Xbox's Current Strategy of Rumored Multiplatform Support and Next Gen Hardware

[Welfare]

Discussion Point #1: Xbox Rumored to Port Multiple Games to PS5 and Switch
Sources
Jeff Grubb: Sea of Thieves
Nate Drake: Critically acclaimed title (Hi-Fi Rush speculated)
Windows Central: Some Back Catalog games​

Over the weekend, Nate Drake said that he had heard an Xbox game that was in the GOTY conversation the year it was released would be ported to a competitor platform in 2024. It was then quickly speculated to be Hi-Fi Rush which then sparked more discussion on what it even means to have this game ported at all. Was it because of Tango wanting more Japanese players to interact with their work, was Hi-Fi Rush just the right fit for Switch, or was it indicative of a broader change in Microsoft's exclusive strategy. Since then, more insiders have come out and claimed even more titles would be ported from Xbox's back catalog, including Sea of Thieves to PS5 and Switch, one of Microsoft's few recent successes as both a new IP and GAAS. Windows Central claims it's heard some games are being ported this year.

Discussion Point #2: Xbox Next Gen is a hybrid ARM console
Sources
Tom Warren​

Tom Warren
@tomwarren
Game Pass subs already dried up on console a long time ago. You don’t get growth through just targeting console sales. The next Xbox is hybrid ARM architecture. That should tell you everything you need to know over where Microsoft sees its Game Pass / Xbox future

Last year when Microsoft's documents leaked in error during the FTC ABK trial, we learned about Xbox's Gen 10 plans and roadmap. Here they are again if you forgot

FTC leak: Xbox 10th Gen Details "Hybrid Game Platform" Power of the Client and Cloud to Deliver New Experiences

www.installbaseforum.com

One key aspect about the specs sheet is Microsoft deciding between an x64 CPU and ARM64. Why this is important is technical but in a cliff notes summary, x64 and ARM are two different architectures in computing, with no cross compatibility between the two. ARM64 is more used in mobile devices, like phones and your Nintendo Switch, while x64 is primarily laptops and PC. You have a Windows, or know what 32-bit and 64-bit programs are? You're on that architecture, along with recent AMD powered consoles like XB1, PS4, XBS, and PS5.

Microsoft's goal for Gen 10 Xbox is to be a hybrid platform that can use the native power of the console combined with online connected cloud power to create new, real time experiences. With the recent developments of AI in the software space like Nvidia's DLSS upscale tech or Microsoft's own investments into AI in general, there is a sense that Xbox is going to be transitioning into a more Microsoft friendly device. That meaning Xbox will be closer to the goals and aspirations and tech that Microsoft is invested in than ever before. Windows has been ported to ARM, the new Surface lineup in 2024 is going to be AI powered with an ARM CPU according to Windows Central. Xbox in 2028 releasing as an x64 high powered high-cost device sounds counter to what Microsoft is in the moment pivoting towards.

What would this mean for the gaming market? In short, Gen 10 Xbox would be starting from the back foot. No current Xbox, Xbox 360, Xbox One, or Xbox Series game has been for ARM, only x64. Backwards compatibility would require emulation to work, like it currently does on Windows 11 platforms. Native ARM development would mainly come from new games released, not legacy titles.

From a hardware standpoint, it also looks like Xbox will be going for a lower powered solution, likely to avoid $100's in losses on hardware like with Series S and X and to push for the ideal that Microsoft will be able to capitalize on their cloud power solution. We could be looking at a console that won't do native 8K gaming in 2028, but rather 4K native with AI upscale. It's unlikely to hit the Series S price of $299, even the Switch 2 is speculated to be $399, so would Microsoft stick with a two SKU X|S plan if instead the console can be natively weak like the S, but when connected to Xbox servers sees increased performance and image quality like the X? This could also open Microsoft up to a more mobile platform rollout where instead of releasing a new generation every 7 to 8 years, they instead update the hardware every 4 to 5, packing new AI hardware and somewhat more powerful native specs.

Current Xbox Series sales are not pretty. Ampere estimates it was outsold 3:1 by PS5, Series X was just discounted to a steep $349 price back in December after posting an over 20% drop YOY in the US this past November, and Series S at $299 isn't helping much. Microsoft just went through a massive acquisition for Activision Blizzard King in the hopes of expanding into mobile and growing Game Pass and other gaming revenue Xbox already generates. A shift in exclusivity (which as of now is still in rumor land, not official) and hardware design along with the recent acquisitions are saying loudly that Xbox is changing. It's been changing since 2016 with the reintroduction of its library to PC and the Play Anywhere initiative, and Game Pass in 2017, a popular subscription that has an estimated +30M subscribers after the recent Xbox Live Gold conversion, and promoting Steam releases in addition to the Windows Store.

