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Drama Clickbait The Verge - Microsoft wants to reduce its Xbox store cut and shake up console gaming (Update: Not Happening, see OP)

Negotiator101

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I don’t get this argument. You need some form of technology (such as a console/capable PC or capable tablet/phone) to play their games, so you are forced to buy something - and something not particularly cheap either. If you want to play Sony or Nintendo games, you just buy a PS5, or a Switch. Literally no difference at all. And my idea of driving the industry forward is by releasing award winning games and introducing exciting new peripherals, such as the dual sense and PSVR. People are buying the Switch in droves because of the ability to play games on a handheld and because there are a plethora of great games. Other than MS releasing a subscription service, which is nothing new, I’m not sure how they are driving the industry forward at all. All MS’s best work happened years ago when they released exciting games on OG Xbox/360, along with achievements and solid console online play.
You don't get it, that's perfectly fine my friend.
 
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Markio128

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Jul 8, 2018
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You don't get it, that's perfectly fine my friend.
We just have differing opinions mate, that’s all. I don’t blindly follow one company because I just go where the games are. I’ve had Ninty, MS and Sony consoles - not to mention everything else that came before. I just love games; not services and business strategies.
 

Klayzer

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Nov 17, 2018
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Your words:

"Phil is a pioneer and visionary, Sony and Nintendo are living in the past and happy doing the same old thing"

Again, The Switch and PSVR would like a word with you.

Sony and Nintendo were doing cross play before the PS4 and XBO came out.

Sony started doing a downloadable games service on the PS3.

Sony has been doing game streaming since the PS3.

Releasing first party games day one on a game service is about the only thing that makes Game Pass any different than other services before it. Hell, EAAccess was out long before Game Pass.....started out on consoles on XBO...... and had a big library.




Again, Its ok if your preferred platform, company does things you like.

There's no need to try to dismiss what the others are doing to prop your fav company up tho.
Stop the fight! That was one punch knockout response. All facts, no "driving the industry forward" conjecture bullshit.

I don't get why Microsoft fans think Xbox is the only platform that's prepping for the future. The only thing they do better than other consoles is talk. Their media plants and fans run their mouths like they are in charge of the industry. Here's a shock, they are spending ungodly amounts of money just to stay relevant.
 
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Wait what happened?

Tom Warren said Xbox cut 12%

Now Xbox not cut 12%

What's going on LOL
Well maybe they did the math and decided they were going to lose money with nothing to show for it. Xbox doesn't have infinite money, as much as their fans like to believe otherwise. Buying assets is one thing, but cutting profits is another.
 
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mansoor1980

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Well maybe they did the math and decided they were going to lose money with nothing to show for it. Xbox doesn't have infinite money, as much as their fans like to believe otherwise. Buying assets is one thing, but cutting profits is another.

I understand that they probably thought it would bring them more content. Which could be true but given how the PS5 is selling developers would still want to release their games on that platform despite the higher cut there. I guess it wasn't worth it to lose that revenue.
 
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LOL! What the hell is wrong with today's journalists and writers!
Those are internal documents they are referring to. What is wrong with “todays journalists”. Microsoft’s document “we might gonna offer 15% fee only if they give us streaming rights“. What can they say but, “we‘re not doing that now.”
 

slade

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You guys should all get together and mock them on twitter. They'll do a turnabout so fast...
 

xShaun

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Jim Ryan isn't going to shag you mate.

This is great for the gaming industry and when PS and Nintendo eventually do it everyone will praise them. Just accept that this is purely positive and move on.
I regret making this post. I forget not everyone gets English humour and think it's offensive. Somebody reported it and I guess it could be seen as offensive but it's just Banter. 🤷🏻‍♂️ Some of you wouldn't last a day over here if that offends you.

Anyway, this document has turned out to be completely useless for now.
 

