DFC: Microsoft has killed the Xbox One Slim right out of the gate

by Ben Parfitt 
Monday, June 20th 2016 at 3:03PM BST

http://www.mcvuk.com/news/read/dfc-microsoft-has-killed-the-xbox-one-slim-right-out-of-the-gate/0168781

Analyst DFC has issued a damning post-E3 verdict on Microsoft’s handling of the Xbox Scorpio reveal.

“The most immediate problem is Microsoft effectively killed the Xbox One Slim right out of the gate,” it said in an investor update. “If there were many Xbox 360, Wii U and even PlayStation 4 consumers interested in an Xbox One this holiday season they have now been told to wait until Scorpio arrives in 2017. Microsoft can only hope that the buzz around Project Scorpio goes away soon but with the cat out of the bag that is unlikely.

“There are all kinds of other problems with Microsoft’s mixed messaging. The pricing on the original Xbox One is great, and the Slim is wonderful, but all the important new games will be on PC, so why invest in a console? Just upgrade your PC. And if you do want a console why buy now when Scorpio will be here later. All of this is a net dampener on new hardware sales now and really opens the door wide open for Sony and even Nintendo for the NX.”

DFC notes that while Sony faces a similar problem with Neo, the machine’s no-show brings with it an air of mystery that could be of benefit. Plus, Sony has not wasted money and effort designing a PS4 Slim that would be potentially scuppered by a new console.

The analyst, however, has even more serious questions to ask about Microsoft.

“The biggest issue is whether Microsoft will even have a game division by the time Project Scorpio launched,” it added. “It is no small irony that the E3 events went on at the EXACT same time as Microsoft CEO Satya Nadella was announcing the $26 billion acquisition of LinkedIn.

“When the PlayStation launched Sony was a more diverse company trying to use its game system to promote Blu-ray. Now Sony is a smaller company and the PlayStation brand is its most successful product line. PlayStation is now the tail that wags the dog and former games head Kaz Hirai now runs all of Sony. On the other hand, with Microsoft, the game business is the ugly step-child that somehow must integrate with the company’s operating system strategy.

“The overall question now seems to be not if Microsoft will exit the game business, but when and how. Of course, that leads to many other questions such as how is exiting the game business handled? Is Xbox spun off? Does Microsoft find a buyer? Or does the company just shut Xbox down? DFC feels the latter option will most likely not occur but it is clear something must be done.

“Unfortunately the value of the Xbox brand is in serious flux with much of its advantage tied to the Microsoft Windows 10 operating system.”

This thread should be entertaining.

I knew Ruler was making this one. He has a really mischievous sense of humor. I dig...

>>my opinion

I so agree with them espacially the Xbox exclsuives to PC part, finnally some analyst who thinks loggically. Its very sad that Xbox is owned by MS i really dont think the direction they are going is right for the console platform by watering down the XBox brand into Windows.

I really hope that MS sells off the Xbox brand to an electornics company like SAMSUNG, Dell, Lenovo or HP that has nothing to do with windows or any other ecosystem which could interrupt with the console brand.

Xbox is a tossup at this point. Microsoft can catch it and run with it, or let it fall. I'd prefer them to catch it, we need more competition and where would their 1st party content go? I mean, sure Minecraft would be exempt but Halo and so many other great franchises would either be lost or most likely they'd be in PC form. Either way, Microsoft really can't lose.

DFC seems to be out of touch with reality. Most people aren't going to wait for Scorpio. It takes a relatively informed person to even know one's going to be coming, and even then it's pretty obvious it's going to cost a lot more than S.

I also doubt Microsoft is going to quit gaming business. Microsoft might quit dedicated console business, but I wouldn't be so sure about gaming. If Nadella's way stays even after him, Microsoft might end up ditching gaming altogether to focus on the professional audience instead, but I don't think it's going to be happening during Nadella's reign.

NO!

But Dell would be a great new owner for the Xbox brand so long as they keep their current library... And well, it's publishing policies... 

yeah but that means the death of Xbox,

if it is for example just a steamlike box running your regular windows at some point 

Neh, what I feel like is Xbox is turning into what Steam machines could have been. A PC for your living room! I think as more and more games comes to Windows from Xbox, some of the features from Windows might go to Xbox since MS wants to unify everything so badly. And if that happens, it could be great since you might get the optimization that comes with consoles with possibly some PC centric features like being able to install programs that you couldn't before.

But we will see tho. I will admit MS letting third party programs in might not be the best business decision for them but who knows since the hardware is there.

yeah but whats difference? You can build cheap PC or buy an Alienware Alpha or ASUS republic of gamer PC and set it up under your TV. If it really just runs your regular windows with no exclsuives and possible no physical media whats the point for average consumers to buy an Xbox?