Turning a business into a more open platform and converting popular pay to own licenses into recurring subscription services is what Microsoft did after 2014 when Satya Nadella took over as CEO. Xbox has been slowly converging inwards towards a Microsoft device in a Microsoft ecosystem, when generations before, the mindset was Xbox being an underground club, some third cousin that sat under the Windows division, doing its own thing so long as it made money. A more multiplatform game approach with a likely lower powered hardware offering would be the culmination of a soon to be 10 year transition for Xbox.

What do you guys think about the discussion points? I tried laying out the reports as well as my own take on the matter.

 

[Remember_spinal]

seems all over the place. I’m failing to see how they just don’t go the route of Tencent and become a major IP Holder & Publisher

 

[Lelouch0612]

As per the document shared last year, it seems like they have a variable approach depending on the games involved:

The recent rumors are not a big disruption vs what they have been doing:

- Sea of Thieves fits the mass market audience based on a big online community that CoD/Minecraft have (albeit on a lower scale)
- Hi-Fi Rush is akin to Psychonauts, smaller quality games.

So there's no big disruption for now imho, especially when those games are only included on GP and are coming later on other platforms.

Now, this does bring me to my second point and the delicate balance with these things :

- There's a snowballing effect when it comes to building an exclusive library, and porting games will reduce that effect and put you at risk of never amassing enough games to attract several audiences.
- However, porting your games extend their reach, generate direct revenue and increases the amount of people looking forward to a sequel (which you will have exclusivity on) so that could be benefitial in the long-run.

 

[Joseki]

Microsoft needs to decide if they want to be a platform holder or a publisher/service provider.

What is "Xbox" is a question that has no simple answer right now, probably Microsoft doesn't know either.

 

[rockets]

ARM for the next Xbox makes total sense for having a unified platform across mobile, PC, console, cloud, with mobile leading the way. TAM is in the billions vs. a focus on a declining/stagnant console market and slower increasing PC market.

With ABK/Zeni under their belt, this is the best way to maximize revenue potential of their massive IPs and cross media prospects.

I'd even open up traditionally exclusive games to PS/Nintendo for purchase, or try to hammer some sort of storefront deal bringing GP to those platforms. Harder to sell but revenue is the name of the game here.

 

[Astral_lion02]

Hi-Fi Rush rated for PS4, Nintendo Switch and Xbox One in Australia

https://www.classification.gov.au/titles/project-2022a

Edit: seams like it's not reliable.

 

[Astrogamer]

That's weird to put Fallout 76 on the left side. It's far more the right side. It just did poorly because the core experience was originally very dry.
I think for games that fall on the left side, they should target a year of console exclusivity as it's a pretty marginal boost for Xbox after a few months while back catalogue sales work best on a wider array of markets. For the right side, it's much harder to say but, if the software relies on player count, it would be good to distribute it more widely. Starfield (along with future Fallouts and Elder Scrolls) feels like it should eventually slide to the right side so I'd consider ports 3 years down the line. If they're smart about it, I think the COD Campaigns would probably fit better as Xbox exclusives over including them for Playstation/Nintendo.

 

[Pancracio17]

Xbox hardware is in a wierd position rn. If things keep going like they are the next gen Xbox will probably just be a gaming windows machine thats comfortable to connect to your TV. If they manage to get Steam working on it they might make it work as they wont have to worry about third party support.

Thanks to them (probably) adopting ARM, handhelds are not out of the question either.


The big gamble is obviously getting gamepass proper inside iOS and Android, but they could preserve the console experience this way.

 

[allan-bh]

Microsoft needs to decide if they want to be a platform holder or a publisher/service provider.

What is "Xbox" is a question that has no simple answer right now, probably Microsoft doesn't know either.

They want to be all, reach consumers wherever they are.

Xbox now can be understood as a brand of the Microsoft Gaming, not specific a console as used to be.

 

[Rotimiade]

As per the document shared last year, it seems like they have a variable approach depending on the games involved:

The recent rumors are not a big disruption vs what they have been doing:

- Sea of Thieves fits the mass market audience based on a big online community that CoD/Minecraft have (albeit on a lower scale)
- Hi-Fi Rush is akin to Psychonauts, smaller quality games.

So there's no big disruption for now imho, especially when those games are only included on GP and are coming later on other platforms.