YeulEmeralda

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Aug 8, 2020
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I understand that they probably thought it would bring them more content. Which could be true but given how the PS5 is selling developers would still want to release their games on that platform despite the higher cut there. I guess it wasn't worth it to lose that revenue.

Sony is selling their consoles with a loss knowing they make it back with every sold game.
And if Sony sells 100 million consoles they know they have the power to dictate terms to the publishers. That's how Sony does business.

Microsoft is getting desperate if they are lowering their cut. It's not positive news at all.
 

Bo_Hazem

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I regret making this post. I forget not everyone gets English humour and think it's offensive. Somebody reported it and I guess it could be seen as offensive but it's just Banter. 🤷🏻‍♂️ Some of you wouldn't last a day over here if that offends you.

Anyway, this document has turned out to be completely useless for now.

I get it, seems like Satya just shagged Phil over this idea. :messenger_winking_tongue:
 

Clear

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A 60% drop in licensing revenues is a lot of money, a real lot. Especially if you see how large a proportion of the overall platform income those sales/licensing fees represent.
 
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Lowering the cut to 12% doesn’t mean consumers are going to buy more copies on that platform especially if it’s always the lowest performing for 3rd parties.

No idea why clowns thought this would beat Sony.
 

Clear

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Lowering the cut to 12% doesn’t mean consumers are going to buy more copies on that platform especially if it’s always the lowest performing for 3rd parties.

No idea why clowns thought this would beat Sony.

Not sure it was that, its just a result of them trying to unify the PC and console spaces. 12% being notionally much more fair on PC as money collected on that is a pure storefront maintenance surcharge, whereas on console its also a levy to underwrite hardware and firmware/os development.

It all kinda goes to the argument that Epic had a fundamentally righteous point in complaining that Apple using the console model was inappropriate given their immense install-base making their platform more akin to PC in addressable market than any console. Doubly so, given Apple's positioning and pricing of their hardware as a premium product.

And of course, the fact that a console without game software is not fit for purpose, whereas a phone is always a phone.
 
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Negotiator101

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Lowering the cut to 12% doesn’t mean consumers are going to buy more copies on that platform especially if it’s always the lowest performing for 3rd parties.

No idea why clowns thought this would beat Sony.
You are the clown, this is to give more to the developer, nothing to do with selling more copies 😂
 
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Sony is selling their consoles with a loss knowing they make it back with every sold game.
And if Sony sells 100 million consoles they know they have the power to dictate terms to the publishers. That's how Sony does business.

Microsoft is getting desperate if they are lowering their cut. It's not positive news at all.

Looking at Microsofts side most of their software sales probably come from their consoles. Unlike PC console software is priced alot higher. Slashing the cut down to 12% is a pretty big loss on revenue with no real benefit. I don't think either one will slash their cuts unless they can find a way to make up that lost revenue.
 

Banjo64

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Lowering the cut to 12% doesn’t mean consumers are going to buy more copies on that platform especially if it’s always the lowest performing for 3rd parties.

No idea why clowns thought this would beat Sony.
I think they thought of that Einstein. This move was for the publishers’ benefit, not the consumer.
 

DaGwaphics

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Right... so why is the first couple of pages rife with clowns like you who can’t read. Saying it’s a game changer and will help beat Sony?

Well you've got to admit it would be a monumental shift IF something like that happened. Everyone was just speculating.

Would getting streaming rights and the ability to potentially sell games on smart TVs be enough to offset all those losses on the console side? Probably not, but it was an interesting question to ponder.
 

Thirty7ven

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Slashing to 12% on game sales and MTX would only ever make sense if they were having trouble bringing devs over to the platform. That's a really big cut, you can do the math. Savings wouldn't be passed on to the costumer either, so we get nothing from this.

It being studied as a way to convince some developers to give up streaming rights is a sign that they are having trouble getting those streaming rights to use on Xcloud and/or are having to pay over the odds for those streaming rights.

