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Phil Spencer: Economic uncertainty means new xbox may not be priority. Strategy doesn't depend on this years sales.

Psykodad

Banned
I think the issue is that Sony and Nintendo would not allow a subscription service such as Gamepass on their consoles. EA Access is the closest thing but it's not at the scale of Gamepass and doesn't include new releases on the consoles. Unless they were able to strike a deal with both of them I can't see it happening.
Yeah, but MS is still a direct competitor, so businesswise it would be harmfull to allow GamePass on Playstation and Switch atm.
Things would be different when Xbox isn't a thing, or at least ceases as a console.
 
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bronxct1

Member
Yeah, but MS is still a direct competitor, so businesswise it would be harmfull to allow GamePass on Playstation and Switch atm.
Things would be different when Xbox isn't a thing, or at least ceases as a console.
Right, I think MS wouldn't bow out of the console business until their subscriber numbers were massive. If they got to 100 million Gamepass subscribers that may be the turning point. They could probably cut a deal with Sony and Nintendo that would ease any lost sales they anticipate.

MS isn't at that scale yet, so until then Xbox has to exist.
 

Vawn

Banned
You know when Sony or MS sell a console they haven't made any money right? Sometimes they've even lost money. The goal is to find other ways to make you spend money.

Sounds like Sega logic. Just go third-party.

HW sales don’t matter
Software sales don’t matter
Exclusives don’t matter
Next gen exclusives don’t matter

Phil Spencer? You post on GAF?
 
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Psykodad

Banned
Right, I think MS wouldn't bow out of the console business until their subscriber numbers were massive. If they got to 100 million Gamepass subscribers that may be the turning point. They could probably cut a deal with Sony and Nintendo that would ease any lost sales they anticipate.

MS isn't at that scale yet, so until then Xbox has to exist.
Agreed. Been saying that for a long time, but apparently that's "fanboy" talk.

Personally I think that's MS' aim and they're playing it safe rn.
 

Gavon West

Spread's Cheeks for Intrusive Ads
It's not just words otherwise they wouldn't be supporting the Xbox One with all first party exclusives for another 2 years after the launch of Series X

They obviously care more about how many people sign up to Live, Gamepass and how much software they push through Xbox and PC.

But people on Neogaf are going to claim they know better than Phil and MS 😂
Right? He doesnt even have to say this. They've been showing it by opening their games and services on Steam, mobile devices and PC. Xcloud.

Its been clear what their mission is for the last 2 or 3 years now. And they still go out of the way to create not only a box to go under your tv, but the most powerful box. I genuinely don't see the problem or the confusion.
 

Rolla

Banned
Wait, why did the thread title get changed from "Our strategy does not revolve around how many Xboxes I sell this year." to this new one?

?
 

Jtibh

Banned
I feel microsoft is already giving up on xsx.

These statements from him dont help.

Its like i already know their new console is of no priority and therefor first party games will be mostly stuff they can sell to the mass market to cater to pc and console fans.

They bought up a few studios that would fot sony way more the microsoft just to show look we can do story driven games too.

But again i feel they already dont care and focus heavy on content for gamepass to gain more subcribers.

Nothing changed. Next gen will the same for them as it is right now.

Not to mention they bought studios that were already struggling like scorn devs.
They probably see already what a money pit it is and i almost guaranty those games will super average cuz in the interest of time and money they will push them to slap something together quick.
 

Kagey K

Banned
The funny thing is that it's totally accurate. It doesn't matter how many they sell this year. They are both going to sell however many they produce this year as is the case with any new console launch, (barring some sort of PR disaster.)

Early to mid of next year is where we are going to start seeing some of the strategies come into play.

This year whoever makes more, sells more. Full stop.
 

Rolla

Banned
Because this is more accurate based on what he said in the article?


Mods don't be like that other forum. My title was the crux of his statement, this new title one doesn't even quote Phil Spencer directly?

That's quite confusing if I'm being honest because a mod has removed a direct quote to something that appears more favourable?!
 
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Hendrick's

If only my penis was as big as my GamerScore!
Game Pass is king. If they continue to succeed in that regard and utterly dominate the subscription service model all of you console warriors will be eating a lot of crow in a few years.
 

Rolla

Banned
HW sales don’t matter
Software sales don’t matter
Exclusives don’t matter
Next gen exclusives don’t matter

This would be jest but the fact that it's reality gives me little faith in Phil's direction. They even changed how they measure success for XBOX in their own quarterly reports. In fact, there was a report so abysmal Spencer came out beforehand and said gamers should look/focus/be concerned about XBOX quarterly reports.

Strange shit.
 

IntentionalPun

Ask me about my wife's perfect butthole
Honestly I think the more interesting tidbit here is that he used the word "Autumn" instead of "Holiday" to mention release timeframe.