Now, this does bring me to my second point and the delicate balance with these things :

- There's a snowballing effect when it comes to building an exclusive library, and porting games will reduce that effect and put you at risk of never amassing enough games to attract several audiences.
- However, porting your games extend their reach, generate direct revenue and increases the amount of people looking forward to a sequel (which you will have exclusivity on) so that could be benefitial in the long-run.

Well worded. Don’t forget chances some will just wait for the sequel to come a year later as well.

My only disagreement is hi-fi rush being campared to Psychonauts. I would not compare it to a game that was previously announced as multi platform with history of kickstarter fundings.

Hi-Fi rush is such a unique proposition like Bayonetta. Not to really make sale alone but to also bring in players that may buy other action games and enhance the library. Cause right now I feel the dedicated audience are in limbo regarding what is exclusive to them and what makes Xbox different.

My understanding based on reading comments is many felt it was a unique game you couldn’t get anywhere else and now it’s going everywhere(potentially). There’s still the ambiguity with blade and where that falls. Just like a poster said they have probably decided whatever setbacks they experience would not have major impact.

personally don’t think they can satisfy all three audiences with the partial third party strategy. But what do I know

 

[mousielilone]

The big gamble is obviously getting gamepass proper inside iOS and Android, but they could preserve the console experience this way.

Well if they created a device that attaches to your phone like a backbone but also had an SSD and Console integration? You knobs of solve that issue.

 

[SoonyXboneUhh]

5 Years ago I said Sea of Thieves would be the perfect game for Nintendo Switch.

The recent upgrades were solid but no big engagement boost anymore compared its earlier lifecycle.
So right now might be the perfect time with little downside. Except for the fact you'll lose an console exclusive


If MS is going that route, they have to make their hardware, platform and brand stronger. No more exclusive games to attract customers. The rest has do pull the people in. Or keep them in. Maybe Microsoft is fine with a 50m core console audience anyways and getting beyond that point is to expensive.

 

[Rotimiade]

Sea of thieves would be a great game for the Switch and surprised it didn’t come sooner.

Men offering better hardware is not easy when you have genius hardware designers competing with you and they have customers that have continued to grow their digital library with your games included.

 

[Remember_spinal]

I think they should ditch the series x or stronger model and just stick with the S/cheaper model going into the next generation. Just provide something cheap for people to jump into the current generation and purchase your games at a discount with.

Going head for head in the power race with Sony when you are still marketing to PC users just seems like a waste of resources.

 

[allan-bh]

I think they should ditch the series x or stronger model and just stick with the S/cheaper model going into the next generation. Just provide something cheap for people to jump into the current generation and purchase your games at a discount with.

Going head for head in the power race with Sony when you are still marketing to PC users just seems like a waste of resources.

Series X has more demand than S.

 

[Butzke]

If it becomes clear that Microsoft will start porting many of their games to PS5, I see PR firestorm at the level of Xb One reveal incoming.
It will be seen as Microsoft throwing in the towel.
Xbox hardware sales will then nosedive creating a deathspiral.

 

[allan-bh]

If it becomes clear that Microsoft will start porting many of their games to PS5, I see PR firestorm at the level of Xb One reveal incoming.
It will be seen as Microsoft throwing in the towel.
Xbox hardware sales will then nosedive creating a deathspiral.

Some old games coming to Playstation will definetly cause a storm on the internet, but for me will be more noise than actual impact on Xbox console sales.

When Microsoft announced all their games would come to PC day one, fanboys freak out too calling the end of the console.

If Microsoft starts to launch day one on Playstation it would be different...

 

[Oregano]

At the very least this is going to make the task of convincing skeptical third parties to support Xbox even more difficult. We had the new Xbox Japan exec a few weeks ago making the pitch that Japanese publishers need Xbox but how could you have faith in the Xbox platform when Xbox itself has one foot out of the door?

 

[salesguy]

i support more porting, it only makes sense. especially something like hi fi rush on switch just feels right. Sea of Thieves going to other platforms also. Halo Infinite on PS? That I dont see. it's good business. sony put their titles on windows too for the same reasons.

Anyways part of me reads this all like Phil finally did it, he killed Xbox. There's many of these rumors because the S caused XBS to sell so poorly, theres nowhere else to go. A similar analogy in sports, is when I see a team with a terrible coach make desperate trades because they keep losing. The issue was the coach, but they feel like they have to do something but yet they dont address the real fundamental issues.

arm does not at all mean a lower power xbox btw, first of all thats the cpu part. the gpu can be anything. i'm for arm too, it's a lot more exciting and interesting. My guess is the next Playstation will be arm based too (so by this theory will also be low power). The R&D money is in that direction. Plus who knows what environmental restrictions will be on consoles soon.

