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Xbox FYQ1 (July~September) Results: Gaming division grew 16%

FrankWza

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"mandatory purchase of that expensive expansion drive " sure if you are allergic to using an external drive and hot-swapping games out games that you are currently playing... then yeah I guess it's mandatory.
So, quick resume is amazing because you can switch between games on the fly. The expansion SSD is supposedly worth the premium because you can “hot swap” it between consoles but you’re not going to have 3 of the biggest games available(swap out cod for battlefield even) to the ecosystem for the holidays at all times without having to transfer back and forth? Come on. That ratio is not what you want going into your 2 biggest franchises coming out and 3rd party releases too.
Yes, comfortably.

Forza Horizon 103gb.

Halo Infinite (multiplayer) is estimated at 60gb on the MS Store.

Vanguard 61gb confirmed today (https://gamingintel.com/call-of-duty-vanguard-launch-file-sizes-disc-space/)

224gb used out of the available 364gb, 140gb left over.

You could even add Battlefield 2042 which is also 60gb and still have 80gb left over.
What about halo single player? What if you get gamepass and want to try other games? Still a weak ratio of the lesser console going into a holiday season if it keeps up. Especially for a parent wanting to buy their kid a new Xbox.
 
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Iced Arcade

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Canada eh
So, quick resume is amazing because you can switch between games on the fly. The expansion SSD is supposedly worth the premium because you can “hot swap” it between consoles but you’re not going to have 3 of the biggest games available(swap out cod for battlefield even) to the ecosystem for the holidays at all times without having to transfer back and forth? Come on. That ratio is not what you want going into your 2 biggest franchises coming out and 3rd party releases too.

What about halo single player? What if you get gamepass and want to try other games? Still a weak ratio of the lesser console going into a holiday season if it keeps up. Especially for a parent wanting to buy their kid a new Xbox.
lookup the word "mandatory" Frankie
 
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FrankWza

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lookup the word "mandatory" Frankie
Look up “barely”
It’s the only way to keep the touted features and have an equivalent storage solution to the superior console that is being under shipped while spending an almost equivalent amount.
 

Bernd Lauert

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Look up “barely”
It’s the only way to keep the touted features and have an equivalent storage solution to the superior console that is being under shipped while spending an almost equivalent amount.
You can install Halo, Forza, CoD and BF and you'd still have space left over. This isn't a problem for the vast majority of XSS owners.
 

DarkMage619

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So, quick resume is amazing because you can switch between games on the fly. The expansion SSD is supposedly worth the premium because you can “hot swap” it between consoles but you’re not going to have 3 of the biggest games available(swap out cod for battlefield even) to the ecosystem for the holidays at all times without having to transfer back and forth? Come on. That ratio is not what you want going into your 2 biggest franchises coming out and 3rd party releases too.

What about halo single player? What if you get gamepass and want to try other games? Still a weak ratio of the lesser console going into a holiday season if it keeps up. Especially for a parent wanting to buy their kid a new Xbox.
Obviously you are the most knowledgeable about the Xbox here Frank but you forgot to mention that Quick Resume works even if you have games stored on an external hard drive. You are presenting a very specific scenario but Banjo64 Banjo64 already explained how many games could fit on the XSS hard drive right now. We already know the XSS is the best value out right now. No need to try and invent a problem when there isn't one.
 
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prinz_valium

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I don't see how can u think this is possible. Really. They are not leader in any market. Their 2 biggest markets(us and uk) they sell less than PS and Switch(us).

I think they will have a great gen if they reach 60 mi. But I expect around 50 in the end with expansion of xcloud to tvs and pc.
Even the horrible Xbox One sold more than 50m.
 