Holiday shopping really gears up in November; Autumn goes from late September-December..
 

JimboJones

Member
Sounds like new consoles will either be expensive as foook so uptake will be a little slow or corona virus is impacting production/launch plans.
 

48086

Member
Mods don't be like that other forum. My title was the crux of his statement, this new title one doesn't even quote Phil Spencer directly?

That's quite confusing if I'm being honest because a mod has removed a direct quote to something that appears more favourable?!

It only appears more favorable because it removes fanboy ammo.
 
D

Deleted member 775630

Unconfirmed Member
Mods don't be like that other forum. My title was the crux of his statement, this new title one doesn't even quote Phil Spencer directly?

That's quite confusing if I'm being honest because a mod has removed a direct quote to something that appears more favourable?!
People probably thought that your title gave the wrong message compared to the context of the article. Which I agree with btw. Your title was very clickbaity :)
 

oldergamer

Member
Right, I think MS wouldn't bow out of the console business until their subscriber numbers were massive. If they got to 100 million Gamepass subscribers that may be the turning point. They could probably cut a deal with Sony and Nintendo that would ease any lost sales they anticipate.

MS isn't at that scale yet, so until then Xbox has to exist.
why would they bow out at all? Its just another way you can use the software they develop. Te fact MS sellings millions of copies and subscriptions to Office 365 or Windows, doesn't mean they will stop making PC's.

i can't believe that nonsense of MS wanting to sell off Xbox has come back, just in a different form. Its not happening. Unlike Sega, MS has managed to make money and with the exception of the first console.
 

IntentionalPun

Ask me about my wife's perfect butthole
Mods don't be like that other forum. My title was the crux of his statement, this new title one doesn't even quote Phil Spencer directly?

That's quite confusing if I'm being honest because a mod has removed a direct quote to something that appears more favourable?!
It paraphrases the quote you had accurately but also includes the context of the troubled economy.

I don't see a problem here... you don't need to "quote" someone as long as their words are accurately relayed.
 
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Nikana

Go Go Neo Rangers!
Mods don't be like that other forum. My title was the crux of his statement, this new title one doesn't even quote Phil Spencer directly?

That's quite confusing if I'm being honest because a mod has removed a direct quote to something that appears more favourable?!

You cherry picked a line that taken out of context made it sound like he was saying something he wasn't. Really not that hard to understand why it was changed unless you are fighting for one team or the other.
 

Bill O'Rights

Seldom posts. Always delivers.
Staff Member
Wait, why did the thread title get changed from "Our strategy does not revolve around how many Xboxes I sell this year." to this new one?

That's quite confusing if I'm being honest because a mod has removed a direct quote to something that appears more favourable?!




It was renamed for the above reasons. The benefit of the doubt may have been extended, except your subsequent post (#18) did not radiate the impartiality of someone who was interested in framing the article correctly.
 
How about comparing Xbox console with Surface hardware?

Windows is on almost every hardware that supports it, why then are MS making their own PC line, the Surface.

These PCs are quite expensive yet people still buy them.

The same can be applied to Xbox. Just because you can play on PC and XCloud doesn't mean there isn't a place for Xbox.

I feel like people are just frustrated they can't compare Playstation sales to Xbox anymore because one of them decided their strategy should be different hence invalidating the comparison.
 

oldergamer

Member
Wait, why did the thread title get changed from "Our strategy does not revolve around how many Xboxes I sell this year." to this new one?

?
Because he said that in response to covid and it was taken out of context if u read the article.
 

bronxct1

Member
why would they bow out at all? Its just another way you can use the software they develop. Te fact MS sellings millions of copies and subscriptions to Office 365 or Windows, doesn't mean they will stop making PC's.

i can't believe that nonsense of MS wanting to sell off Xbox has come back, just in a different form. Its not happening. Unlike Sega, MS has managed to make money and with the exception of the first console.

I don't think MS wants to sell Xbox off anymore, I think they proved there is a service future here and that's what they are going after. But I do think if they get to enough scale it makes sense for them to step out of the hardware space. The whole company is moving away from selling you things to selling you services. If physical sales become a small part of Xbox related revenue then I think it makes sense for them to get out of that part of the business and go truly cross-platform with their games and services. Even in the 360 era, the RROD cost them a ton of money and set back turning a profit on that system for years. If Gamepass reaches the kind of scale they are shooting for it's a possibility. We don't see Netflix streaming boxes around for a reason.
 

Dnice1

Member
How about comparing Xbox console with Surface hardware?

.

I feel like people are just frustrated they can't compare Playstation sales to Xbox anymore because one of them decided their strategy should be different hence invalidating the comparison.

The war gives them purpose. Without an adversary then they would actually have to play games instead of constantly hatting on a platform they're not interested in.
 
