Xbox boss Phil Spencer made gaming matter to Microsoft / Xbox Game Pass “will come to every device”

IbizaPocholo

NeoGAFs Kent Brockman
Dec 1, 2014
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#1
https://venturebeat.com/2018/12/05/xbox-boss-made-microsoft-love-games/

Spencer was on stage today for a discussion at the Barclays Global Technology, Media, and Telecommunications Conference in San Francisco. And he explained that Microsoft’s gaming division generated more than $10 billion in revenue for the first time during its 2018 fiscal year. Gaming ended that 12-month period as 9.4 percent of Microsoft’s total revenue. And surpassing that threshold turned some heads inside Microsoft.

“We’ve acquired and started seven new first-party studios in the last year,” said Spencer. “We obviously don’t do that without tremendous support from Satya and Amy.”

“We understand content is a critical component of what we’re trying to build,” said Spencer. “And the support from the company has been tremendous.”

“We’ll have multiple business models that will work with streaming, but the connection of streaming with the subscription model makes a ton of sense,” said Spencer. “You see it in music. You see it in video. So you can look at Project xCloud and you can look at something like Game Pass, and you can see there’s natural synergies.”

“For us, it’s all about how we reach 2 billion gamers,” said Spencer. “If you build the market around a couple hundred million people who are going to own a game console or a high-end gaming PC, then your business-model diversity can actually narrow because your customers are narrow. But when you think about reaching a customer with this content where their only compute device could be an Android phone, you think about, well, what are all the ways that person pays for content if they do at all today?”

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https://www.gamesindustry.biz/artic...ncer-xbox-game-pass-will-come-to-every-device


"When you think about reaching a customer with this content where their only compute device could be an Android phone, you think about, 'What are all the ways that person pays for content today'?" Spencer said. "So we need to make sure that we're world-class at free-to-play content, but we also look at subscription as a much lower barrier way for a customer to build a library of content.

"So we built Xbox Game Pass -- it started on console, it will come to PC, and eventually it will come to every device -- we use the flywheel that we have with customers on an Xbox to start the growth in Xbox Game Pass. But as somebody sitting back and taking a longer-term view of where our business is going, you should look at that as a business model that we think scales to billions of people not hundreds of millions of people like retail does."

However, the most interesting implication is that Microsoft might seek to bring its Game Pass service to PlayStation and Nintendo devices. Spencer's comments weren't limited to "console, then PC, then mobile" -- he instead said "every device".
 
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I have mixed feelings about that. Obviously streaming is the way of the future but to put it on competitors machines... I dunno. Could we expect Nintendo and Sony to follow suit and allow xbox players to stream their games on an xbox? If so, what would be the point of owning any consoles at all? Makes me feel kind of old and sad thinking about it haha
 
#4
I don't see streaming to be viable for the next few years at least , pretty much all the available streaming services are very limited for the experiences they offer. That being said it will be nice when the consoles don't matter anymore and I can just play the games I want on any device I own. I care about games not the devices I play them on.
 
Likes: CRAIG667
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#6
I have mixed feelings about that. Obviously streaming is the way of the future but to put it on competitors machines... I dunno. Could we expect Nintendo and Sony to follow suit and allow xbox players to stream their games on an xbox? If so, what would be the point of owning any consoles at all? Makes me feel kind of old and sad thinking about it haha
oohh, not my future. It'll always be offline files for me.
 
Jul 1, 2009
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#7
It makes sense for MS to look at turning Xbox into a service, they do it for everything else they do.


Consoles are ultimately a means to an end. They just want to sell you games. Getting gamepass or psnow on PC's, tablets, or smart TVs will open up a huge audience.
 
Feb 23, 2018
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Interesting to see what Microsofts end goal is here... With something like Steam sure they control your license but outside that, (which can be circumvented a million different ways, including simply buying the game elsewhere) they have no power over the games. With streaming, Microsoft physically owns your game access. You cannot play a game without Microsoft, full stop.

Im not even saying that to fear monger, i am genuinely interested to see what their goal is here. Since they control the entire game playing experience, would they just turn into the publisher of every game?
 
Likes: mckmas8808
May 24, 2005
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#12
I don't see streaming to be viable for the next few years at least , pretty much all the available streaming services are very limited for the experiences they offer. That being said it will be nice when the consoles don't matter anymore and I can just play the games I want on any device I own. I care about games not the devices I play them on.
But so far the device you play them on, explains what type of games developers can make so.....
 
