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Phil Spencer promoted to CEO of MS Gaming

Probably not. Latest Xbox gaming revenue reporting was 3.8 billion. No profit reported.


Their entire product line reads as their version of something else that came first pretty much. It's just how they do things. I have a feeling a lot of the diehards on this forum don't even know this.

Which is why I personally don't think they are going to change the game industry with their moves. However, as a company they are too busy trying to constantly respond instead of having a truly forward looking vision.
Microsoft has literally changed the face of online gaming on consoles with Xbox Live and how FPS shooters played on consoles with Halo. This post is stupid. It's very clear MS has a set vision for gaming with the cloud and GamePass. They are building a robust online game service ecosystem, not a single box platform.
 
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GymWolf

Gold Member
 

Three

Member
Deserved, so it's even closer to game development without having to worry about other business aspects.
I don't think that's what this means. His title just change from Xbox CEO to MS Gaming CEO because he has to worry about other business aspects like Candy Crush on mobile and stuff on PC.
 

IDKFA

Member
Xbox is becoming a smaller piece of the Microsoft Gaming pie, it seems. Or is it the pie is just getting fucking huge? Yeah....big damn pie.

Donald Trump GIF

This.

Xbox consoles are a tiny fraction of the Microsoft gaming pie. The real money is in the mobile market, then it'll be the metaverse.

Honestly, I wouldn't be surprised if Microsoft just stopped making consoles. IIRC, Xbox consoles have never been profitable for Microsoft and they're making more money by selling services.
 
This.

Xbox consoles are a tiny fraction of the Microsoft gaming pie. The real money is in the mobile market, then it'll be the metaverse.

Honestly, I wouldn't be surprised if Microsoft just stopped making consoles. IIRC, Xbox consoles have never been profitable for Microsoft and they're making more money by selling services.
I’m so ootl with the meta verse thing, I don’t even know what it is other than Facebook. Are people seriously thinking we will be with a VR headset spending our time on a virtual world?
 

Stare-Bear

Member
Being head of gaming in the 2000s and head of Xbox in the 2010s, I would’ve fired him years ago. Launching a new system with no exclusive software. Not even a tech demo to show the power of Xbox.
 

oldergamer

Member
This.

Xbox consoles are a tiny fraction of the Microsoft gaming pie. The real money is in the mobile market, then it'll be the metaverse.

Honestly, I wouldn't be surprised if Microsoft just stopped making consoles. IIRC, Xbox consoles have never been profitable for Microsoft and they're making more money by selling services.
first of all that isn't true. MS has made money on console sales since the X360. Second they are not getting out of hardware. Pretty sure Nadella put out a statement about this a year ago. Hardware is still important to them and they stated they had already started work on future xbox consoles.
 

IDKFA

Member
I’m so ootl with the meta verse thing, I don’t even know what it is other than Facebook. Are people seriously thinking we will be with a VR headset spending our time on a virtual world?

Facebook predict that the metaverse will be so big that they changed their name to Meta. Microsoft and Epic are also investing significant amounts of money and resources into the Metaverse. Microsoft absolutely want a slice of this pie and are thinking ahead by getting in their early. By the time Apple or Amazon commit to the metaverse then Microsoft will already be a major metaverse player.

first of all that isn't true. MS has made money on console sales since the X360. Second they are not getting out of hardware. Pretty sure Nadella put out a statement about this a year ago. Hardware is still important to them and they stated they had already started work on future xbox consoles.

According to Microsoft, the Xbox consoles have never turned a profit.

 
Facebook predict that the metaverse will be so big that they changed their name to Meta. Microsoft and Epic are also investing significant amounts of money and resources into the Metaverse. Microsoft absolutely want a slice of this pie and are thinking ahead by getting in their early. By the time Apple or Amazon commit to the metaverse then Microsoft will already be a major metaverse player.



According to Microsoft, the Xbox consoles have never turned a profit.

I just don’t see us there. Maybe in 50 years but by that time I’ll be dead lol. Can you actually imagine people willingly living in the matrix?
 

IDKFA

Member
I just don’t see us there. Maybe in 50 years but by that time I’ll be dead lol. Can you actually imagine people willingly living in the matrix?

