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Forums - Gaming Discussion - (Business Perspective) Does MS really need Xbox Hardware?

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the-pi-guy said:
Azzanation said:

Plenty of parents and kids simply cant afford a console. If the option is already built into your TV or smart devices, they will chose to accept the free access.

When was the last time you brought a high end camera? Knowing your Smart phone has one built in.

Majority of casuals dont care about superior experiences. Look at the average gaming PCs, Majority are not running 3080s. They are probably already playing games on ancient tech which will be causing issues.

For the hardcore audience or gamers like yourself, sure, buy the hardware but the majority of the gaming market is dictated by the casuals.

A lot of this, as most of this thread, is just speculation.

It's certainly reasonable that plenty of people can't afford a console. But are those people really going to be comfortable with an additional subscription service to content that they don't own? And are those people going to be able to afford/even have access to a high end internet service? 

In a lot of cases, the difference is nothing like the difference between a smart phone camera and a high end camera. Smart phone cameras are generally pretty competent, and many times they're better than even high cameras from 15 years ago. That's often not the case for cloud gaming, especially since there are plenty of areas that don't have access to good internet. In those cases, we're not talking about a high end experience vs a good experience; consoles are a good experience, and cloud gaming is an utterly broken experience. 

I havnt used Cloud gaming however ill assume the quality of Cloud depends more on the service network just as much. Azure is a world wide service so if streaming directly from those servers should increase playability. If you are streaming a game from Japan from North America, that will cause lag.

I also dont believe the majority are going to care if their games stutter. I cant see  parent going to the shops paying $500+ for a console because their games stutter. Guess it falls on the individual.



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Azzanation said:

I havnt used Cloud gaming however ill assume the quality of Cloud depends more on the service network just as much. Azure is a world wide service so if streaming directly from those servers should increase playability. If you are streaming a game from Japan from North America, that will cause lag.

Your home network still matters immensely.

Azzanation said:

I also dont believe the majority are going to care if their games stutter. I cant see  parent going to the shops paying $500+ for a console because their games stutter. Guess it falls on the individual.

We're not talking about a slightly stuttery experience, we're talking about broken experiences. 

Here's the most important question, if cloud gaming was such an obvious win, why has neither Amazon, Google, Microsoft or Sony been able to make it work?



Here is one of the biggest problems with thinking that Cloud gaming is the solution for parents who cannot afford a console. First in order to do Cloud gaming for those same parents, they will need to pay for the higher tier for their internet connection. Just so you know most plans especially in the US are way north of 100 dollars a month. Now if you are already strapped for cash, you already sub to other subscription services and now you have to pay for more expensive internet just to get a so so experience from your games, yeah, thats not going to happen.

Second, Azz, you state that MS will not have to do RD for their next console but what exactly will be powering those servers for XCloud. Currently MS is using Series X consoles to power those servers, what will MS use in the future or do you believe that the Series X will be powering those servers forever. I do not believe you understand how XCloud works or even how PS Now works. They both use their existing hardware to power those servers, why, because of compatibility. Developers need target hardware to code for. In order to support backwards compatibility it needs to be hardware made by the vendor or you lose compatibility and a whole host of games. Even if MS exit the hardware business they would still need to develop hardware that is compatible with the Series X to maintain compatibility which means they will still need to spend the RD money anyway.

Now you might believe that MS could just use off the shelf parts but that is not cost efficient because they could have done that anyway. There is a reason they are not using a PC board with an AMD card to power those servers. The reason is cost. MS create their use AMD to create their hardware AOC chip but then they have another company manufacture everything themselves compared with purchasing it from AMD at a substantial cost compared to them owning and having it manufactured themselves. Your whole premise is that MS will save money by not having to do any hardware manufacture for the next console but in reality, even for XCloud, MS still must create new hardware because that is what powers XCloud.