Iced Arcade

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Look up “barely”
It’s the only way to keep the touted features and have an equivalent storage solution to the superior console that is being under shipped while spending an almost equivalent amount.
enjoy your day fishing lol
 

FrankWza

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You can install Halo, Forza, CoD and BF and you'd still have space left over. This isn't a problem for the vast majority of XSS owners.
You’re still restricted compared to the flagship device which requires an added expense. The last thing you want when selling a new system is to explain how someone has to do additional work in order to spend money on more games or buy an expensive expansion device that would put the cost at or near the flagship console. And then, when the person wants to up sell themselves and asks for that more expensive and better suited console, you have to tell them it’s not available because it’s being under shipped when the two biggest franchises are launching in time for the holidays.
Also, DarkMage619 DarkMage619 has a picture series s tattooed on his ass :)
 
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Hendrick's

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It's not though?


I still think 60:40 split is way too high and MS should be prioritizing their premium console because otherwise whats the point of winning every face/off against the PS5 when almost 40% of your userbase is not going to see that advantage?
Dumb argument. MS want people playing on the Xbox platform. Winning those face offs gains them brand clout. Why would they care which console someone buys?
 
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DrAspirino

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Investors don’t give a shit about the Xbox division in any way shape or form.

It is a minor blip. They are busy looking at the actual stuff that makes them money.

It’s like counting your pennies, while all the big bills sit off to the side.
Exactly. Investors don't invest in Xbox; they invest in MSFT as a whole, and right now (as has been for decades now) Microsoft has been making them tons of money.

Heck, if I were a MSFT investor, the first thing I'd look for is how's the Azure and Office divisions are doing, since that's their bread and butter.
 

Bernd Lauert

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Exactly. Investors don't invest in Xbox; they invest in MSFT as a whole, and right now (as has been for decades now) Microsoft has been making them tons of money.

Heck, if I were a MSFT investor, the first thing I'd look for is how's the Azure and Office divisions are doing, since that's their bread and butter.
Can confirm, am MSFT investor (small fish tho, sub 100 shares).
 

Nikana

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You’re still restricted compared to the flagship device which requires an added expense. The last thing you want when selling a new system is to explain how someone has to do additional work in order to spend money on more games or buy an expensive expansion device that would put the cost at or near the flagship console. And then, when the person wants to up sell themselves and asks for that more expensive and better suited console, you have to tell them it’s not available because it’s being under shipped when the two biggest franchises are launching in time for the holidays.
Also, DarkMage619 DarkMage619 has a picture series s tattooed on his ass :)
Im still waiting for the Series S to be discontinued in 2 years like you claimed. Only a year and some change to go.
 

FrankWza

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Im still waiting for the Series S to be discontinued in 2 years like you claimed. Only a year and some change to go.
Well, if they need to produce the s because they don’t have the components sourced to produce enough x consoles then the s gets a stay of execution. You can put that on a t shirt and wear it if it makes you feel better about a lesser console, but the point is carried over to this winter where they don’t have their premium console available to best represent their 2 flagship franchises. Unless you think that’s what the plan was…
I would wear the t shirt before I go with DarkMage619 DarkMage619 more permanent solution.
 
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Nikana

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Well, if they need to produce the s because they don’t have the components sourced to produce enough x consoles then the s gets a stay of execution. You can put that on a t shirt and wear it if it makes you feel better about a lesser console, but the point is carried over to this winter where they don’t have their premium console available to best represent their 2 flagship franchises. Unless you think that’s what the plan was…
I would wear the t shirt before I go with DarkMage619 DarkMage619 more permanent solution.
Nah. The point is you constantly say things that never come true, arent true, and concern troll anything to do with Series S and most of Xbox as a whole.

We get it.
 

Sosokrates

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Because you need to dominate a market and be a hit worldwide, like the 360 dominated the US and still put out numbers worldwide.

90 million seems like a really big stretch right now but things change, don’t see how it changes enough for it to happen though. For reference the 360 hit 85 million…. Do you actually expect Series to outsell it, given everything we know at this point in time?
Everything we know?
What exactly do we know?

All I know is that xbox one sold 50million when it had a terrible launch, weaker hardware and severely uncompetitive first party offering.

