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[DeltaPolarBear]

I'm sure Sony's finances are doing ok without putting their games on PS Now day & date. In fact I know their finances are doing great without doing that. It also isn't that much of win for MS seeing as they're designing and producing a console anyway. By your logic, you're actually saying that MS is throwing money out the window by making a new console because they'll be launching Xcloud round the same time.

Basically this. Fundamentally, Xbox-series X and Gamepass are going in different directions and it is hard to market them together.
The way I see it, the Series X was in development so long that they can't scrap it without feeling pain from the sunk cost. And yet the rest of the company aren't supporting it as well as they could have because some are diverting attention to Gamepass. I wish them luck, they are going to need it.

 

[Ascend]

I don't see anything wrong with this tweet. He's doing his job.

 

[N1tr0sOx1d3]

Basically this. Fundamentally, Xbox-series X and Gamepass are going in different directions and it is hard to market them together.
The way I see it, the Series X was in development so long that they can't scrap it without feeling pain from the sunk cost. And yet the rest of the company aren't supporting it as well as they could have because some are diverting attention to Gamepass. I wish them luck, they are going to need it.

Honest question, the estimate for Xbox one Sales is at around 50million units sold.
That has to be some serious profit there yeah? Why would the introduction of Series X not add to said profits with the potential of a further 50 million units sold?

I get that they are kind of competing against themselves in terms of the PC market and Gamepass, but even if Xbox Series X sold 30million units~ isn't that a good business model? Or am I grossly out with my figures?

If I'm missing something please let me know, I'm genuinely interested.

 

[DeltaPolarBear]

Honest question, the estimate for Xbox one Sales is at around 50million units sold.
That has to be some serious profit there yeah? Why would the introduction of Series X not add to said profits with the potential of a further 50 million units sold?

I get that they are kind of competing against themselves in terms of the PC market and Gamepass, but even if Xbox Series X sold 30million units~ isn't that a good business model? Or am I grossly out with my figures?

If I'm missing something please let me know, I'm genuinely interested.

The purpose of selling consoles is to get paid 30% rent by third party games. But the less consoles you sell, the less rent gets paid, and the less third party games you get at all. And designing a console is expensive.

The worst part is that Series X would be lucky to end up at 30 million sold; that meant the mindshare of the console is going down, which means even less people would by the next generation after that. The smaller your market share, the less appealing you are as a destination for 3rd party games. That is why wii U has so few third party games; not because of weak hardware but because of weak hardware sales. Switch is technically weak hardware too, but third party developers are falling over themselves to make games for it now that it has such a large install base.

Being a console platform can't be done on a part time basis; you can't support a console "on the side", if you don't focus on growing it then it just dies and stop being profitable.

 

[N1tr0sOx1d3]

The purpose of selling consoles is to get paid 30% rent by third party games. But the less consoles you sell, the less rent gets paid, and the less third party games you get at all. And designing a console is expensive.

The worst part is that Series X would be lucky to end up at 30 million sold; that meant the mindshare of the console is going down, which means even less people would by the next generation after that. The smaller your market share, the less appealing you are as a destination for 3rd party games. That is why wii U has so few third party games; not because of weak hardware but because of weak hardware sales. Switch is technically weak hardware too, but third party developers are falling over themselves to make games for it now that it has such a large install base.

Being a console platform can't be done on a part time basis; you can't support a console "on the side", if you don't focus on growing it then it just dies and stop being profitable.

Fantastic insight, thank you for that. I hadn't thought about the 30% licensing fees or the possibility of diminishing long term market share.