guess I’m not understanding you. Right this second I don’t have a controller hooked to my tv. If my tv had the xcloud app and it actually worked I would hook a controller to it and play games instead of buying a console.
This is what I think too.
My misunderstanding with Microsoft’s approach at this point is why not just nix the consoles and just push Gamepass on all platforms that are willing to have it...
If money is the goal, then wouldn’t they stand to make more if xcloud/GP was ok Switch and PS? I can’t imagine what consoles they do sell would make up for that potential revenue lost...
it just seems like a half measure. Like...based on what Phil is saying their goal is, they’re only doing it half-assed to really achieve it.
Software and services is a FAR more lucrative market than console hardware sales. You guys are about to learn this lesson soon enough.
My misunderstanding with Microsoft’s approach at this point is why not just nix the consoles and just push Gamepass on all platforms that are willing to have it...
You think they wouldn't if they could?May as well put xcloud on PS5 then.
This is what I think too.
My misunderstanding with Microsoft’s approach at this point is why not just nix the consoles and just push Gamepass on all platforms that are willing to have it...
If money is the goal, then wouldn’t they stand to make more if xcloud/GP was ok Switch and PS? I can’t imagine what consoles they do sell would make up for that potential revenue lost...
it just seems like a half measure. Like...based on what Phil is saying their goal is, they’re only doing it half-assed to really achieve it.
You're not because I'm saying that it's a small percentage of people who would have a controller hooked to their TV who wouldn't have a console.
This is what I think too.
My misunderstanding with Microsoft’s approach at this point is why not just nix the consoles and just push Gamepass on all platforms that are willing to have it...
If money is the goal, then wouldn’t they stand to make more if xcloud/GP was ok Switch and PS? I can’t imagine what consoles they do sell would make up for that potential revenue lost...
it just seems like a half measure. Like...based on what Phil is saying their goal is, they’re only doing it half-assed to really achieve it.
or you just buy a controller for $50 instead of a console for $500 if you want to play a game
You guys are really missing the point of what he's saying. He's saying we could sell 100 million consoles and 5 games per unit over thier lifetime, or we could sell 40 million and have the all on game pass and or xbox live. Guess which one makes them more money?
It's already happened this generation, I haven't checked the numbers directly, but I would wager that ms made more profit on xbox one and its online services than sony despite losing the "console war" total sales figure.
Actually taking a look at financials shows clearly that this strategy is very suitable for Microsoft as a company and it's not as dumb as people who know literally nothing of economics paint it.
Selling consoles has a very narrow profit margin when you're not selling at a loss (even when your price is higher than the bill of parts, you may still be selling at a loss because there's plenty more costs associated with selling a console unit). It's also very unstable because you're making most of your money in the middle of a console's life cycle. In the beginning, it's bad, and going toward the end, it drops considerably.
On the other hand, selling an ecosystem with plenty of recurring transactions for the customer, from subscriptions to microtransactions, has massively better profit margins and has more stable economics.
The new Xbox consoles aren't designed to be Microsoft's big earners, so they don't need to sell as many as them. They're important to sell an ecosystem with many entry points, whether it be consoles, PC, or mobile, but they're not the most important factor.
This is not to say that their strategy is better than anyone else's, but it's a strategy that works very well for them, and with a diversified approach selling Series X and Series S, it certainly has potential.
You guys are really missing the point of what he's saying. He's saying we could sell 100 million consoles and 5 games per unit over thier lifetime, or we could sell 40 million and have the all on game pass and or xbox live. Guess which one makes them more money?
It's already happened this generation, I haven't checked the numbers directly, but I would wager that ms made more profit on xbox one and its online services than sony despite losing the "console war" total sales figure.
He's right. So....
Of course it is, but if Sony has twice as many consoles and with the same attach rate for each console as microsoft does, there's only one outcome.Software and services is a FAR more lucrative market than console hardware sales. You guys are about to learn this lesson soon enough.
He may have a valid argument to make, but the condescending tone, and the insulting attitude, guarantee no more communication and a lovely trip to Ignoresville
They know what he is saying.
