Well… could it be that they saturated?
I mean, the consoles been out for a while, I suspect at this point everyone remotely interested has one?
That’d make sense, but that’s still a negative sign, as PS5/Switch have yet to meet saturation.
Thing is, they don’t need to sell consoles anymore. They’re in the gamepass business now. This is why they’re pushing gamepass on phones, PCs, Samsung TVs and Firesticks. They don’t really care about selling you a box under the TV anymore since they’re usually sold at or near a loss anyway. They just want you on the subscription wherever you can play it.
They currently have roughly 34 million subscribers (as of February, I’m guessing Activision Blizzard King is going to bump this number up further), let’s assume an average of $12 a month. That’s over $400 million coming in every month or 1.2 billion every quarter on the books. They don’t have to rely on a big game to have a good month.
You’re more valuable to them having the gamepass subscription and just playing on your phone over someone who buys a console and purchases 7 or 8 games a year. Articles like this fundamentally misunderstand the current gaming landscape and their business model. They’re not losing the race, they’re playing a different sport.
Thing is, they don’t need to sell consoles anymore. They’re in the gamepass business now.
They need to sell consoles to sell GamePass to people. Nobody is going to play games on a Firestick. Same reason why nobody bought the mobile ports of Resident Evil. Those who play games, buy the hardware for it. Some go overboard with the high-end PC and some prefer to buy a cheaper console, but nobody is like “yeah I’ll play Elden Ring on my phone”. Gamers want the hardware, and casuals don’t buy gaming subscriptions. It’s a lost cause.
“MS doesn’t care about selling Xbox console” is a lie they have been pushing for a while now because their console sales have been tanking for that many years. They would LOVE to sell more consoles, they just can’t, so they attempt to spin the story a different way so that the shareholders are still happy. What, you want to know about sales? But who cares about sales, it’s all about engagement! Look at those big, happy numbers we are showing you!
Nobody enters a business with the idea that “whatever, even if we don’t sell enough, it’s fine, we still had a great time”. MS didn’t became the world’s biggest corporation by being lazy.They currently have roughly 34 million subscribers (as of February, I’m guessing Activision Blizzard King is going to bump this number up further), let’s assume an average of $12 a month. That’s over $400 million coming in every month or 1.2 billion every quarter on the books. They don’t have to rely on a big game to have a good month.
That’s great until you consider the fact that GamePass doesn’t operate in a vacuum. To put games on their service, they have to pay developers. They then need to please shareholders who want subscribers and revenue to increase. The fact that they increased the price twice in a row and effectively doubled the price of GamePass overnight suggests that they are not pleased with the current revenue.
Heck, we don’t even know how many of those 34m subscribers are paying customers, and how many just got into GP by paying $1 or benefitting from some other deal. I was one of those 34m back in February, because I got a year for free with the Rewards program (back when it was still worth something; they axed that one as well, because of course). When they asked me to pay to renew it, I cancelled the subscription. I’m pretty sure I’m not the only one.You’re more valuable to them having the gamepass subscription and just playing on your phone over someone who buys a console and purchases 7 or 8 games a year.
Sure, but that’s the same as Don Mattrick asking customers to “stick to their X360”. The choice is not between buying games on XOne or subscribing to GamePass on your phone. The choice is between an Xbox, a PS5, a Switch or a PC. Two of those choices means that they have lost a customer (you can’t subscribe to GP on PS or Nintendo consoles), and I’d be curious to know how many people are subscribing for GP on PC instead of just buying games on Steam. You don’t need GP to play online on PC as you do on console, and the prices are cheap enough that you are probably saving money just buying those games instead of renting them.
And let’s not talk about how terrible the user experience is on their PC storefront compared to literally any other competing storefront - I’d rather buy a game on Epic than use their Xbox store, and that says a lot. I had a game on PC thanks to the Play Anywhere program (bought it on Xbox, got the PC version as well), but I had to buy it again on GoG to mod it because MS considers their game files more precious than the holy grail itself and wouldn’t let me go anywhere close to them, let alone touch them.Just wanted to comment that the Xbox/MS store games are fine now. They used to be in some shitty encrypted directory but not anymore. I have Gamepass for free from a ton of Microsoft rewards points and primarily play GP games on my Xbox, but I’ve played a few on PC as well and I’ve not found it to be too much different from Steam. You can go to a directory and see all the game files as expected. The always online bit sucks though, the recent Microsoft outage due to Cloudstrike kept a lot of people from playing games. That said, I don’t buy any games there, but my experience with gamepass games has been fine past that initial encrypted directory phase.