Apple m series is an arm based and an absolute monster...

but the sum of it all is who knows. we'll have to see.

I think they should ditch the series x or stronger model and just stick with the S/cheaper model going into the next generation. Just provide something cheap for people to jump into the current generation and purchase your games at a discount with.

Going head for head in the power race with Sony when you are still marketing to PC users just seems like a waste of resources.

They would literally sell almost zero. Series S sells very poorly as is. If it's the only option, sales go to near zero immediately. Series S has never sold at any point, it's preorders couldn't sell out, you could walk into a store and buy one on day one, which didnt happen even for XSX for ages let alone PS5. So what youre proposing is like saying I think Toyota should switch to only flying cars starting next year. Even Phil literally cant do this option because the firestorm would end Xbox immediately. Remember when PS5 was rumored to be only 36 CU's how much incredible consternation it caused? People were so upset across the internet, even if it ended up working out.

Imagine saying "I think PS6 should just be low power and cheap" Noone would do that. So if people understand it for PS, they should understand it for XB.

 

[Person]

Sounds interesting and potentially disastrous for their own ecosystem, even through their position as publisher is forever secure.

 

[allan-bh]

At the very least this is going to make the task of convincing skeptical third parties to support Xbox even more difficult. We had the new Xbox Japan exec a few weeks ago making the pitch that Japanese publishers need Xbox but how could you have faith in the Xbox platform when Xbox itself has one foot out of the door?

Develop to Xbox will be development for an ecosystem of console/PC/mobile/cloud.
I'm sure Microsoft will offer tools unifying development, so this could actually increase support.

 

[Remember_spinal]

When Microsoft announced all their games would come to PC day one, fanboys freak out too calling the end of the console.

I’m pretty sure this is part of the snowball effect from that. They are selling less consoles this generation then they were last

 

[Oregano]

Develop to Xbox will be development for an ecosystem of console/PC/mobile/cloud.
I'm sure Microsoft will offer tools unifying development, so this could actually increase support.

That's already the case with Windows Store/xCloud but developers are perfectly capable of making PC/mobile versions themselves and Microsoft has no direct control over the biggest PC and Mobile storefronts. It's better than trying to pitch Xbox hardware on its own but it's still a relatively tough sell.

 

[allan-bh]

I’m pretty sure this is part of the snowball effect from that. They are selling less consoles this generation then they were last

This was in 2016. Xbox One was already trailing PS4 and we didn't saw any meaningful negative effect on One's sales after that.

I think the failure of One per se is more a factor for the difficulties Series is having right now than launching games on PC.

That's already the case with Windows Store/xCloud but developers are perfectly capable of making PC/mobile versions themselves and Microsoft has no direct control over the biggest PC and Mobile storefronts. It's better than trying to pitch Xbox hardware on its own but it's still a relatively tough sell.

They will launch a mobile store, how much success they will have is uncertain, but it seems they will try hard in the mobile front and if in fact the next Xbox has ARM and an unified development kit, it will be very helpfull for publishers.

 

[rockets]

Some old games coming to Playstation will definetly cause a storm on the internet, but for me will be more noise than actual impact on Xbox console sales.

When Microsoft announced all their games would come to PC day one, fanboys freak out too calling the end of the console.

If Microsoft starts to launch day one on Playstation it would be different...

MS obviously can't come out and say the obvious, but the market size of their fanboys is miniscule compared to the what they can potentially achieve.

Launching a gaming storefront allows them to keep all the revenue, keep a cut of microtransactions and purchases from third parties, and allows them to be on as many devices as possible. Porting games to consoles with 100s of millions of users that would never even play your games is just extra revenue on top of that. If I were an MS executive, I would be questioning why we have hardware that is losing $100+ per unit sold, while we have a storefront for consumers to use that is profitable right away. That's not to say console is going away, because that's where most GP subs are at the moment, but making cheaper hardware as a vector for your store does make sense if you have a successful holistic platform available on everything.

If that strategy is executed well, MS will become the largest gaming company, which is way better than spending billions attempting to recruit gamers entrenched in competing consoles in a stagnant market, which is what console warriors want for whatever reason.

 

[Jaum]

- However, porting your games extend their reach, generate direct revenue and increases the amount of people looking forward to a sequel (which you will have exclusivity on) so that could be benefitial in the long-run.