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Panajev2001a

GAF's Pleasant Genius
"People find real value in the investment that they make in gaming. You can buy a console, buy some games, and it can literally provide your family with hundreds of hours of entertainment. Even when we went back and looked at 2008-09, in that recession, to see what the impact was on gaming - gaming did OK. It was durable.

We want to make sure we're providing the right value to customers.

Price is going to be important.

But our strategy is centred around the player, not the device"


More at the source

Considering the approach PlayStation has already committed to aka fast conversion to PS5 the contrast will be stark and I'm guessing if Sony touts their sales, this type of sentiment kinda falls flat. THe problem is XBOX has always touted console and games sales and while they may be trying to move on from a metric of success that they created, I don't think the broader audience cares, understand, or gives a fuck about these new metrics, especially when XBOX refuses to say how many PAYING subscribers they have for any of their services.

I do not get it... why spend all this money on R&D for XSX and producing it in mass quantities if they then keep tip-toying around how committed they are to make it a success and how important the device itself it is to them... They did not phone it in, the device IS important and all the software advancements they made for it (SFS, Direct Storage, etc...) are also not something trivial phoned in... Phil really confuses me sometimes... but yes, he is a god tier presenter compared to Jim Ryan...
 

longdi

Banned
I do not get it... why spend all this money on R&D for XSX and producing it in mass quantities if they then keep tip-toying around how committed they are to make it a success and how important the device itself it is to them... They did not phone it in, the device IS important and all the software advancements they made for it (SFS, Direct Storage, etc...) are also not something trivial phoned in... Phil really confuses me sometimes... but yes, he is a god tier presenter compared to Jim Ryan...

See above #177. Rolla took Phil talk out of context.

Phil was talking about the economic fallout from corona. 🤷‍♀️
 

quest

Not Banned from OT
I do not get it... why spend all this money on R&D for XSX and producing it in mass quantities if they then keep tip-toying around how committed they are to make it a success and how important the device itself it is to them... They did not phone it in, the device IS important and all the software advancements they made for it (SFS, Direct Storage, etc...) are also not something trivial phoned in... Phil really confuses me sometimes... but yes, he is a god tier presenter compared to Jim Ryan...
You confuse me figured you would understand the up coming world wide recession and why that might stop someone from getting a next generation console this year or next. All he is saying this is a long term game he is not going to freak out over less demand when millions are out of work. Because the economy will turn and demand will pick up.
 

Nikana

Go Go Neo Rangers!
I don't think MS wants to sell Xbox off anymore, I think they proved there is a service future here and that's what they are going after. But I do think if they get to enough scale it makes sense for them to step out of the hardware space. The whole company is moving away from selling you things to selling you services. If physical sales become a small part of Xbox related revenue then I think it makes sense for them to get out of that part of the business and go truly cross-platform with their games and services. Even in the 360 era, the RROD cost them a ton of money and set back turning a profit on that system for years. If Gamepass reaches the kind of scale they are shooting for it's a possibility. We don't see Netflix streaming boxes around for a reason.

When they wanted to sell off it made sense at the time due to how it had no real vision. Mattrick took the metrics he gathered which was that people were using their consoles for videos more than games and created the Xbox One from it during a time when the future of consoles wasn't clear. After that whole endeavor failed horribly Xbox was stuck as just a games box and had no real reason to exist.

Xbox Live gold is honestly what probably saved the Xbox from getting axed entirely. It was the only thing they could point to and say we are making money here how can we expand on that? But then the issue is selling content to people has become more difficult as games are becoming services themselves. Which is where I am guessing Game Pass came in. A way to get revenue consistently from not only longtime customers but new ones as well.

Nadella deserves some credit for seeing what they had been doing with Surface and getting right person in the Xbox division to lead it to follow suit. So far Spencer has very clearly tried to pivot Xbox into something that can align with the rest of Microsoft.

My question is more whats after Game Pass?

Edited for punctuation.
 
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Panajev2001a

GAF's Pleasant Genius
You confuse me figured you would understand the up coming world wide recession and why that might stop someone from getting a next generation console this year or next. All he is saying this is a long term game he is not going to freak out over less demand when millions are out of work. Because the economy will turn and demand will pick up.

Sure, but some goods and businesses do great during these times, I suspect the issue will be more wide spread than how much a console sells, but more on the impact on the ecosystem and the monthly services people pay and the games they buy... entertainment is not one area people cut easily, but they may want to save more on the box and less on the games yes...
 

nikolino840

Member
Honestly it seems like pre damage control. Phil absolutely refuses to say how many actual "paying" GP subs they have. Giving away GP subs on the back of candy wrappers is one thing. A publisher looking to make money or at least help recuperate their investment on the XBOX platform is another.

