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Microsoft CEO Satya Nadella and Xbox head Phil Spencer discuss further acquisitions

Kumomeme

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Prior to the acquistion, they owned several large scale AAA developers that they built. Then, in 2018, they purchased several smaller studios with the aim to grow them. Now, they've purchased a raft of established studios. It sounds to me that Microsoft are covering their bases; small scale, medium scale, and large scale games. Then there's The Initiative - described as the first AAAA studio. Microsoft built that from scratch, so who knows what they're cooking up.
The recent acquisition surely with gamepass in mind. Even jason schreicer mentioned same on his twitter that microsoft aim to quadrable their current subs.

from what i see, since their current first party studio take time to release game, with Halo Infinite fiasco that get delayed next year or possibly delayed again for another 2022, there no other game to cover for it. The recent acquisition is probably to cover the empty gap while their own studio 'ready' to finish and ship their game. Atleast for now, the "xbox has no game" problem been 'fixed' for awhile. So after this i expect their 1st party/smaller studio and established studio that they buy will take turn covering the gap in market period window to make sure games are keep pumping in for the gamepass.
 
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Warablo

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It's bothersome but at the same time we live in a country that allows it so I can't be mad. I have always bought the platform necessary to play the games I want to play and this doesn't change that. If we get to a point where Microsoft buys EA, Take2, Square, Sega, CDPR, and Activision then we can all agree it's a problem. As of now, this is simply Microsoft staying competitive the best way they currently know how by keeping future Bethesda games off a competitors platform.
Or out of the hands of Sony, because Sony actually had rumors of buying Zenimax earlier.
 

Kumomeme

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They built 2 and all they hear is people complaints why they are not producing games yet after 2 years lol. People are not patient enough for building from the ground up.
they actually already has this chances for quite some time now. should done this since long time ago, atleast since during 360 era. But better late than never. Just dont expect to see the result instantly especially if expect them to suddenly toe to toe with Sony first party quality offering. Sony and nintendo didnt build their 1st party franchise in mere single generation. Building up solid franchise line up and legacy take times. I expect we might see something interesting in another generation or next when their new ip and studio that they grow up themself mature.
 

Dr Bass

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Why build talent when you can just spend billions buying it.

That's kinda the problem. They sort of aren't buying talent. They are buying "IP." Everyone involved in making these things could quit, go form a new studio, and MS is basically left holding the keys to what is now an effectively worthless franchise. Buying "stuff" is hardly a panacea to the problems they are having. We will see how it plays out, but it's going to be years.
 

DrAspirino

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Nadella is singing a little song of his:
Nokia got fucked
Skype got fucked
Zenimax, you'll never guess what happens to Zenimax la-la-la
Nokia is doing pretty well on the infrastructure segment. It never went down.
Skype is now the default IM and videocalling client for bussinesses on Office 365
Zenimax will still make games.

So... it seems you have no idea how Nadella thinks. For him, services are first and foremost. Skype transitioned from a client to a service. Nokia's devices IPs became part of Microsoft's software IPs and became implemented on Microsoft apps on Android and iPhone. Zenimax will be treated as a service.
 
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Redlight

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Exactly this was just a response to Sony blatantly trying to content starve them with money hats. You go to every major 3rd party looking to money hat expect a measured response. Ryan fired shots now Microsoft is responding in kind. Can't money hat starfield anymore lol. About time the Microsoft board stepped up and took steps to fight back and build the gaming division.
You could be right. It may also be the opposite. This deal would've been months in the making, Sony was in talks with Zenimax over the same period (Deathloop, attempt to tie-up Starfield) it's possible that Sony went on their money-hat spree in response to hearing about this upcoming deal.
 

Redlight

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Why? If you were a Xbox fan you would have gotten all these games anyway. If you are into console wars its good for Xbox fans. But if you are just an Xbox fan, nothing really changes
That's not quite right, now those Zenimax games will come to Gamepass day and date. That wouldn't have happened before.

