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Chris Dring: Microsoft was the No.1 games publisher in the world last month | 64% of spend on Microsoft games in December came on PlayStation devices

Microsoft finally realised they need PlayStation to be successful in this industry. They wanted to take sony out but had to bow down instead.

I wouldn't call taking 70% of 1-3 COD titles that were top 5 selling on playstation for the last 5 years running and all future years bowing down.

MS moves are solid with acquisitions.
 
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I wouldn't call taking 70% of 1-3 COD titles that were top 5 selling on playstation for the last 5 years running and all future years bowing down.

MS moves are solid with acquisitions.

You don't call going from "we can spend sony out of business" to now porting your games to that same competitor ,Bowing down? Shit, Bowing down is too nice a term. More like kissing sonys feet! The trillion dollar American corporation got humbled by the smaller Japanese ones.
 
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You don't call going from "we can spend sony out of business" to now porting your games to that same competitor ,Bowing down? Shit, Bowing down is too nice a term. More like kissing sonys feet! The trillion dollar American corporation got humbled by the smaller Japanese ones.
You think all of MS is kissing Sony's ass? Ok we're done mate. Have a good one.
 
Your absolutely right. The biggest publisher has probably more leeway setting the rules for the deals between them.
Not to mention, xbox is not just any 3rd party publisher. They can at any moment begin to prioritise their own consoles.

I don’t think Playstation will have any leverage whatsoever in deciding deals between them.

Playstation wants Xbox to keep making games for all systems and will have to sweeten the deal at all times.
 
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Felessan

Member
Your absolutely right. The biggest publisher has probably more leeway setting the rules for the deals between them.
It's for one month and on a limited set of data

Not to mention, xbox is not just any 3rd party publisher. They can at any moment begin to prioritise their own consoles.
What consoles?
Their mindshare is nonexistant and sales dropping into nothingness. It hardly matter anymore whether MS "prioritize" or not their consoles
 

jm89

Member
They can at any moment begin to prioritise their own consoles.
excited-adorable.gif
 

Idleyes

Gold Member
Honestly I don't know what you are trying to say here. I didn't treat MS and Xbox as separate entities. I simply said that the plan is a great move for a 3rd party publisher but not for a platform holder who is focused on selling their hardware in order to make money back on the 30% from every sale.

I'm saying that fixating on console hardware sales, which is just one piece of Microsoft's broader strategy, is short-sighted & something only those deeply entrenched in console wars (like people still stuck in Cold War thinking) would do.
 

Topher

Identifies as young
Your absolutely right. The biggest publisher has probably more leeway setting the rules for the deals between them.

I doubt Microsoft has any more "leeway" than any other third party publisher. Maybe they get a discount Call of Duty? Who knows? Either way, MS is the one knocking on Sony's door here. Let's not pretend otherwise.

They can at any moment begin to prioritise their own consoles.

Forza Horizon 5 to PlayStation. That Xbox prioritization is happening "any moment" now.

Happy Cracking Up GIF by Regal
 
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Woopah

Member
Not to mention, xbox is not just any 3rd party publisher. They can at any moment begin to prioritise their own consoles.

I don’t think Playstation will have any leverage whatsoever in deciding deals between them.

Playstation wants Xbox to keep making games for all systems and will have to sweeten the deal at all times.
It's the exact opposite. The moment when Xbox could prioritise their own consoles is in the past. They can't do it any more and that's why they will release games on PS5 and Switch 2.

And with less competition, there's less need for Sony to sweeten any deals. They won't need any leverage over MS like how they don't need leverage over EA or Capcom.
 

Woopah

Member
I'm saying that fixating on console hardware sales, which is just one piece of Microsoft's broader strategy, is short-sighted & something only those deeply entrenched in console wars (like people still stuck in Cold War thinking) would do.
It's only one part but it's one of the most important. Low hardware sales has a direct, negative impact on content and services revenue.
 
It's the exact opposite. The moment when Xbox could prioritise their own consoles is in the past. They can't do it any more and that's why they will release games on PS5 and Switch 2.

And with less competition, there's less need for Sony to sweeten any deals. They won't need any leverage over MS like how they don't need leverage over EA or Capcom.
Sony is reacting to it. Trying to make their own GAAS.

But sure. They have the leverage. 😂

“Once xbox has crossed this line …. Its over”…. This is not how things work in reality.
 
I'm saying that fixating on console hardware sales, which is just one piece of Microsoft's broader strategy, is short-sighted & something only those deeply entrenched in console wars (like people still stuck in Cold War thinking) would do.
I simply said their strategy isn't one that is going to lead to more hardware sales. It will lead to them selling a lot more software like any other 3rd party publisher. There's no fixation on hardware it's simply stating that a platform holder and a 3rd party publisher have two completely different goals and shouldn't approach the gaming business in the same way. If simply brining up hardware sales at all is fixating on it then I guess we just have a different interpretation of what fixation means. They want to sell software and they are making the right moves in order to do that. Like Phil said it's games first for them now.
 