Phil has to talk everyday doesn't he
It's not his approach because he knows he can't compete with them that's why Xbox is taking a different route with no exclusives and subscriptions
you sell more consoles = you sell more software on that console
LOL no they haven't lol
This person's comments prove they don't.....
"Then why make the cheap Xbox series s? So full of shit"
Show me some numbers then, if true should be easy.
Highlights :
- Over $5.63B Revenue and $1.152B Profit between April-June 2020 (Q1 FY20)
- Biggest Revenue ever for PlayStation (and for any platform holder) during Q1
- Top 3 biggest Q1 Revenue everis :
- Sony Q1 FY20
- Sony Q1 FY18
- Sony Q1 FY19
- To show how big Revenue are, Q1 FY20 Revenue are higher than any quarter of Xbox (even Oct-Dec quarters)
- Biggest Revenue everfor PlayStation (and for any platform holder) during a non-Holiday quarter (non-Q3)
- Top 5 biggest non-Q3 Revenue everis :
- Sony Q1 FY20 (April-June 2020 - FF7R/TLOU Part II)
- Sony Q2 FY18 (July-Sept 2018 - Spider-Man)
- Sony Q4 FY18 (Jan-Mar 2019)
- Sony Q1 FY18 (April-June 2018 - God of War/Detroit)
- Sony Q1 FY19 (April-June 2019 - Days Gone)
- 9th biggest Revenue ever for any platform holder during any quarter
- The 8 quarters ahead are all Q3 (Oct-Dec) from Sony (4) and Nintendo (4)
- Best Operating Profit everfor PlayStation during Q1
- 2nd best Operating Profit ever for any platform holder during Q1
- Best Operating Profit everfor PlayStation during any quarter
- 1st time, profits during a quarter exceed $1 Billion for PlayStation !
- Hardware : 1.9m PS4 sold-in during Q1 FY20 (LTD: 112.3m)
- 3rd biggest shipments for any console during its 7th Q1 or 27th quarter (behind only PS1/PS2)
- Software : 91.0m games sold-in during Q1 FY20
- Highest software sales during Q1 in video game history
- During the past 4 Q1, PS4 set each time a new software sales record for the industry
- PS4 is the only console to have 4 Q1 with over 40m games sold
- PS4 Software LTD almost reached 1.400B games sold
- Software digital ratio : 74% during Q1 FY20 (April-June 2020)
- Highest digital ratio ever during a quarter
- PlayStation Store had its biggest Revenue everduring Q1 with more than $3.67B
- Biggest Revenue ever during any quarter
- including Digital Software & Add-on content
- PlayStation Software & Services saw their biggest Revenue everduring Q1 with more than $4.89B
- Biggest Revenue ever during any quarter
- including Physical / Digital Software & Add-on content / Services
- New Informations given in financial results
- 113M MAU (monthly active users)
- 113M active users each spent about $32.46 on average on PS Store during Q1
- 18.5M first-party games sold during Q1 FY20 (vs 11.7M in Q1 FY19)
- 1 game out of 5 sold this quarter was a Sony first-party game
- FY2020 Forecast :
- $23.4B Revenue & $2.24B Profit... it would be:
- Biggest Revenue for PlayStation (and for any platform holder) in video game history
- 2nd best Operating Profit ever for PlayStation
And that would be a really small percent of people who would buy a $50 controller for their TV if they are not into gaming enough to buy a console.
Imagine Barcelona yesterday after the embarrassing loss: Winning or even playing the game like Bayern did, is not our approach.
I would disagree, phone gaming market alone shows there are lots of casuals that don’t want to buy a console to play games.
If you just need a controller and a sub the low cost of entry would drive many new users to check it out.
Also you have the audience that buys 1 or 2 games a year, if they could get 100s of games for that same price why not?
Phones come with their own interface that can play games TVs don't so like I said the percentage of people with controllers hooked to their TV without a console is small.
It's already happened this generation, I haven't checked the numbers directly, but I would wager that ms made more profit on xbox one and its online services than sony despite losing the "console war" total sales figure.
True hardcore Xbox gamers understand...