Oct 29, 2013
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But so far the device you play them on, explains what type of games developers can make so.....
I never thought to much about this, but I see what you could be meaning. The potential is for games that may not fully take advantage of the set top boxes hardware if it needs to run on an Iphone or Android at the same time? Meaning more mobile friendly games and less full fledged games with top tier graphics?
 
May 2, 2006
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#16
Every device? Yeah, he should of clarified a little better imo because that can be misleading to some gamers out there. Surely Microsoft is not crazy enough to put gamepass or their streaming service on Sony and Nintendo systems, right? I doubt even they would do something like that because what would be the point I buying an Xbox if you can access their library on your console of choice. If they all share services, then why even own multiple consoles then? Imo, it would make for a rather boring generation when all consoles are practically the same software-wise.

Also, streaming is fine for an option, but I still prefer downloads and physical media over it.
 
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May 24, 2005
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I never thought to much about this, but I see what you could be meaning. The potential is for games that may not fully take advantage of the set top boxes hardware if it needs to run on an Iphone or Android at the same time? Meaning more mobile friendly games and less full fledged games with top tier graphics?
Yep! You are literally 100% spot on with where I was going with that. Even look at the wording Phil uses.

Phil Spencer said:
said Spencer. “If you build the market around a couple hundred million people who are going to own a game console or a high-end gaming PC, then your business-model diversity can actually narrow because your customers are narrow. But when you think about reaching a customer with this content where their only compute device could be an Android phone, you think about, well, what are all the ways that person pays for content if they do at all today?”
 
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Aug 24, 2016
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#18
Oh let's be honest here OP is taking every device out of context.

Microsoft won't even have competitive hardware or/and service, and will only be HELPING the competition and ONLY the competition if it was on Nintendo and Sony consoles as well. That's not happening.
 
Likes: Gavon West
Sep 23, 2016
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#22
Oh let's be honest here OP is taking every device out of context.

Microsoft won't even have competitive hardware or/and service, and will only be HELPING the competition and ONLY the competition if it was on Nintendo and Sony consoles as well. That's not happening.
Honestly I think Sony are more scared about Microsoft doing an EEE-like approach to Playstation. Invite Game Pass/XCloud into PS4, more and more people use that for content and when Microsoft has got all of that people on PS4 onto GP/XCloud then they can remove PS compatibility, users won't care because they can play anywhere.
 
Jun 3, 2015
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#23
That moment when the XBOX hardcore realize that they no longer have any exclusives

PSNow will eventually do that too. You can already play some on PC but most of the audience here are not gonna be interested in streaming so thats why they will still build consoles. They need to stick to that for a good while too.
 
Mar 9, 2014
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Oh let's be honest here OP is taking every device out of context.

Microsoft won't even have competitive hardware or/and service, and will only be HELPING the competition and ONLY the competition if it was on Nintendo and Sony consoles as well. That's not happening.
Move your thinking forward, the hardware console is just the conduit for what really drives the profit. Consoles have historically mostly sold at a loss for the first half of each generation, they make the money from selling the games, accessories and services. How is it helping the competition when you have someone else's service on your own device that is taking money away from your own?

MS would probably be happy to have gamepass available on a Sony or Nintendo console, although it's Sony that would definitely deny it. Keep in mind that gamepass would have third party games that would also be available to buy/rent on their own shop and streaming service. They blocked EA Access which is far less of an overlap to their own services than gamepass. Nintendo on the other hand may actually be more open to it as it would benefit them quite a bit. It would give Switch access to the third party games its lacking which would drive more sales for them while also giving MS a dedicated gaming handheld device. If MS say they want it on every device and then Sony block it they again are seen as the villains. The way I see it, it's a win win for MS either way.
 
Jan 12, 2018
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#25
???

C'mon! Microsoft isnt talking about competing consoles. You guys know this, right? It's clear as day what he means. TV, phone, Ipad, Laptop. You'd have to be signed into Live to start with - effectively making you an Xbox member on the competitions platform. Sony nor Nintendo will allow such a thing. Microsoft can go ham on alot of things, they ain't about to go ham on this though.
 
