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Xbox plans to exit gaming business if "off-console" Game Pass subscribers don't increase enough by 2027

MagnesD3

Member
You guys will rejoice but really it will suck as no one else will step up. The days of getting in the industry as a platform holder are over. It will only fast track apple and google.
To be honest we are fucked no matter what, I wish Sega were interested in playing ball, they got the IP, if they could get the talent I really think they could have a shot.
 

graywolf323

Member
I think sony did the most heavy lifting "Sony poached Sega senior executives, including Kalinske's second-in-command Steve Race, to develop the Sony PlayStation. Sega moved forward on its own with the Saturn and Kalinske didn't believe the system would succeed" Article
it was Sega of Japan that was Sega’s worst enemy so I don’t see how losing Steve Race to Sony had anything to do with Sega’s eventual failure

of course you didn’t include the full paragraph or even the full sentence (you ended where there’s a comma)

That was only the beginning of the schism between Kalinske and his superiors at Sega of Japan. Sony poached Sega senior executives, including Kalinske's second-in-command Steve Race, to develop the Sony PlayStation. Sega moved forward on its own with the Saturn and Kalinske didn't believe the system would succeed, but Sega of Japan was looking to spoiler Sony's efforts with the console's launch. Unfortunately, the Sega Saturn launched at $399, $100 higher than the price point Sony announced for the PlayStation at E3. Kalinske left Sega of America and the industry in 1996, and was replaced by ex-Sony executive Bernie Stolar, who had a hand in Sega's Dreamcast.”

basically Sony recognized that the Sega of America guys were the reasons they were successful and picked up someone who wanted off the sinking ship
 
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64bitmodels

Reverse groomer.
If Sony raises prices you think people are downgrading to moble gaming?
Maybe if Apple is serious about the mobile phone thing, yes. Because even THEY'VE gotten competitive on that front too.

If Apple starts getting serious about their gaming initiative and more AAA games come to Iphone, Ipad, Apple TV and Mac, well golly gee that's another sector they'll have to worry about. so 2 competitors on Sony's back, and a potential 3rd smartphones. Ah yes, Arrogant Sony domination is inevitable and we'll all be paying 100 a month for PS plus while paying 800 dollars for the PS6 pro.

Get real.
 
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violence

Member
it was Sega of Japan that was Sega’s worst enemy so I don’t see how losing Steve Race to Sony had anything to do with Sega’s eventual failure

of course you didn’t include the full paragraph or even the full sentence (you ended where there’s a comma)

That was only the beginning of the schism between Kalinske and his superiors at Sega of Japan. Sony poached Sega senior executives, including Kalinske's second-in-command Steve Race, to develop the Sony PlayStation. Sega moved forward on its own with the Saturn and Kalinske didn't believe the system would succeed, but Sega of Japan was looking to spoiler Sony's efforts with the console's launch. Unfortunately, the Sega Saturn launched at $399, $100 higher than the price point Sony announced for the PlayStation at E3. Kalinske left Sega of America and the industry in 1996, and was replaced by ex-Sony executive Bernie Stolar, who had a hand in Sega's Dreamcast.”

basically Sony recognized that the Sega of America guys were the reasons they were successful and picked up someone who wanted off the sinking ship
Regardless Sega could not compete with Sony. I don't think anything Microsoft did was notable in comparison.
 

64bitmodels

Reverse groomer.
oh I don’t disagree, I think Sega themselves are by far the biggest reason Sega exited the hardware business

largely because of absolutely boneheaded decisions made by Sega of Japan
Like anyone who would've seen the documents and performance back then.

And wouldn't you know it, there are quite a few parallels between mid 90s Sega and current day Microsoft..... doesn't look good
 
Xbox leaving would devastate the console space.
Sony would go full ham and cheese and would make EA look like a joke.
Nintendo, as well.
PC would be the only correct option. More than ever.
Fortunately there's lots of great cheap off the shelf PC options these days.

I wouldn't argue against it setting the industry back possibly an entire generation over the course of our lifetimes, but things would stabilize.

It's beyond proven that gaming is a profitable market to do business, and I'm about to buy Baldur's Gate 3 demonstrates that.
 

tryDEATH

Member
When was this stated?

All these headlines are trying to force a narrative that this is their current plan and not a bunch of documents and emails that are primarily from 2020 before the release of the Xbox Series and attempts to acquire ActiBlizz. Investing a insane 65Bil into a gaming company clear speaks of their intent to stay and go all out for it and that couldn't be clearer. Plugging in ActiBlizz into their strategy will have significant effects on their whole gaming division and outlook. This has become clickbait at this point.
 

bitbydeath

Gold Member
When was this stated?

