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Why Xbox Abandoning The Traditional Console Business Model, Makes Business Sense

What do you think Microsoft's business update next week will entail (Pick 1 based on severity)


  • Total voters
    143
  • Poll closed .

TGO

Hype Train conductor. Works harder than it steams.
32cd5842a8cd7e13e2ba50bfa35d61d6.gif


Bookmarked for later 👍
 

Midn1ght

Gold Member
Didn't read so here's a fascinating fact about sea cucumbers:

Sea Cucumbers Breathe Through Their Anus​

Yes, you read that right. Sea cucumbers breathe through a respiratory tree that is connected to their anus.
The respiratory tree lies inside the body on either side of the intestine and connects to the cloaca. The sea cucumber breathes by drawing oxygenated water in through the anus. The water goes into the respiratory tree and oxygen is transferred into the fluids within the body cavity.

love-cucumber-dance.gif


Congrats on the effort tho!
 
Of course they aren’t in the traditional console business model right now. You guys say it all the time, their games are all on PC, “no reason to own an Xbox”. You even say it in your second long post.

Also I don’t think Sony or Nintendo much care about what MS does with revenue they make on their platforms, they are businesses and money is the bottom line. MS selling games on their platforms means more money for them.

Hell Sony was scared shitless of MS hoarding CoD. They’d love for MS to always release it on PS alongside any other XGS titles.
 
Last edited:

AV

We ain't outta here in ten minutes, we won't need no rocket to fly through space
Glad to see most people here still have their head screwed on and are choosing #3.

Not saying it's 100% going to be correct, it's just the most sensible prediction to make right now with no further information.
 

Mr.Phoenix

Member
I have had this thread opened since it was made, and just finally made the time to read it. Good and thorough read.

All I can say is, at this stage, what is good for Microsoft, is not good for Xbox.

Edit:
Oh I voted option 3, but there should have been an option that combined it with the latter part of option 6. As I also believe that in addition to option 3, they make PC-like hardware and license it out to other OEMs. The exclusives, or timed exclusives they have, would be for the benefit of Gamepass. And I expect those timed exclusives to range from 30-90 days.
 
Last edited:
If they had game pass in playstation like an ea play just Microsoft owned games they would do mega money. Xbox has been rubbish since original Kinect.

It'd probably do well, although I'm curious how big a cut MS would be willing to give Sony for Game Pass subs on PlayStation consoles. It's either that or Sony gets a larger cut of B2P sales; something would have to give (more money on B2P, vs. big cut of Game Pass sub fees) if Microsoft want to do Day 1 Game Pass for all their games.

Without a suitable cut for Sony, Sony/SIE would see that type of Game Pass as a way of skirting them out of due revenue from business on their platform. Similar to how Apple viewed Epic trying to set up their own store on iOS (and cut Apple out of their 30% cut).

Didn't read so here's a fascinating fact about sea cucumbers:



love-cucumber-dance.gif


Congrats on the effort tho!

Sea cucumbers sound more evolved than we are o.0

Of course they aren’t in the traditional console business model right now. You guys say it all the time, their games are all on PC, “no reason to own an Xbox”. You even say it in your second long post.

From a larger market/business POV, there's little reason to own an Xbox console as that's how the market seems to think, going by the sales. Personally, I think there's value in a Series X, if you can get it for a good price. At such a price, I think it'd be worth owning.

But that's just me speaking from my own POV, and I'm only one person.

Also I don’t think Sony or Nintendo much care about what MS does with revenue they make on their platforms, they are businesses and money is the bottom line. MS selling games on their platforms means more money for them.

Sure, revenue and profit is ultimately what matters to them. But they aren't going to enter business arrangements that have a good chance of endangering their money streams in the industry later down the road. That's a reason why Nintendo didn't pursue the Play Station deal with Sony back in the day, or likely a big reason why SEGA rejected the SEGA/Sony console proposal.

In both cases, Nintendo and SEGA would've made a lot of money, but they probably also suspected it'd empower a potential direct competitor in Sony, who could usurp them in the industry in a not-too-distant future. Well, they were both right about that, but they also both owe themselves a lot of credit for screwing themselves over with bad (terrible in SEGA's case) business & market decisions during critical periods. Can't get mad that competitors like Sony did the natural thing and capitalized on those mistakes.

Hell Sony was scared shitless of MS hoarding CoD. They’d love for MS to always release it on PS alongside any other XGS titles.

Of course they were worried; MS could've used COD in a foreclosure strategy and Sony have a duty to protect their gaming business. Their fears, at least for a while, were probably confirmed when seeing the redacted emails, internal memos, and M&A strat Phil and co. were floating around.