Now with the series consoles they have the most powerful hardware, the best value, gamer centric, one of the strongest first partys ever.

So, things have already changed.

Its mainly about the games and this time Xbox has the games. They had a slow start the first 8months of the Series consoles, but that is no more. With 23 studios and about 26 teams , xbox will have very little quiet periods, its just math.
 
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FrankWza

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Nah. The point is you constantly say things that never come true, arent true, and concern troll anything to do with Series S and most of Xbox as a whole.

We get it.
Constantly? Hahah I forgot…you’re the “insider” You’re the guy at McDonald’s that puts the salt on the fries.
dude, you’re as backwards as your name.

edit:
Do you smell that? He’s rummaging for proof.
 
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Nikana

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Constantly? Hahah I forgot…you’re the “insider” You’re the guy at McDonald’s that puts the salt on the fries.
dude, you’re as backwards as your name.


mean girls movie GIF


Let me know when the Series S is cancelled. Looking forward to it.

Can confirm, am MSFT investor (small fish tho, sub 100 shares).

Gotta start somewhere.

I think Phil might be proven right, not just for that reason that you have stated but also maybe for developing markets.

Developing markets I think is a big one that is being under-looked. Time will tell.
 
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I brought this up earlier this year. Nintendo was actually around $17 billion but i was very surprised by the MS number considering the fact that MS sold only a fraction of consoles Nintendo did. Their engagement numbers have always been high, but to have that kind of engagement in a covid year where nintendo switch sold something crazy like 25 million units is pretty damn impressive.

Whats more impressive is that they did that on a userbase thats pretty much half of the PS4 userbase. The ps4 was around 120 million units while the xbox one was around 50 million last year. And yet, the revenue per user during was far higher on the xbox one.

Yep, that's why it's not a good idea to use hardware sales as the only measure of platform ecosystem financial health (as in, revenue figures). If revenue had a direct correlation with hardware sales, we should see the PS division easily clearly more than a 2:1 revenue advantage over the Xbox division, but it's never happened and I doubt it ever will. And Nintendo should be clearing at least 30% more revenue than Xbox as well, but that isn't the case.

Though in Nintendo's case, they clearly make more than 2x profit from their gaming division compared to Microsoft, they even generate more net profit than the PlayStation division despite less 3P support and cheaper hardware (them barely ever dropping the prices on their 1P games is probably a big part of that, though). If you go back far enough there's examples of this repeating with older consoles, too.

As in, sometimes consoles with lower install bases having higher attach ratios. The Sega Saturn for example had an almost abnormally high attach rate for its time compared to PS1 and N64.

Great results and shows that Series S was a forward thinking move, those people who insisted it was just sitting on shelves with nobody wanting one🤣
I thought it would take a year or so longer to start selling more than Series X but obviously the shortages and Series S being easier to make have had an impact.
Will be a monster this Christmas.

I think it's similar to what's happening in the computer market: there's probably a lot of people who would've instead purchased a new GPU but because the prices are so damn expensive due to scalpers, crypto etc., you actually have a better shot getting a pretty decent GPU buying a new OEM PC, laptop and I suspect for some people now, game consoles.

And if there's more Series S supply out there, then that means more people likely to buy them. I've seen a lot of people on 1650-tier setups and budget PC gamers looking towards Series S as replacements for those builds. Even Youtube channels ETA Prime and MVG putting some legit spotlight on Series S for 1080p budget gaming and retro emulation.

Glad I'm not the only one that remember that Phil said Series S would sell more. They knew this from the data they was getting from Xbox One vs Xbox One X sales .

I don't think XBO/One X and Series S/Series X are necessarily the same in this instance. One X was always positioned as a resolution/framerate booster of XBO games. I HOPE Microsoft aren't positioning the Series X as the One X equivalent for Series S because I want games targeting Series X as the base and scaling down in graphics/physics/AI system simulation settings for Series S.

