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Microsoft Will Focus Primarily On Xbox Live Usership, Not Console Shipments.

Hard to see this as anything other than a cop out. But at least Live makes them money. NIntendo has to lean on "critical reception" when talking about how successful the Wii U is.

I think Live needs to be more dynamic in what it offers if they're going down this route. Not just talking about the Games with Gold either. Fear they're fighting a losing battle when they don't have the lead on downloadable content like they enjoyed in the 360 era (Fallout, Grand Theft Auto, Call of Duty etc)
 
There is at least some logic behind this - aside from the obvious spin.

Engagement is important - Nintendo showed with Wii that you can sell a lot of consoles, but if they don't get used all that often, or the owners aren't buying 3rd party games, then it's not particularly beneficial for the business ecosystem.

That said, if MS was to compare the active usership to PS4, then PS4 would certainly still win there too.
 
I mean this is good. They can enage with consumers better.

I really don't get it. Xbox has been doing so well the past year in terms of bring good quality games to its system but so many of you people are always like lol sales.
 
Both silver and gold are counted. "No differentiation has been made between gold (paying) and silver (free) members"

Does silver still generate revenue via ads? Can silver account holders purchase the various media?

It has been a while since I was on Live.
 
It's a good metric in a lot of ways, but their current position makes it seem like much more of a cop out.
 
nearly 40 million xbl subs being out beat by a couple hundred thousand in console sales? That's not likely to happen lol

While there are most likely a shit tonne of Xboxlive subscriptions, that number is for Monthly Active Users, ie which id assume is a very carefully worded statement which throws anyone who uses any aspect of Xbox Live,including folks that don't pay and are using it for the likes of say,accessing the store into one big category.
 
Isn't this due to how they moved Xbox into that "Personal computing and other" category as well?
And lol at the doom and gloom.
 
It makes sense. It fits their narrative of unifying all their platforms and it seems hardware dropped off but software picked up so they'll go with the metric that better reflects that.

This thread is going to become a thinly veiled console war battlefield.
 
Maybe Microsoft should only sell in US and UK and give up elsewhere

I feel bad for them in Japan but that is the only region they are doing extremely poorly in. Elsewhere sales are good enough. The more games they get and the more they improve the software so I might even buy one. And I am not a fan of MS but I love games.

Does silver still generate revenue via ads? Can silver account holders purchase the various media?

It has been a while since I was on Live.

Not an xbox gamer so I don't know
 
It's still a worthy metric.

We have a ps4 bought last year. It's either been boxed up or collecting dust. That's no revenue for Sony, while the Xbox has a constant flow of games and services going through it.
 
Wow. Less than 2 years, and they are waving a white flag? Crazy.

Sure, they probably can't catch up to PS4 worldwide, but they can shore up the US where they are still competitive, and retool for next gen.
 
It's PC. They would have to break steam's stranglehold, while also convincing people to pay for something that is free with other services. What kind of hook can they possibly come up with to do that?

Some Xbox One exclusives might be the hook to achieve that. Steam has not built its mindshare without heavily anticipated titles, Microsoft are free to do the same and I believe they can.
 
Give me exclusive reasons to play games on my XBO over my PS4 and they will continue to have me as an active XBL user.

I don't care much about performance differences between my consoles, as lower resolution or frames don't bother me in the slightest. I care more about which version has better content. Like Fallout 4 getting MODs first makes a difference to me.
 
It's still a worthy metric.

We have a ps4 bought last year. It's either been boxed up or collecting dust. That's no revenue for Sony, while the Xbox has a constant flow of games and services going through it.
But Xbox is clearly dead since Microsoft are ashamed of its sales number.
 
So I guess my purchase and use of my XBox One doesn't count, since I don't subscribe to Live. Or maybe this means Microsoft will fight harder to make Live something I'd want to subscribe to...
 
If the console #s were there, they would definitely shine a light on it. The #s aren't there, so they won't.

Makes sense from a business perspective to focus on it though. Still don't agree with charging for Live (or PSN) though, but that's another argument.
 
Goal-moving aside, I think it makes sense for the company going forward.

It's probably better to sell 20 million units with 20 million people locked into the MS ecosystem, than to sell 40 million units with only 10 million locked in the ecosystem. MS is slowly moving towards a service-oriented subscription business (Office 365, Onedrive, Skype). MS will also be expanding LIVE to a variety of Windows devices over time (phones, tablets, PCs, TV boxes). If people start using Xbox Live as their main "digital account" for games, movies, apps, etc, then they're much more likely to stick with MS over the competition.