Will have to disagree on this point regarding the sequel. Porting your game to another console will just make people there expect that the sequel also is since that is their platform of choice. If anything, Microsoft will just see that their games may do better outside their own console and go to day one.

On topic, I think MS will just start slowly with this and see what will happen. At some point, they'll just do the math and see what's more worth it for them considering their position in the industry.

 

[Mekanos]

Given that Sony is already publishing their games on PC, this certainly indicates an interesting future for the twin systems.

 

[vixolus]

i support more porting, it only makes sense. especially something like hi fi rush on switch just feels right. Sea of Thieves going to other platforms also. Halo Infinite on PS? That I dont see. it's good business. sony put their titles on windows too for the same reasons.

Anyways part of me reads this all like Phil finally did it, he killed Xbox. There's many of these rumors because the S caused XBS to sell so poorly, theres nowhere else to go. A similar analogy in sports, is when I see a team with a terrible coach make desperate trades because they keep losing. The issue was the coach, but they feel like they have to do something but yet they dont address the real fundamental issues.

arm does not at all mean a lower power xbox btw, first of all thats the cpu part. the gpu can be anything. i'm for arm too, it's a lot more exciting and interesting. My guess is the next Playstation will be arm based too (so by this theory will also be low power). The R&D money is in that direction. Plus who knows what environmental restrictions will be on consoles soon.

Apple m series is an arm based and an absolute monster...

but the sum of it all is who knows. we'll have to see.



They would literally sell almost zero. Series S sells very poorly as is. If it's the only option, sales go to near zero immediately. Series S has never sold at any point, it's preorders couldn't sell out, you could walk into a store and buy one on day one, which didnt happen even for XSX for ages let alone PS5. So what youre proposing is like saying I think Toyota should switch to only flying cars starting next year. Even Phil literally cant do this option because the firestorm would end Xbox immediately. Remember when PS5 was rumored to be only 36 CU's how much incredible consternation it caused? People were so upset across the internet, even if it ended up working out.

Imagine saying "I think PS6 should just be low power and cheap" Noone would do that. So if people understand it for PS, they should understand it for XB.

Series S has sold like half of the units at least in all their major markets. WTF are you on about the Series S have "never selling"? No, it didn't take off significantly to the broader market like a Nintendo Switch, but it's not the sole reason for the Xbox Series generation selling poorly compared to last gen. Everything points to the fact that if the Series S did not exist, the Series X would be selling in total less than S+X is today. How would spin your take, then?

 

[Dakota Joestar]

Microsoft's strategy really is just seems to be putting a blind fold on and throwing darts and seeing where it lands. Porting an acclaim game like Hi-Fi Rush to the Switch and a GAAS like Sea of Thieves to the PS5 is just gonna make people want to wait for ports of future games rather then buy a system for them.

Like neither of these ports do anything to attract people to buying an Xbox or subbing to Gamepass, especially as there is no way Sony and Nintendo would let Gamepass come to Xbox.

 

[allan-bh]

Series S has sold like half of the units at least in all their major markets. WTF are you on about the Series S have "never selling"? No, it didn't take off significantly to the broader market like a Nintendo Switch, but it's not the sole reason for the Xbox Series generation selling poorly compared to last gen. Everything points to the fact that if the Series S did not exist, the Series X would be selling in total less than S+X is today. How would spin your take, then?

Series S is about half of install base because Series X was supply constrained, otherwise would be way less.

LTD certanly would be lower without the S because Microsoft wouldn't be able to ship the same number of consoles with the amount of waffles available, but in a hypothetical scenario of Series X being the unique model without shortages, it's hard to argue that sales would be lower in a meaningful way looking at how poorly Series S is doing right now.

 

[BoktaiFan]

Putting their games on competitors platforms would be disastrous for the brand long term. If they want to just be a publisher with a niche hardware market then that's their prerogative I suppose, but if their box or ecosystem has no unique appeal then who is going to buy it?

Sony, Google, Apple, Valve, etc all make money by being that platform people buy the mass market games on. That's where the money is. Xbox knew this in the 360 days. To me it seems like they are just giving up on hardware, but maybe that's over dramatic reading of it.

But I will say this is not a move you do from a position of strength. There is a reason Nintendo was forced into mobile in the 3DS/Wii U days and has basically stopped talking about it now that they have the switch.

 

[Pancracio17]

Well if they created a device that attaches to your phone like a backbone but also had an SSD and Console integration? You knobs of solve that issue.

I think people would still purchase a gaming device even if they could play everything on their phones. Tons of inconveniences add up, plus you can have better performance on dedicated hardware.