I mean they even said a long while ago the scale-down approach was the one they were taking and it's not impossible to do even if it'll require a bit more work versus just scaling those things upward. One of the few reasons I hope Series X production is increased: a 50/50 split would probably be best but if the split starts to favor Series S even more I'm gonna be more than a bit hesitant on where their baseline is for target perf.

I dont see why Xbox Series S/X cant crack 90m+ this gen.

Chip and part shortage will slow it down though.

Well not just that but also their business model. We gotta be a bit realistic and understand that them pushing GamePass subscriptions will have at least some effect on hardware sales, if/when the majority of those subs start coming from users on PC and mobile. Right now IMO (and I think the data right now backs this up) the majority of GP subs are coming from Xbox owners, so Xbox console sales are still quite important for them.

Again tho, if/when PC and mobile start comprising the majority of GamePass subscriptions, that could have some impact on overall Series console sales. I also still think Microsoft needs more major Japanese/Asian exclusives, be they timed or full (maybe through co-funding/co-development initiatives) at least to the level they had during the OG Xbox and 360 eras, to make up for the fact that they aren't likely going to have default exclusivity on Western 3P games nearly as rampantly as they did during 360 (keep in mind IP like Alan Wake and Mass Effect didn't even get PS3 releases at all and were pretty massive at the time).

As-is and with their apparent business strategy I think LTD for Series will probably sit between XBO/One X and 360, say 65 - 70 million. Maybe 75 million as a more extreme outlier. But I can't see them getting near 90+ million unless they deemphasize GamePass subscriptions on non-Xbox devices, and secure notably more major 3P AAA exclusives both Western and Japanese. Or, they have enough 1P content in production where some of them can effectively replace the need for some of those major 3P AAA titles.

Like, they have Bethesda for example so they're getting games like Fallout and TES as exclusive which are massive in and of themselves. Also most likely other games like DOOM, Quake, Wolfenstein, etc. New IP like Starfield have the potential to make games like Mass Effect seem almost irrelevant if done well enough. However, for more Japanese/Asian style games it's way more up in the air. None of Microsoft's current 1P studios aside maybe Ninja Theory and Tango can do a big equivalent for a DMC or Resident Evil/Silent Hill, and they have none that seem suited to provide an equivalent to stuff like Street Fighter, Sonic, Persona, Final Fantasy, Tekken, Ninja Gaiden, Dragon Quest, etc.

Because as long as those games mentioned still come to PlayStation (and in a lot of cases, have timed exclusivity there or PS as lead platform for co-marketing), and that's the extent of Xbox's Japanese support (eventual library parity, gradual Day-and-Date with PlayStation on some releases), then it's very difficult for MS to have a fully well-rounded software library with consistent release schedule and unique content to drive attention to their platform, hence why I said a more realistic best-case for Series system sales LTD is closer to 65 million - 70 million.

But with all that said, again, Microsoft's strategy is seemingly less reliant on hardware sales than Sony's or Nintendo's, but that depends a lot on how GamePass fares over the next couple of years IMO.
 
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Sosokrates

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Yep, that's why it's not a good idea to use hardware sales as the only measure of platform ecosystem financial health (as in, revenue figures). If revenue had a direct correlation with hardware sales, we should see the PS division easily clearly more than a 2:1 revenue advantage over the Xbox division, but it's never happened and I doubt it ever will. And Nintendo should be clearing at least 30% more revenue than Xbox as well, but that isn't the case.

Though in Nintendo's case, they clearly make more than 2x profit from their gaming division compared to Microsoft, they even generate more net profit than the PlayStation division despite less 3P support and cheaper hardware (them barely ever dropping the prices on their 1P games is probably a big part of that, though). If you go back far enough there's examples of this repeating with older consoles, too.

As in, sometimes consoles with lower install bases having higher attach ratios. The Sega Saturn for example had an almost abnormally high attach rate for its time compared to PS1 and N64.