For existing Gamepass subscribers those game are now, effectively, FREE. That's a very big change.
 

quest

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That's kinda the problem. They sort of aren't buying talent. They are buying "IP." Everyone involved in making these things could quit, go form a new studio, and MS is basically left holding the keys to what is now an effectively worthless franchise. Buying "stuff" is hardly a panacea to the problems they are having. We will see how it plays out, but it's going to be years.
I don't see them having people quit at all from how they treated each new studio purchase. Letting them decide projects and even allowing some side passion projects for more established studios. It sounds like a pretty good gig listening to everyone. They do their thing Microsoft provides funding and other assistance. No publisher breathing down thier necks or games they don't want to do.
 
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Stiflers Mom

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You call selling >150m consoles over 3 generations a failure?



What studios has Microsoft shut down recently? AFAIK, wasn't Sony the one who shut down Evolution Studios (DriveClub), also shut down Manchester Studios (PSVR AAA titles) recently this year, and a UK-based Guerrilla Games studios in 2017?
Plus Sony Liverpool (aka Psygnosis, one of the most beloved game studios and publishers of the Amiga/ST 16 bit generation)

As for building studios/nurturing talent, both Microsoft and Sony have done this, but Sony Entertainment has grown into the juggernaut it became in the 2010s through savvy acquisitions (Naughty Dog, Sucker Punch, Media Molecule, etc.).
Exactly.
 
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Gavon West

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Exactly this was just a response to Sony blatantly trying to content starve them with money hats. You go to every major 3rd party looking to money hat expect a measured response. Ryan fired shots now Microsoft is responding in kind. Can't money hat starfield anymore lol. About time the Microsoft board stepped up and took steps to fight back and build the gaming division.
Sony is known to try and starve out the competition every gen. Just like they did with Sega and DC. They tried it again with Microsoft for next gen and it backfired. Hard AF. I honestly find it funny.
 

Gavon West

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Its insane, but what did it get Xbox fans? They are not getting any new games. They could have played all the games if MS bought them or not. MS added zero new games in this buy. They just took games away from a competitor. Its good for MS, but bad for gamers
False. It gave Xbox fans alot of confidence in the brand and confidence that more games (AAA) are coming. That's a powerful thing.
 
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Gavon West

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Those studios were going to make the games with or without MS buying them. Those games would have been on Xbox with or without MS buying them. When the next ES or Doom game comes out, Xbox fans get to play it. If they didn't buy them, they still would have been able to play it
Thats not really accurate. Bethesda wasnt doing too well financially (Evil Within 2, Wolfenstein New Blood, Fallout underperformed) and were either going to have to make GAAs games or do some heavy restructuring of the business in which many people wouldve lost their jobs. This deal gave them autonomy and security to do what they do best. Now, Microsoft backs them and gets out of the way.

Thats why Im saying, people who think any of these games are going to PS5 after an acqusition like this are mad. They'll honor contracts, but after that its all over.
 
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Barakov

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Sony is known to try and starve out the competition every gen. Just like they did with Sega and DC. They tried it again with Microsoft for next gen and it backfired. Hard AF. I honestly find it funny.
Honestly, if they buy Sega, it would be delicious irony for the XSX be a Dreamcast 2. Maybe we'll get VF6 after all?
 

JTCx

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Cool, can they use that money and fix their shitty client?
 
Mar 23, 2018
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The big issue i have with microsoft is that whenever they decide to drop the gaming division, elder scrolls / doom etc will all be locked in a vault to never be seen again.
 

jhjfss

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MS CEO: This isn't enough! we need more!

 

Nhranaghacon

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Xbox 360 won that generation, anyone else claiming otherwise are looking at sales figures inflated by a 30 dollar bargain bin PS3 sold across Asia as a "netflix streaming device".