I wouldn't go so far as Matrix levels, but in a few years the metaverse will be a household name. Predictions are that global consumer spending in the metaverse will hit 85bn by 2025. That's just four years.

In ten years the metaverse will be dominant.
 

DarkMage619

Member
This.

Xbox consoles are a tiny fraction of the Microsoft gaming pie. The real money is in the mobile market, then it'll be the metaverse.

Honestly, I wouldn't be surprised if Microsoft just stopped making consoles. IIRC, Xbox consoles have never been profitable for Microsoft and they're making more money by selling services.
Second time I've seen this. Consoles are one of the primary ways to get Game pass to people. How does dropping consoles allow MS to do that? Nintendo and Sony don't have any devices that have Game pass so MS dropping consoles would be a major step backwards to the goal of getting Game pass everywhere. Not to mention games sales on their platforms makes more money instead of having to do a split with other platform holders. I don't see them dropping hardware anytime soon why would MS go the Sega route?
 
I wouldn't go so far as Matrix levels, but in a few years the metaverse will be a household name. Predictions are that global consumer spending in the metaverse will hit 85bn by 2025. That's just four years.

In ten years the metaverse will be dominant.
But dominant in terms of entertainment like movies or video games? Because if that’s the case I really don’t care lol.

What I’m afraid of is people living in a virtual world instead of reality.
 

IDKFA

Member
Second time I've seen this. Consoles are one of the primary ways to get Game pass to people. How does dropping consoles allow MS to do that? Nintendo and Sony don't have any devices that have Game pass so MS dropping consoles would be a major step backwards to the goal of getting Game pass everywhere. Not to mention games sales on their platforms makes more money instead of having to do a split with other platform holders. I don't see them dropping hardware anytime soon why would MS go the Sega route?

They wouldn't go the SEGA route.

As noted from the Apple Vs Epic court case, Microsoft have never made a profit on their console hardware. In another time this would be a problem, but with streaming combined with Gamepass, they don't need to worry at all about console sales at all.

Give it time and dedicated gaming hardware will be a thing of the past.

But dominant in terms of entertainment like movies or video games? Because if that’s the case I really don’t care lol.

What I’m afraid of is people living in a virtual world instead of reality.

To be honest, it's a little too early to say how dominant it becomes. Clearly Microsoft, Epic and Meta see this being a massive change in the social and entertainment landscape that they're investing tens of billions into the metaverse.

I share your concerns, but people are already living in virtual worlds that they prefer to reality either through video games or social media. The metaverse is just the next step.
 

Skyfox

Member
Ok. New prediction.

Phil leaves end of 2023. Why? The gamepass subs will finally cost full price, subs won't renew and apart from older games they already have, xbox won't want to burn more money on new 3rd party AAA.

So quality of gamepass will begin to dilute at the same time subscription costs start to go up.

Phil knows this so he'll threaten to leave. It's win win for him. If he stays it's on his terms. If he leaves he can cash out.
 

Edgelord79

Gold Member
What's the point of showing off your pronouns if they're all biologically correct? Gotto throw in at least one mentally ill person to get some likes people...
Agreed. I don't believe there isn't at least 4 they/thems in that hierarchy. I mean based on what I'm told, it's that common...
 
They wouldn't go the SEGA route.

As noted from the Apple Vs Epic court case, Microsoft have never made a profit on their console hardware. In another time this would be a problem, but with streaming combined with Gamepass, they don't need to worry at all about console sales at all.

Give it time and dedicated gaming hardware will be a thing of the past.



To be honest, it's a little too early to say how dominant it becomes. Clearly Microsoft, Epic and Meta see this being a massive change in the social and entertainment landscape that they're investing tens of billions into the metaverse.

I share your concerns, but people are already living in virtual worlds that they prefer to reality either through video games or social media. The metaverse is just the next step.
I think we will see the day meta verse launched as the day the doom humanity began. What I don’t understand is why Facebook isn’t making this free. Why are they charging you for the Oculus Quest instead of making it free?
 

IDKFA

Member
I think we will see the day meta verse launched as the day the doom humanity began. What I don’t understand is why Facebook isn’t making this free. Why are they charging you for the Oculus Quest instead of making it free?

It has the potential to really change society, but in a really negative way, similar to the impact social media has had on society.