I think it's similar to what's happening in the computer market: there's probably a lot of people who would've instead purchased a new GPU but because the prices are so damn expensive due to scalpers, crypto etc., you actually have a better shot getting a pretty decent GPU buying a new OEM PC, laptop and I suspect for some people now, game consoles.

And if there's more Series S supply out there, then that means more people likely to buy them. I've seen a lot of people on 1650-tier setups and budget PC gamers looking towards Series S as replacements for those builds. Even Youtube channels ETA Prime and MVG putting some legit spotlight on Series S for 1080p budget gaming and retro emulation.



I don't think XBO/One X and Series S/Series X are necessarily the same in this instance. One X was always positioned as a resolution/framerate booster of XBO games. I HOPE Microsoft aren't positioning the Series X as the One X equivalent for Series S because I want games targeting Series X as the base and scaling down in graphics/physics/AI system simulation settings for Series S.

I mean they even said a long while ago the scale-down approach was the one they were taking and it's not impossible to do even if it'll require a bit more work versus just scaling those things upward. One of the few reasons I hope Series X production is increased: a 50/50 split would probably be best but if the split starts to favor Series S even more I'm gonna be more than a bit hesitant on where their baseline is for target perf.



Well not just that but also their business model. We gotta be a bit realistic and understand that them pushing GamePass subscriptions will have at least some effect on hardware sales, if/when the majority of those subs start coming from users on PC and mobile. Right now IMO (and I think the data right now backs this up) the majority of GP subs are coming from Xbox owners, so Xbox console sales are still quite important for them.

Again tho, if/when PC and mobile start comprising the majority of GamePass subscriptions, that could have some impact on overall Series console sales. I also still think Microsoft needs more major Japanese/Asian exclusives, be they timed or full (maybe through co-funding/co-development initiatives) at least to the level they had during the OG Xbox and 360 eras, to make up for the fact that they aren't likely going to have default exclusivity on Western 3P games nearly as rampantly as they did during 360 (keep in mind IP like Alan Wake and Mass Effect didn't even get PS3 releases at all and were pretty massive at the time).

As-is and with their apparent business strategy I think LTD for Series will probably sit between XBO/One X and 360, say 65 - 70 million. Maybe 75 million as a more extreme outlier. But I can't see them getting near 90+ million unless they deemphasize GamePass subscriptions on non-Xbox devices, and secure notably more major 3P AAA exclusives both Western and Japanese. Or, they have enough 1P content in production where some of them can effectively replace the need for some of those major 3P AAA titles.

Like, they have Bethesda for example so they're getting games like Fallout and TES as exclusive which are massive in and of themselves. Also most likely other games like DOOM, Quake, Wolfenstein, etc. New IP like Starfield have the potential to make games like Mass Effect seem almost irrelevant if done well enough. However, for more Japanese/Asian style games it's way more up in the air. None of Microsoft's current 1P studios aside maybe Ninja Theory and Tango can do a big equivalent for a DMC or Resident Evil/Silent Hill, and they have none that seem suited to provide an equivalent to stuff like Street Fighter, Sonic, Persona, Final Fantasy, Tekken, Ninja Gaiden, Dragon Quest, etc.

Because as long as those games mentioned still come to PlayStation (and in a lot of cases, have timed exclusivity there or PS as lead platform for co-marketing), and that's the extent of Xbox's Japanese support (eventual library parity, gradual Day-and-Date with PlayStation on some releases), then it's very difficult for MS to have a fully well-rounded software library with consistent release schedule and unique content to drive attention to their platform, hence why I said a more realistic best-case for Series system sales LTD is closer to 65 million - 70 million.

But with all that said, again, Microsoft's strategy is seemingly less reliant on hardware sales than Sony's or Nintendo's, but that depends a lot on how GamePass fares over the next couple of years IMO.