Machiavellian said:

Here is one of the biggest problems with thinking that Cloud gaming is the solution for parents who cannot afford a console. First in order to do Cloud gaming for those same parents, they will need to pay for the higher tier for their internet connection. Just so you know most plans especially in the US are way north of 100 dollars a month. Now if you are already strapped for cash, you already sub to other subscription services and now you have to pay for more expensive internet just to get a so so experience from your games, yeah, thats not going to happen.

Second, Azz, you state that MS will not have to do RD for their next console but what exactly will be powering those servers for XCloud. Currently MS is using Series X consoles to power those servers, what will MS use in the future or do you believe that the Series X will be powering those servers forever. I do not believe you understand how XCloud works or even how PS Now works. They both use their existing hardware to power those servers, why, because of compatibility. Developers need target hardware to code for. In order to support backwards compatibility it needs to be hardware made by the vendor or you lose compatibility and a whole host of games. Even if MS exit the hardware business they would still need to develop hardware that is compatible with the Series X to maintain compatibility which means they will still need to spend the RD money anyway.

Now you might believe that MS could just use off the shelf parts but that is not cost efficient because they could have done that anyway. There is a reason they are not using a PC board with an AMD card to power those servers. The reason is cost. MS create their use AMD to create their hardware AOC chip but then they have another company manufacture everything themselves compared with purchasing it from AMD at a substantial cost compared to them owning and having it manufactured themselves. Your whole premise is that MS will save money by not having to do any hardware manufacture for the next console but in reality, even for XCloud, MS still must create new hardware because that is what powers XCloud.

I guess he thinks on layman terms that MS can just go get right of Xbox next gen and use the Azzure server they already have with a magic tool that will make all games current and future work on Azzure with no problem or billionaire investment like a cheap emulator.



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."

the-pi-guy said:
Azzanation said:

I havnt used Cloud gaming however ill assume the quality of Cloud depends more on the service network just as much. Azure is a world wide service so if streaming directly from those servers should increase playability. If you are streaming a game from Japan from North America, that will cause lag.

Your home network still matters immensely.

Azzanation said:

I also dont believe the majority are going to care if their games stutter. I cant see  parent going to the shops paying $500+ for a console because their games stutter. Guess it falls on the individual.

We're not talking about a slightly stuttery experience, we're talking about broken experiences. 

Here's the most important question, if cloud gaming was such an obvious win, why has neither Amazon, Google, Microsoft or Sony been able to make it work?

I agree that having a decent home network with access to local servers will make a better experience.

They are all trying to get into Cloud, Google is definitely trying, why do you think they are front runners in blocking MS ABK deal? Just for laughs?

DonFerrari said:
Machiavellian said:

I guess he thinks on layman terms that MS can just go get right of Xbox next gen and use the Azzure server they already have with a magic tool that will make all games current and future work on Azzure with no problem or billionaire investment like a cheap emulator.

Why dont you reply to me directly Don? 

Also this is a horrible response.



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Azzanation said:
the-pi-guy said:

Your home network still matters immensely.

Azzanation said:

I also dont believe the majority are going to care if their games stutter. I cant see  parent going to the shops paying $500+ for a console because their games stutter. Guess it falls on the individual.

We're not talking about a slightly stuttery experience, we're talking about broken experiences. 

Here's the most important question, if cloud gaming was such an obvious win, why has neither Amazon, Google, Microsoft or Sony been able to make it work?

I agree that having a decent home network with access to local servers will make a better experience.

They are all trying to get into Cloud, Google is definitely trying, why do you think they are front runners in blocking MS ABK deal? Just for laughs?

DonFerrari said:

I guess he thinks on layman terms that MS can just go get right of Xbox next gen and use the Azzure server they already have with a magic tool that will make all games current and future work on Azzure with no problem or billionaire investment like a cheap emulator.

Why dont you reply to me directly Don? 

Also this is a horrible response.

I have replied you directly several times. On this one I was replying Machiavellian.



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."

DonFerrari said:
DonFerrari said:

I guess he thinks on layman terms that MS can just go get right of Xbox next gen and use the Azzure server they already have with a magic tool that will make all games current and future work on Azzure with no problem or billionaire investment like a cheap emulator.