All these headlines are trying to force a narrative that this is their current plan and not a bunch of documents and emails that are primarily from 2020 before the release of the Xbox Series and attempts to acquire ActiBlizz. Investing a insane 65Bil into a gaming company clear speaks of their intent to stay and go all out for it and that couldn't be clearer. Plugging in ActiBlizz into their strategy will have significant effects on their whole gaming division and outlook. This has become clickbait at this point.
FTC hearing a few months ago.
 

quest

Not Banned from OT
I am not sure what Apple would do that could be any worse than what MS has been attempting to do. MS has been exposed. They are not the good guys in the industry.
Hardware with a 40% margin for starters. Don't feel like paying the apple tax on console gaming. Spending 1000 dollars to get a 600 dollar machine doesn't sound appealing to me. Or some apple arcade console no thanks.
 

Killjoy-NL

Member
Since they plan on releasing next-gen in 2028, this means that Series S/X is their last console.

GamePass stagnated. Spencer already threw in the towel.
It's just a matter of time.
 

reinking

Gold Member
Hardware with a 40% margin for starters. Don't feel like paying the apple tax on console gaming. Spending 1000 dollars to get a 600 dollar machine doesn't sound appealing to me. Or some apple arcade console no thanks.
You think? Their current consumer Apple TV is priced similar to the Nvidia Shield, the other major premium streaming device on the market. Apple TV hardware has also been updated more recently compared to the Sheild. When it comes to consumer products, they are usually priced competitively compared to other products with similar specs and features.

*Just avoid their stupid stuff. Sometimes I think they do it based on a bet if someone will buy it.
 
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jroc74

Phone reception is more important to me than human rights
Whenever Microsoft can't completely monopolize an industry they just give up and leave. They did it with phones against android and ios. they did it with MP3 players ,ZUNE against Ipod. They are about to do with with tablets, Surface vs IPad. If microsoft can't completely dominate gaming, they will also do with Xbox. This is what Microsoft does, they can't just make a lot of money, they must make all of the money.
The wild part about smartphones is MS were one of the top dogs.

Forget Ballmer outright laughing at the iPhone....whew....they should have never let Android come in and gain market share. If you look at the HTC HD2 you would mistake it for Android.

How MS let Android come in and push them out is mind boggling. A swear MS is handling Xbox based on how the smartphone wars played out. That could be why they seem to fear Google and Amazon more than Sony and Nintendo. They dont want a new player pushing them out again.
 
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DeaDPo0L84

Member
Gamepass is a cancer to the gaming industry. I'm glad Sony and Nintendo are sticking to what has worked in the past and continue to do so. They will be what keeps gaming moving forward while Microsoft continues to shoot its shot wherever it can for some myopic victory cause not a single person there has any long term plan beyond "let's just keep buying the whole videogame industry until people think we're cool again".
 

Justin9mm

Member
I could ask you the same. When a competitor bleeds money and can't make shit people want to buy, they go away. Do YOU know how competititon works?

What is it about ms specifically that makes them so crucial? Nin, SIE, and Valve are all rocking 100 million users and stacking cash. What is it about this one company floundering with their primary strategy being to eliminate competition?

Angling to buy nin or valve is competitive? Do you know how anti-competititon works?

Why do we need that when you already have 3 huge brands that compete by actually selling good product and staying out of the red? What is so important about that 4th hanger on?
Why do you think PS Plus subscription tiers exist? Because of GP. Why do you think exclusivity rights exist? Because of Xbox. Why do you think the PS5 console was released at a competitive price at an initial cost loss? Because of Xbox. You see where I'm going with this? As far as current gen console, there is only Xbox and Sony. Nintendo are a different market not even in the same league.
 
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Killjoy-NL

Member
I'm talking in the console space only. Xbox exiting the console space is bad for competition. Sony can then do whatever they want with no direct competition for another current gen console.
Competition will be there without Xbox, just differently.

PC, Nintendo, Playstation.

Each their own strengths and weaknesses and their own demographic with some overlap between all.
All three push tech and spark innovation and will continue to do so.

People have been so used to Playstation vs Xbox, that they completelt overlook the fact that these three make for a far more healthier competitive scene than with Xbox around fucking up the industry.

There isn't much difference between Xbox and PC anyway, since MS decided to release games on PC day 1.
They're just like a tumor that's going to drag down everyone.
 
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YuLY

Member
No, he didn't say that.

The 100m goal is for FY29, FY30, which is roughly calendar 2030, 2031.

The thing about 2027 is that he wants the PC/Cloud subs to increase. Hence the "off-console" comment.
Maybe but lets be real, if by 2027 they arent at least at 50 it will be clear they wont reach the goal and might just give up.

Wild stuff, I think people underestimate the impact this would have on gaming. All those studios, Bethesda, Obsidian, Id, Arkane, InXile etc etc, what will happen to them and their games. Unchecked arrogant Sony? Gaming landscape will be so different
 

James Sawyer Ford

Gold Member
Maybe but lets be real, if by 2027 they arent at least at 50 it will be clear they wont reach the goal and might just give up.