I honestly think that statements like this lead to the disparity in the number of exclusives Sony is able to get from third party
Some are saying that with gamepass ms don't earn money, some are saying that they earn more money then selling consoles...
 

oldergamer

Member
I don't think MS wants to sell Xbox off anymore, I think they proved there is a service future here and that's what they are going after. But I do think if they get to enough scale it makes sense for them to step out of the hardware space. The whole company is moving away from selling you things to selling you services. If physical sales become a small part of Xbox related revenue then I think it makes sense for them to get out of that part of the business and go truly cross-platform with their games and services. Even in the 360 era, the RROD cost them a ton of money and set back turning a profit on that system for years. If Gamepass reaches the kind of scale they are shooting for it's a possibility. We don't see Netflix streaming boxes around for a reason.
I think you are wrong on part of that. MS is selling more hardware now then they ever have. They don't have to sell it at a loss either. There's no viable reason for them to stop making hardware especially if its not losing money.

If I recall the 360 RROD was a billion dollar right off, and the xbox 360 still made money. Not to mention that was a one time problem for them related to the switch to solder that no longer contained lead. You're also talking 13 or 14 years ago. You can't really compare then to now.
 

MacReady13

Member
Ans this is why i aint picking one up day one. They are on a very slippery slope with their services angel where as sony again will appeal to the old school gamer who take the box home, buy great games etc.

I feel the same. It's almost as if Microsoft know they can't beat Sony at selling consoles, so lets go down the route of streaming and games pass. Once they sell that kind of shit, who cares if Sony triple our console sales... In my eyes, Microsoft is ruining traditional console gaming. Maybe they should just fuck off and leave Sony and Nintendo do what they do best.
 

oldergamer

Member
I feel the same. It's almost as if Microsoft know they can't beat Sony at selling consoles, so lets go down the route of streaming and games pass. Once they sell that kind of shit, who cares if Sony triple our console sales... In my eyes, Microsoft is ruining traditional console gaming. Maybe they should just fuck off and leave Sony and Nintendo do what they do best.
Ruining console game? do you hear yourself?? My lord that is one of the worst statements in this thread. I think you just negated any option you have with that statement.
 
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nikolino840

Member
I feel the same. It's almost as if Microsoft know they can't beat Sony at selling consoles, so lets go down the route of streaming and games pass. Once they sell that kind of shit, who cares if Sony triple our console sales... In my eyes, Microsoft is ruining traditional console gaming. Maybe they should just fuck off and leave Sony and Nintendo do what they do best.
There's no logical reason to not create consoles...
Is Just CW
 

quest

Not Banned from OT
Sure, but some goods and businesses do great during these times, I suspect the issue will be more wide spread than how much a console sells, but more on the impact on the ecosystem and the monthly services people pay and the games they buy... entertainment is not one area people cut easily, but they may want to save more on the box and less on the games yes...
Microsoft cloud services zoom i am sure are doing great. Selling console to people this time will be more challenging. Recovery from 25% unemployment and this slow reopening with out a vaccine yet is going to be painful for many young people who are the demographic. The initial shipments will be fine but the ones after the hardcore are done buying will be scary for both Sony and Microsoft think February March of 2021.
 

quest

Not Banned from OT
I feel the same. It's almost as if Microsoft know they can't beat Sony at selling consoles, so lets go down the route of streaming and games pass. Once they sell that kind of shit, who cares if Sony triple our console sales... In my eyes, Microsoft is ruining traditional console gaming. Maybe they should just fuck off and leave Sony and Nintendo do what they do best.
You mean like how Nintendo knew they could not win and left the home console market for handle held. A Sony monopoly of gaming what could go wrong lol. A head of a division makes a statement about sales in a up coming bad economic times and they are ruining gaming ok lol. It is amazing how phil triggers people lol. Phil the sky is blue neogaf omfg Microsoft is giving up on the xbox
 

oldergamer

Member
Its become a weak attempt at make a bridge between two points. Politicians used this all the time to not answer a question, but to deflect or move towards what they want to talk about.

Here's the bottom line, Microsoft is in this for the LONG haul. They are not going to sell off Xbox, they are not going to stop selling hardware, they are going to keep making sonsoles and console games and in all likelyhood do even better at it this new gen. If that bothers you, you REALLY need to get over it.
 

Nikana

Go Go Neo Rangers!
Ruining console game? do you hear yourself?? My lord that is one of the worst statements in this thread. I think you just negated any option you have with that statement.

I started a response and stopped. Im glad someone said it.
 

T-Cake

Member
I'd be up for running all the Xbox games through xCloud on Windows 10 quite frankly. Maybe when they update the server blades with XSX hardware, we'll get up to 4K streaming as well.
 
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