They could stop charging gamers a subscription to play the paid games (they “own”) online.
This could attract some customers that don’t want to deal with PC or don’t want to add fixed costs to their monthly or yearly bill.
They could stop charging gamers a subscription to play the paid games (they “own”) online.
This is one of the key reasons why I own PS5, but I don’t play or invest in it. Even though couch gaming is much more comfortable for me.
I’m in the same boat.
Elden Ring, Helldivers 2, many games I’d get on Sony PS Store that I just get on Steam because I want to “own” the full game not just the offline part of it.
Microsoft not being evil? Not going to happen. (Except for smokescreen purposes and amounts)
There was a time where it was worth the money because it was far and away better than any free online offering. That time was probably up to about 2010. Now that servers are paid for with digital game sales, it would behoove them to drop the fee. Instead, I think they’re just about to change the console market as we know it.
They really do seem dead-set on transitioning to a software rental company. Let the hardware languish and shove another tier of Game Pass into the marketing grinder.
Maybe don’t close the studios making your only good games next time? Dunno, just a thought
This was the reason I left. Don’t fire your flagships.
It’s one of those pieces of advice like “Don’t lie on the ground naked next to a fire ant colony” but I guess some people really are that stupid.
I’m not surprised. My experience with Xbox has declined over the last few years now so wouldn’t recommend it to anyone anymore.
What has changed if you don’t mind?
- I bought the newest console to play the most recent Halo. It truly sucked
- The first Bethesda exclusive game was Starfield. It truly sucked
- The recent focus has been towards online multiplayer and GAAS. Toxic games and toxic service models.
- The ads are insane. Sometimes I’ll turn the console on to a full screen ad about Diablo or Game Pass I have to acknowledge before actually using the console. Beyond that there is designated space on the home menu for 3 different banner ads.
Just my opinions as someone that’s enjoyed that xbox brand since the first one, and stuck with it out of convenience and from making friends on the network there. Next “console” is a proper gaming computer
The last console other than the switch that I owned was the PS3. I loved that one. A buddy was like “let’s play some Halo” and I loved halo 1 and 2 but the rest just don’t do it for me. Once he booted up his Xbox and I was driving the UI trying to launch the game I just wanted to hurl. Such a garbage UI. Littered with ads etc.
No idea what PS5 UI looks like but they’re just PCs with a custom UI at this point so I’ll stick with my PC.
PS5 ui is actually quite bland but at least it isn’t crammed full of useless shit like the Xbox dashboard.
I find the aesthetics of Xbox are actually nice but again they fill the dash with so much stuff it’s a mess and intrusive.
Games = Usually okay
Console = Nah
Because no one wants a console with ads, has no gyro aiming, strange support for older Xbox/games.
Opening the door to a switch to a Steam Deck competitor instead
To be fair I don’t think I’ve seen good things about Micro$oft in years. I’m honestly not surprised.
The last Xbox I had was the 360 so take this with a grain of salt, but they made the choice between XBone and PS5 so simple for me by making all XBox titles playable on PC. As someone who would entertain buying both consoles, I never found a compelling argument to bother.
How do you play Xbox titles on PC? I thought some didn’t work?
As far as I can tell, every game that’s listed as XBox exclusive on Google is available on PC Game Pass. I played Forza, Halo Infinite, Flight Sim, Sea of Thieves, Starfield, Ori, etc.
Oh I see. Can you play with Xbox players?
That’s a good question! I know there is some cross play, but I think there are many titles that don’t have it. If you play multiplayer with friends who also have Xboxes, that’s probably a good argument to get one.
Let me just fire up all these Xbox exclusive and first party games they’ve released since like 2021…
I have a real opposite problem with exclusives. I don’t think they should exist. A console should just be a means to an end: to play a game.
I get why they do it but it’s bullshit. It’s just a custom PC that plugs into a TV.
I started dropping off after every time I started to boot my Xbox it just was just ads upon ads trying to sell me stuff and not gettin me into the games faster.
I use mine primarily for media and occasionally play online with friends. They killed gold, and reverted to game pass core, so now I have to pay $10/month to play games I own. They are deleting my purchased games, ea archived an active account for inactivity when I had playtime in the calendar year. There is no new IP, they shut down studios, and raised prices, locked us into a shitty platform and started monitoring and monetizing their paid users.
They deserve this