Though im not sure what you mean by "console integration".

 

[Baki]

AA games are good for engagement on GP but do not drive subscriptions or console purchases. So MS wants to monetize these AA games on other platforms and select AAA games. They will port some AAA games to see how it impacts hardware and GP sales. They can potentially use Sony/Nintendo B2P sales to generate additional income while they canabolize B2P on their own platform through GP.

 

[rockets]

Putting their games on competitors platforms would be disastrous for the brand long term. If they want to just be a publisher with a niche hardware market then that's their prerogative I suppose, but if their box or ecosystem has no unique appeal then who is going to buy it?

Sony, Google, Apple, Valve, etc all make money by being that platform people buy the mass market games on. That's where the money is. Xbox knew this in the 360 days. To me it seems like they are just giving up on hardware, but maybe that's over dramatic reading of it.

But I will say this is not a move you do from a position of strength. There is a reason Nintendo was forced into mobile in the 3DS/Wii U days and has basically stopped talking about it now that they have the switch.

MS will release a unified gaming storefront on everything, where they own 100% of all revenues, cut of third parties, plus their addressable market will have increased by an order of magnitude.

Why only look at it from a console perspective, when MS' own leaders say they want to release on everything including all consoles? Why limit yourself and invest more in a hyper competitive console market with entrenched users, a market that seems saturated for the most part, when you own many of the biggest gaming IPs? It's not like the Xbox brand is growing either... by all accounts it's stagnant, and barely exists in overseas markets. MS just spent a year and a half arguing that if COD became Xbox exclusive, PS users still wouldn't switch in a significant way. How many gamers can they expect to ditch their entire PS libraries/friends etc. and go with Xbox when the biggest gaming IP wouldn't make a dent?

Xbox hardware loses MS tons of money. Yes it's needed now to maintain subs, but over time MS will be much less reliant on it. Way more economic to have a soft marketplace than to depend on expensive consumer hardware.

 

[BoktaiFan]

MS just spent a year and a half arguing that if COD became Xbox exclusive, PS users still wouldn't switch in a significant way. How many gamers can they expect to ditch their entire PS libraries/friends etc. and go with Xbox when the biggest gaming IP wouldn't make a dent?

Well you realize that Sony also spent a year and a half arguing the opposite right? That an exclusive that big would end them as a player in the industry?

And who is the audience for this "unified storefront" exactly? Because as I mentioned phone users have apple/google/Samsung. PC users have steam/epic and console users have sony/nintendo. Why are they flocking to MS when they don't even have their own exclusive games?

 

[vixolus]

Well you realize that Sony also spent a year and a half arguing the opposite right? That an exclusive that big would end them as a player in the industry?

And who is the audience for this "unified storefront" exactly? Because as I mentioned phone users have apple/google/Samsung. PC users have steam/epic and console users have sony/nintendo. Why are they flocking to MS when they don't even have their own exclusive games?

Well, idk about you but theoretically if I can buy a game a single time and have native access across all my devices + be able to stream it where applicable that's a pretty nice feature. Would require a lot to get MS to commit to that vision especially from third parties, but Xbox Play Anywhere is halfway there already.

 

[BoktaiFan]

Would require a lot to get MS to commit to that vision especially from third parties, but Xbox Play Anywhere is halfway there already.

You already brought up the issue to that in your post. Play anywhere is locked to a storefront that people don't use. There are play anywhere Games on PC but people buy on steam! You still need to convince people to switch out of the storefronts I mentioned above and who is going to do that? They already don't do that!

 

[vixolus]

You already brought up the issue to that in your post. Play anywhere is locked to a storefront that people don't use. There are play anywhere Games on PC but people buy on steam! You still need to convince people to switch out of the storefronts I mentioned above and who is going to do that? They already don't do that!

Yeah because the PC store experience is less than ideal. I've still bought some games on Xbox that have a PC version and vice versa. Plus the whole game pass aspect means seamless save syncing and all. It would require a lot of effort like I mentioned, and probably only appeal to a specific niche anyway that hops between devices rather than stick to a single one like Steam.

 

[BoktaiFan]

Yeah because the PC store experience is less than ideal. I've still bought some games on Xbox that have a PC version and vice versa. Plus the whole game pass aspect means seamless save syncing and all. It would require a lot of effort like I mentioned, and probably only appeal to a specific niche anyway that hops between devices rather than stick to a single one like Steam.

