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Forums - Gaming Discussion - Prediction: Microsoft to become largest 3rd party publisher.

Random_Matt said:

One of many websites: https://www.neogaf.com/threads/satya-nadella-talks-about-the-future-of-xbox-and-multiplatform-we-are-very-happy-with-whats-going-on-in-gaming.1665942/

- Another snippet.

SOT is already coming to Switch and PS5, I predict the flood gates will open.

They say "select" games, which no doubt falls in line with their current strategy. Indie games and live services games will move more in the multiplatform direction, whereas massive single player games have more value remaining exclusive due to them driving console purchases more than the live service games do.

Microsoft is taking a hybrid approach because they've identified there are more profits doing that than there are doing one or the other (exclusives for all games or multiplatform for all games). It's a new approach for the industry and they think it will work.



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They already are the largest 3rd party publisher since they brought the biggest 3rd party publisher in ABK.



Azzanation said:

They already are the largest 3rd party publisher since they brought the biggest 3rd party publisher in ABK.

Not if they make those exclusive to xbox/game pass.



 

My youtube gaming page.

http://www.youtube.com/user/klaudkil

Dulfite said:

Microsoft is taking a hybrid approach because they've identified there are more profits doing that than there are doing one or the other (exclusives for all games or multiplatform for all games). It's a new approach for the industry and they think it will work.

Microsoft has never changed their approach since day 1 (the Visicalc times I still remember). They have one goal, and one goal only: Destroy the competition and get the monopoly. There is an interview somewhere on YouTube where Steve Jobs calls it out very precisely: "Microsoft does not innovate, they destroy". This was true when the interview was taken and it is true still today.

Also, the idea that MS will bring their first party software to Playstation is somewhat peculiar. Bringing their software day one to PC has already reduced the incentive of people to buy XBoxes, and bringing their first party software to PS5 would essentially kill that incentive almost entirely. Sure there are people who simply hate Playstation and will continue to buy XBoxes. But those nerds will not be enugh in numbers for a sustainable product.

As for Gamepass being profitable, certainly not on XBox. This holiday season has shown, even throwing XBoxes at customers for bargain prices didn't move the needle a jota. Losing $200 (or even more) on every box sold requires over a year of gamepass at full price to even recoup the hardware losses (and it seems from those many threads about "Get Gamepass cheap" nobody pays full gamepass prices, anyways.)

I'm also wondering about this Natella guy on top of the MS food chain. The XBox group is an almost irrelevant part of Microsoft. Why is he constantly babbling about XBox in the news? He has a megacorporation to run, not a game console...



Microsoft has a history of buying studios and then letting them die, so we will have to see what will remain standing of their recent shopping spree in the long run. But that's a strategy in itself, it's not only what you can provide, but what you can take off the board to force certain outcomes.



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xl-klaudkil said:
Azzanation said:

They already are the largest 3rd party publisher since they brought the biggest 3rd party publisher in ABK.

Not if they make those exclusive to xbox/game pass.

CoD has 10 years on PS and is also releasing on Switch as well.



Dante9 said:

Microsoft has a history of buying studios and then letting them die, so we will have to see what will remain standing of their recent shopping spree in the long run. But that's a strategy in itself, it's not only what you can provide, but what you can take off the board to force certain outcomes.

Every publisher has a history of closing studios.

Lets not let sensationalism get in the way of facts here.

1) Sony closed BigBig Studios, Evolution Studios, Guerrilla Cambridge, Incognito Entertainment, Zipper Interactive, Psygnosis/SCE Liverpool and are gutting Bungie right now.

2) Nintendo closed Sora, Nintendo of America Special Products, Tokyo R&D products, lots of mess surrounding their EAD divisions which got rolled into other divisions, consolidated or closed down.

3) EA with Bullfrog, Westwood, Maxis, Black Box Games, Mythic Entertainment, Visceral Games, Pandemic Studios.

4) Microsoft with Lionhead, Ensemble Studios, FASA studios, Digital Anvil.

