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Azzanation on 26 May 2023
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derpysquirtle64 said:
Azzanation said:

3) Again, 360 lost billions, the consoles were over engineered and were sold at massive losses. The only thing keeping Xbox afloat was their services, which ironically is their entire focus moving forward. The hardware just dwindles behind. Hardware sales does not equal profit, it's the software and services that have to make up the cost of the consoles. The moment they release a new console; they are already billions in debt which they have to recoup with software and subs. That is not Spin or a Lie. Thats a industry fact.

What an interesting point. But do you understand how and where this services revenue that keeps afloat coming from? And that services revenue that is now one of the biggest ever for Xbox. I'll give you one small hint: majority of it is not coming from PC.

From PCs and all the other platforms. At the same time, they are removing the billions spent in creating new hardware.

Pemalite said:

Epic Game Store and Steam competing isn't bad.

Correct. Valve was still selling physical media, because they still wanted to sell games. - This is the point of competition. Valve was definitely competing with Physical.

It's like Microsoft selling Microsoft office on MacOS, Microsoft is competing with MacOS, but they will still happily make money off that platform when they can.

There is good, bad and too much competition. EGS is bad competition, it adds nothing good for customers while dividing customers gaming libraries. Too much competition is Nintendo, PS and Xbox as it causes drastic changes to the market and can also hurt consumers like we have seen with the Paid online which is now standard across the entire console market.

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You assume that if Sony denies Microsoft I.P on their platform people will go Nintendo and PC?
They also won't. They will also just go without.

Microsoft's I.P currently isn't exactly setting the world on fire.

And it's not just Microsoft's I.P that Sony can deny, it's Microsoft's services, all of them.

You understand the IPs that Xbox own right? Games like Doom, Quake, Fallout, Elder Scrolls, Halo, Gears, Forza and many more which Sony can earn 30% cut from all their sales. Why would they say no to that?

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The consoles initially lost money, but the 360 did become profitable.

It's actually the normal business model for the market.

But without hardware, Microsoft can't sell services, that is the point of "vertical integration". - It is why Apple is so successful and why it is such a fantastic business model.

Retail supermarkets do the same thing, they will heavily discount a few items and even loose money on them, which will attract customers into their store where they will sell a lot more other products and turn a profit.

You need to look at the bigger picture here mate and you failing to do that.

Thats why moving forward, the console is the old dinosaur method. Xbox will still have a eco-system just wont need to spend billions of RnD to create consoles. They have the infrastructure to push Streaming and Digital.

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I don't disagree with all your points and statements, I also don't get into the habit of rehashing the same lie even when it's been disproven.

Just because I have initiated a quote and replied, doesn't mean I am disagreeing with something, often it's an expansion on the original point, not everything is binary in this world.

Okay