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Forums - Microsoft Discussion - Gameware Stops Selling Xbox Systems in Reaction to Recent Game Pass Announcement

VideoGameAccountant said:
Mr Puggsly said:

Again, you praise the Wii U for its loyal fans while ignoring X1 crushed it and continues too grow. You also speak as if X1 is a dead platform with no notable content, your perception is different than reality. Sony also has delayed many games and are experimenting with services, they spent a fortune on PS Now. Again, MS is doing a lot to grow the userbase but you ignore it.

X1 is not the failure you believe. Its not a flop like Wii U which ultimately killed the Nintendo home console, X1 isnt losing money like OG Xbox and PS3, it certainly didnt flop like the Vita either. X1 is a viable platform and maybe the 9th gen for Xbox is futher closing the gap with Windows. I'd argue 360 and X1 are both successful if theyre profitable. Again, your perception is wrong.

You conveniently ignore the notable content Wii U did have, some of which is on or coming to Switch. Again, I argue price and the cumbersome, uninteresting, rarely utilized tablet gamepad killed Wii U. On a side note if the Wii U sold 35 million we might consider it a success, or atleast not a complete disaster.

Again, the problem is you are looking at the CURRENT generation. I'm looking at the FUTURE generation.

We are in year 5 of PS4 and XBox One's life. The new systems will probably be out next year. In the normal lifecycle for a console, the last year or two is about gearing up for the next generation. If you look at Microsoft, would you say they are building momentum or losing it? Does Microsoft look better now then they did a year or two ago and the answer is no. 2017 was a year full of canceled projects and delays. 2018 doesn't look much better. Microsoft has a good holiday, but a lot of that was due to the improving economy, not necessarily good business sense on the part of Microsoft. At the end of the Wii U's life, Nintendo made it very clear what their intention was and still pushed out projects for the system as they geared up for the Switch. Microsoft is stalling out, not gearing up.

What you are focused on is current sales, not what Microsoft is going to look like in Gen 9 if they will even be around then? 35 million is not a great number, to be honest. It's pretty weak coming off Microsoft's most successful system. That means they need to be improving. The late stages of a generation are a good measure of the next. Nintendo and Sony both showed this with their failed systems. Microsoft is showing they are weakening, not strengthening. 

Moreover, you don't understand the business of Nintendo and Microsoft. Nintendo always has a large reserve of cash on hand which allows them to reposition when the market doesn't go their way. Microsoft is a massive corporation who's bottom line is not video games but Operating System and Application. Does Microsoft want to put in the billions to design, market, manufacture and supply a new system if they are only going to sell 35 million? Moreover, XBox is not profitable and never has been. Microsoft hides XBox with Skype to mask that the money it makes is low and isn't enough to cover fixed cost. This article does a good job of explaining: (https://learnbonds.com/122889/microsoft-corporation-msft-loses-money-on-xbox-one-sales/). Here is a tech journalist saying something similar. (https://www.petri.com/paul-thurrotts-short-takes-microsoft-earnings-special-edition-7). And, of course, this has been a long-term issue with XBox losing 3 billion over 10 years. (https://www.neowin.net/news/report-microsofts-xbox-division-has-lost-nearly-3-billion-in-10-years). So how is Microsoft going to turn XBox around if 2017 was bad, they are less than 50 percent of their chief competitor and the division loses billions. 

That said, my argument has been primarily about consumer retention. From what I'm seeing, Microsoft doesn't have that. You mention sales a lot, but the next XBox needs to do BETTER than that, not the same. If there is little interest in XBox now, will there be any in the future. Nintendo can at least hold on to their diehard fans and have always had a successful handheld line. Microsoft doesn't even have that. This company can't even get a game out.  My expectation is they wont or they'll leave. 

You can disagree with me on the Wii U if you like, but games make or break a console. The Switch would not have done well if Zelda wasn't such a hit. It's the software that makes or breaks a system. It's also why I'm critical of Nintendo's early 2018 which is full of games that didn't help the Wii U. 

Huh, you're making a lot of assumptions. Last gen wasnt a normal generation cycle and mid gen upgrades gives the impression this could be a long generation as well. So I'm not gonna say your assumptions are wrong. But I dont expect the 9th gen until holiday of 2020 or 2021. I dont get the impression either company want to rush a new machine.

2017 was not a strong year for exclusives on X1, although there was some notable content and steady sales for the year. Hence, X1 had basically the same sales last year even without much exclusives to boast about. 35 million is not an amazing but a viable userbase. Depending how long this gen goes maybe they will achieve a respectable 60-70 million units sold. That's with the assumption there is going to be steady sales.

You argue I'm not focusing on the 9th gen enough, but I'm considering MS still has a lot happening this gen. With a few new notable games they could create a perception of "strengthening" to you. I'm at the very least optimistic they can do better than 2017 in regard to quantity, but I actually enjoy games like Halo Wars 2, Forza 7 (racer of the year), and Cuphead. But a game like Halo 6, Gears 5, maybe Fable 4 will have more mass appeal. Apparently new IPs are in the works as well, so there is still a lot to be curious about this gen.

So do you understand X1 is still selling? You speak as if that 35 million is a number that wont change. Also, console manufactures no longer take big hits on hardware. Which is why consoles like OG Xbox and PS3 were financial disasters. Youre getting off topic though. Not much to do with the future of Xbox or X1. I'm not gonna bother clicking the links you provided, as it has little to do with the current direction of X1 and MS gaming future.