That's all well and good but chasing a niche audience in as opposed to fighting for the much larger console audience seems like a bad choice. Again all these markets like mobile, PC, Console have entrenched players. Just making a unified store is not going to win you a massive market and doubly so when you effectively offer them no unique experiences.

 

[Dakota Joestar]

You already brought up the issue to that in your post. Play anywhere is locked to a storefront that people don't use. There are play anywhere Games on PC but people buy on steam! You still need to convince people to switch out of the storefronts I mentioned above and who is going to do that? They already don't do that!

What Phill said last year about last gen being the worst to lose cause of the digital libraries being built. There is an even bigger case to be made for dropping the ball so badly on Games for Windows Live back in the late 2000s was an even worse battle to lose, since they pretty much let Steam become the social/store front for PC gaming.

Like its only really a small demographic that buys games on the Window Store, which is basically a small subset of people that regularly use both a gaming PC and an Xbox. Most core PC gamers pretty much stick with Steam, as proven with how nothing Epic does drives users away from Steam.

 

[Bernd Lauert]

That Minecraft money on Switch must feel really good for Microsoft, so it makes sense to expand on that with the upcoming Switch 2, which will finally be powerful enough for high visual fidelity games.

I don't think Xbox will start releasing previously exclusive games on Playstation, though. Would be a step too far and not worth it, just from a purely financial point of view. Maybe that changes 5+ years from now when cloud becomes more widespread, but for now they're still very reliant on their consoles as a revenue driver.

 

[GaiusBaltar25]

It makes some sense to me, especially with their goal to usurp Tencent in revenue by 2030. Sure, they could do all that with a console that's in third place and PC, but it likely becomes significantly easier if you strategically port certain franchises to Switch and Playstation, especially if they continue to make acquisitions. Obviously, anything could happen. They can change their mind tomorrow, but I feel that this strategy became more of a possibility after they dropped their cloud investment to practically nothing over the past year. The technology isn't growing fast enough to help Game Pass subscriptions increase at the rate MS is looking for, so they're pivoting slightly. Even if they port a game or two every now and then, I'm sure they'll still continue making powerful hardware each generation.

 

[rockets]

Well you realize that Sony also spent a year and a half arguing the opposite right? That an exclusive that big would end them as a player in the industry?

And who is the audience for this "unified storefront" exactly? Because as I mentioned phone users have apple/google/Samsung. PC users have steam/epic and console users have sony/nintendo. Why are they flocking to MS when they don't even have their own exclusive games?

And who ended up with the successful merger? If the data that was given to regulatory agencies was widely off, the CMA and likely EU would've killed it with both cloud and console justification.

The "unified storefront" would be for...literally everyone who plays games on any device? You do realize that with ABK, MS now owns some of the most successful IP on mobile, PC, and console right?

That's all well and good but chasing a niche audience in as opposed to fighting for the much larger console audience seems like a bad choice. Again all these markets like mobile, PC, Console have entrenched players. Just making a unified store is not going to win you a massive market and doubly so when you effectively offer them no unique experiences.

Who says the mobile market is entrenched? There has been little to no movement there because Apple and Google have complete control, which will end.

MS has been itching for its own marketplace for over a decade now, and this is their chance. If there was a company to penetrate successfully with a mobile storefront, there is no one better suited to do it than MS. Unlimited resources, successful IP, millions of existing users ready to engage (from console and PC). A unified store has the potential for compounding effects, with users engaging from multiple devices leading to a virtuous cycle (see Netflix, see MS FTC leaks).

Traditional console games can also be successful on mobile, as we see with the switch, and growing steam deck and the like user bases.

MS' prospects in the console market is much much more limited. If you were an investor or executive, where would you rather invest billions in marketing/labour/technology resources into: acquiring entrenched users in a stagnant console market (where data shows diminishing returns), or open up your platform to potentially billions of users (aka literally everyone). The transition will be slow and console warriors will not be happy, but for MS this is a no brainer with the position theyre in (it's an incredibly strong one FYI).

 

[allan-bh]

MS' prospects in the console market is much much more limited. If you were an investor or executive, where would you rather invest billions in marketing/labour/technology resources into: acquiring entrenched users in a stagnant console market (where data shows diminishing returns), or open up your platform to potentially billions of users (aka literally everyone). The transition will be slow and console warriors will not be happy, but for MS this is a no brainer with the position theyre in (it's an incredibly strong one FYI).

I'm a console player, so by personal preference Microsoft looking to mobile don't appeal to me, but it's undeniably that has way bigger potential than focusing on a saturated console market where Sony and Nintendo already have pretty strong positions.