Xbox 360 had already handedly won the generation by the time it cut production, and it didn't do that by continuing to sell it's system 3 generation's later at an astronomical price cut like the PS3 who still sales consoles at probably now - 19.99

Instead - it outsold PS3 while it was still a $150 machine before Microsoft moved on to the next generation.

Sony never quit producing the PS3 in Asia.

So people claiming that "Aww Microsoft has been trying to win a generation since it launched Xbox" need to get their fact's straight. By the end of 2011, once the numbers came in from Russia - it was obvious Xbox 360 won handedly.
 

Panajev2001a

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Now, Microsoft backs them and gets out of the way

I hope so, I have yet to see MS managing a studio this way (just funding them and getting out of the way) and more evidence of the opposite, but willing to see what they do.

Xbox 360 won that generation, anyone else claiming otherwise are looking at sales figures inflated by a 30 dollar bargain bin PS3 sold across Asia as a "netflix streaming device".

Xbox 360 had already handedly won the generation by the time it cut production, and it didn't do that by continuing to sell it's system 3 generation's later at an astronomical price cut like the PS3 who still sales consoles at probably now - 19.99

Instead - it outsold PS3 while it was still a $150 machine before Microsoft moved on to the next generation.

Sony never quit producing the PS3 in Asia.

So people claiming that "Aww Microsoft has been trying to win a generation since it launched Xbox" need to get their fact's straight. By the end of 2011, once the numbers came in from Russia - it was obvious Xbox 360 won handedly.

Oh come on, first Wii one and second Xbox 360 at best reached parity. Period.
 
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Kerotan

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„"Content is just the incredible ingredient to our platform that we continue to invest in," Xbox head Phil Spencer said in that same interview. "This doubles the size of our creative organization.“

lol@people believing they will release anything on PS5
There's now a massive opportunity for RPG makers to make inroads. Games like Fallout, Doom and Dishonoured are going to lose a lot of relevance without their most popular console to sell on.

I'm betting Harry Potter rpg gains at the expense of Bethesda rpgs.
 

Mattyp

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Yes, I can read their financial statements as they are public. Revenue ain't profit.

Try finished middle school so you can read numbers as well. Also I was talking about MS's Xbox division.

What's your cut from MSFT's (as a whole) financial profits ? still on mommy's allowance ?

Yes so post the revenue numbers of Xbox per quarter and explain to the rest of us how Xbox division costs more than $10 billion to run, I'll wait. I actually own Microsoft shares.

 

prinz_valium

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Yes, I can read their financial statements as they are public. Revenue ain't profit.

Try finished middle school so you can read numbers as well. Also I was talking about MS's Xbox division.

What's your cut from MSFT's (as a whole) financial profits ? still on mommy's allowance ?

Okay let us read them

More Personal Computing FY2020
Revenue: $48,251 million
Expenses: $32,340 million
OI: $15,911 million

More Personal Computing FY2020 revenue breakdown
Windows: $22,294 million (46,2%)
Gaming: $11,575 million (24%)
Search: $7,740 million (16%)
Devices: $6,457 million (13.4%)


And their profits jumped from $1.5bn to $4bn a quarter, while revenue just increased slightly.



You don't have Gaming making up 24% of the revenue of the division, but 36% of the expenses. (aka over 1/3)
We're talking about Windows, Surface and their whole AI/search team, that's in the division.
 
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I don't like this stratagy. Sure it hurts Sony some, but what do Xbox fans gain? They were going to get all these games anyway. This buy didn't get them the chance to play games they never could. Building smaller studios and growing them or building your own studio is the way to go because than you actually get games you never would have been able to play

As a gamepass subscriber this is going to save me hundreds of dollars. Yes I was going to get all these games, but not having to pay hundreds of extra dollars for them is very beneficial. I couldn't care less about hurting Sony, I hope the games stay on playstation.

