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Machiavellian on 16 February 2024
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Azzanation said:
Machiavellian said:

I actually do not believe MS is looking to leave the console space, I just seem them not want to depend on it.  Which means, MS will be moving to be the biggest publishers on all platforms, PC, console and mobile.  MS need hardware in the console space because it goes hand in hand better with GP.  The amount of money MS make on license fees alone is a significant amount that they are not going to throw that away unless something they can do can fill that void.

Phil stated internally they are not leaving the console space.  There are multiple rumors of MS next console.  If anything I see MS pushing harder in hardware but not the traditional route.

For your sake, i hope you are right. 3 out of 4 generations, MS made the best hardware interms of power and preformance and i would like to see them continue that trend. 

However, the costs of billions of RnD and to sell consoles at a loss, aswell as selling a plethora of more software across multiple platforms is an insane turnaround and will drawf the 30% royalties they would get having a console in the market.

There issue is getting GP on other platforms and not relying on Xbox hardware which we are seeing with GPs availability.

ABK didn't become the biggest selling publisher, also the worth of Sony and Nintendo themselves, but not relying on hardware.

Valve didnt become the biggest gaming platform by relying on hardware. 

I think you can see where i am coming from.

You kind of get me wrong, its not for my sake if MS stays or leave the console space.  I have never dependent on MS having a console, this is just my opinion of the market and MS business moves.  I have all the consoles and a damn good gaming PC.  I never need any of these console OEM to stay in the market.  I am just a gamer who enjoys games and I purchase the systems that allows me to do so.

You keep looking at MS selling at a loss for each console but you need to look at the total operating cost, revenue and profits MS make in the console space.  MS can make money selling on PC and Xbox consoles because the 2 customer base are actually different.  MS cannot get the full benefit of their store if they do not sell a console meaning everything they sell on their store including 1st, 2nd and 3rd party games they get their cut.  

While MS could definitely get more sells by being fully multiplatform, as I stated, they have multiple ways of bringing in money but you do not keep consumers into your ecosystem better than having your own hardware.

Its interesting that you brought up Valve because did Valve not bring out their own hardware and talked about years of bringing out their own Steam Machine.  I just do not believe you truly understand how much MS make on having their hardware even at 3rd place.  MS is second in profits even thought they are 3rd in revenue.