I'm sure they will still deliver AAA games and make consoles, so it's not that a big deal, but there's a lot rage coming for the next years as this plan move foward.

 

[BoktaiFan]

And who ended up with the successful merger? If the data that was given to regulatory agencies was widely off, the CMA and likely EU would've killed it with both cloud and console justification.

Yes after they said "We will not make it exclusive" and we signed a contact saying so.

The "unified storefront" would be for...literally everyone who plays games on any device? You do realize that with ABK, MS now owns some of the most successful IP on mobile, PC, and console right?

People didn't rush to Origin over steam and they won't rush to this over it either. IP or not people aren't going to jump ship as easily as you seem to think.

There has been little to no movement there because Apple and Google have complete control, which will end.

It will not end.

If you were an investor or executive, where would you rather invest billions in marketing/labour/technology resources into: acquiring entrenched users in a stagnant console market (where data shows diminishing returns), or open up your platform to potentially billions of users (aka literally everyone)

Well I would probably be looking at the PS and Nintendo revenues, profits and stock over the last generation and think to myself "Yeah that looks pretty good" But hey that's just me

 

[ILikeFeet]

MS is gonna have to choose a side eventually. they have the potential of being a major third party, but if they want to stick with hardware (despite the rest of MS ditching hardware), they need to lock down their own games. but that diminishes the value of their purchases

 

[Adventureracing]

At this point MS should be looking to what Sony achieved towards the end of the PS3 life span. Really focusing on getting their 1st party development in order and building their brand in terms of SW output. Eek out as good of a userbase as they can this gen and then put everything into their next gen console where they will have actiblizz fully onboard and firing. They also really need to put more focus on markets outside of the US, they’re floundering in the EU for example.

I personally still think they have a place in the console market they’ve just dropped the ball big time the last 2 gens.

Strengthening gamepass and really expanding onto PC and mobile seem like the areas they will focus on as well.

 

[rockets]

I'm a console player, so by personal preference Microsoft looking to mobile don't appeal to me, but it's undeniably that has way bigger potential than focusing on a saturated console market where Sony and Nintendo already have pretty strong positions.

I'm sure they will still deliver AAA games and make consoles, so it's not that a big deal, but there's a lot rage coming for the next years as this plan move foward.

I think at the end of the day, there's no loss to Xbox users. They still can play on the best platform for MS/GP, and engagement for deserving games will continue to blossom, with further investments into those games becoming more feasible. MS has the opportunity to significantly increase their gaming revenue over the next decade if the execution matches their investment.

People didn't rush to Origin over steam and they won't rush to this over it either. IP or not people aren't going to jump ship as easily as you seem to think.

Who says it's going to be easy? Who says multiple marketplaces can't coexist? MS is one of the few companies who have the luxury to make it work. They would be foolish and even labelled as incompetent by their BoD if they didn't try.

Well I would probably be looking at the PS and Nintendo revenues, profits and stock over the last generation and think to myself "Yeah that looks pretty good" But hey that's just me

Well that is just you. To say that we can come in and take take Sony's and Nintendo's lunch in a vacuum without looking at the nature and intricate reasons why those brands are so successful worldwide in the first place is a recipe for disaster. Again, diminishing returns and all that, from MS' own data. Hell the CEO of Xbox outright said it last year in one of his interviews.

Not only that, PS has many issues to solve in its balance sheet, and Nintendo's success is hardly replicable without significant investment that comes with even more risk.

 

[BoktaiFan]

Well that is just you. To say that we can come in and take take Sony's and Nintendo's lunch in a vacuum without looking at the nature and intricate reasons why those brands are so successful worldwide in the first place is a recipe for disaster

Your talking about them eating everyone else's lunch! Mobile, PC, AKA literally everyone in your words! You can say diminishing returns but I'm pretty sure PS and Nintendo both had their most profitable years ever in the recent history. And of course MS had found success in this market before but they are doing the opposite of that playbook. Will it work out? I'm heavily skeptical but you can believe what you want.

 

[rockets]

Your talking about them eating everyone else's lunch! Mobile, PC, AKA literally everyone in your words! You can say diminishing returns but I'm pretty sure PS and Nintendo both had their most profitable years ever in the recent history. And of course MS had found success in this market before but they are doing the opposite of that playbook. Will it work out? I'm heavily skeptical but you can believe what you want.

No I was never saying that. There's a difference between total addressable market, actual marketshare, market synergies and win-win scenarios. It is never going to be easy, however your preferred path, after over 2 decades in the console market, would be akin to throwing more money into a hole.