Xbox Predicts 'Hardware Decline' Despite Huge Revenue Boost From ActiBlizz

More likely, we are going to a future of where you will own nothing and you will be happy.
Everything will become subscription.
 
BUT with them being extremely non-committal with the Activision games and Game Pass, I won't be surprised if those don't get released on GP.
They would be leaving way too much money on the table if they put CoD on GP properly. And GP without CoD could feel like a bit of a cheap move by MS after all the talk.

Just think of the dosh Sony can make by releasing TLOU or GOW or SM to Xbox, they will make a killing.
Maybe. Subtract the Xbox owners who already have a PS, and those that have a PC first.
 
More likely, we are going to a future of where you will own nothing and you will be happy.
Everything will become subscription.
This is my sentiment exactly.

Along with the need to not require gaming hardware as streaming will become large.

xCloud works very well for me the few times I have used it, they just need to get to 4k HDR at 60fps, and then I'll be happy , probably a few years away though.
 
Reminds me a little of what happened to SEGA back in the day - Halo or Gears on Playstation one of these days?
I think they must get away from platform exclusivity now. Carrot for brand fans should be a title is available on that particular platforms subscription service, otherwise you can buy it to own for another platform. Cross platform play must be the new norm.

Seeing rumours the big wigs are considering launching Indiana Jones on PS5 as well. I hope they do. Being back on PC makes me want us all to have access to everything.

Think I can put this here
 
If Xbox 1st party games come to other platforms a year later and the funds are used to improve Xbox games and hardware in the future then I'm all for it.

But those rumours of COD not coming to Gamepass are dumb if true. Why buy a massive franchise to have zero benefit to your users.
I'd rather they keep COD on PS5/Switch2 to keep the profits coming in so they can put COD on GP and afford the loss of sales on the Xbox side.
 
streaming will become large.
Vomit.

probably a few years away though.
It will never be as good as local play. Just think about how many people complain about dropped frames, resolution drops etc. Especially lag, people pay big money on monitors and TVs to eliminate lag and now we think streaming will be good enough?

All Sony has to do then is make a console of any kind and they will own the market.
 
Why buy a massive franchise to have zero benefit to your users.
To make money for your investors? The very people who gave you the $80b to make the purchase.

MS have to come out and say something. If it’s just rumors then squash them now. If not, come up with a narrative because left to us, we’ll come up with crazy ideas.
 
Vomit.


It will never be as good as local play. Just think about how many people complain about dropped frames, resolution drops etc. Especially lag, people pay big money on monitors and TVs to eliminate lag and now we think streaming will be good enough?

All Sony has to do then is make a console of any kind and they will own the market.
It's inevitable that gaming will become majorty subscription based to be played via streaming. This is seen all over the audio/visual industry, over recent years and gaming is now heading there. Hell, even books are available on subscription now

Not to say that local native gaming won't exist, but I have a feeling that it will be purely for PC hardware only. Consoles will become a relic of the past.
 
I *think* the realisation has hit that this model cannot work without jacking up the GP prices to a place where people will jump ship.

I don't see that being a requirement at all.

Game Pass is a volume argument and they got more than enough of that.
 
More likely, we are going to a future of where you will own nothing and you will be happy.
Everything will become subscription.

We haven't "owned" anything for a great many years, it switching to a subscription makes very little difference.

If anything it gives you choice because you can turn it off at any time you feel like it and use a different one or just take a break or whatever.

We are at the point where even car ownership is falling away and opting to a subscription/hailing service model instead.

If only Microsoft got their digital message out better pre Xbox One launch so it was fully understood the world would have been much better for it right now.
 
I don't see that being a requirement at all.

Game Pass is a volume argument and they got more than enough of that.

Doubt they do, streaming services in general don't break even, don't see why Game Pass should be the exception.

The strategy relies on perpetual growth and I believe Game Pass' figures have stalled. Besides, in general investors have become weary of the model across mediums. The heyday of the subscription model for entertainment is over.
 
It's inevitable that gaming will become majorty subscription based to be played via streaming.
Subscription yes. Streaming no.

The others don’t require any kind of interaction, the technology is not remotely the same.

Game Pass is a volume argument and they got more than enough of that.
Everything is a profit argument. And if GP was profitable now and for the future then none of this would be playing out as it is. MS would just stick CoD on there and be done.
 
I think MS expected a more even playing field this gen with GP taking off to bridge the gap but the whole digital library built up in the last gen meant that most PS players didn't switch back to xbox this gen and those that did only did so because of the PS5 shortages. Now that that's stabilised we're seeing this decline which like the article states was expected.

I agree the way forward is gp day 1 on whatever device they can ship on with secondary income via separate release on other platforms. However, I don't think that they should limit that exclusivity based on time. The pro is that if you're on gp there's no need to buy that first party title so the incentive to get gp is increased as an annual sub to gp is the same price as the individual title itself. I'm sure ms has probably already pivoted to this thinking and is making the moves to get it in place.