Why dont you reply to me directly Don? 

Also this is a horrible response.

I have replied you directly several times. On this one I was replying MaMachiavellian.

You are replying to someone about me and putting words in my mouth while i am in this threads conversation.

Got something to say about me, reply to me.



DonFerrari said:
DonFerrari said:

I guess he thinks on layman terms that MS can just go get right of Xbox next gen and use the Azzure server they already have with a magic tool that will make all games current and future work on Azzure with no problem or billionaire investment like a cheap emulator.

Why dont you reply to me directly Don? 

Also this is a horrible response.

I have replied you directly several times. On this one I was replying MaMachiavellian.

You are replying to someone about me and putting words in my mouth while i am in this threads conversation.

Got something to say about me, reply to me.




Azzanation said:

I agree that having a decent home network with access to local servers will make a better experience.

They are all trying to get into Cloud, Google is definitely trying, why do you think they are front runners in blocking MS ABK deal? Just for laughs?

Actually the only company that is against the merger is Google and it may not be for the reason you believe.  For all we know, Google may want the deal to fail so that they can step in and purchase ABK.  There are few companies that can pony up the money to purchase ABK outside of Apple, Google and some other huge media corporation.  Even still the question still remains that Cloud as it is today is not even close to being a big market.  It represent .02% or something along those lines of the gaming market.  The reason these companies are trying to enter the market is because its another revenue stream but as to how big it is or will be in the next 10 years, well if anything it will be a supplemental distribution method more than anything else.  We already seen Google fail, we have seen no traction with PS Now, we have seen no traction with XCloud.  Even You Azz said you have not used it but you are champion something you have not experienced.  I can tell you from basic experience, using Cox internet, that I was frequently running over my data limit without streaming any games. Just with people in my household using the internet for TV, music and regular usage.  Now you want to throw full on streaming of a game and that will blow every data cap within a few days.  Its not going to be viable as a main source for gaming for a while unless the majority of ISPs drop their data cap limits.

Last edited by Machiavellian - on 07 June 2023

Machiavellian said:

Actually the only company that is against the merger is Google and it may not be for the reason you believe.  For all we know, Google may want the deal to fail so that they can step in and purchase ABK.  There are few companies that can pony up the money to purchase ABK outside of Apple, Google and some other huge media corporation.  Even still the question still remains that Cloud as it is today is not even close to being a big market.  It represent .02% or something along those lines of the gaming market.  The reason these companies are trying to enter the market is because its another revenue stream but as to how big it is or will be in the next 10 years, well if anything it will be a supplemental distribution method more than anything else.  We already seen Google fail, we have seen no traction with PS Now, we have seen no traction with XCloud.  Even You Azz said you have not used it but you are champion something you have not experienced.  I can tell you from basic experience, using Cox internet, that I was frequently running over my data limit without streaming any games. Just with people in my household using the internet for TV, music and regular usage.  Now you want to throw full on streaming of a game and that will blow every data cap within a few days.  Its not going to be viable as a main source for gaming for a while unless the majority of ISPs drop their data cap limits.

I am not champion Streaming, i am pointing out the buisness/industry direction. I would always prefer to game natively.

Why do you think Google wants to purchase ABK? To boost their Streaming network by offering the best selling content. Same reason MS want ABK.

We arent talking about Streaming now, we are talking another decade from now where majority of Hardware simply wont be reasonable anymore for companies to produce. When majority of the market push the narrative of no hardware required, everyone will be jumping on board weather they like to or not. 

A new generation of gamers are born every year. Streaming will surely improve in 10 years to the point that their will be little difference and issues. New gen gamers won't know any better. They were born with touchscreen devices in their hands and phones that can do everything.

MS are already in position to go full throttle into it, so its just a matter of time before everyone follows. Hardware is like phyiscal games, PCs rarely support phyiscal media because digital has taken over. Streaming is clearly the replacement of hardware just like digital replaced phyiscal.