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Forums - Gaming - The console war is over

RolStoppable said:

It's a fitting tweet for a company who hasn't found an answer to a pressing question in the last seven years. Microsoft's defeatist attitude shone through in last week's Xbox event - I haven't watched it, but I know enough - so it's no surprise that one of their guys wants to pretend that the console war is over in order to distract from hardware sales. Microsoft wasn't in a bad position to challenge Sony's PS5, but instead of going on the offensive and being daring, they more or less quietly accepted their role as a distant third in the global console business.

That's not to say that the XSX will sell worse than the XB1. It will do better, because the XSX is merely unspectular and can bank on Game Pass (gaming for cheap matters, just look up how Steam centralized PC game sales for the most part), unlike the XB1 which sucked butt. That's an improvement for sure, but Microsoft didn't want to go any extra miles. If you want to win, you have to show that you want it. Spencer and friends showed none of that.

This stands in stark contrast to the Xbox 360 era where Microsoft seriously aimed to have the best-selling console and celebrated their NPD wins time and time again. Good hardware sales mean good software sales and high subscription rates, so of course it's important to sell as much hardware as possible. This hasn't changed. What has changed is that Microsoft doesn't want to hear about it anymore. That's because they couldn't figure out how to be winners.

Well neither could Nintendo. The GameCube was their last attempt to play by traditional rules. Now each hardware they release sacrifices specs for a unique hardware function, usually at the cost of mainstream 3rd party support. For the most part with WiiU being the exception this strategy paid off. 

I see MS hitting that GameCube point and Game Pass/Xcloud/PC day 1 exclusives seems to be their non-traditional pivot. But the difference is that they are still very much competing in the traditional space. Both consoles competing for the lions share of 3rd party content like usual. 

Imo Xbox as a platform can’t win no matter what. But the Xbox ecosystem can. 



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

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Azzanation said:
RolStoppable said:

It's a fitting tweet for a company who hasn't found an answer to a pressing question in the last seven years. Microsoft's defeatist attitude shone through in last week's Xbox event - I haven't watched it, but I know enough - so it's no surprise that one of their guys wants to pretend that the console war is over in order to distract from hardware sales. Microsoft wasn't in a bad position to challenge Sony's PS5, but instead of going on the offensive and being daring, they more or less quietly accepted their role as a distant third in the global console business.

That's not to say that the XSX will sell worse than the XB1. It will do better, because the XSX is merely unspectular and can bank on Game Pass (gaming for cheap matters, just look up how Steam centralized PC game sales for the most part), unlike the XB1 which sucked butt. That's an improvement for sure, but Microsoft didn't want to go any extra miles. If you want to win, you have to show that you want it. Spencer and friends showed none of that.

This stands in stark contrast to the Xbox 360 era where Microsoft seriously aimed to have the best-selling console and celebrated their NPD wins time and time again. Good hardware sales mean good software sales and high subscription rates, so of course it's important to sell as much hardware as possible. This hasn't changed. What has changed is that Microsoft doesn't want to hear about it anymore. That's because they couldn't figure out how to be winners.

That's the problem, the gaming community doesn't know what winning is. What happens when you win, how do you win, what is winning in the console market, what does the trophy look like when you win?.... Its always been about money, how you make that money comes in all different shapes and sizes. 

Lets use an example,

We have two companies.. Company A and Company B. Company A sells more hardware than Company B by a fair margin and made $3b in total revenue.. Company B sells half the hardware as Company A but sells double the Software and Services and its revenue gain was $5b, who won? Company A for selling more hardware or Company B who made more overall revenue/profit? 

MS Giving up to make more money isn't giving up, they are aiming bigger and i am sure Sony are too. 

Use that metric if you want. Sony sell more than double the hardware, more than double the PS+ versus XBL Gold, more than double the 3rd party game royalties and like 5x more first party games sold. So yes Sony completely obliterated MS on revenue and profit this gen.

sales2099 said:
DonFerrari said:

I don't remember you doing it in the forum, but I find it curious that almost no game on the MS show had a release date but we have had some of the Xbox fans saying MS stopped showing games over 1 year before release in this gen and complaining of Sony doing it, now they haven't complained MS done it.

Myself I love that we get early announcements and know what is to come.

Europe with several countries in crysis may be fertile ground for Gamepass and in near future Xcloud.

Let me clarify, it’s more we don’t like Sony doing it because their fans use them in “list wars” for literally years before they are released. Agent, FF Versus 13, GT5, FF7, etc. 