GP on every device is the end game and the benefit is mutual so I'm sure there's a deal with the big players down the line. If I'm not mistaken, the xbox cloud app already ships on samsung tvs in the us so its bound to progress with broadband penetration globally.. ms just needs to put their azure servers to good use and it could work with a shift in balance geographically with office priority during work hours and xbox outside of those times.
 
Doubt they do, streaming services in general don't break even, don't see why Game Pass should be the exception.

The strategy relies on perpetual growth and I believe Game Pass' figures have stalled. Besides, in general investors have become weary of the model across mediums. The heyday of the subscription model for entertainment is over.

Not sure what you mean that they don’t break even. It’s a slow start business model but Netflix is certainly deep in the green and so is Apple TV+ as the newest player on the block.

Pretty sure the rest are as well. The model is just fine in the TV space it’s just being saturated with choices which fortunately isn’t the case for games.

Game Pass also isn’t a streaming service, I mean a part of it is but that’s a drop in the ocean at present.

Difference is that Game Pass isn’t ONLY subscription and there is a purchase conversion that happens on the very same platform which is often left out of the metrics.

It doesn’t need perpetual growth but rather just a baseline install base to keep it in the green which I believe they have.

Of course one could offset the ActiBlizz acquisition directly and say well that’s not profitable but it’s not accounting for the projection into the future.

Thing with the subscription model is the fairly consistent revenue stream that it brings to the party whereas the direct sales model ebbs and flows based on release windows etc.

Of course between revenues the Americans love to quote as if they are profits and not disclosing profits it’s always hard to know exactly how much profit it’s making but my understanding was they are making around three times what they are spending on it, acquisitions and such excluded.
 
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I don't care if all the games go to PS5, as long as it comes to GP then I am happy.

BUT with them being extremely non-committal with the Activision games and Game Pass, I won't be surprised if those don't get released on GP.

I think that’s purely contractual obligations talking there.
 
Everything is a profit argument. And if GP was profitable now and for the future then none of this would be playing out as it is. MS would just stick CoD on there and be done.

Like I said above I think there are some existing contractual issues there making it tricky in the right here and now.

Game Pass has been stated to be profitable in a stand alone direct influence capacity but it’s bundled into the whole Xbox brand and that as a whole is struggling.

So this move would be an “unbundling” of sorts.

That being said all of this is very deeply rumour mill in origin and I wouldn’t get too deeply taken by any of it.
 
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Larian Studios' Director of Publishing....

"People's minds have been absolutely blown by Microsoft’s controversial strategy to get more people playing Xbox games by releasing them to a broader range of people. The Xbox Series S is a really cost efficient way to play AAA games, but it is not the only way. The fact that the Xbox team know that is a good thing for you & their games. The more copies they can sell, the less risk and the more they can invest. Enjoy, if broadening is true."

"Let me give you some optimism: the fact that so many vocal & active Xbox players means there’s an audience. If there’s audience there’s opportunity. Your favourite ecosystem isn’t going anywhere, but strategies shift with the times *to make sure* the economics make sense."

"In spite of Xbox games being on Game Pass PC and Xbox, they habitually make Steam top sellers at full price. Why wouldn’t they want to make money off games thereby reducing risk while at the same time being able to say “well, over here it’s basically free!”
 
Not sure what you mean that they don’t break even.

Streaming services generally are not profitable, I believe Netflix is the only one that has managed to turn a profit in recent years. Music streaming services, I don't know what they're going to do, but they are really struggling to make it work. On the video streaming side they're looking to do things like advertising tiers, windowing content on higher paid tiers, making it harder to cancel subs - big changes are coming.





It’s a slow start business model but Netflix is certainly deep in the green and so is Apple TV+ as the newest player on the block.

Apple will lose billions of dollars on its streaming TV services for years to come, making a material dent in the company’s earnings performance, Barclays says.


Difference is that Game Pass isn’t ONLY subscription and there is a purchase conversion that happens on the very same platform which is often left out of the metrics.

I think it's fair to separate digital sales from the subscription service.

It doesn’t need perpetual growth but rather just a baseline install base to keep it in the green which I believe they have.

I find that hard to believe, you'd think they'd share the numbers if that were the case. They had a plan, same as a lot of subscription service plans, but I don't think it's working out:


It's a general trend and much discussed recently - will be interesting to see how things move on. Personally hoping for some consolidation, tired of all these new services popping up, it's cable all over again. I think I read somewhere recently that Paramount and HBO were considering merging streaming services.
 
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On the video streaming side they're looking to do things like advertising tiers, windowing content on higher paid tiers, making it harder to cancel subs - big changes are coming.

Yeah, as of today, Amazon Prime Video costs me an additional £3 per month to just not have ads.

What do you mean by "windowing content"?
 
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