Idleyes

Gold Member
It's only one part but it's one of the most important. Low hardware sales has a direct, negative impact on content and services revenue.

All I'm suggesting is that while hardware isn’t irrelevant, it isn’t their revenue driver. The majority of Xbox gaming revenue comes from software and subscriptions, not console hardware. This is working precisely in the way that Nadella and Spencer has been yapping about to the entire world in broad daylight for some time now. They are no longer in the console war. There is no evidence (from Microsoft’s own earnings or strategic statements) that lower hardware sales have a meaningful impact on their content & services revenue, especially not in Microsoft’s broader ecosystem approach. It simply just doesn't matter when people can use Xbox Cloud Gaming from a smart TV, tablets, laptops and Cell phones.

In my opinion, there’s no point in dwelling on low hardware sales anymore. Honestly, it wouldn’t surprise me if, at some point, they decided to pull back from hardware development altogether and shift their focus to PC Game Pass and expanding Xbox Cloud Gaming beyond just Samsung TVs.
 

Woopah

Member
Sony is reacting to it. Trying to make their own GAAS.

But sure. They have the leverage. 😂

“Once xbox has crossed this line …. Its over”…. This is not how things work in reality.

Both Sony and MS are reacting to rising development costs. The difference is that Sony has good enough hardware sales to still mostly prioritise their console, MS does not and so will stop prioritizing their console.

Why do you think Xbox will abandon their new multiplatform strategy?
 
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Woopah

Member
All I'm suggesting is that while hardware isn’t irrelevant, it isn’t their revenue driver. The majority of Xbox gaming revenue comes from software and subscriptions, not console hardware. This is working precisely in the way that Nadella and Spencer has been yapping about to the entire world in broad daylight for some time now. They are no longer in the console war. There is no evidence (from Microsoft’s own earnings or strategic statements) that lower hardware sales have a meaningful impact on their content & services revenue, especially not in Microsoft’s broader ecosystem approach. It simply just doesn't matter when people can use Xbox Cloud Gaming from a smart TV, tablets, laptops and Cell phones.

In my opinion, there’s no point in dwelling on low hardware sales anymore. Honestly, it wouldn’t surprise me if, at some point, they decided to pull back from hardware development altogether and shift their focus to PC Game Pass and expanding Xbox Cloud Gaming beyond just Samsung TVs.
They may be true in the future, but I'd say that hardware remains their main driver today.

Lower hardware sales means less revenue from subscriptions, first party software and royalties from third party software/DLC/MTX.

If Xbox Series sold double what it has done, that would have absolutely had a meaningful impact on content and services revenue.

The only way that changes is if Xbox Cloud and PC Game Pass massively take off.
 

Idleyes

Gold Member
They may be true in the future, but I'd say that hardware remains their main driver today.

Lower hardware sales means less revenue from subscriptions, first party software and royalties from third party software/DLC/MTX.

If Xbox Series sold double what it has done, that would have absolutely had a meaningful impact on content and services revenue.

The only way that changes is if Xbox Cloud and PC Game Pass massively take off.

A major breakthrough would involve establishing Game Pass China, & along with strategic China-friendly partnerships return Blizzard games to China under game pass. If something ground breaking like that is not in their plans, they might as well throw in the towel.

Edit: I didn't mean return, that was a brain fart I meant put blizzard games on Gamepass along with other China Friendly games.
 
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SHA

Member
Imagine if ue5 helps ms making halo every 3 years like they used to be? I think it's so naive of us to think they need our empathy for doing what they do at the moment.
 
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Durin

Member
The fun thing about watching all this is it just adds more wood to the burning fire that is engulfing all the remaining console fanboys.

They have less and less reasons to exist when their boxes are just slightly altered x86 AMD APUs, barely different controllers, only a few unique services/features on their OS, cross-platform multiplayer is a thing, Microsoft is porting all their games, and Sony is porting theirs with a lag timer. Nintendo is the only one left in their own little world, and even then most of their stuff can be emulated.

People just get to game where they prefer, and likely next gen the other 2 are gonna follow Nintendo in offering handheld form-factor options because graphics have hit diminished returns.
 
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Both Sony and MS are reacting to rising development costs. The difference is that Sony has good enough hardware sales to still mostly prioritise their console, MS does not and so will stop prioritizing their console.

Why do you think Xbox will abandon their new multiplatform strategy?
They wont abandon their strategy lightly.

Point is, being a platform holder and buying COD they are most powerful entity in gaming. Can dictate a lot of things in industry.

Playstation dont need them is kinda hilarious. Xbox will become a bigger console brand if they use exclusivity.
 

