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Sales - UK sales Split - View Post

hiccupthehuman said:

It is true.

Xbox One Has Higher Ratio Of Digital Game Sales Than Other Platforms – Analyst (gamingbolt.com)

And I do have numbers to show that. RE8 physical sales split was 80/20 PS/XB. Total sales (including digital) was 65/35. That's a 30-percentage swing.

1) They claimed hardware does not make a profit. The division as a whole is profitable. Consoles (especially high-end consoles like PS, Xbox) are typically sold at a loss or barely breaking even. Both Sony and MS make the majority of their profits from software and services, not hardware.  

Sony is no different in that regard

"Sony’s Chief Executive Officer Kenichiro Yoshida has said the business should be judged by the number of active users, not the number of hardware units sold."

Sony Is Struggling With PlayStation 5 Price Due to Costly Parts (yahoo.com)

And Xbox's active users are growing, so according to the Sony CEO himself, Xbox's gaming business is doing well. You going to try to claim the Sony CEO is wrong?

2) "3rd party sales are far lower than during their 360 days." Wrong.

"We exceeded $2 billion in revenue from third-party titles this quarter for the first time," Nadella informed.

So yeah, third-party profits are higher now than even during the 360 days. 

Microsoft surpasses $5bn in gaming revenue for the first time: Nadella | Business Standard News (business-standard.com)

Yeah PS is doing better, but so what? Xbox is doing incredibly well and is a viable platforms for consumers and developers.

3) Xbox is now anchored in the cloud, which is by far MS's biggest and safest money-maker. Xbox is future-proof. When you have the MS CEO state multiple times about how Xbox is important to MS, and appear in public with Phil Spencer, you know there are serious. Never did former CEOs Steve Ballmer or Bill Gates, talk about Xbox as extensively as Satya does. 

If Xbox financials were that bad, do you think Satya would have approved of spending of billions of dollars to acquire studios for Xbox? Better yet, you think Zenimax would have have looked over at the financials of their potential new parent subdivision, and then agreed to be purchased? lol

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."

Yeah true, the price for them to be PS exclusive is probably lower. But it would still be very easy for them to be MS exclusive. Reminder that MS could have easily paid for those games to be exclusive/timed even with the smaller market share, but they seem focused on acquiring studios and doing Game Pass deals. Because the big AAA JP exclusives Sony has (Ghostwire Tokyo, Final Fantasy, Forspoken) they were paid for.

You know Epic Games has probably a ~5% PC marketshare and has no problems getting PC exclusives right? if you have enough cash (like Epic or MS), the market share can and will easily be overlooked.

Zhuge is talking about global, exactly what I said prior. Source for the RE digital split.

1) Wrong. MS has never revealed Xbox profit numbers. Sony and Nintendo have been reporting billions of profit for years now.

2) Nope, Sony makes money on hardware. In the court case MS claimed they have never made money on hardware. Nintendo sells their hardware at profit.

PS4 hardware was profitable 6 months after launch https://www.polygon.com/2014/5/23/5744344/ps4-already-profitable-for-sony-ceo-says

3) MAU is not a reliable metric as each publisher counts it in numerous ways. We have actual sales numbers. Xbox hardware and software are in massive decline.

4) Revenue =/ sales. Games generate far more revenue nowadays due to microtransactions and DLC. My point still stands. 3rd party sales are far lower, hence why Sony has a far higher marketshare.

5) If Xbox was dong well MS would not be so scared to report financial information like Sony and Nintendo do. Instead, even under court, they are worried about the numbers being publicly known.

6) CEO Steve Ballmer extensively talked about Windows phone OS. You know what happened to that.....

7) You are completely wrong and its frankly an ignorant take to suggest that throwing money is what business relationships look like. No JP dev would ever make their AAA tentpole franchise Xbox exclusive at this moment. They would refuse whatever MS's offer is, because being an Xbox exclusive would alienate 90% of their fans and possibly ruin their IP going forward.

Its funny you mention Epic because they revealed in court documents that they are struggling to make a dent in the PC space despite chucking hundreds of millions at devs, all while Fortnite is in serious revenue and profit decline. But yes I would place Epic as being a similar position to Xbox:

Epic is taking a loss, moneyhatting in a desperate attempt to compete with Steam. Xbox is taking a loss, buying out entire companies, in a desperate attempt to compete with Playstation, though the PS:X ratio is like 65:35 while the Steam:Epic ratio is like 90:10.