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Forums - Sales Discussion - Wellfare - Xbox Hardware is Declining Fast

BonfiresDown said:

What I hope/expect from the next Xbox hardware:

Console style OS built on Windows.

Games from other launchers seamlessly integrated into the UI.

Around $200 more expensive than equivalent specced Sony console. No subsidies.

No online fee.

They will bank on getting sales vs other PC stores by being the default store option and promoting store sales in the UI.

Microsoft only charges a 10% cut on PC so there is incentive for publishers to put their games there if the hardware is successful.

If there is no interest from gamers they will just carry on with their current multiplatform strategy. The new hardware can simply be an option for those who want it, like the Steam Deck and other PC handhelds are.

So what you expect them to do is to go against a rival that has a far tighter death grip on their market than Sony while selling ALL their stuff on their store and also allowing that very client on it. Then there's the problem with Play Anywhere being nowhere (ha!) near 100% of the titles while missing the biggest ones without fail every single year.

Looks like a recipe for failure.



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Esparadrapo said:
BonfiresDown said:

What I hope/expect from the next Xbox hardware:

Console style OS built on Windows.

Games from other launchers seamlessly integrated into the UI.

Around $200 more expensive than equivalent specced Sony console. No subsidies.

No online fee.

They will bank on getting sales vs other PC stores by being the default store option and promoting store sales in the UI.

Microsoft only charges a 10% cut on PC so there is incentive for publishers to put their games there if the hardware is successful.

If there is no interest from gamers they will just carry on with their current multiplatform strategy. The new hardware can simply be an option for those who want it, like the Steam Deck and other PC handhelds are.

So what you expect them to do is to go against a rival that has a far tighter death grip on their market than Sony while selling ALL their stuff on their store and also allowing that very client on it. Then there's the problem with Play Anywhere being nowhere (ha!) near 100% of the titles while missing the biggest ones without fail every single year.

Looks like a recipe for failure.

The lack of Play Anywhere for most Xbox games is indeed a very big problem if they want to transition their current Xbox audience to a PC box, and I don’t know how or if they intend to solve it. Any attempt to do it retroactively would presumably result in a massive licensing hell even if they do it through emulation or streaming.

Also, the reason to do this isn’t just to carve out a space for Microsoft in gaming, but to prevent people from leaving Windows for Linux in case they find that SteamOS delivers everything they need.

Last edited by BonfiresDown - on 28 January 2025

What Microsoft should do is make a console equivalent of a steam deck, as in, a standardized console with a simplified Windows called Xbox OS. The upcoming Strix Halo chip could be a good starting point for this, though of course Microsoft could also ask for a more custom-built part for their machines.

As such, it would be a PC, but strictly for gaming and without all the baggage it would need for productivity tasks. This could then be licensed to OEMs like MSI or ASUS to make their own Xbox devices if they'd want to.

And of course, It should be possible to install a regular Windows OS on those if Xbox OS would be too limiting for the users down the line.



Whats their revenue like?



Otter said:

Whats their revenue like?

We will know tomorrow.



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Yeah, because as much as its clear they've fallen off in terms of console popularity, whether their actual reaping rewards of their current strategy won't be seen in hardware sales alone.



Before the Xbox Next will arrive, there's probably at least 6 quarter reports and two fiscal year reports left.

I am really wondering, almost worrying, what we will be witnessing once they are published.

In their last, probably best ever fiscal year report, they showed 21.5bn revenue including ABK with decent hardware sales, comparatively to today.

With declining hardware sales, GP probably cannibilizing sales, GP not really growing and even lesser 3rd party revenue, I wonder where that last 21.5bn figure will drop to.



Panicradio said:

Before the Xbox Next will arrive, there's probably at least 6 quarter reports and two fiscal year reports left.

I am really wondering, almost worrying, what we will be witnessing once they are published.

In their last, probably best ever fiscal year report, they showed 21.5bn revenue including ABK with decent hardware sales, comparatively to today.

With declining hardware sales, GP probably cannibilizing sales, GP not really growing and even lesser 3rd party revenue, I wonder where that last 21.5bn figure will drop to.

Theres been talk of upwards of 80% sales loss due to GP.
Like if your game is on xbox, and on gamepass.... it sells near 80% less than it would normally without being on GP.

I saw a video on yt, talking about this subject.... supposedly that number was from devs.
GP massivily cuts sales if your on there, for your xbox port/game.

Another reason they might want to put their games on other platforms.
Even if gamepass can "pay" for that loss in profits, by way of subscription prices paying for it.... its probably not that much more profitable (if any) than just selling the games normally.

People just look at the subcription revenue and go "ahh profits".
But no... that money made, goes back into the studios, to fund more games, just like traditional sales, generateing revenue would.



So, what I am hearing is no subsidies and strix halo, lol. Yeah, because there are so many buyers at a likely $799 cost.



JRPGfan said:
Panicradio said:

Before the Xbox Next will arrive, there's probably at least 6 quarter reports and two fiscal year reports left.

I am really wondering, almost worrying, what we will be witnessing once they are published.

In their last, probably best ever fiscal year report, they showed 21.5bn revenue including ABK with decent hardware sales, comparatively to today.

With declining hardware sales, GP probably cannibilizing sales, GP not really growing and even lesser 3rd party revenue, I wonder where that last 21.5bn figure will drop to.

Theres been talk of upwards of 80% sales loss due to GP.
Like if your game is on xbox, and on gamepass.... it sells near 80% less than it would normally without being on GP.

I saw a video on yt, talking about this subject.... supposedly that number was from devs.
GP massivily cuts sales if your on there, for your xbox port/game.

Another reason they might want to put their games on other platforms.
Even if gamepass can "pay" for that loss in profits, by way of subscription prices paying for it.... its probably not that much more profitable (if any) than just selling the games normally.

People just look at the subcription revenue and go "ahh profits".
But no... that money made, goes back into the studios, to fund more games, just like traditional sales, generateing revenue would.

If I roughly estimate a few figures here and there that are known from the last few years and relate them to current developments at Xbox, I'd claim we could see their fiscal year revenues drop to around 14bn to 17bn in the remainder until the Xbox Next.