(Business Perspective) Does MS really need Xbox Hardware?

[DonFerrari]

Machiavellian said:

Azzanation said:

MS wont drop the Series consoles, they will obviously do what they can to get the most out of those consoles, but moving forward the hardware is not needed. MS know more than everyone in this thread and many times they wanted to cut Xbox out of the console industry. 

Sony moneyhatting 250 Japanese devs was stated in the official PS1 documentary. (PS Museum)

Ryuu96 said:

-Snip-

1) GP will make more than the figures mentions. Thats the point of it. If they market GP right and make the right deals with the right companies.

2) If porting is an issue than they will do it via streaming which means no porting required.

3) The Xbox business grows further out. This isn't just the console industry MS is targeting. We are talking Mobile and TVs etc.

4) You think Sony and Nintendo only aim to sell 100m consoles and stop there? You believe they will turn down more sales because they won't accept a modified GP with 1st party Xbox titles? Why would they turn it down? Its not weather they need it, its weather if they can make money off it and Sony and Nintendo will make money off GP.

5) Fun fact, GP is allowed on the Steam Deck.

6) GP isn't only filled with brand new games. They can fill the GP roster with previous 1st party titles and add those 2 to 4 new games every so often. 

Where exactly are you getting this data that MS has wanted to exit the hardware business.  Where are you getting this data that they even want to exist the hardware business now.  You keep making this claim but there is no data I found MS making or even suggesting such a claim.  

The 2 articles you listed actually do not support your opinion if unless you just take them totally out of context.

There is a lot of Ifs in your post which is basically just gambling.  Why would MS need to gamble when they are already making the money now.  IF GP is marketed right.  If GP gets to 100 million subs, If GP can be put on Sony and Nintendo Platform, IF MS can sell their software more than double the biggest publisher does.  If XCloud is viable, If people are willing to transition to Xbox games in the cloud over fix hardware.  If MS will not lose GP subs instead of expand it.  Think about it, how many people will want to keep their GP sub if its neutered on competition consoles.  I mean every point you make is based on a lot of Ifs to happen.  What your opinion does not provide is any concrete data to support it.  There is no data that shows GP will grow if MS exit the hardware market.  There is no data that MS software will sell better on Sony platform then it does on their own platform.  There is no data that suggest Sony or Nintendo will allow GP on their platform.  There is no data that shows GP suddenly jumping to enough subs that it can replace the revenue MS makes on hardware.

If you are truly looking at this from a business perspective what metric will MS have to hit first in order to make all your ifs happen.  Do MS wait until they get to a certain subscription size.  Do MS wait until they have a deal in place with Sony and Nintendo.  Do MS wait until they can port their games over to the competition platforms.  Do MS wait until the net infrastructure can handle them going full XCloud for delivery of their games.  Or do you believe MS can just bam!!, We are dropping hardware and going full GP and hope as hell things just magically work out.  There is a lot of ifs that seem to really need to happen for even a consideration on such an exit plan.

For me the most indication I can take from those intereviews is on as you said speculation that perhaps in a near/mid future consoles itself will stop existing and MS is position itself for it, not an indication of they leaving the market but of the market being to small to matter.

Otter said:

Without the hardware 90% of their subs will vanish over night, so for now they need it. Xbox Live can only thrive on dedicated hardware, Gamepass meanwhile can be hardware agnostic but isn't big enough yet for them to rely on.

Yep, from what I see most of the subs of GP are currently from people that have a Xbox, a small number on PC only and negligible numbers for smartphone/tv only.

Sure at some point Xbox subs may be irrelevant, but will take quite some time.