And now ironically, when the shoe is on the other foot, PS fans are complaining we getting games announced years before. It’s literally their own medicine but that seems lost on many of them (shrugs) 

Not really, didn't see Sony fans complaining about they revealing games long before release (I even said before the event that beginning of the gen is the time to show games that will take a long time to release), but the MS fans that complained about this on PS didn't show up. What was pointed is that since they don't have release date, gameplay or enough detail there isn't much to talk about those titles. Same on when I said good guy Phil talking about exclusives is the opposite of what he done. Again for me I would love that Sony gave the title of the game, tentative release date and teaser for each of the teams working on a game and at every E3 gives update on that, but I believe companies avoid doing that to not give to much info to competitors.



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."

COKTOE said:
Azzanation said:

I daubt it, fanboys will always try to make platforms compete regardless.

I remember the days i was in heated endless debates and getting downvoted about claiming MSs direction and thier focus in the console market.. goes to show that it doesnt matter how right you are, people wont change their point of views.


Unless you were, inexplicably, making a different argument that was running parallel to the one I remember, vividly, referencing "how right you were", and others people's inability to change their point of view makes me want to challenge you to a fistfight.

Your take: You were repeatedly making a blanket, absolute statement, saying "console sales don't matter". Which is still incorrect now, even when applied only to Microsoft, the company detaching itself the most from the traditional console sales model. When applied to Nintendo and PS, who's combined market share represents much more of the console market than that of Xbox, that argument gets even worse. Many, if not all, of the finer points as to why this point of view was incorrect have already been covered.

So, "console sales don't matter": That was essentially the totality of your stance. You weren't right then. You're merely less wrong now.

I haven't looked at it, but I have a direct link back to one specific instance of what I'm referencing here, because it was my most recent ban.

Sláinte!



- "If you have the heart of a true winner, you can always get more pissed off than some other asshole."

RolStoppable said:
Azzanation said:

That's the problem, the gaming community sells

The best-selling console will continue to bring in the most gaming profits for its manufacturer.

sales2099 said:

Well neither could Nintendo. The GameCube was their last attempt to play by traditional rules. Now each hardware they release sacrifices specs for a unique hardware function, usually at the cost of mainstream 3rd party support. For the most part with WiiU being the exception this strategy paid off. 

I see MS hitting that GameCube point and Game Pass/Xcloud/PC day 1 exclusives seems to be their non-traditional pivot. But the difference is that they are still very much competing in the traditional space. Both consoles competing for the lions share of 3rd party content like usual. 

Imo Xbox as a platform can’t win no matter what. But the Xbox ecosystem can. 

Your post is baffling. Your opening sentence alone is so far detached from reality that smacking your head on a desk is just about the last hope to get some sense into you.

Both of you guys try your best to make Microsoft's PR seem sound to yourself, but you aren't going to convince anyone with that faulty logic. How about you are honest with yourselves and see the tweet for what it is: A weak and pre-emptive attempt to distract from console sales. Microsoft isn't going to get more gaming profits than both Sony and Nintendo (individually, not combined) with the strategy they are pursuing.

Excuse me? Care to explain how my Nintendo analogy “baffles” you? Lower spec hardware with unique function. Enter market at lower price point. Con is that specs and hardware design limit mass 3rd party adoption. The GameCube was very much in line with what the PS2 was and therefore was their last “traditional” console. 

I mean cmon we all know brand power in Europe and Asia can’t be turned around overnight. I am confident Series X will sell better then Xbox One. But clearly they gotta pursue different markets to get those Xbox accounts up. Steam best selling charts are a testament to their strategy working imo 



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

Major Nelson knows there are many people that are locked to one ecosystem. Microsoft's strategy is to give gamers as many options to join the Xbox ecosystem even if it's just for a short time. Microsoft wants to break the narrative that you need to own a console to play exclusives. I fear what would happen if the Gamepass grows too much and what would happen to the game industry as a result.



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I'll believe this when Halo, Mario, and Zelda is released on the PS5.

Silly article...

As long as there are platform exclusives, there will always be a console war.



RolStoppable said:
Azzanation said:

That's the problem, the gaming community doesn't know what winning is. What happens when you win, how do you win, what is winning in the console market, what does the trophy look like when you win?.... Its always been about money, how you make that money comes in all different shapes and sizes. 

Lets use an example,

We have two companies.. Company A and Company B. Company A sells more hardware than Company B by a fair margin and made $3b in total revenue.. Company B sells half the hardware as Company A but sells double the Software and Services and its revenue gain was $5b, who won? Company A for selling more hardware or Company B who made more overall revenue/profit? 

MS Giving up to make more money isn't giving up, they are aiming bigger and i am sure Sony are too. 

Your example demonstrates that you don't know what winning is. The PS4 brings in a lot more revenue than Switch, but Switch is more profitable nonetheless.

