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[The Information] Nadella considered winding down Gaming (Xbox) business in 2021; chose to pursue an acquisition-based strategy instead

DinoD

Member
I would not trust MS. Going multi-platform is only a tactical move. Until they potentially hit the revenue/subscriptions volumes to maintain the profitability of their studios. As soon as (if) they are in range. They will ditch multi-platform.
 
I would not trust MS. Going multi-platform is only a tactical move. Until they potentially hit the revenue/subscriptions volumes to maintain the profitability of their studios. As soon as (if) they are in range. They will ditch multi-platform.

This doesn’t make sense then the revenue would just drop back down and stay down for a long time. Making a change like that won’t just have everyone immediately jump back into your ecosystem. It will take years to recover if ever.
 

phant0m

Member
Xbox hardware is on borrowed time

Third party or get the axe
They’re (hopefully) doing what they should:

Hardware is dead, make an XboxOS. Handheld market is fucking RIPE begging for an OS that supports all Windows games but is fully built for controller and cuts out the bloat.

I reckon they have 13 months before SteamOS takes it all so get your shit together MS. Make a good gaming-focused OS.
 

DeepEnigma

Gold Member
This is fine everything is ok
KHA1ZL4.jpeg
dead snow white GIF
 

Jaybe

Member
Problem with MS is they think about monetization first, gaming second.

Even from the early days:

“Ballmer "would want to talk to us about how we're thinking about subscriptions and what the value proposition was, and what went behind the subscription wall, and what was in front of the subscription wall.””

 
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GamePass in its current form is toast. I expect MS to pivot again in a wild way. It’s crazy how MS is making the same dumb mistakes they’ve made with all their products from Xbox to Zune to Windows Phones and now to GamePass. They can’t seem to get anything right when it comes to gaming and entertainment. Xbox hardware is definitely living on borrowed time because Satya is definitely coming with that axe soon enough.
 
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nick776

Member
They are winding down stock worldwide it seems. Almost as if the manufacturing lines have been stopped or at least drastically reduced in capacity.
Who is buying them? This is not a hyperbolic question, I just don't see many people buying an Xbox because there is little to no incentive to do so.
 
Do PS5 and Series combined even have 100 million units sold? Because it feels like you'd need about every PS and Xbox gamer subbed to Gamepass to hit theze goals. That's utterly delusional. Was anyone reality checking when this goal was announced?
 
Do PS5 and Series combined even have 100 million units sold? Because it feels like you'd need about every PS and Xbox gamer subbed to Gamepass to hit theze goals. That's utterly delusional. Was anyone reality checking when this goal was announced?
b5HrkpG.jpeg

am i reading wrong this chart? it seems is a combination of console +PC+ cloud.
 

Kacho

Gold Member
Do PS5 and Series combined even have 100 million units sold? Because it feels like you'd need about every PS and Xbox gamer subbed to Gamepass to hit theze goals. That's utterly delusional. Was anyone reality checking when this goal was announced?
Their pie in the sky goal was to cultivate an army of Xbros in India using xCloud on their android phones. For a while there, Phil couldn’t stop talking about the billions of gamers around the globe.
 

onQ123

Gold Member
Do PS5 and Series combined even have 100 million units sold? Because it feels like you'd need about every PS and Xbox gamer subbed to Gamepass to hit theze goals. That's utterly delusional. Was anyone reality checking when this goal was announced?
It should be close to 100 million right now over 70m for PS5 & around 30m for Xbox Series
 
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I would not trust MS. Going multi-platform is only a tactical move. Until they potentially hit the revenue/subscriptions volumes to maintain the profitability of their studios. As soon as (if) they are in range. They will ditch multi-platform.
How does thay even make sense.

The way Freegunners put Microsoft at the centre of unhinged conspiracy theories all the time is hilarious
 

Radical_3d

Member
Of course I'm going to quote myself here

uZF7zHv.png


x2lqre2376ca1.jpg

I asked Copilot to write me a song and I made an edit or two... 😜 (all in fun Xbox bros.)

A long, long time ago
I can still remember how that console used to make me smile
And I knew if I had my chance
That I could make those gamers dance
And maybe they'd be happy for a while

But January made me shiver
With every acquisition they'd deliver
Bad news on the doorstep
I couldn't take one more step

I can't remember if I cried
When I read about the billions tied
But something touched me deep inside
The day the Xbox died

So bye-bye, my dear Xbox, goodbye
Drove my Afeela to the levee but the levee was dry
And them gamer boys were drinking whiskey and Prime
Singin' this'll be the day that it died
This'll be the day that it died

Did you write the book of games
And do you have faith in Microsoft's aims
If the console tells you so?
Now do you believe in Forza and Halo?
Can gaming save your mortal soul?
And can you teach me how to stream on the go?

I started singing bye-bye, my dear Xbox, goodbye
Drove my Afeela to the levee but the levee was dry
And them gamer boys were drinking whiskey and Prime
Singin' this'll be the day that it died
This'll be the day that it died

...
Posts that you can hear.
 

clarky

Gold Member
Of course I'm going to quote myself here

uZF7zHv.png


And like clockwork NeoGaf's Nostradamus turns up to show everyone how right he was, not that anyone gives 2 fucks, but thanks.

Just like a switch 2 leaker if you post enough shite some of it maybe right.

