Microsoft vision for Xbox future on 15th February on the official Xbox podcast at 12pm PT. 3PM ET. 8pm GMT

Will Microsoft go full 3rd party and drop console hardware going forward?

  • Yes

  • No


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gurf

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Revenue - Costs = Profit. If you don't know the costs, you don't know if Microsoft is making any profit. So that $230mn revenue figure is meaningless. Console sales are typically loss leaders (Sales at a loss to get consumers to purchase other profitable items) to make revenue (30%) off first and third party game sales for each console sold. If you aren't selling a ton of consoles, you aren't really making money. It's the reason Sony and Nintendo are worth more than any Game Publisher. Market share is not a misnomer but a key indicator for today's investors. If you aren't growing in market share, you simply aren't growing, and Xbox isn't growing. So how is Xbox going to grow without selling more consoles given Gamepass isn't on a Nintendo or PlayStation console? Please explain....
Buying up 3rd party publishers/developers
 

MeachTheMonster

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Revenue - Costs = Profit. If you don't know the costs, you don't know if Microsoft is making any profit. So that $230mn revenue figure is meaningless. Console sales are typically loss leaders (Sales at a loss to get consumers to purchase other profitable items) to make revenue (30%) off first and third party game sales for each console sold. If you aren't selling a ton of consoles, you aren't really making money. It's the reason Sony and Nintendo are worth more than any Game Publisher. Market share is not a misnomer but a key indicator for today's investors. If you aren't growing in market share, you simply aren't growing, and Xbox isn't growing. So how is Xbox going to grow without selling more consoles given Gamepass isn't on a Nintendo or PlayStation console? Please explain....
I mean you have the answer in your post but didn’t connect the dots.

You said console sales are a loss leader

You said the goal is to sell software and services.

Xbox console sales are stagnant. Their revenue off Software and services are through the roof.

Why would anybody invested in xbox/microsoft success be upset with Phil Spencer??
 

Cakebatter

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Buying up 3rd party publishers/developers
Go compare the market cap of the largest 3rd party Devs/Publishers and compare them to the market caps of the platform holders they sell their games on (Steam, Nintendo, Sony).
 

MeachTheMonster

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Nope those numbers are meaningless. Xbox isn't just selling consoles, so they now have extra expenditures, like server farms for cloud gaming.
Sony and other people pay microsoft for “the cloud”

“the cloud” is a direct result of microsoft’s early work on xbox live.

“the cloud” is microsoft(the richest company in the world) biggest money maker.

The servers actually used for xbox are basically free for microsoft.

Again. If you step outside of console wars you could understand why/how xbox has been and is such a big part of Microsoft(the richest company in the world) existence.
So their revenue is up, but so are their costs. Who do you know has been paying $10-18/mon for Gamepass over the past 3 years. I didn't. I paid $1, filled up 2 years of regular Xbox live gold membership , then flipped the Gamepass switch. Viola, 2+ years of Gamepass for $1. Many others simply used Bing Rewards.
Again we have actual numbers on how much gamepass makes per month


We don’t need your anecdotes.


Anyone who thinks Gamepass is in the black since launch isn't in the Xbox scene.
Again we have numbers

We don’t need your feelings :manny:

Xbox had only 25% market share of the console market in 2021. Anyone think it grew since then?
console-gaming-market-2021%20c.jpg
There are different “markets”

“console market” itself is a very small part of gaming overall.

There’s literal BILLIONS of gamers that never even touch consoles.
 

Cakebatter

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I mean you have the answer in your post but didn’t connect the dots.

You said console sales are a loss leader

You said the goal is to sell software and services.

Xbox console sales are stagnant. Their revenue off Software and services are through the roof.

