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Forums - Gaming Discussion - Xbox Head Phil Spencer Said "The Business isn't About Selling How Many Consoles "

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Do you agree with Phil

Yes 15 29.41%
No 27 52.94%
In between 6 11.76%
Somehow 1 1.96%
I don't have any clue 2 3.92%
LudicrousSpeed said:
thismeintiel said:

Those profits came from Nintendo selling tens of millions of handheld HW, which led to tens of millions of SW sold from that HW. It definitely didn't come from underperforming home consoles.

And yes, digital subs and sales are important, but it is the combination of both that and physical retail that makes one very successful. And more boxes sold means more profit from HW and higher potential for sales of physical and digital goods.

Nintendo profited with less hardware by controlling the prices of their software. You can already buy Detroit and God of War for less than $20 pretty routinely. Never happened with Nintendo back in the day or even modern Nintendo. Sony came into the industry with a loss-leading mentality and Nintendo never really followed. PS3 eventually sold what, close to 90 million or something? Yet Sony lost billions on it at one point and maybe still ended up losing overall, idk.

Yeah, you sell more consoles, you can sell more games. He doesn't say console sales have zero importance. He's talking about a customer already in the Xbox ecosystem, and how MS doesn't need to sell them an S or an X if they're still buying games and subscribing to Gamepass on their launch Xbone. And of course, he's right. And they obviously understand they need to improve their appeal to other gamers in order to grow that install base, otherwise they wouldn't have just bought a shit ton of studios.

The big question is, post-E3, have you made your annual "if __ fails, MS is out of the industry!!" prediction yet? What is it this time? If Elite 2 fails? If Battletoads fails? Please let us know.

Someone's not liking how this gen played out. Even have to misquote me to try and get a dig in. 

As we both know, I said HW biz. Which it seems MS is obviously preparing for. If Scarlett suffers a worse fate than XBO, you can bet your Elite controller they'll be focusing even more on GamerPass and xCloud. Probably won't bring it to the PS5 for awhile, but like Sega, they'll have little choice in the end.

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Gen played out great for me though, not sure what would give you any other impression.

Thanks for confirming your latest MS doomsday prediction though.

Barkley said:
Snoopy said:

Software and subscription services are what matters the most. In fact, if these companies can sell less hardware, but more software/subscriptions the more money they will make.

And the more hardware you sell the more Software you'll sell. Which is why PS4 has sold twice as many games as the XBO, because it's sold twice as much hardware. Getting a cut of all that third party software is lucrative. Selling less hardware means selling less software and getting less money from third parties. MS don't get a cent when Assassins Creed sells on PC, they do when it sells on Xbox. So selling a lot of hardware guarantees a lot of revenue and people being locked into your closed system generating you revenue.

Not necessarily, it depends a lot on the region the console is sold and what the gamer's intent is. Selling a digital streaming service subscription could prove to be a lot more profitable than selling hardware.

At the end of the day, if you take Phil's comments at face value, he's basically saying that the business is changing. If you pay for Gamepass, MS doesn't give a shit if you upgrade to the newest version of XB, play on PC only, or buy 17 Playstations. They only care that you buy Gamepass (or XBL, or MS software). And, in that context, he's absolutely right.

I brought this point up years ago and finally glad a Head comes out and says it. Because the amount of arguing and debating over the internet on this topic was exhursting. Sometimes you have to do it hard to get your point across.