Winning is first and foremost about selling the most units of hardware. There hasn't been a generation where the best-selling console wasn't also clearly the most profitable console at the same time. It's only among the runner-ups that oddities could be observed, namely the Xbox (24m) being less profitable than the GC (21m), and the PS3 being less profitable than the Xbox 360 despite slightly higher unit sales.

The best-selling console will continue to bring in the most gaming profits for its manufacturer.

sales2099 said:

Well neither could Nintendo. The GameCube was their last attempt to play by traditional rules. Now each hardware they release sacrifices specs for a unique hardware function, usually at the cost of mainstream 3rd party support. For the most part with WiiU being the exception this strategy paid off. 

I see MS hitting that GameCube point and Game Pass/Xcloud/PC day 1 exclusives seems to be their non-traditional pivot. But the difference is that they are still very much competing in the traditional space. Both consoles competing for the lions share of 3rd party content like usual. 

Imo Xbox as a platform can’t win no matter what. But the Xbox ecosystem can. 

Your post is baffling. Your opening sentence alone is so far detached from reality that smacking your head on a desk is just about the last hope to get some sense into you.

Both of you guys try your best to make Microsoft's PR seem sound to yourself, but you aren't going to convince anyone with that faulty logic. How about you are honest with yourselves and see the tweet for what it is: A weak and pre-emptive attempt to distract from console sales. Microsoft isn't going to get more gaming profits than both Sony and Nintendo (individually, not combined) with the strategy they are pursuing.

It is more possible that a given year Sony or Nintendo have revenue (or more likely profit) higher than MS+Sony or Nintendo+MS than MS having higher revenue or profit than either Sony or Nintendo alone. Be it a year like WiiU doing low sales and 3DS on their low profit phase, or a PS3 on the end of life while PS4 still beginning, etc. But we have seem some years that Sony or Nintendo had higher revenue and/or profits than the other two combined. But we are yet to see a balance sheet that Xbox even had profit in a year (it probably had when X1 stopped being sold at a loss and before they bought studios, but MS isn't ever clear on that).

yvanjean said:
Major Nelson knows there are many people that are locked to one ecosystem. Microsoft's strategy is to give gamers as many options to join the Xbox ecosystem even if it's just for a short time. Microsoft wants to break the narrative that you need to own a console to play exclusives. I fear what would happen if the Gamepass grows too much and what would happen to the game industry as a result.

And he do that by not having exclusives anymore right...

RolStoppable said:
sales2099 said:

Excuse me? Care to explain how my Nintendo analogy “baffles” you? Lower spec hardware with unique function. Enter market at lower price point. Con is that specs and hardware design limit mass 3rd party adoption. The GameCube was very much in line with what the PS2 was and therefore was their last “traditional” console. 

Nintendo pivoted since 2006. Why can’t MS? As long as Series X is competing in the spec wars for 3rd party game adoption they are still playing the same game as Sony. 

Sure, I'll explain. Let's look at it again:

sales2099 said:

Well neither could Nintendo. The GameCube was their last attempt to play by traditional rules. Now each hardware they release sacrifices specs for a unique hardware function, usually at the cost of mainstream 3rd party support. For the most part with WiiU being the exception this strategy paid off. 

I see MS hitting that GameCube point and Game Pass/Xcloud/PC day 1 exclusives seems to be their non-traditional pivot. But the difference is that they are still very much competing in the traditional space. Both consoles competing for the lions share of 3rd party content like usual. 

Imo Xbox as a platform can’t win no matter what. But the Xbox ecosystem can. 

You highlighted the final sentence of my post, in the paragraph where I talk about what has changed. You directly respond to this sentence of mine with "Well neither could Nintendo." But Nintendo has come up with ways to win. The Wii sold the most units in its generation and was the most profitable console. Switch is on pace to do the very same thing against its competitors, the PS5 and XSX.

That's why Nintendo has never said anything along the lines of "it's not important how many consoles you sell", because they've been confident enough to believe in their own ability to win in the console business. Microsoft doesn't have that confidence, hence why your analogy doesn't work at all. You try to make it work by suggesting that the console business is about AAA third party games, but it isn't about them.

I think you are mixing up nouns and verbs here, namely the word 'console'. I and others are talking about the noun, but you mean the verb. You find solace in the knowledge that Microsoft is still getting AAA third party games, so that's at least something; enough to console yourself.

Nintendo may have left the direct competition through power and 3rd parties, but it certainly can keep relevancy and profit with alternative strategies through the power of their IP and care for their games.