Plus hopefully this means bethesda can go back to focusing on single player games rather than GaaS multiplayer garbage. And even if MS doesn't release these games on PS5, odds are you will be able to play them on xcloud anyway... and for $15 instead of $70. Overall I feel like it is kind of a win/win. Hopefully Sony throws all their exclusives on PSNow and follows suit.
 

Camreezie

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Microsoft Cash Reserves are $136.6 bln
You refer to that based on ability to do so or based on accumulated studios and the fact that they might reached a level of accomplishment that's enough?
I mean, if it comes to the rules, they can buy quite a bit more before having issues with authorities for any form of monopoly and potentially predatory pricing issues and, by the end of the day, I guess they have had their fair share of experience being a monopoly/oligopoly for software for many years to be honest.
I understand that they have enough wealth to acquire more , I more meant that surely they would want to see some return in previous investments before diving back in again
 
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Redlancet

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Some of the key things Sony did during PS1 era that gave them a boost was buying Psygnosis (which at the time was a multiplat studio) and moneyhatting Tomb Raider so the sequels got delayed or didn't go to Saturn and N64. The first game was a big success on Saturn, PS and PC.

Psygnosis made game multiplat for a year into PS1 and then Sony seemed to cut them off from other platforms.

People don't know or remember this because back then nobody knew what was going with deals. All you had was whatever was written in game magazines.

you dont know shit,you know why? i was working there at the time,sony bought psyg for the tools and because ian have haved a good relationship with sony ,we were free to do games on any system,we choosed to focus on ps1 because others versions sold like shit on saturn and pc,for us at the time ps1 was the new amiga,these were good times
 
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kuncol02

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Plus Sony Liverpool (aka Psygnosis, one of the most beloved game studios and publishers of the Amiga/ST 16 bit generation)
That wound still bleeds. They not only closed it. They taken one of most beloved studios. Turned it into F1 games sweatshop and then moved them into dead IP from dead genre when they lost F1 license and finally closed them.
 
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aliadiere25

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You might want to check your facts there. Sony didn’t ‘invest’ in Insomniac and Guerilla etc. they BOUGHT them. The same as filthy Microsoft.

Sony didn't overpay for those companies. They've actually been making big profits.

Microsoft definitely overpaid for Bethesda. Microsoft thinks they can just throw money at everything and it'll fix their problems. It's going to take years for them so see any type of profit from their Bethesda deal, even with Game Pass. They didn't use their gaming studio profits, they used the software profits. That's the difference.
 
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Redlancet

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That wound still bleeds. They not only closed it. They taken one of most beloved studios. Turned it into F1 games sweatshop and then moved them into dead IP from dead genre when they lost F1 license and finally closed them.
psygno at the time was bleeding money and people,they literally saved us on 93,we were doing fuking3 ninjas kick back at the time,
 
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Nhranaghacon

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I hope so, I have yet to see MS managing a studio this way (just funding them and getting out of the way) and more evidence of the opposite, but willing to see what they do.



Oh come on, first Wii one and second Xbox 360 at best reached parity. Period.

No, wii dominated for 4 years but had weak games sales with only Zelda, Mario, MarioKart, and a small handfull of other Nintendo titles keeping the core audience from using it as a trade in.

360 won the generation as it dominated the entire 8 year's it was profitable to be in production due mainly to strong games AND console sales.

It had a oblivion that didn't run sub 15 fps (oblivion ran terribly up until it was patched on PS3 and this fact hurt PS3 sales badly).

It had years of solid Call Of Duty with a legit working online component. PS3 had Call of Duty and a terrible online component that was
often in limbo for 3 whole years after launching.

And finally Gears of War shook the industry and was heralded to much acclaim, made PC gamers upset and envious - made PS3 owners extremely vocal about lack
of quality first party content.

PS3 was held together by Uncharted, it's 3rd and 2nd party games. MGS4 took a whole 3 years after the launch of the PS3 to come out, Final Fantasy did not bolster PS3 sales to xbox 360 levels. PS3
lacked must have 1st party content until the end of it's lifespan, which did not aid in sales against Xbox as most Sony Fanboys rightly held out for PS4.