5) Activision Blizzard with Sierra Enterainment, Red Octane, Bizarre Creations, Radical Entertainment.

Microsoft is a stupidly successful company who makes certain choices based around return on investment, there is a reason why they are currently valued at 2.93 Trillion and is valued at approximately 16x the value of Sony -and- Nintendo combined.

The point being, studios closing and opening is a normal industry eb-and-flow that coincides with consumer demand/expectation... And ultimately profit.

I was absolutely devastated with Ensemble studios closed as they were primarily a PC developer, which should never have happened... But worlds edge and relic entertainment have done amazingly well with handling the franchise.
Developers close, they go elsewhere and start new studios, adding new investment into the industry.

For example... Digital Anvil closed and so did my hopes of a Freelancer sequel, another PC title... Thankfully the developers of those titles ended up scattering across the industry... Christ Roberts went onto found Cloud Imperium Games and of course StarCitizen.. Where Digital Anvil programmer Paul Isaac started working on the Halo games or Tony Bratten who went onto do Super Meat Boy.

The talent from those studios don't just disappear, they go elsewhere, sometimes to the competition where they actually make a positive difference.



--::{PC Gaming Master Race}::--

How It started:

only777 said:

I wasn't happy that Pemalite was rather mean to my video post and made some untrue assumptions about my post intentions, so to please him, here's where I was going to take that locked thread, but now in text only form.

Microsoft has ruined Xbox, the business decision to push Game Pass above all else is a disaster that is playing out in front of us all.

Starfield not pushing the needle in hardware sales and Gamepass simply doesn't generate the revenue to fund the running and development costs of the Many, many Microsoft Game studios.  I did layout the maths in the video I created, but I'm not linking it again as I don't want to be branded as self promoting.

We saw in the FTC leak the costs of bringing 3rd party games to the service.  We know that games like COD are costing around a billion dollars to get out the door now.  So with all the costs of development and maintenance outweighing what the service is actually bring in, at some point something has to give.

Xbox sales are slowing down, Game Pass is not bringing in new users to the Xbox Console eco system, Starfield actually saw two thirds of its sales from PC users.  So what's actually happening here?  Xbox players are migrating to either PC or leaving the system altogether and going to PlayStation.

In a world where the primary Game Pass platform is PC, Microsoft has a problem.  PC gaming is too entrenched in Steam for Microsoft to realistically find more than 50 million users, and with Xbox console sales stalling Microsoft has to do something.

That something is to become the biggest 3rd party in the industry.  I think Game Pass will continue on as Microsoft's PC subscription service, although all Microsoft studio's titles will see releases on Steam, PlayStation and Nintendo. 

I also think we are looking at the last Xbox generation in the Series X|S consoles.  With Game Pass failing to push Microsoft out of 3rd place, they will refocus their efforts into becoming the biggest powerhouse 3rd party publisher in the industry because this makes the most business sense.

I believe the timeline will look something like this:

  • 2024: Starfield is announced for PlayStation 5
  • 2026: Xbox Game Pass is re-branded to Microsoft Game Pass
  • 2027: Microsoft announce that there will be no new Xbox consoles

What I was told:

G2ThaUNiT said:

So many factual errors and baseless speculation that it's painful.

As a side note, if you want your post to be taken seriously for constructive criticism/debate, maybe don't have signatures that say, "Sony want to make money by selling art, Nintendo want to make money by selling fun, Microsoft want to make money." and have your home country be listed as "PlayStation." At least try to hide visible bias before making posts like this.

As far as any comments of mine, Microsoft has put themselves in a no-lose situation. Whether you're playing purchased games on Xbox/PC or Game Pass on Xbox/PC, you're giving Xbox money. Revenue and profitability is proving that. 