Geforce Now biggest battle is getting devs/publishers to allow their games to be streamed on geforce now, even though Nvidia isn't selling games, nor access to those games. Their model relies on the end user buying games from stores like Steam, Epic and GOG, and even still you have publishers saying "Pay me, fuck you". So you can imagine how expensive it gets when you want a game on a subscription service and exclusive streaming rights.

Also the more streaming services there are, the more leverage publishers/devs will have to negotiate better deals.
 

Beardsalt

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Oct 13, 2020
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Yeah, the original comment was a bit stupid but you reminded me of how many money makes on android cause of license deals.

Why Microsoft Makes $5 to $15 From Every Android Device Sold (howtogeek.com)

It's slightly funny and then sad.
Yup, that’s how business rolls, everyone making money off of each other while paying them in royalties right back. Microsoft just banks a lot more off of their product then most others So what they pay for hardware and services is a lot less then what they make back as a whole company!
 

DaGwaphics

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Yeah, look how much Epic is dominating Steam. /s

Epic is changing the market place though, regardless of whether they compete or not. That's why you get the exclusives, etc. Some of it is just $$$, sure, but some of it is that the devs desperately want the Epic store to be a success because they'd rather make more money on each sale. Steam has already reacted with some changes to their own fee structure as well. You can't deny Epic's impact.
 
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and how is that you constantly warring still not banned ?
You don’t know what warring is since you constantly do it and repeatedly get banned. Calling out/laughing at others warring with the same made up fantasy fud isn’t warring.

For your Other comment yeah Microsoft tries to compete and has failed the last 7 years. Fingers crossed gamepass makes a dent .

Honestly stop making up fud and then pretend you’re neutral, it’s laughably sad.
 

MonarchJT

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Sep 25, 2020
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You don’t know what warring is since you constantly do it and repeatedly get banned. Calling out/laughing at others warring with the same made up fantasy fud isn’t warring.

For your Other comment yeah Microsoft tries to compete and has failed the last 7 years. Fingers crossed gamepass makes a dent .

Honestly stop making up fud and then pretend you’re neutral, it’s laughably sad.
the only one who is attacking other people ideas is you...you love sony we know it already ...we don't have nothing to talk about bye ignore
 
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the only one who is attacking other people ideas is you...you love sony we know it already ...we don't have nothing to talk about bye ignore

When children can’t handle the truth . What ideas are you babbling about now?

That’s that Xbox persecution complex again .
 

DeepEnigma

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Dec 3, 2013
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Slashing to 12% on game sales and MTX would only ever make sense if they were having trouble bringing devs over to the platform. That's a really big cut, you can do the math. Savings wouldn't be passed on to the costumer either, so we get nothing from this.

It being studied as a way to convince some developers to give up streaming rights is a sign that they are having trouble getting those streaming rights to use on Xcloud and/or are having to pay over the odds for those streaming rights.

Geforce Now biggest battle is getting devs/publishers to allow their games to be streamed on geforce now, even though Nvidia isn't selling games, nor access to those games. Their model relies on the end user buying games from stores like Steam, Epic and GOG, and even still you have publishers saying "Pay me, fuck you". So you can imagine how expensive it gets when you want a game on a subscription service and exclusive streaming rights.

Also the more streaming services there are, the more leverage publishers/devs will have to negotiate better deals.
Pointing Up Morgan Freeman GIF by MOODMAN
 

geordiemp

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I believe some MS execs truly believe that in 5-10 years 80 % of gamers world wide including China will stream games to their mobile or tablet and only a few old gamers will still buy hardware to play.

Hence giving away margin today to secure exclusive streaming rights from the cloud is a strategy to dominate future cloud gaming world wide - the cloud rules all....maybe ?

If you agree or disagree with that vision of the future is opinion as if we could predict the future we would all be retired on our own island.

Everything MS does fits with that cloud vision, from XSX designed to run 4 games as a blade to gamepass conception.

Whether it works or not is another matter, and this cut is not for anyones benefit but securing streaming exclusivity IMO
 
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