony are doing is stacking consoles in racks.

That's Xcloud/PSNow, I was talking about whole infrastructure. Well Sony going to use Azure, just for PSNow?

 

[alienator]

This is the last thing i would want to read about xbox and what they are focussing on..

i want phil to say hey! listen u little sh*t, we got the games that will u make forget sony and nintendo games. triple A cinematic games, walking simulators, niche games, multiplayer games, action games, racing games, platform games, whatever u want games! games! games games!

all i got the last few months was that he went to japan, no sexclusives for a year or 2 and cloud stuff.

How can he say "traditional gaming companies are somewhat out of position " when sony just announce 108m sold ps4's and nintendo almost pushing them into slot nr3 with their switch?

 

[Agnostic2020]

This. Good luck converting those people who just want simple mobile games

Exactly . Just cause you imagine there are billions of gamers wanting to play hardcore games on their mobile , It doesn’t mean they actually exist .

 

[DanielsM]

That's Xcloud/PSNow, I was talking about whole infrastructure. Well Sony going to use Azure, just for PSNow?

There is no deal for anything. There is an agreement to potentially work on some technology, that's basically it. Unless the consoles are virtualized, all they are is rack mounted consoles. Its a fancy way of saying datacenter. But why would anyone be doing this for gaming anyway? No customers.

As far as PS Now, seemed to work just fine when I tested it 5+ years ago other than its silly game streaming.... not sure why anyone would really pay for it.

 

[ManaByte]

That's Xcloud/PSNow, I was talking about whole infrastructure. Well Sony going to use Azure, just for PSNow?

Why would they rely on their shit PSN servers when they have an agreement for Azure?

 

[Tragic Denial]

play stuff like Zelda, God of War, Mario and Uncharted

 

[DanielsM]

Of course. Services.

Phil sold Nadella a big pile of bullshit.

I think we all need to lower our sales figures (estimates) for the Xbone and Xbox SEXY time by quite a few million more.

Sony and Nintendo are like... keep talking Phil.

 

[M1chl]

Why would they rely on their shit PSN servers when they have an agreement for Azure?

Well that was my question, why would they don't use Azure, I thought that was part of the deal.

 

[Fox Mulder]

Stadia is comatose and we'll see about Amazon

I'm team consoles for life lol

if cloud gaming fails now, Google, Amazon, and MS will only keep trying. It’s not going away.

 

[Agnostic2020]

Tell him how boring those are . Preach

bring me that GOAT candy crush. Hell yeah bro .

Spoiler: Fuck yeahhh

Said no one ever

 

[Metnut]

So Microsoft sees the end game as being a better version of Stadia? They are dismissing Sony because they just want to make a system and lots of first parry games?

Well good luck with that Microsoft. I have a feeling the strategy will work about as well as Internet Explorer, Windows Phone and Bing search.

 

[ManaByte]

Phil sold Nadella a big pile of bullshit.

I think we all need to lower our sales figures for the Xbone and Xbox SEXY time by quite a few billion more.

MS was moving to services long before that. Look at Office and Azure.

 

[DeepEnigma]

MS was moving to services long before that. Look at Office and Azure.

Check D DanielsM post history. He has been preaching what you are saying for months and months.

 

[Woo-Fu]

Guess that's the end of the console war now that Nintendo and Microsoft have surrendered. Things will be a lot more peaceful around here.

 

[Hobbygaming]

Exactly . Just cause you imagine there are billions of gamers wanting to play hardcore games on their mobile , It doesn’t mean they actually exist .

Lol Yep, I've always thought the reaching 2 billion gamer thing was a pie in the sky dream

 

[MiyazakiHatesKojima]

This is pathetic.

 

[chemical boy]

so, they are going to the ocean after almost killed in the lake.

Perfect summary.
Also outside the US here in Spain for example, Xbox does not exist, Sony and Nintendo run the industry.

 

[DanielsM]

Lol Yep, I've always thought the reaching 2 billion gamer thing was a pie in the sky dream

They have access to almost 1 billion users via the MS Store/Windows Store yet they can't sell software on it. Instead of competing they are trying to run to where the competition isn't.

My significant other will watch Shark Tank every once in a while... usually they jump down people's throats when they start a sales pitch that way.

"We just need 1% of the $500 billion market in X."
"We just need 5% of the 300 million customers currently using X"

Its basically a lie, meaning they really don't have a plan... trying to divert eyes away from their non-existent plan.

Virtualized desktops for instance have existed for a very very long time... yet the general consumer doesn't use them and most of the time have no idea they even existed... because for a consumer it doesn't make much sense. These companies think what works in enterprise/business will translate over to consumers... but there is really no real reason for someone to have a VD subscription at home... it costs more and they can just get on their old PC or their phone.

Phil sold Nadella a big pile of bullshit.

 

[MoreJRPG]

And people wonder why Xbox keeps failing time and again.

Thata boy Phil. Give up on the type of gamers that play stuff like Zelda, God of War, Mario and Uncharted. Go after that sweet, sweet Candy Crush market.

Count me out though.

Digital is rising year after year, PS4 is nearly at a 50/50 split. Cloud and digital is the future whether you like it or not. Some people are still watching VHS, you’ll join them in 20 years with your mindset.

 

[Panajev2001a]

Microsoft’s Xbox boss says Amazon and Google are “the main competitors going forward”

Future console wars could be held in cloud servers.

www.theverge.com

This could explain why Sony is also using Azure now. They realize the same thing and just won't admit it publicly. Better to sign yourself with your "competitor" MS in order to fight the two cloud giants.