If X1 has simply maintains 8 million sales a year, that means it will continue to have a viable userbase that major developers continue to support. Also, putting games on Windows does boost gaming revenue. I thought 2017 could be a bad year for X1 console sales given perception, but it was actually fine.

Hyperbole much? They did get games out last year and several coming this year. So they can get games out, but I think its important they don't put junk out. So the delays MIGHT be a good thing.

Wii U had Mario Kart 8, Splatoon, NSMBU, Mario 3D World, Mario Maker, Donkey Kong, Xenoblade, Smash Bros, Pikmin, Pokken and Bayonetta 2. Meanwhile Zelda was anticipated for years but didnt stimulate much hardware sales for Wii U. That's actually a lot of notable content for the measly sales. Again, the PRIMARY issues with Wii U are the tablet control was cumbersome and it was too expensive. The cheapest I ever saw Wii U was $249 on a Black Friday. Meanwhile some of this same software you're mocking will do well on Switch or had sequels.

Last edited by Mr Puggsly - on 30 January 2018

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If subscription model works for music like Spotify and shows/movies like Netflix. Why can't it work for games? It would be really cool to pay only a subscription and have a steam-like library of games available for you to play at any time.



Birimbau said:

If subscription model works for music like Spotify and shows/movies like Netflix. Why can't it work for games? It would be really cool to pay only a subscription and have a steam-like library of games available for you to play at any time.

cost of production, library size and userbase are quite different among them. But sure MS could find a way to make it very profitable. PSNow probably is already.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Sixteenvolt420 said:
d21lewis said:
You can't fight the future. It's inevitable.

No we can't. We can still complain about it though, so that we can possibly help to shape it. 

That... that makes more sense than anything I had found in this thread thus far

OT: expected. Many retailers did this with the Go as well. Pretty ignorant on their side, but in all honesty I doubt they would have done this if Xboxes would have been sold out all the time at their stores.



Vote the Mayor for Mayor!

DonFerrari said:
Birimbau said:

If subscription model works for music like Spotify and shows/movies like Netflix. Why can't it work for games? It would be really cool to pay only a subscription and have a steam-like library of games available for you to play at any time.

cost of production, library size and userbase are quite different among them. But sure MS could find a way to make it very profitable. PSNow probably is already.

Movies and shows like Netflix do are not cheap to produce nor small to store.



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Birimbau said:
DonFerrari said:

cost of production, library size and userbase are quite different among them. But sure MS could find a way to make it very profitable. PSNow probably is already.

Movies and shows like Netflix do are not cheap to produce nor small to store.

I'm not talking about the size of file. I'm talking about quantity of titles to keep people into the service. And Netflix started by only licensing content from others. Sure they aren't cheap, but I was just pointing out that the market landscape is different so the same strategy may not work. But I have no doubt that MS is doing their strategy with good chance of elevated profits.



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Birimbau said:

If subscription model works for music like Spotify and shows/movies like Netflix. Why can't it work for games? It would be really cool to pay only a subscription and have a steam-like library of games available for you to play at any time.

People fear change. 

Same FUD we saw when EA Access was launched, turns out everything is fine.



LudicrousSpeed said:
Birimbau said:

If subscription model works for music like Spotify and shows/movies like Netflix. Why can't it work for games? It would be really cool to pay only a subscription and have a steam-like library of games available for you to play at any time.

People fear change. 

Same FUD we saw when EA Access was launched, turns out everything is fine.

Citing EA as a positive example only leads to discreditation.



TallSilhouette said:
bananaking21 said:
Well retailers don't profit from selling Xbox one's.... Ohh wait... They do

Not much considering how much inventory space they take up. The main draw of selling game consoles in your store has pretty much always been profiting more off of the games sold with it.

OT: The writing's been on the wall for a while. Unless retailers can find a way to adapt (can't think of one myself), the digital era was always going to leave them behind. I wonder when the tipping point will be. What percentage of games sales will be digital before most major retailers decide the consoles they play on aren't worth the shelf space? Maybe the big 3 will give them a bigger cut of the console sale to counteract that.

I think they should do more custom PC building... Selling PC parts especially the customization parts, led etc... Also they should dip into Home Theatre equipment.... The next step for a gamer is to have a nice TV and sound system, maybe a videoprojector or even a dedicated room... I know those are different businesses but they tie in pretty well and could be a good way to keep them afloat... I know I have being going full digital since the 360 and don't intend to look back... 



Sucks for them. I just went out and bought an Xbox One X from Gamestop specifically because of Game Pass.

I am honestly extremely impressed with Microsoft with this move. Now that Sony killed PS Now on Vita and most other devices, I think it is basically worthless. Game Pass on the other hand, is an amazing value. Having a huge library of games available to play locally in full glory at home is incredible. I hope they are very successful with this, and create a new way of reaching consumers.

At the end of the day I think a marriage of Game Pass and PS Now is the ultimate service, especially for more casual gamers. This should be a great thing for the industry.

The core audience doesn't have to be scared. Hard copies will be around for a long time to come. Owning digital copies will remain. Catalogue services are just another way to reach consumers. We should embrace more options, and the possibility of more people, and more money going towards AAA level games.



Stop hate, let others live the life they were given. Everyone has their problems, and no one should have to feel ashamed for the way they were born. Be proud of who you are, encourage others to be proud of themselves. Learn, research, absorb everything around you. Nothing is meaningless, a purpose is placed on everything no matter how you perceive it. Discover how to love, and share that love with everything that you encounter. Help make existence a beautiful thing.

Kevyn B Grams
10/03/2010 

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