Wild stuff, I think people underestimate the impact this would have on gaming. All those studios, Bethesda, Obsidian, Id, Arkane, InXile etc etc, what will happen to them and their games. Unchecked arrogant Sony? Gaming landscape will be so different

Hard for me to imagine them acquiring Activision and giving up a few years later
 

Crayon

Member
Why do you think PS Plus subscription tiers exist? Because of GP. Why do you think exclusivity rights exist? Because of Xbox. Why do you think the PS5 console was released at a competitive price at an initial cost loss? Because of Xbox. You see where I'm going with this? As far as current gen console, there is only Xbox and Sony. Nintendo are a different market not even in the same league.

Yes they are all going to respond to the circumstances. I'm trying to tell you there is nothing special about xbox that makes them the only ones who can keep sony in check. If xbox left, both valve and nintendo are going to be courting those 40 million freed up users along with sony. I understand that a lot of enthusiasts have been conditioned to think that only sony and ms matter and them locking horns for eternity is a given, but that is an almost mythological understanding of everything. XBox leaving would make valve, sony, and nintendo have to react somehow. They aren't just going to sit around and get fat. You are talking like ms alone keeps sony from ruining everything.

With no xbox, can sony put out an underpowered, overpriced console? Sure. At their peril. What makes ms different is not that they want to make their own playstation too and be playstation, it that they have no real pressure themselves. They can bleed money wherever they want. Imagine if they all could do that. Competition is not all created equal. The ideal is companies competing on the merits of their products for profit. The worst competition is a company trying to eliminate competitors, money no object.
 

Zuzu

Member
If MS left then maybe Nintendo would consider making a standard non-hybrid console again. It would be interesting to see a powerful console with an nvidia gpu again.
 
Just make some fucking good games. It's not hard.
They don't want to put resources into making quality games, they just want to make a quick buck with low effort and that's been there problem for a decade now.

The passion that went into their first party games during the original Xbox and Xbox 360 gen, innovation like xbox live is what built their fan base but for some reason they forgot about that.

Series S, game pass, buying publishers, etc ... these are all low effort tactics to make quick money.
 
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MAtgS

Member
If MS left then maybe Nintendo would consider making a standard non-hybrid console again. It would be interesting to see a powerful console with an nvidia gpu again.
Boy, some people really won't let it go. Like a high end Nintendo console wouldn't get completely crushed by Playstation. They'll sooner go handheld only than another console.
 

FeralEcho

Member
We know what we need to do to rid ourselves of this parasite.

I’d be completely happy with Nintendo, PlayStation, and Steam being the big players. What value does a Microsoft bring, honestly what value have they brought that has been for the betterment of gamers and gaming in the past 20 years? I’m sure a few things exist but they pale in comparison to what the other three have accomplished.
They made Playstation Studios into what they are today.The bulk of SCEA,SCEE and to a lesser degree SCEJ were turned into powerhouses because Microsoft took a lead in the begining of the 7th gen and Sony understood that games were what sold these systems so while MS was focusing on garbage like kinect around 2010,Sony was busy building great new IP after great new IP so no a future without Microsoft in the industry won't be for the better,It would make Sony complacent.They already show signs of it with fuck all new anouncements and a gaas commitment for the future(courtesy of the future Phil Spencer Jim Ryan).This all happens cuz Microsoft is doing so poorly.There's little pressure.Imagine no pressure on them....
 

Justin9mm

Member
Yes they are all going to respond to the circumstances. I'm trying to tell you there is nothing special about xbox that makes them the only ones who can keep sony in check. If xbox left, both valve and nintendo are going to be courting those 40 million freed up users along with sony. I understand that a lot of enthusiasts have been conditioned to think that only sony and ms matter and them locking horns for eternity is a given, but that is an almost mythological understanding of everything. XBox leaving would make valve, sony, and nintendo have to react somehow. They aren't just going to sit around and get fat. You are talking like ms alone keeps sony from ruining everything.

With no xbox, can sony put out an underpowered, overpriced console? Sure. At their peril. What makes ms different is not that they want to make their own playstation too and be playstation, it that they have no real pressure themselves. They can bleed money wherever they want. Imagine if they all could do that. Competition is not all created equal. The ideal is companies competing on the merits of their products for profit. The worst competition is a company trying to eliminate competitors, money no object.
Well we are yet to see it then if Xbox did exit the console market. I personally believe Nintendo will continue with what they are doing and Valve has no experience in the home console market, no track record there. The majority of home console gamers would most likely go to Sony. And how is that working out for MS, eliminating competitors with money no object? Not very well and why we are discussing this very topic. I hear you but I still think MS keeps Sony remaining more competitive. They may not be competing as far as games and services but as far as a current gen high end home console they are 100% the only two competing in that space. Imo Valve and Nintendo are not going to do anything or compete with Sony.
 