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."

yvanjean said:
Major Nelson knows there are many people that are locked to one ecosystem. Microsoft's strategy is to give gamers as many options to join the Xbox ecosystem even if it's just for a short time. Microsoft wants to break the narrative that you need to own a console to play exclusives. I fear what would happen if the Gamepass grows too much and what would happen to the game industry as a result.

As I've mentioned in the past, over and over again, I fear for the industry in regards to Microsoft's general success. Be it Gamepass, or whatever other endeavour. I don't trust them as shepards of the industry, and eagerly anticipate details on what exactly the type of product Halo Infinite will be. I bet one can of Coke that once it's fully rolled out, graphical fidelity will fade into the ether as a hot topic. To be supplanted by.....what? We'll see. One way or the other. I certainly have my suspicions.



- "If you have the heart of a true winner, you can always get more pissed off than some other asshole."

Azzanation said:

That's the problem, the gaming community doesn't know what winning is. What happens when you win, how do you win, what is winning in the console market, what does the trophy look like when you win?.... Its always been about money, how you make that money comes in all different shapes and sizes. 

Lets use an example,

We have two companies.. Company A and Company B. Company A sells more hardware than Company B by a fair margin and made $3b in total revenue.. Company B sells half the hardware as Company A but sells double the Software and Services and its revenue gain was $5b, who won? Company A for selling more hardware or Company B who made more overall revenue/profit? 

MS Giving up to make more money isn't giving up, they are aiming bigger and i am sure Sony are too. 

That's a great example, but can you really see and explain how MS can possibly make more revenue/profit than Sony or Nintendo with their current strategy if their marketshare in console business will stay pretty much the same (which is around less than 20%).



 

DonFerrari said:
Azzanation said:

We have two companies.. Company A and Company B. Company A sells more hardware than Company B by a fair margin and made $3b in total revenue.. Company B sells half the hardware as Company A but sells double the Software and Services and its revenue gain was $5b, who won? Company A for selling more hardware or Company B who made more overall revenue/profit? 

Use that metric if you want. Sony sell more than double the hardware, more than double the PS+ versus XBL Gold, more than double the 3rd party game royalties and like 5x more first party games sold. So yes Sony completely obliterated MS on revenue and profit this gen.

No one is arguing it this gen, Sony did make more revenue this gen. My point is about the direction.

Who is more successful, Company A or Company B?

RolStoppable said:

Your example demonstrates that you don't know what winning is. The PS4 brings in a lot more revenue than Switch, but Switch is more profitable nonetheless.

Winning is first and foremost about selling the most units of hardware. There hasn't been a generation where the best-selling console wasn't also clearly the most profitable console at the same time. It's only among the runner-ups that oddities could be observed, namely the Xbox (24m) being less profitable than the GC (21m), and the PS3 being less profitable than the Xbox 360 despite slightly higher unit sales.

The best-selling console will continue to bring in the most gaming profits for its manufacturer.

Again, PS4 did make more revenue this gen, no one is debating that, that's not the point i am making. 

Who is more successful in my example, Company A or Company B?

derpysquirtle64 said:

That's a great example, but can you really see and explain how MS can possibly make more revenue/profit than Sony or Nintendo with their current strategy if their marketshare in console business will stay pretty much the same (which is around less than 20%).

Glad you can see what i am trying to say in my example, and not turning this into a PS4 vs XB1 post. The major profits is with the software and subs, the more software and subs sold the more profit is made.

Look what Pokemon GO did for Nintendo, it made $7.5b in revenue for Nintendo just for 1 game and it wasn't on a Nintendo platform. 360 lost $3b in hardware and PS3 lost $5b in hardware by 2013. Excluding the profits Live made for the 360 and the profits from the games sold on both consoles, the Hardware lost billions. 1 game from Nintendo did the complete opposite number 

Currently the top 6 best selling Steam games, 4 of them are from Xbox. Add PC GamePass subscribers to the mix and you can start seeing the growth. Xbox is covering more markets and soon Streaming will be in the mix as well.  

Links to the 360 and PS3 losing billions and Pokemon GOs revenue boosting figures below.

https://www.vg247.com/2013/01/07/xbox-360-and-ps3-losses-total-8-billion-ex-sony-employee-paints-grim-future/#:~:text=Animal%20Crossing-,Xbox%20360%20and%20PS3%20losses%20total%20%248%20billion%2C%20ex,Sony%20employee%20paints%20grim%20future&text=Xbox%20360%20and%20PS3%20have,by%20industry%20veteran%20Ben%20Cousins.&text=%E2%80%9CConsoles%20like%20Xboxes%2C%20PlayStations%20%26,a%20loss%E2%80%9D%2C%20said%20Cousins.

https://www.theverge.com/2016/7/11/12147600/nintendos-stock-pokemon-go