Why would anybody invested in xbox/microsoft success be upset with Phil Spencer??
You still dont get. Xbox makes 30% off every 3rd party title purchased from their game store. You think 1st party titles are the top selling games on the Xbox store?
Come look at this LIST and check out the number of 3rd party titles in the top games sold in 2023. Even when they sale those games on Nintendo, Playstation, and Steam, they take a 30% haircut. The only way to compete with the other console makers is to be one, otherwise is to admit defeat and play their game.
 

MeachTheMonster

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You still dont get. Xbox makes 30% off every 3rd party title purchased from their game store. You think 1st party titles are the top selling games on the Xbox store?
Come look at this LIST and check out the number of 3rd party titles in the top games sold in 2023. Even when they sale those games on Nintendo, Playstation, and Steam, they take a 30% haircut. The only way to compete with the other console makers is to be one, otherwise is to admit defeat and play their game.
5 of those games are published by microsoft.

If you check PC, playstation, switch and mobile, Microsoft has multiple games on their top lists as well.

We all just said they lose money on console sales.

I’m struggling to understand what yall are confused about right now. :dwillhuh:
 

Cakebatter

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5 of those games are published by microsoft.

If you check PC, playstation, switch and mobile, Microsoft has multiple games on their top lists as well.

We all just said they lose money on console sales.

I’m struggling to understand what yall are confused about right now. :dwillhuh:
So rather than using those games to get people to buy their console where they make 100% revenue on 1st party game sales, as well as 30% off every other 3rd party game sales, they are just going to accept selling their 1st party games at a 30% discount, while giving up the 30% revenue they currently make from selling third party titles on their console. Again Game publishers are on a lower revenue level compared to platform holders like PlayStation, Switch, and Steam. Xbox is admitting defeat.
 

MeachTheMonster

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So rather than using those games to get people to buy their console where they make 100% revenue on 1st party game sales, as well as 30% off every other 3rd party game sales, they are just going to accept selling their 1st party games at a 30% discount, while giving up the 30% revenue they currently make from selling third party titles on their console. Again Game publishers are on a lower revenue level compared to platform holders like PlayStation, Switch, and Steam. Xbox is admitting defeat.
Microsoft revenue is top 1-2 in all of gaming. They make a larger portion of their revenue off software and services than Sony or nintendo.

We just said console sales are not profitable.

Connect the dots breh :francis:
 

Cakebatter

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Microsoft revenue is top 1-2 in all of gaming. They make a larger portion of their revenue off software and services than Sony or nintendo.

We just said console sales are not profitable.

Connect the dots breh :francis:
You keep saying console sales aren't profitable. No shyt, but neither were printers. But if you don't manufacture a printer you aren't going to sell ink. Gamepass isn't going to make money if they don't sell consoles, as it's the primary source of its subscribers. The Xbox game store is the only place Microsoft makes 100% revenue from its 1st party game sales. Zenimax assets aren't going to magically generate more revenue than they did pre-acquisition, and Xbox studio devs haven't been tearing up the sales charts, so when Xbox console sales tank, and they will, so will a ton of Xbox revenue. But you are just in denial.
 

MeachTheMonster

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You keep saying console sales aren't profitable. No shyt, but neither were printers. But if you don't manufacture a printer you aren't going to sell ink. Gamepass isn't going to make money if they don't sell consoles, as it's the primary source of its subscribers. The Xbox game store is the only place Microsoft makes 100% revenue from its 1st party game sales. Zenimax assets aren't going to magically generate more revenue than they did pre-acquisition, and Xbox studio devs haven't been tearing up the sales charts, so when Xbox console sales tank, and they will, so will a ton of Xbox revenue. But you are just in denial.
Again we have numbers on gamepass revenur


Xbox sales “tanking” is just sony stan wishfull thinking :manny:
 

Jonah

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I mean you have the answer in your post but didn’t connect the dots.

You said console sales are a loss leader

You said the goal is to sell software and services.

Xbox console sales are stagnant. Their revenue off Software and services are through the roof.

Why would anybody invested in xbox/microsoft success be upset with Phil Spencer??
iu
 
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