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There seems to be a common misconception here that somehow Microsoft needs to make $7.5b back. They simply don't need to. They exchanged $7.5b of cash for what they value is $7.5b worth of assets.
Getting money back on this kind of deals is done either by selling back the assets or in the long (sometime extreme long) run. 15, 20, 30+ years it does not matter as long as the assets maintains or increase in value.
So no they are not forced to go the 3rd party route and put their game on PS5 to make their money back, they are not forced to increased Gamepass subcription cost to make their money back. They already have their money back in the forms of assets.

The only thing Microsoft should be doing at this time is to make sure that the revenues of subsequent projects exceed the expenses, regardless of the $ 7.5 billion investment.

Last edited by EpicRandy - on 24 September 2020



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Jranation said:
If it releases on Xbox and PC does it even count as an exclusive?

“Console exclusive”, “Xbox Ecosystem Exclusive”, “Exclusively not on Playstation”.

Take your pick. 

Last edited by sales2099 - on 24 September 2020

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

 

VAMatt said:
Runa216 said:

CAN they turn it around? sure, of course they CAN. sony fucked up in Gen 7 and they turned it around. The thing is, they have done nothing to give me that impression. 

What would MS need to do to give you the impression that they're turning it around?  I largely agree with your critiques of the last decade of xbox. But, it seems very clear to me over the last two to three years that they are turning it around. Acquiring and building new studios, innovative new business model with Gamepass, offering multiple next generation console options.....  Basically, it's hard for me to understand what else you would want to see from them.

For jaded fans such as him, they need the games metacritic score staring them in the face to turn things around in their mind. As great as the news is and the progress Xbox has been making, the games aren’t out yet. Give it time, the games releasing is inevitable. 



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

 

So, DOOM Eternal will be on Game Pass next week. That's really cool!



yvanjean said:
LudicrousSpeed said:

He has that take in every thread when GamePass is brought up. But then he’ll also say it’s a good service with good games. It seems to be a “covering all grounds” type of situation where he wants to be right whichever way the dominos fall, like that dude who always predicts the latest Xbox hardware will be the last.

He can’t answer how Microsoft will sell gamers on a service that has a bunch of small games pooped out with no regards for quality, just focusing on timely releases. Plus it’s going up in price for most as the $1 deal expires and now theyll have to recoup this 7.5 billion somehow.

Just don't listen to him, Microsoft wants and need more game with high Metacritic. If anything the studios that got acquired by Microsoft have more financial freedom to take longer and make better games. 

Here what Microsoft wants on their service:

Woah, three beefy critically acclaimed titles you can easily sink 100+ hours into. Almost as if the GamePass criticisms are completely unfounded or something. And IIRC these are all released in the last three-four weeks. And next week we’ll get Doom Eternal, another small scale AA title.



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WoodenPints said:
NobleTeam360 said:

Well, I believe Phil has already answered how exclusivity will be handled. I believe he said it would be on a per-game basis, so that should tell you that some games may be exclusive and others may be multiplatform. The huge games like Fallout or Elder Scrolls I could see MS keeping multiplatform but then others like Doom, Wolfenstein, and Dishonored, etc... being Xbox/PC only. So I guess.... nobody really knows how MS will handle it, maybe everything will end up being Xbox/PC only or maybe everything stays multi-platform or like I said, maybe a mixture of exclusivity and multi-platform.

My initial thoughts after seeing the acquisition news was that the games would release day one on Gamepass and on the PS5 for $70 as Xbox users gain massive benefits from having all these in Gamepass day one and PS5 users can still pay them a premium to play it and everyone wins and plenty of $$$ is made.

but now after a few days I'm not so sure if that will be the case realising that Elder Scrolls and Fallout are now potentially the two biggest platform sellers that Xbox currently have in their library.

The first option of putting them everywhere will make the most money in the short term for sure but the second option of bringing in more people to the ecosystem either on console or PC via Gamepass subs or profits from the 30% cut from third party game sales will likely be the strongest plan in the long term.

Giving it further consideration. I do agree with your last point. Keeping the games everywhere only makes sense for short term profit, Microsofts goal is almost assuredly to leverage these IP's to help boost gamepass in the long term (with the potential of far greater profit than whatever they could get by just taking the money they would get from PS5). I do think we'll see Elder Scrolls, Fallout, Doom, etc..... be exclusive to Xbox/PC/Gamepass (at the bare minimum timed exclusivity and more likely permanent). 