Like the internet, the metaverse will be open source, but because it's VR based it means you'll need a VR headset of some description to access it, just like you originally needed a PC to access the internet.

Interestingly, I've heard people say that Facebook (or Meta as they're now called) could dish out either free VR headsets or very cheap cheap headsets in order to get people in, get them hooked and them get them spending money.
 
It has the potential to really change society, but in a really negative way, similar to the impact social media has had on society.

Like the internet, the metaverse will be open source, but because it's VR based it means you'll need a VR headset of some description to access it, just like you originally needed a PC to access the internet.

Interestingly, I've heard people say that Facebook (or Meta as they're now called) could dish out either free VR headsets or very cheap cheap headsets in order to get people in, get them hooked and them get them spending money.
Exactly. If they want to push this they need to make VR headsets free. They would make the money back easily.

But if you say is open source then I don’t get it, why would you make this open source instead of proprietary? Is there any benefit of being open source for Facebook?
 
Have to say I have no idea whats the difference between his prior role and this lol. Maybe bigger wallet for the incoming acquisitions?

He now leads a whole separate corporate structure under Microsoft. It represents the biggest possible show of confidence from Microsoft corporate, the board, and its current CEO. His budget has grown tremendously. That's the first thing. He will now receive significantly more scrutiny about Gaming and Xbox operations at the company, the financial reports will now be required to expand in more detail on how things are going.

When the Activision deal goes through Xbox becomes able to fully sustain itself without the help of Microsoft's financial muscle, but it will still have it regardless. Basically, if we thought Xbox was serious before, wait till people get a look at the Xbox over the next 6-10 years.
 
Remember the scene in Scarface where Tony, fresh from killing Frank and Mel, heads directly to Frank's house. He enters the master bedroom and nudges Frank's wife awake and tells her "you're coming with me". And as he confidently strolls outside, knowing that she's going to accept his bold offer, a blimp with the message 'The World is Yours' rolls across the sky. And as the camera pans out....you see her frantically getting dressed upstairs to accompany Tony.

That's what Phil Spencer feels like right about now.
 
He now leads a whole separate corporate structure under Microsoft. It represents the biggest possible show of confidence from Microsoft corporate, the board, and its current CEO. His budget has grown tremendously. That's the first thing. He will now receive significantly more scrutiny about Gaming and Xbox operations at the company, the financial reports will now be required to expand in more detail on how things are going.

When the Activision deal goes through Xbox becomes able to fully sustain itself without the help of Microsoft's financial muscle, but it will still have it regardless. Basically, if we thought Xbox was serious before, wait till people get a look at the Xbox over the next 6-10 years.
100%. The CEO title is a way to say that this one person, is in charge of this entire thing and leave no doubt about it.

But just to add he's always lead a completely separate corporate structure. As does the EVP of Azure and pretty much every other division of Microsoft where EVPs run the show without a CEO title. That's how Microsoft works. Every org runs like it's own mini independent Fortune 500 company. Alignment happens through OKRs.

Phil is still accountable to / reports into Microsoft's overall CEO, just like he did before as EVP.

The main difference is that marketing will be reporting directly to him now, so he'll have final say over the direction of Microsoft Gaming marketing. Whereas before ideas, strategy, campaigns etc were reported up through the gaming CMO and approved by Microsoft's overall marketing org.

The move was also about avoiding confusion with Activision's CEO maintaining his CEO title (for now anyway, but i bet he has a sweetheart exit deal pending successful integration). Having Activision's CEO report into an Executive Vice President would have muddied the waters. Too much confusion there. Titles REALLY matter at Microsoft.

When you look at some of Microsoft's other acquisitions that were able to maintain their CEO titles none were as in direct competition as Activision is with Microsoft gaming (LinkedIn and Github had no successful Microsoft counterparts, so less confusion around leadership).

Branding him with 'CEO' of the entire gaming division makes it super clear who's making decisions. And it's not the COD guy.
 
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IDKFA

Member
Exactly. If they want to push this they need to make VR headsets free. They would make the money back easily.

But if you say is open source then I don’t get it, why would you make this open source instead of proprietary? Is there any benefit of being open source for Facebook?

Facebook won't own the metaverse. It's an open source of connected networks that will be accessible via VR and AR headsets. Think of it like the internet, but within 3D virtual worlds.
 
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