Aug 24, 2016
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Consoles have historically mostly sold at a loss for the first half of each generation,.
Which is a false statement and only started happening since the early 2000's, and only for the Xbox as the GC was sold at a profit (but lost money because of poor sales) and the PS2 was sold at a profit.

it didn't become more common until both the 360 and the PS3 were sold at a loss (outside the cheapest version of the 360 but that's the one behind most of the RROD's so.)


All the 80's consoles were sold at a profit (Outside RDI)

All the 90's consoles were sold at a profit (Other than CD-i and Neo-Geo)

All early 2000's consoles sold at a profit (except Xbox)
 
Mar 9, 2014
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Which is a false statement and only started happening since the early 2000's, and only for the Xbox as the GC was sold at a profit (but lost money because of poor sales) and the PS2 was sold at a profit.

it didn't become more common until both the 360 and the PS3 were sold at a loss (outside the cheapest version of the 360 but that's the one behind most of the RROD's so.)


All the 80's consoles were sold at a profit (Outside RDI)

All the 90's consoles were sold at a profit (Other than CD-i and Neo-Geo)

All early 2000's consoles sold at a profit (except Xbox)
Since 2000 right upto today at launch every single home console except Gamecube and Wii (Switch?) has sold at a loss at launch right up until the cost reduction mini versions mid way through. Okay, I probably shouldn't have used the word historically and something more like recent history or last couple of decades. My point remains though that for MS, every single one of their consoles has been sold at a loss up until the mid gen refreshes so they would be happy to sell you their games, accessories and services on any device including competing consoles because they would actually make more profit that way rather than selling you their console at a loss.
 
Oct 29, 2017
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#29
It's probably true that Phil would love to put Game Pass on other consoles, but I'm not sure other consoles would allow it.

 
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#33
Gaming will go the route of netflix and sony will become also more and more a subscription service.

Consoles are on its way out and microsoft realizes this.

Steam is next, they will have to move towards a gamepass type of model in the next decade.
 
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???

C'mon! Microsoft isnt talking about competing consoles. You guys know this, right? It's clear as day what he means. TV, phone, Ipad, Laptop. You'd have to be signed into Live to start with - effectively making you an Xbox member on the competitions platform. Sony nor Nintendo will allow such a thing. Microsoft can go ham on alot of things, they ain't about to go ham on this though.
Netflix is on all console and competes with Sony and Microsoft store.
 
Mar 23, 2018
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Netflix is on all console and competes with Sony and Microsoft store.
When individual single sales start to tank there is absolute no reason for sony or nintendo to not allow it. They will have to pay for there PSN+ to get gamepass access anyway at that point. So either way sony gets its money and all xbox titles with it.
 
Jan 31, 2018
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#37
I've seen some counter-videos that argue that "all devices" doesn't include Sony. I think it would be dumb for them to slam the door in nintendo and sony's face. But man, if they allow it, Microsoft ends up with its fist in all the cookie jars. If I'm a business...I'm like "Hell yeah, put our shit on everything".

Me just re-reading what I said...this is actually slightly terrifying.
 
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#39
When individual single sales start to tank there is absolute no reason for sony or nintendo to not allow it. They will have to pay for there PSN+ to get gamepass access anyway at that point. So either way sony gets its money and all xbox titles with it.
I don’t understand the single sell part but I agree on users will pay for ps+ for internet on gamepass.
 
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Since 2000 right upto today at launch every single home console except Gamecube and Wii (Switch?) has sold at a loss at launch right up until the cost reduction mini versions mid way through. Okay, I probably shouldn't have used the word historically and something more like recent history or last couple of decades. My point remains though that for MS, every single one of their consoles has been sold at a loss up until the mid gen refreshes so they would be happy to sell you their games, accessories and services on any device including competing consoles because they would actually make more profit that way rather than selling you their console at a loss.
It's not last coupe decades, PS2 was sold at a profit at launch. Gamecube was sold at a profit at launch, Xbox was the only exception.

Cheap version of the 360 was sold at a profit as well.

And both the PS4 and the Xbox One were sold at a profit at launch if you go back to 2013. So either way that's wrong.
 