NobleTeam360 said:
WoodenPints said:

My initial thoughts after seeing the acquisition news was that the games would release day one on Gamepass and on the PS5 for $70 as Xbox users gain massive benefits from having all these in Gamepass day one and PS5 users can still pay them a premium to play it and everyone wins and plenty of $$$ is made.

but now after a few days I'm not so sure if that will be the case realising that Elder Scrolls and Fallout are now potentially the two biggest platform sellers that Xbox currently have in their library.

The first option of putting them everywhere will make the most money in the short term for sure but the second option of bringing in more people to the ecosystem either on console or PC via Gamepass subs or profits from the 30% cut from third party game sales will likely be the strongest plan in the long term.

Giving it further consideration. I do agree with your last point. Keeping the games everywhere only makes sense for short term profit, Microsofts goal is almost assuredly to leverage these IP's to help boost gamepass in the long term (with the potential of far greater profit than whatever they could get by just taking the money they would get from PS5). I do think we'll see Elder Scrolls, Fallout, Doom, etc..... be exclusive to Xbox/PC/Gamepass (at the bare minimum timed exclusivity and more likely permanent). 

I think timed exclusivity is what they'll go for. People generally won't want to wait to play certain huge titles, then after some time they'll release on PS5 just to make a lot of extra money. "case by case basis" and Bethesda still publishing their own games makes it seem like there's a chance. I'm not wishfully hoping for that to happen, it's just my current guess; I have a capable PC already along with a pre-ordered PS5, and I really only care about Doom, so the acquisition doesn't really mean anything to me except for where I'm going to play the next Doom (whenever that is).



Sony, if you're reading this, do something new with The Legend of Dragoon. You will make me a happy man. Thanks.

sales2099 said:
HollyGamer said:

yup 7.5 billion only for consoles exclusivity is just pure fantasy and fanboy dream. 

If they remain multiply why did MS make the deal at all? If Elder Scrolls 6 comes out on Xbox and PS....that doesn’t cost a penny. Why spend 7.5 billion to get the same result as spending nothing? Worst case is timed exclusivity. Best case is console/PC/Game Pass, and Xcloud via Phone/tablet/laptop. It’s not just console exclusivity, the ecosystem is much bigger then that. 

For Gamepass, even Blockbuster Movie streaming never had truly exclusives product. Gamepass alone will not coupe the lost for 7.5 billion. Unless they want to watered down Blockbuster games to become 2A games or even 1A games. There no such free stuff in this world or cheap stuff that equal to premium. They can just sell high price on PS or Nintendo or other device and making it free on gampass or Xbox ecosystem. 



LudicrousSpeed said:
VAMatt said:

What would MS need to do to give you the impression that they're turning it around?  I largely agree with your critiques of the last decade of xbox. But, it seems very clear to me over the last two to three years that they are turning it around. Acquiring and building new studios, innovative new business model with Gamepass, offering multiple next generation console options.....  Basically, it's hard for me to understand what else you would want to see from them.

Imho looking at all the moves MS has made and the stark contrast between the upcoming launch and the Xbone philosophy, anyone saying they haven’t seen enough from MS to think they can turn it around, is someone who is never going to be turned around on MS. 

Could be. Or it could be that talking a big game and buying bucketloads of studios will mean absolutely squat until we start getting actual games from said studios. Only then will we see what they are able to bring to the table and if they live up to the promises. Well, the Zenimax buy will at least ensure that something decent will be coming out(hopefully, Fallout 76 I'm looking at you), but I doubt it will be exclusive anyways.



HollyGamer said:
sales2099 said:

If they remain multiply why did MS make the deal at all? If Elder Scrolls 6 comes out on Xbox and PS....that doesn’t cost a penny. Why spend 7.5 billion to get the same result as spending nothing? Worst case is timed exclusivity. Best case is console/PC/Game Pass, and Xcloud via Phone/tablet/laptop. It’s not just console exclusivity, the ecosystem is much bigger then that. 

For Gamepass, even Blockbuster Movie streaming never had truly exclusives product. Gamepass alone will not coupe the lost for 7.5 billion. Unless they want to watered down Blockbuster games to become 2A games or even 1A games. There no such free stuff in this world or cheap stuff that equal to premium. They can just sell high price on PS or Nintendo or other device and making it free on gampass or Xbox ecosystem. 

Who said it’s exclusive? It’s Xbox, Windows Store, Steam, Game Pass and Xcloud via smartphone/tablet. DLC is also a great way to have GP subscribers pay on top of their monthly sub. 



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