UK sales Split

[kirby007]

src said:

hiccupthehuman said:

Sigh... ANOTHER "Xbox is in trouble because of the split"? And again using only physical sales. We've already established Xbox sales are higher digitally...

Xbox is not in trouble. Xbox is literally more profitable than ever. 3rd party sales are higher than ever. Profits are higher than ever. The trillion dollar parent company, Microsoft, is now fully backing and investing in Xbox.

Devs don't care all that much about the split (tho fanboys seem to care a lot about them).

It's all about profits. Just like how Horizon: Zero Dawn has a split ~90%/10% on PS/PC; but the PC release generated a 250% return on investment. So Sony is going to continue to release games on PC (as their leaked internal document has revealed).

It's the same thing on Xbox. Even if only 20% of sales are on Xbox, so what? The return of investment is massive for the developers. And they'll continue to support Xbox. 

Thats not true. Xbox has 60%+ of its sales in regions of higher digital ratios. Xbox is non-existent in Asia, meanwhile PS does well in Asia, a region where digital sales are lower hence why on average global PS digital ratio is lower.

You are incorrect to extrapolate this onto UK PS performance. Afaik there is no reason to believe PS UK digital is different to Xbox UK digital unless you have numbers to show that.

You are also wrong on multiple points:

1) Xbox has never posted profit numbers, afaik from the ten years I've been reading their financials. In the recent court hearing, MS claimed Xbox does not turn a profit.

2) 3rd party sales are far lower than during their 360 days. Now Playstation has beaten Xbox in both UK and US by 60/40 or 70/30 ratio. Remember the ratio in EU is something like 85/15 and in Asia its like 98/02.

3) MS's marketcap has little to do with a subdivisions performance. MS's market cap didn't save their multi-billion phone OS venture, didn't save their multi-billion tablet venture, didn't save their multi-billion video conferencing venture etc etc.

4) It def does matter to JP devs. If less than 10% of sales are on Xbox then its incredibly easy for them to be Playstation exclusive. It also matters to the entire business model: most of the money Sony and MS make comes from their 30% commission of third party sales. With third party sales cratering for Xbox alongside with first party sales, its no wonder why Xbox can no longer compete with Sony as a hardware platform and instead is forced to follow a sub model.

seeing as you are so into it why didn't you know they dont make money on the consoles but they do on everything else, as usual you are talking nonsense
https://www.windowscentral.com/microsoft-confirms-it-doesnt-make-money-xbox-console-sales-its-all-about-software
https://www.theverge.com/2021/5/6/22422691/microsoft-xbox-consoles-profit-software-services-revenue-apple-epic-games-trial

Last edited by kirby007 - on 14 June 2021