It is just speculation at the end of the day.I just disagree with you here. The Japanese market is a small percentage of the business and outside of final fantasy Japanese centric games dont sell in huge numbers.
The point of PC + cloud is to expand the market. I still think it wont detract from there console sales to much, especially when SeriesS is a thing. I think clould will be a supplementry thing for a while.
Also SeriesS has strong 2nd console potential, I think seriesS will sell a lot to PS5 owners who want to play the games they cant anymore.

And Microsoft already a more well rounded portfolio of first party then sony,
So to say ms have a less well round 1st party compared to sony is not true.

Saying the series consoles will sell 25million more then the xbox one , i really cant itake it seriously when xbox are not only several orders of magnitude better then they were with xbox one but they are also doing better then sony in some areas.
 

DaGwaphics

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I mean they even said a long while ago the scale-down approach was the one they were taking and it's not impossible to do even if it'll require a bit more work versus just scaling those things upward. One of the few reasons I hope Series X production is increased: a 50/50 split would probably be best but if the split starts to favor Series S even more I'm gonna be more than a bit hesitant on where their baseline is for target perf.

I don't think their performance targets are really a concern at this point. It's clear that XSX and PS5 are getting variations of the same builds on third-party releases. As long as that continues the issue is moot for the most part.

Well not just that but also their business model. We gotta be a bit realistic and understand that them pushing GamePass subscriptions will have at least some effect on hardware sales, if/when the majority of those subs start coming from users on PC and mobile. Right now IMO (and I think the data right now backs this up) the majority of GP subs are coming from Xbox owners, so Xbox console sales are still quite important for them.

GamePass getting more popular on PC/Mobile/Dedicated streaming device can only be good for the Xbox console line, IMO. The more popular the service is the more likely the service itself is to act as the catalyst for a console purchase. MS doesn't rely entirely on consoles and the fact that games are not exclusive to console can certainly effect sales, but popularity in one phase doesn't necessarily hurt the other. MS will continue to sell the consoles for what they are, the best value option to play games locally at the different performance levels. If you don't mind streaming that will be the cheapest option, while PC will be either the best performing option or maybe even just the option the buyer already had. In a scenario where everyone wants GP, it just becomes a situation of what platform fits with your budget and the experience you want to have with the service.
 

Adam_802

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Game pass has to be near its max. There simply can't be many people who have an xbox but not gamepass, right? At least if u have internet.

lol GP isnt even getting started yet. They haven't even launched Halo and when stuff like Starfield/ES6/etc launch, GP will explode.
 
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Basil King

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Xbox FY22 Q1's revenue is about $3.6bn, in comparison, last year Playstation's revenue in the same period was $4.77bn. I believe Sony's earnings report for this year comes out tomorrow, and it's pretty safe to assume Playstation will beat last year's revenue.

We can also guess how well Game Pass is doing because at the end of the day everything gets converted to revenue. It's obviously not enough to beat Playstation.
Considering they still haven’t had their big games come out to really attract people to gamepass and they do day and date with PC, the revenue is only going to keep going up. Possibly even beating PS and that’s ok. It means everyone is healthy as the industry fans should aim for.
 

MonarchJT

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Momentum, weaker competition that was late to the party, Halo in its peak prime and Gears of War storming the place and then Kinect. 360 was a gaming culture phenomenon.

I see none of it for Series, odds are stacked against it, 90 mil is a pipe dream.
it will be 75 80 or also more (always taking into account that the more they sell the better) Microsoft cares about console sales relatively, what really matters is the attachment between hw and the sale of Gamepass subscriptions. What matters today (and always) is the sale of software, services and stuff like dlc etc. etc. We have seen the result of Sony and they have practically lost money for 1 full year (probably since they overhauled the OG model's huge heatsink) we know that this is how it works with the launch of a new gen. But Ms with the policy of releasing everything on PC, console and Cloud it will pay off in the long run.
 
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I don't think their performance targets are really a concern at this point. It's clear that XSX and PS5 are getting variations of the same builds on third-party releases. As long as that continues the issue is moot for the most part.