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IbizaPocholo

NeoGAFs Kent Brockman
Dec 1, 2014
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ibiza
#41
https://gamingbolt.com/phil-spencer-talks-about-why-microsoft-isnt-interested-in-acquiring-ea

Speaking at the Barclays 2018 Global Technology, Media and Telecommunications Conference, Spencer addressed earlier reports about Microsoft looking to acquire EA, and went into some detail about why that wasn’t part of the company’s strategy.

“If you watch the studio acquisitions we’ve done, we’re focused on creative teams that we think can build very interesting content to help the flywheel Game Pass grow and our platforms grow,” Spencer said. “We’re probably less interested in management teams and infrastructure and things that we already have inside of our organization. And you can just look at the track record. We’ve added seven studios in six months, and if you look at them, I think you’ll see certain evaluations.

“But more importantly, the creative teams that we’re picking up, [we’re doing it] knowing that we can then plug them into a Microsoft infrastructure, an Xbox infrastructure to help those teams succeed, with more solid funding, alignment towards goals around Game Pass, reaching gamers everywhere,” he continued. “And we don’t have to pay for some of the things that some of the bigger publishers have, that we probably already have under our roof.”

“So yeah,” he said. “Our focus hasn’t been on going out and adding duplicative functions that we’d be paying for that I don’t think we need, but more on how we can find the creative independent teams out there. And I feel really good about the path that we’re on right now.”
 
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ZywyPL

Neo Member
Nov 27, 2018
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#43
That moment when the XBOX hardcore realize that they no longer have any exclusives
I think it's the Sony fanboys who don't get the entire point here - it's not about Xbox exclusives anymore, rather MS exclusives. Phil said it multiple times already, they dont' care on what platform you play their games on. Here's the sittuation - a kid has a birthday, and it's either his mom or his dad who'll give him 100$, what's the difference? None, it's the same 100$. And that's what MS is aiming for, 60 bucks is 60 bucks, the bank account doesn't care if it comes from console, PC or a smarpthone. I find those childish console wars super hilarious, kids care more about the consoles than even Sony's/MS's investors do, a true comedy indeed.
 
Nov 14, 2017
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#45
If MS can get 10 million Game Pass subs on Switch and 10 million on PS4, that's ~3.5 billion in increased revenue per year in Game Pass/XBL subs for MS. Considering the entire gaming division made, what, 10(?) billion last year, that's a huge increase. It would get millions of new customers into the Xbox ecosystem with a Gamertag, friends list, achievements, etc. I think it could potentially be a boon for the brand. If the endgame is to sell subscription services, wouldn't this provide them with two huge markets to tap into?

I can't see Sony allowing it. Maybe Nintendo would consider it.
 
Jan 30, 2018
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#46
The whole point to buying a publisher like EA, Activision, Take Two is to let them run themselves independently and sell their games everywhere without Microsoft getting involved. The only thing they should worry about after getting bought is bringing their games are everywhere they are currently not. Let's say EA doesn't support Nintendo switch. Well Microsoft just needs to write the check to let EA slowly grow a new studio or IP and bring in profits from Nintendo. Don't hover over them while they do that but let them figure it out themselves. So basically in time your profits being brought in from sales of games on mobile, Sony, Nintendo, PC exceeds you Xbox division. That profit flows into the Xbox division which in turns grows your standalone divisions abilities to fund and grow things. Makes me nervous the way they are talking, though. Sounds like they are either going to over manage or make questionable calls running these studios, as per their history. I would drop dead of surprise if Nintendo, and Sony allowed gamepass to thrive on their console. I'm mean you're competing to take away valuable gaming time, and profits from Sony and Nintendo. All the while strengthing their competitor with the largest money pockets, sure gamepass day one on ps5 and Nintendo.
 

Dice

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#47
I agree with him about the direction of technology, what models work best to be win-win-win for devs/investors/players, the way gaming best integrates with the rest of life, how to cultivate diversity and connection of experiences and people, how to learn and responsively grow a product, etc.

I find that most people who criticize him have their eye on only one thing: Console exclusives. Fact is, I miss so many games just by being a finite human with a full time job that I don't give a single flying fuck about which particular games I let drop off the end of my reach. What I care about is a quality ecosystem that gets me a good return on my financial investment with comfortable use, a strong variety of fun experiences, and lets me enjoy it with others well. Across these values, Xbox has been absolutely kicking ass better than any platform I have ever owned.