Sony has an ecosystem of their own, but it's much more limited than what Microsoft is doing.
 
This whole units vs. engagement reminds me of that report about gaming amongst children. Console market share has shrunk but they're spending more and more time on them.

That said, that report said nothing about the hard numbers, I'd expect Xbox to be doing better than having to hide these numbers.
 
It's a very bad idea to only rely on a few markets, what if they collapse one day?

Considering how small of a part of Microsoft's revenue Xbox is, I don't think they'd care much. I don't think it's a good idea to give up on other markets though, I agree.

This whole units vs. engagement reminds me of that report about gaming amongst children. Console market share has shrunk but they're spending more and more time on them.

That said, that report said nothing about the hard numbers, I'd expect Xbox to be doing better than having to hide these numbers.

If hardware sale is down and software sale is up how would numbers sold reflect that? Both Xbox Live numbers or Hardware numbers don't tell the whole picture.
 
With the ongoing push as a service-based business model on several fronts, it does make sense. Considering common-enough scenarios where hardware sales don't equate to the health of a platform ecosystem (i.e. high DS Lite/PSP hardware sales without matching software sales in light of piracy), it has merit.

Well, assuming they're talking about paying business interactions and not "times no-scoped in Call of Duty"
 
I'm hopeful that Microsoft have learnt a lesson this time around and will come back with gaming as the primary focus for there next generation console.

I think Phil has done a great job so far, he certainly has taken the xbox one from being rock bottom to being a viable alternative to PS4 on the games front. The hardware will never change but its good to see them trying to correct flaws from the original launch.

Games for gold must have helped xbox live subs as its such a more viable proposition now as opposed to essentially paying a sub to play online.

Microsoft with a bloody nose better produce a better hardware competitor to the next generation playstation the next time around.
 
This seems weird. Like, maybe they should do this in conjunction with, but not in lieu of shipments.
I had to sign up for an XBL account to do some stuff for Windows 10, so I know there's some (and potentially a lot of) crossover that's irrespective of hardware sales.
 
Please. You know damn well that if they were the market leader they'd be yelling it from the rooftops.
What I don't understand about this is that they're tracking better than the 360 did this time. Even though they are behind Sony the consoles sold numbers are nothing to laugh at.
Am I missing something here?

Yeah for sure but they aren't and they aren't ever going to be this generation.

Console numbers are a poor reflection of revenue as they lose money on each console they sell so they are choosing to focus on customer engagement with live numbers.

This is something that Microsoft has been preaching for a while so it's not a surprise to see them focus on this in there earnings report.
 
Now that's moving the goal posts.

It's basically removing the goalposts entirely and paving over the field. It's smart to focus on engagement though. Xbox only exists in two countries, for the most part, so they should focus on ensuring they maximize profit there and retain the customers they have.
 
Yeah. Weird how a subject like the reporting of console units sold would do that.

That was sarcasm, btw.
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Surely they must be thinking about introducing a priced tier for the PC XBL, like the basic online functionnality would be free of charge but cross-play would be put behind a paywall.

Otherwise they're not making much profit at all about their whole Xbox ecosystem.

Charging for XBL on PC eh? Well like the old saying goes; "If at first you don't succeed..."
 
It's basically removing the goalposts entirely and paving over the field. It's smart to focus on engagement though. Xbox only exists in two countries, for the most part, so they should focus on ensuring they maximize profit there and retain the customers they have.

Engagement doesn't equal revenue, unless they are going to start including ads in their financials, along side the android royalties.
 
What if this is a fundamental shift in how MS is viewing their platform like allowing and showing off MS products on iOS events, Xbox is not just their console but everyone who bought into Windows 10 and any other platform they can get people to buy a subscription into.
 
What this is a fundamental shift in how MS is viewing their platform like allowing and showing off MS products on iOS events, Xbox is not just their console but everyone who bought into Windows 10 and any other platform they can get people to buy a subscription into.

Only that someone who bought a Xbox will pay and buy quite a lot of games and services while your average W10 user just registered to the Xbox Live network to play some Solitaire.

The Xbox live users numbers are worthless.
 
It makes sense. It fits their narrative of unifying all their platforms and it seems hardware dropped off but software picked up so they'll go with the metric that better reflects that.

This thread is going to become a thinly veiled console war battlefield.

Become? Thinly? Lol

MS has to present their info in the best light possible so I guess this is it. What a weird turn of events.
 
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