Humdinger

Gold Member
Wait, some people actually think MS will reverse course and make their games exclusive again? Come on people, wake up and smell the coffee. That ship has sailed. Even Phil said so in the recent interview: "That doesn't work for us." ("That" being trying to build a brand on exclusives.) It worked for Sony and Nintendo, but MS wasn't able to pull it off - probably because they put so many of their eggs in the GP basket, which cannibalized sales to the point where they have no choice at this point - port games or collapse in on themselves.
 

Topher

Identifies as young
They wont abandon their strategy lightly.

Point is, being a platform holder and buying COD they are most powerful entity in gaming. Can dictate a lot of things in industry.

Playstation dont need them is kinda hilarious. Xbox will become a bigger console brand if they use exclusivity.

No....you have this all wrong. It is Xbox console that PlayStation does not need. I don't see how Microsoft has the ability to dictate anything with regards to Call of Duty considering they are contractually obligated because of government regulators for CoD to remain on PlayStation. So where is all this power? It just sounds to me like you are hoping Microsoft will become the big bully and force Xbox console on the world via exclusivity. That just isn't going to happen. Microsoft is transitioning to third party publisher with a hardware segment that has low expectations.

At this point the most important hardware to Microsoft Gaming is PlayStation, as we see in the thread title.

Awkward John Krasinski GIF by Saturday Night Live
 
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Effigenius

Member
Interesting that 64% is on ps5. Means PC isn’t as big as people try to say. Because all of PC plus Xbox is only 36% of the sales and all the Xbox titles are on pc and not on PS5.
 

Killjoy-NL

Member
Sony is reacting to it. Trying to make their own GAAS.

But sure. They have the leverage. 😂

“Once xbox has crossed this line …. Its over”…. This is not how things work in reality.
But they do have the leverage.

If 64% of spending on MS games came from Playstation, it can only mean that it declined on non-playstation platforms.
Which puts Xbox in a tough spot, because what happens if Sony would completely cut off MS? That's a very large chunk they'd miss in that area.

And if Sony manages to pull off enough gaas-games so they can give COD the finger, it might happen anyway.
 
But they do have the leverage.

If 64% of spending on MS games came from Playstation, it can only mean that it declined on non-playstation platforms.
Which puts Xbox in a tough spot, because what happens if Sony would completely cut off MS? That's a very large chunk they'd miss in that area.

And if Sony manages to pull off enough gaas-games so they can give COD the finger, it might happen anyway.
If Sony cuts off COD, MS would get on its way to 100 million gamepass subscribers that they want.

I think MS secretly wishes Sony does that. They will have even more leverage in industry.
 

Killjoy-NL

Member
If Sony cuts off COD, MS would get on its way to 100 million gamepass subscribers that they want.

I think MS secretly wishes Sony does that. They will have even more leverage in industry.
You think so?

If they do that, people jumping over isn't guaranteed at all, but MS losing 64% of games spending is 100% guaranteed.
That's too big of a risk for any company.
 

Alan Wake

Member
Not to mention, xbox is not just any 3rd party publisher. They can at any moment begin to prioritise their own consoles.

I don’t think Playstation will have any leverage whatsoever in deciding deals between them.

Playstation wants Xbox to keep making games for all systems and will have to sweeten the deal at all times.

Well, it's pretty easy. Games don't sell on Xbox. If Microsoft want their games to sell they need PlayStation and Nintendo. That's how the'yll make money going forward. Sony and Nintendo will survive without them.
 
You think so?

If they do that, people jumping over isn't guaranteed at all, but MS losing 64% of games spending is 100% guaranteed.
That's too big of a risk for any company.
MS will have to start operating like they did in X360 days. Build a perception that its a must have hardware, all that stuff.

People will get system no problem.

Well, it's pretty easy. Games don't sell on Xbox. If Microsoft want their games to sell they need PlayStation and Nintendo. That's how the'yll make money going forward. Sony and Nintendo will survive without them.
They all will survive without each other.
 

Topher

Identifies as young
You think so?

If they do that, people jumping over isn't guaranteed at all, but MS losing 64% of games spending is 100% guaranteed.
That's too big of a risk for any company.

I suspect the Forza to PS5 announcement right after reporting a decrease in revenue in the first quarter that Call of Duty launched as a first party and a Game Pass game is not a coincidence. Microsoft has begun the process of doubling down on PlayStation.
 

Alan Wake

Member
MS will have to start operating like they did in X360 days. Build a perception that its a must have hardware, all that stuff.

People will get system no problem.


They all will survive without each other.
Yes, Microsoft will survive without gaming. But they obviously made a big bet in gaming and to make more money they need Sony's and Nintendo's platforms. A few billion from Game Pass is not nearly enough.
 

Killjoy-NL

Member
I suspect the Forza to PS5 announcement right after reporting a decrease in revenue in the first quarter that Call of Duty launched as a first party and a Game Pass game is not a coincidence. Microsoft has begun the process of doubling down on PlayStation.
Yeah, my thoughts as well.
I think they don't have any other choice either.
 
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