I remember waiting for the numbers with a bunch of friends, 3 were PS3 diehards.

They all bowed out to 360 taking the generation in 2011 after the final numbers came in - Wii came out in 2006, and wasn't even a thing anymore in late 2011. Attentive consumers and serious buyers began
considering the Wii U as the Wii was known to be a bargain console riding high on novelty with a small handful of must own titles.

Microsoft cut production of the 360 after winning the generation handedly. PS3 dropped in price across the Asian market's significantly (39.99) and remained in production overseas.
 
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kuncol02

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psygno at the time was bleeding money and people,they literally saved us on 93,we were doing fuking3 ninjas kick back at the time,
Problem is not with Sony buying Psygnosis, but what happened when it was consolidated into SCE and renamed to Sony Liverpool.
 

Redlight

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Sony didn't overpay for those companies. They've actually been making big profits.

Microsoft definitely overpaid for Bethesda. Microsoft thinks they can just throw money at everything and it'll fix their problems. It's going to take years for them so see any type of profit from their Bethesda deal, even with Game Pass. They didn't use their gaming studio profits, they used the software profits. That's the difference.
So you don't have a problem with what Xbox did, you're just concerned about their profit/loss? That's mighty kind of you.
 

Panajev2001a

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No, wii dominated for 4 years but had weak games sales with only Zelda, Mario, MarioKart, and a small handfull of other Nintendo titles keeping the core audience from using it as a trade in.

360 won the generation as it dominated the entire 8 year's it was profitable to be in production due mainly to strong games AND console sales.

It had a oblivion that didn't run sub 15 fps (oblivion ran terribly up until it was patched on PS3 and this fact hurt PS3 sales badly).

It had years of solid Call Of Duty with a legit working online component. PS3 had Call of Duty and a terrible online component that was
often in limbo for 3 whole years after launching.

And finally Gears of War shook the industry and was heralded to much acclaim, made PC gamers upset and envious - made PS3 owners extremely vocal about lack
of quality first party content.

PS3 was held together by Uncharted, it's 3rd and 2nd party games. MGS4 took a whole 3 years after the launch of the PS3 to come out, Final Fantasy did not bolster PS3 sales to xbox 360 levels. PS3
lacked must have 1st party content until the end of it's lifespan, which did not aid in sales against Xbox as most Sony Fanboys rightly held out for PS4.

I remember waiting for the numbers with a bunch of friends, 3 were PS3 diehards.

They all bowed out to 360 taking the generation in 2011 after the final numbers came in - Wii came out in 2006, and wasn't even a thing anymore in late 2011. Attentive consumers and serious buyers began
considering the Wii U as the Wii was known to be a bargain console riding high on novelty with a small handful of must own titles.

Microsoft cut production of the 360 after winning the generation handedly. PS3 dropped in price across the Asian market's significantly (39.99) and remained in production overseas.

What a distorted view of history :LOL:.
 
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Andodalf

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Sony didn't overpay for those companies. They've actually been making big profits.

Microsoft definitely overpaid for Bethesda. Microsoft thinks they can just throw money at everything and it'll fix their problems. It's going to take years for them so see any type of profit from their Bethesda deal, even with Game Pass. They didn't use their gaming studio profits, they used the software profits. That's the difference.



What the fuck world do you live in where you can buy a company an instantly profit? Investments are made to profit over 5/10/15 years, not over night. This isn’t cookie clicker my dude
 
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They all bowed out to 360 taking the generation in 2011 after the final numbers came in
The generation ended in 2011?

The problem is that as you said MS started the 360 generation really strong and they were also early, and in part because of how the ps3was designed it took Sony a while to get the hang of the quirks of the system's internals (which probably only made the PS3 on a level with the 360 in many ways, but not all).