Aside from some odd graphical glitches in Series X versions of specific games (where it seems like they're just using the assets of the Series S version), largely agreed. But, there's always a chance with console splits favoring the S at greater percentages, it drives incentive down for some 3Ps to optimize for Series X.

GamePass getting more popular on PC/Mobile/Dedicated streaming device can only be good for the Xbox console line, IMO. The more popular the service is the more likely the service itself is to act as the catalyst for a console purchase.

Hmm...yes and no. I agree that GP expansion and pickup in the PC/Mobile/streaming device markets is a good thing for the Xbox division, but I doubt to what degree subscriptions there will translate to more Xbox console sales. We just found out today that at least in the U.S, crossover of PC owners with PS4s is roughly just 33%, and that's with a console platform that's had most of its 1P content exclusively on the console. For a platform like Xbox, which has been doing PC Day-and-Date since Quantum Break, I suspect that percentage is notably lower. The point being, that there's probably not as much crossover between PC users going out to buy consoles as a lot may've assumed.

With mobile and streaming devices the crossover rate is probably even lower than that. Considering there was a boon of new casuals during the Wii generation who then migrated to mobile after the Wii, and have probably stayed in the mobile sphere since, if the casuals and most of the mainstream on mobile or streaming devices aren't too fussed about having top-end graphics fidelity, best FPS etc., and probably prefer touch controls (or mobile-esque controls)...why would they be fussed to buy a console if all the games they'd play there are already available on their mobile device via GamePass?

I mean we can probably entertain those types picking up a console when it's cheaper, but it'd have to enter a price territory that feels almost impulse-buy for them. A $299 Series S (let alone $499 Series X) probably isn't going to do it for them. However, that's also partly why All-Access exists; if your notion that GP subscription to mobile and streaming customers can fuel console sales holds true, then it would most likely be accomplished via those folks going through a program like All-Access to buy their system, since the payment model there mirrors the phone plan model a mobile user is already familiar with.

MS doesn't rely entirely on consoles and the fact that games are not exclusive to console can certainly effect sales, but popularity in one phase doesn't necessarily hurt the other. MS will continue to sell the consoles for what they are, the best value option to play games locally at the different performance levels. If you don't mind streaming that will be the cheapest option, while PC will be either the best performing option or maybe even just the option the buyer already had. In a scenario where everyone wants GP, it just becomes a situation of what platform fits with your budget and the experience you want to have with the service.

Yeah, I can agree with this concept.
 

DaGwaphics

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Hmm...yes and no. I agree that GP expansion and pickup in the PC/Mobile/streaming device markets is a good thing for the Xbox division, but I doubt to what degree subscriptions there will translate to more Xbox console sales. We just found out today that at least in the U.S, crossover of PC owners with PS4s is roughly just 33%, and that's with a console platform that's had most of its 1P content exclusively on the console. For a platform like Xbox, which has been doing PC Day-and-Date since Quantum Break, I suspect that percentage is notably lower. The point being, that there's probably not as much crossover between PC users going out to buy consoles as a lot may've assumed.

With mobile and streaming devices the crossover rate is probably even lower than that. Considering there was a boon of new casuals during the Wii generation who then migrated to mobile after the Wii, and have probably stayed in the mobile sphere since, if the casuals and most of the mainstream on mobile or streaming devices aren't too fussed about having top-end graphics fidelity, best FPS etc., and probably prefer touch controls (or mobile-esque controls)...why would they be fussed to buy a console if all the games they'd play there are already available on their mobile device via GamePass?

I mean we can probably entertain those types picking up a console when it's cheaper, but it'd have to enter a price territory that feels almost impulse-buy for them. A $299 Series S (let alone $499 Series X) probably isn't going to do it for them. However, that's also partly why All-Access exists; if your notion that GP subscription to mobile and streaming customers can fuel console sales holds true, then it would most likely be accomplished via those folks going through a program like All-Access to buy their system, since the payment model there mirrors the phone plan model a mobile user is already familiar with.