Goatseye said:

It’s mind blowing that chronic forum dwellers, have so little grasp on the video game market discussed on this platform. Xbox is second in revenue in terms of revenue from platform holders, in front of Nintendo, even though the latter sells more consoles.
Xbox have better profit margin than PlayStation, even though Sony brings in more revenue, only to be superseded by Nintendo.
It seems like we’re still in 2013.

https://gameranx.com/updates/id/476524/article/xboxs-data-suggests-they-might-have-a-better-profit-margin-than-playstation/#:~:text=For%20the%20first%20nine%20months%20of%20FY2022%2C%20which,in%20comparison%20to%20their%20competitors%2C%20PlayStation%2C%20and%20Nintendo.

How it's going now:



Sony want to make money by selling art, Nintendo want to make money by selling fun, Microsoft want to make money.

only777 said:

How It started:

only777 said:

I wasn't happy that Pemalite was rather mean to my video post and made some untrue assumptions about my post intentions, so to please him, here's where I was going to take that locked thread, but now in text only form.

Microsoft has ruined Xbox, the business decision to push Game Pass above all else is a disaster that is playing out in front of us all.

Starfield not pushing the needle in hardware sales and Gamepass simply doesn't generate the revenue to fund the running and development costs of the Many, many Microsoft Game studios.  I did layout the maths in the video I created, but I'm not linking it again as I don't want to be branded as self promoting.

We saw in the FTC leak the costs of bringing 3rd party games to the service.  We know that games like COD are costing around a billion dollars to get out the door now.  So with all the costs of development and maintenance outweighing what the service is actually bring in, at some point something has to give.

Xbox sales are slowing down, Game Pass is not bringing in new users to the Xbox Console eco system, Starfield actually saw two thirds of its sales from PC users.  So what's actually happening here?  Xbox players are migrating to either PC or leaving the system altogether and going to PlayStation.

In a world where the primary Game Pass platform is PC, Microsoft has a problem.  PC gaming is too entrenched in Steam for Microsoft to realistically find more than 50 million users, and with Xbox console sales stalling Microsoft has to do something.

That something is to become the biggest 3rd party in the industry.  I think Game Pass will continue on as Microsoft's PC subscription service, although all Microsoft studio's titles will see releases on Steam, PlayStation and Nintendo. 

I also think we are looking at the last Xbox generation in the Series X|S consoles.  With Game Pass failing to push Microsoft out of 3rd place, they will refocus their efforts into becoming the biggest powerhouse 3rd party publisher in the industry because this makes the most business sense.

I believe the timeline will look something like this:

  • 2024: Starfield is announced for PlayStation 5
  • 2026: Xbox Game Pass is re-branded to Microsoft Game Pass
  • 2027: Microsoft announce that there will be no new Xbox consoles

What I was told:

G2ThaUNiT said:

So many factual errors and baseless speculation that it's painful.

As a side note, if you want your post to be taken seriously for constructive criticism/debate, maybe don't have signatures that say, "Sony want to make money by selling art, Nintendo want to make money by selling fun, Microsoft want to make money." and have your home country be listed as "PlayStation." At least try to hide visible bias before making posts like this.

As far as any comments of mine, Microsoft has put themselves in a no-lose situation. Whether you're playing purchased games on Xbox/PC or Game Pass on Xbox/PC, you're giving Xbox money. Revenue and profitability is proving that. 

Goatseye said:

It’s mind blowing that chronic forum dwellers, have so little grasp on the video game market discussed on this platform. Xbox is second in revenue in terms of revenue from platform holders, in front of Nintendo, even though the latter sells more consoles.
Xbox have better profit margin than PlayStation, even though Sony brings in more revenue, only to be superseded by Nintendo.
It seems like we’re still in 2013.

https://gameranx.com/updates/id/476524/article/xboxs-data-suggests-they-might-have-a-better-profit-margin-than-playstation/#:~:text=For%20the%20first%20nine%20months%20of%20FY2022%2C%20which,in%20comparison%20to%20their%20competitors%2C%20PlayStation%2C%20and%20Nintendo.

How it's going now:



...to avoid getting banned for inactivity, I may have to resort to comments that are of a lower overall quality and or beneath my moral standards.

This thread aged like fine milk