Then kinekt came out, it sold like hot cakes and distracted MS... It took all their attention away from what made them popular in the first place, while Sony's studios started to really hit their stride... From 2009 to 2013 the PS3 was the better choice, and Sony ended up on top...

The last generation did not end in 2011.
 

12Dannu123

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Sony didn't overpay for those companies. They've actually been making big profits.

Microsoft definitely overpaid for Bethesda. Microsoft thinks they can just throw money at everything and it'll fix their problems. It's going to take years for them so see any type of profit from their Bethesda deal, even with Game Pass. They didn't use their gaming studio profits, they used the software profits. That's the difference.

So what? Microsoft isn't playing for this for a short term profit play, it's about bolstering the long term value of Game Pass.
 
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VectorVictor

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Everyone’s going back and forth about Sony and Microsoft killing studios with incompetence...

...meanwhile EA is looking over its shoulder and making sure there’s enough space left in its burial pit for BioWare.💀
 

Nhranaghacon

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Those numbers came out 2 weeks before 2012, so yes, generationally speaking - afterwards those consoles were both relegated to old news last gen pieces of technology. Except one never quit producing it's old hardware - even to this day. You think console sales are bolstered the year before a new release as both PS4 and Xbox One was due to launch in 2013? Those number's essentially landed at the beginning of 2012. Everyone I knew, at least - considered 2012 to be the year to look forward to next gen offering's.

Eitherway, 360 won that era. Final Fantasy went Cross platform and was on both 360 and PS3 - this reallllly hurt PS3 sales across Europe and NA, a horrendous low frame rate port of Oblivion plagued the PS3 (which was a notable purchasing factor voiced by soccer mom's over and over when this game launched), A horrendous online component that rendered Call Of Duty Modern Warfare online useless, had mannnnnny PS3 owners genuinely upset -and the adage of nearly all 2nd and 3rd party games no longer exclusively launching with Sony did not bode well for PS3.

I mean, if you're insinuating the generation didn't end there as they didn't cut production and quit selling machines - Sony cut the price of the PS3 to astronomically low figures and kept producing consoles long after Microsoft ended production and quit selling 360 at a premium. They both produce a console for year's after the launch of the newest hardware yet somehow that generation remained relevant? No.

I believe most gamers rightly consider the launch of new hardware the end of the previous generation. As was the case in 2013.
 
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Nhranaghacon

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PS1 Sold 998 Million devices during it's reign, and that number became 1.06 billion when sales ended 6 years into the life of PS2.

360 still handedly defeated the PS3 while in production. And it was a generation most would consider perhaps one of the most important generations - as it lead to standardized HD TV's in homes.
 
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Panajev2001a

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PS1 Sold 998 Million devices during it's reign, and that number became 1.06 billion when sales ended 6 years into the life of PS2.

360 still handedly defeated the PS3 while in production. And it was a generation most would consider perhaps one of the most important generations - as it lead to standardized HD TV's in homes.

This is some next level of revisionist history coupled with redefining the goal posts to win the argument. We can probably declare the Saturn a winner too if we only count the months PS1 was not on the market yet :rolleyes:.
 
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massivekettle

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Sony sold more than that with just a single console.

And they haven't come close to repeating the feat, despite Nintendo and Microsoft scoring own goals for most of this current generation, and an overall market that has grown significantly since the last time they achieved that sales milestone.
 
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Clear

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And they haven't come close to repeating the feat, despite Nintendo and Microsoft scoring own goals for most of this current generation.

Actually if you restrict sales to just to the period that all 3 major platform holders are offering the same generational line-up PS4 is actually Playstation's best selling console. PS2 had barely hit 100m units when 360 came out, they shipped a further 50+m after that. You can still Google the then contemporary news reports to see when Sony announced they passed the 100m shipment mark, it was at the end of November 2005!

This stuff simply isn't debatable, you can corroborate when this happened using numerous news reports from when it happened . All of which makes the fantastical version of history presented by Nhranaghacon easy as pie to debunk.