I think I wasn't clear with my meaning there. I wasn't referring to any crossover from PC/Mobile to console at all. More people joining the service begets more people with friends on the service that might join themselves and so on. At that point it's just about what device makes the most sense and console may be "the choice" for a lot of people. Basically the more popular that GP gets, anywhere it is available, the more it increases the chances of someone buying a console just to have access to the service. That's my current working theory anyway, it changes from day to day. :messenger_tears_of_joy:
 

reksveks

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The total Microsoft margin is something that constantly gets me although I know that software and services more profitable than hardware.





Microsoft made 3.5bn less in profit than Apple on 38bn less revenue.
 
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DarkMage619

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That's a pretty substantial difference if we consider xss is much more readily available.
Considering that many here predicted that the XSS would be DoA a 60:40 split is pretty great. Seems highly unlikely that MS will be dropping the console any time soon as a clueless person predicted not too long ago.
 

S0ULZB0URNE

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Considering that many here predicted that the XSS would be DoA a 60:40 split is pretty great. Seems highly unlikely that MS will be dropping the console any time soon as a clueless person predicted not too long ago.
Considering the ease of getting a xss vs the XSX and the $200 price difference....
It's not so great 🤷‍♂️ IMO
This holiday it might sell even better being a easier to get option though.

Who's the clueless person that said it would be DOA?
 
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Neo_game

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It's not though?


I still think 60:40 split is way too high and MS should be prioritizing their premium console because otherwise whats the point of winning every face/off against the PS5 when almost 40% of your userbase is not going to see that advantage?

Not the overall estimate but the Q3 2021 estimates posted in page 1. I know what you mean but the face-off only matter to very small audience and is used for console wars mostly. Especially since the difference is not much. this time. Hitman3 was the only exception I think. May be some BC games as well since they are running on last gen X and Pro settings.

They don't have the money i guess. 360 and PS3 sold well into last gen.

If this is what people want and it makes a good portion of their target audience is then I am not sure it bodes well for console gaming. We need to raise the standard of console gaming and hopefully create a demand of better hardware. Not settle for entry level specs
 
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DarkMage619

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Considering the ease of getting a xss vs the XSX and the $200 price difference....
It's not so great 🤷‍♂️ IMO
This holiday it might sell even better being a easier to get option though.

Who's the clueless person that said it would be DOA?
So a 60:40 split for the budget console is not great? You realize people buy consoles for more reasons than just cost right? The XSS was about providing customers with more options. Looking at the numbers 40% of Xbox customers exercised that option. Keeping in mind what Xbox did last generation MS is making some pretty big strides in rebuilding their brand. This generation is a marathon not a sprint. I want to see the numbers at the end of the generation.
 

S0ULZB0URNE

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So a 60:40 split for the budget console is not great? You realize people buy consoles for more reasons than just cost right? The XSS was about providing customers with more options. Looking at the numbers 40% of Xbox customers exercised that option. Keeping in mind what Xbox did last generation MS is making some pretty big strides in rebuilding their brand. This generation is a marathon not a sprint. I want to see the numbers at the end of the generation.
Not IMO. Like I stated... the xss is much easier to get and almost half the price.
If XSX was more available I am sure the gap would be even greater.

It is a marathon not a sprint and the XSX is leading that marathon for Xbox.
 

EdGalTBR

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I understand that, having no disc drive and only 500GB of storage, the Series S is sold for a bit more than it should. I think the right price is U$249,90.
 

Bernd Lauert

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I understand that, having no disc drive and only 500GB of storage, the Series S is sold for a bit more than it should. I think the right price is U$249,90.
The innate value is also better once the games are out. $299 on Christmas doesn't sound bad when you basically get Forza 5 and Halo as a free addition.
 

cireza

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Series S was a smart move from the very announcement, it was obvious. Of course the console is selling, no sane person would have doubted this. The value you get is insane for the price.
 
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