Hey Phil... quick question... Care to explain again why you are spending billions to R&D XSX and Lockhart then?! He keeps trying to talk people into jump on board of XSX from one side of his mouth and then uttering words undermining that from the other side...

Example in previous speeches: "Gamers should be playing from everywhere, we do not care which hardware platform it is as long as it is on our cloud solution [Xbox PR guy speaks into his ear]... unless your console is a PlayStation" hehe .

 

[FranXico]

Of course. Services.

R E C U R R E N T
E
V
E
N
U
E

 

[Vawn]

Digital is rising year after year, PS4 is nearly at a 50/50 split. Cloud and digital is the future whether you like it or not. Some people are still watching VHS, you’ll join them in 20 years with your mindset.

If VHS in this scenario is playing games directly off of hardware instead of streaming games 100% and dealing with being tied directly to the Internet, input latency, etc, sign me up for VHS now.

And 20 years? That's a long ass time. Xbox itself hasn't even been around 20 years.

 

[thicc_girls_are_teh_best]

'Using' does not equal to 'base it on'.

MS failed at everything they tried. Kinect, the power of the cloud, and console sales.
You really think Sony will in any way follow MS steps?

"PlayStation games are never coming to PC!!"

PS Now available for PC players, Death Stranding PC release confirmed ahead of PS4 release, Horizon very likely coming to PC, job listings on Sony dev sites looking specifically for devs with PC software backgrounds, etc...

"Why should Sony do Crossplay!?!? Dey Auhrr Numbah Wan!"

Caves in to providing gradual crossplay support with Xbox and PC, thanks to Fortnite forcing their hand.

"You'll NEVER see Sony games playable on competitor platfoahms!!"

Sony puts up a poll asking how people would feel if they allow Remote Play with the Nintendo Switch. Likely because they are already in the planning stages of bringing about such a feature (why else waste people's time with a question if you are not at least in some early stages of making it happen?)

"Sony doesn't care about cloud gaming!!"

Sony strikes a deal with MS to utilize their Azure servers for online and cloud-based services.

I am just endlessly amazed at how short an attention span most console warriors seem to have. Also can't forget the constant goalpost-shifting. Look, the reality is Sony and MS have very similar end-goals in the gaming space. They both know that, at some point, dedicated game console machines the way PS and Xbox are right now, are going to become obsolete. Very likely within the decade, in fact.

Neither wants to be caught off guard, and neither wants to be completely usurped by giants like Amazon and Google, so they are making their preparations now and investing into the eventual future. The amazing fallacy here is how a lot of people want to continue thinking Sony is somehow different in these ambitions than MS or any of the other tech giants.

In reality the only reason you don't hear as much about Sony's cloud initiatives compared to a company like MS, is because Sony already started further behind many of the others, so they've had to play catch-up in that space. However, rest assured that if and when they do eventually catch up, you will see and hear a lot more of their cloud initiatives and GAAS models going forward. For now, however, they have to play by the metrics of what their current strengths are, but they know that nothing stays strong forever, including what their strengths may currently be, so they want to be ready for the future.

Once they're at a point in which they feel they can push more aggressively on those points openly, they're going to go in on it, h a r d.

 

[DanielsM]

Digital is rising year after year, PS4 is nearly at a 50/50 split. Cloud and digital is the future whether you like it or not. Some people are still watching VHS, you’ll join them in 20 years with your mindset.

This is the second time I believe I have caught you comparing cloud to digital and than trying to form a strawman off of it. Game streaming has almost existed as long as digital downloads. I would say game streaming is the past.... worse performance at more expense (or will be).

Game streaming should be growing at 100s% a quarter to have any real impact in growth, but its not really.

 

[DunDunDunpachi]

Yeah, folks have been pointing to the signs for years. Microsoft sees Amazon and Google as direct competitors to their other "___ as a service" products, so it makes sense they'd align everything to combat it. This doesn't just apply to Xbox software but to Windows and to their Azure product and so forth. Microsoft of yore would've used a different business model in every brand and product, causing internal strife. Now they are "rowing in the same direction" but that cookie-cutter approach might not work in enthusiast markets that sell based on novelty and pluck.

 

[Trogdor1123]

So the company that absolutely got dominated last generation is saying that 2 companies that really aren't in gaming right now are their competition? Does that really make sense? Especially given how their "10s of billions in investment" might provide an inferior product?

It's pretty clear here that they are only trying to deminish the status Sony/Nintendo has over them in the field. Pretty standard tactic.

 

[DanielsM]

So the company that absolutely got dominated last generation is saying that 2 companies that really aren't in gaming right now are their competition? Does that really make sense? Especially given how their "10s of billions in investment" might provide an inferior product?

It's pretty clear here that they are only trying to deminish the status Sony/Nintendo has over them in the field. Pretty standard tactic.

And they make no mention of Valve who has cleaned them up very quickly twice on their failed experiments i.e. Games for Windows Live and Microsoft Store. Valve isn't competition either, they're too busy fighting with Google over the dozen streaming customers. They are simply running from competition... the problem they ran to where the customers aren't... da cloud.

Everyone needs to drastically lower future gaming revenue at Microsoft, the more they talk the worst it gets.

 

[Psykodad]

Lol And I was a delusional PS fanboy for saying that MS would shift towards GamePass and xCloud and next-gen would just be a transitional phase if it takes off?

They keep being more upfront about it.