More Mystic Meg than Nostradamus I'd say actually.

Nice work!
 
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Topher

Identifies as young
And like clockwork Neo Gafs Nostradamus turns up to show everyone how right he was, not that anyone gives 2 fucks but thanks.

Just like a switch 2 leaker if you post enough shite some of it maybe right.

More Mystic Meg than Nostradamus id say actually.

Nice work!

Most of the time his quoted posts relate to the current thread only in an extremely general sense. It's just bizarre.
 
[Activision] has been disappointing,” said Denny Fish, a Janus Henderson Investors portfolio manager who oversees two funds that included a total of more than $800 million in Microsoft stock as of November.

""I just think the majority of the game market doesn't really want a game pass" like the one Microsoft is offering, said Gus Zinn, a portfolio manager of the Macquarie Science and Technology Fund"

"Several leading game studios have resisted Microsoft's pitch that they should put their titles on Game Pass in exchange for fees that Microsoft offers to pay to the gaming studios, according to people familiar with the discussions"

m32Dkg0.gif
 

ShaiKhulud1989

Gold Member
I bet Satya was ok with 3rd party publishing even back then and was gonna axe Xbox as a hardware platform.

Now he is going to axe Xbox as a hardware platform regardless but this time with almost $100b operating loss on his hands. Magnificent.

Kinda proves that no amount of money can buy you competence in a specific market niche.
 
"I just think the majority of the game market doesn't really want a game pass" like the one Microsoft is offering, said Gus Zinn, a portfolio manager of the Macquarie Science and Technology Fund"

Every single console owner that has online service is paying for a version of gamepass, if the market didn't want it then Nintendo or Sony would wind their offerings up in a second and save millions of dollars. This opinion is severely uninformed about the state of the market.

As for the future of gamepass and growth, Microsoft's output has been anemic. Since gamepass launched they haven't put out more than one game in a year that reviewed well and had mainstream appeal until this year with BO6 and Indiana Jones. We'll have a better idea in 12-18 months if gamepass has a future, if Microsoft doesn't give up before then. Their current subscriber numbers are pretty close to what they estimated their console growth would be, but they are nowhere near their PC or Cloud estimates. Cloud in particular has seemingly hit a brick wall and has almost no mass market appeal.
 

Heisenberg007

Gold Journalism
It's only a matter of time they will start selling their studios and IPs more aggressively.

XGS has become too big to be sustainable. Their games aren't that good to sell millions of copies, even if they are on PC, PlayStation, Switch, etc. Their Game Pass growth would slow even more now because Xbox userbase will shrink faster.

Eventually, they will start shutting down studios and selling studios + IPs to keep operational expenses low.
 

Firestartah

Member
I don’t even see how Gaming even helps Microsoft anymore when they care much more about AI. I could see them spinning it off and it merging with EA or Take2.
That was in 2021, and would have agreed to you. But this is no longer the case when they payed almost 70 billion for Activision, now they need to make it work or heads will roll. What I mean is revenue-wise, going software focus, the console in done tbh, yes they gonna make a new one but it will sell badly and it will be their last.
 
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Three

Member
Do PS5 and Series combined even have 100 million units sold? Because it feels like you'd need about every PS and Xbox gamer subbed to Gamepass to hit theze goals. That's utterly delusional. Was anyone reality checking when this goal was announced?
The goal was based on PC and cloud growth. This is the chart of their projections

images
 

Three

Member
b5HrkpG.jpeg

am i reading wrong this chart? it seems is a combination of console +PC+ cloud.
I see you beat me to it. I think MS at this point know this strategy isn't happening anymore, they've killed their midgen (falsely claiming it was Series X) and their universal wireless controller (Sibel) they're going to ride it out as a third party publisher and release hardware sooner than 2028.
 

MacReady13

Member
It’s wild how much theyve misread the market in the last decade. 360 was their peak and it was a great console. Now they are gonna be another boring publisher sitting on a ton of IP that will never get used.
Yep. Since the Kinect was released for 360, they’ve gone downhill very quickly. From a jumbled Xbone pre launch to a console that was rushed missing many features, then bundling that shit Kinect in with the Xbone they really stuffed up that consoles chances of ever succeeding.

Then they went and decided that they didn’t need 1st party games OR acquire some 2nd/3rd party exclusive games to entice customers to stay on their consoles.

Then the final nail in the coffin- abandon exclusive games for a fucking rental service. That’s where they finally lost me for good. Sad really- I was an Xbox exclusive gamer for a long while there. They’ve completely lost their soul.
 

spons

Gold Member
they should hire back that hip bald dude
At least they had a proper vision on gaming back then. Hipster or not, he just sat down and explained it during an E3 conference.
It was about online gaming, friends, first-party titles and achievements. Regardless of what you think about these points, at least they had points instead of whatever they're doing now. The thing that comes closest to Microsoft's current public vision on Xbox was that weird round-table on YouTube early last year they did after a total shit storm.

I've said it multiple times but I still believe they cannot just kill the entire thing off, as Nadella says it needs to wind down. You can't just plain shut it down without severe backlash from gamers, consumer organizations and governments. They'll be torn several extra assholes by all of them if they don't refund like Google did with Stadia, or at the very least give a year (or 2 in the EU) notice.
 
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