Crayon

Member
If MS left then maybe Nintendo would consider making a standard non-hybrid console again. It would be interesting to see a powerful console with an nvidia gpu again.

That is a possibility. Nintendo is an aggressive company and they would not let 40 million exbox users go to sony without trying something.
 

StreetsofBeige

Gold Member
The same thing was said that Xbox One would be their last console. Fast forward 10 years and MS is still around. This time with Bethesda under their wing and Activision soon to be, and Game pass everywhere. MS isn't quitting gaming if they bought Bethesda a few years ago and Activision is a month away from acquisition.
 
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T-0800

Member
Maybe but lets be real, if by 2027 they arent at least at 50 it will be clear they wont reach the goal and might just give up.

Wild stuff, I think people underestimate the impact this would have on gaming. All those studios, Bethesda, Obsidian, Id, Arkane, InXile etc etc, what will happen to them and their games. Unchecked arrogant Sony? Gaming landscape will be so different

Nothing will happen to them. MS will just become a third party publisher.
 

Crayon

Member
It's not insane, it's literally the future as you can see how much Microsoft is willing to risk it all on the line.

It's the future because ms thinks so? I was bullish on streaming myself but a few years later it seems that the hurdles are not just technical.
 

mrmustard

Banned
Xbox leaving would devastate the console space.
Sony would go full ham and cheese and would make EA look like a joke.

PC would be the only correct option. More than ever.
Pc (+ Switch) is already is the best option. But Microsoft leaving would be funny, would love to see the consequences.
 

StreetsofBeige

Gold Member
Pc (+ Switch) is already is the best option. But Microsoft leaving would be funny, would love to see the consequences.
MS is a high profit company. They have no problem axing stuff that drags down their financial metrics.... Zune, Windows phone etc... There is no way in the 20 years of Xbox it comes close to Windows, servers, cloud, MS Office etc... in terms of profits. Whether Xbox has made them money in two decades or lost, it doesn't matter. Because there's still no way it is as good as their other product lines.

But MS some reason has a giant commitment to gaming. And even goes more and more into it with Bethesda and Activision.
 

DragonNCM

Member
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So many people desperate for this to happen but if you really care about gaming you’d not want them to leave. Sony having no competition would suck for everyone…except for those who would be happy to keep paying stupid money for PS+ and want to pay more for their consoles and games.

And there is no way that they would spend all those billions on Activision/Blizzard if they plan on quitting in the next few years for fuck sake lol.
 
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Darsxx82

Member
When was this stated?

All these headlines are trying to force a narrative that this is their current plan and not a bunch of documents and emails that are primarily from 2020 before the release of the Xbox Series and attempts to acquire ActiBlizz. Investing a insane 65Bil into a gaming company clear speaks of their intent to stay and go all out for it and that couldn't be clearer. Plugging in ActiBlizz into their strategy will have significant effects on their whole gaming division and outlook. This has become clickbait at this point.
It was a response to the FTC attorney.... Clearly P. Spencer is creating a narrative that the acquisition of ABK is essential for MS to achieve business objectives or else they could consider exiting the market.

Clearly a strategy and I don't know how people take it literally. In 2027 the Studios acquired and created would not even have released their first game under the command of MS....
Seeing what was leaked and how MS is betting on the gaming business, I don't know how people can believe that the spending of billions of $ a little over a year ago has a limit of 3 years😂
 

Killjoy-NL

Member
It was a response to the FTC attorney.... Clearly P. Spencer is creating a narrative that the acquisition of ABK is essential for MS to achieve business objectives or else they could consider exiting the market.

Clearly a strategy and I don't know how people take it literally. In 2027 the Studios acquired and created would not even have released their first game under the command of MS....
Seeing what was leaked and how MS is betting on the gaming business, I don't know how people can believe that the spending of billions of $ a little over a year ago has a limit of 3 years😂
I don't think spending that money will hurt them all too much, with MS revenue and all.
 

mrmustard

Banned
MS is a high profit company. They have no problem axing stuff that drags down their financial metrics.... Zune, Windows phone etc... There is no way in the 20 years of Xbox it comes close to Windows, servers, cloud, MS Office etc... in terms of profits. Whether Xbox has made them money in two decades or lost, it doesn't matter. Because there's still no way it is as good as their other product lines.

But MS some reason has a giant commitment to gaming. And even goes more and more into it with Bethesda and Activision.
I didn't mean consequences for Microsoft. I mean green and blue fanboy warriors needing to get a life or turn on Nintendo, also i expect a this is for the players my ass behaviour from Sony.
 
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