Any company in Sony's position would've had those same concerns when the threat of foreclosure looms over their head.

I spent all afternoon playing video games

I feel like I spent my time more productively than the OP did

Don't worry I plan to make up for lost gaming time today!
 

StereoVsn

Member
Personally I think long term it’s going to be Option 3. Short term, as in next week, maybe just couple of games ad mentioned and reveals of some older titles going Multiplatform.

Also, I am totally feeding the OP into copilot for summarization once I get home! 😉
 

Midn1ght

Gold Member
Sea cucumbers sound more evolved than we are o.0
You have no idea...

Ancient Creatures​

Sea cucumbers are ancient creatures that have been around for millions of years. Fossil records indicate that they have existed since at least the early Paleozoic era (541-252 million years ago).

Wriggling Defense Mechanism​

When threatened, some sea cucumber species have a remarkable defense mechanism: they can expel their internal organs, leaving predators confused and distracted while the cucumber makes a quick getaway.

Astounding Regeneration​

Sea cucumbers possess an extraordinary ability to regenerate their body parts. If they lose a limb or even their entire body, they can regenerate it in a matter of weeks.
 
Last edited:

tmlDan

Member
Timed exclusivity will ruin xbox revenue. PS gamers aren't clamoring to play Xbox games, they will wait 6 months to a year to play them.

The ideal console will still be a PS to get every game, their best choice is just going third party - don't half ass it, and you'll make a ton of money without wasting money on a new console you cannibalized yourself.
 

BlackTron

Member
Didn't read so here's a fascinating fact about sea cucumbers:

Sea Cucumbers Breathe Through Their Anus​

Yes, you read that right. Sea cucumbers breathe through a respiratory tree that is connected to their anus.
The respiratory tree lies inside the body on either side of the intestine and connects to the cloaca. The sea cucumber breathes by drawing oxygenated water in through the anus. The water goes into the respiratory tree and oxygen is transferred into the fluids within the body cavity.
You have no idea...

Ancient Creatures​

Sea cucumbers are ancient creatures that have been around for millions of years. Fossil records indicate that they have existed since at least the early Paleozoic era (541-252 million years ago).

Wriggling Defense Mechanism​

When threatened, some sea cucumber species have a remarkable defense mechanism: they can expel their internal organs, leaving predators confused and distracted while the cucumber makes a quick getaway.

Astounding Regeneration​

Sea cucumbers possess an extraordinary ability to regenerate their body parts. If they lose a limb or even their entire body, they can regenerate it in a matter of weeks.

I guess all those people I've seen talk out of their asses were more evolved than I thought.
 
Personally I think long term it’s going to be Option 3. Short term, as in next week, maybe just couple of games ad mentioned and reveals of some older titles going Multiplatform.

Also, I am totally feeding the OP into copilot for summarization once I get home! 😉

Actually interested to see how copilot would translate the OP, so give it a shot 💪

Timed exclusivity will ruin xbox revenue. PS gamers aren't clamoring to play Xbox games, they will wait 6 months to a year to play them.

The ideal console will still be a PS to get every game, their best choice is just going third party - don't half ass it, and you'll make a ton of money without wasting money on a new console you cannibalized yourself.

While I can understand on one hand the people saying MS'll do timed exclusivity for Xbox consoles...why not do that for the biggest games? Why just the single-player AAA/AA titles? Those games aren't big enough to be a draw to the platform on their own exclusivity-wise, and MS seem like they're at a point where keeping them exclusive just to "please" diehard fans of the console base makes very little sense, because they know a lot of them will choose to get the game through Game Pass when MS want to see significant revenue and profit growth. If Game Pass has stagnated on console, then that growth could only come from B2P sales, and their chances of seeing that increase if everything's multiplatform particularly on platforms where B2P sales are very strong (PlayStation, Nintendo etc.)

Plus as you've said, it's not like waiting 6 months or even 1 year is too big a deal for most people who'd otherwise be interested in playing the game, given so many games (including exclusives) that are releasing these days across PS & Nintendo. A decent number of those players probably also have a PC, which has its own exclusives and other things like mods that keep people busy. By the time MS ported those timed console exclusives to PS5 and Switch 2, they'd be forced to either throw in a TON of extra content to justify full price (not exactly easy to do), or price the game a lot lower to get those players to bite for something that's technically up to a year old.

And it's not like MS are going to make the GaaS titles timed console exclusives; too much potential revenue left on the table, plus it can be a disadvantage for platforms getting the game later in the MP competitive sense (assuming the game supports crossplay). The only games I think MS could keep timed exclusive are the smaller AA and indie-style titles, stuff like Pentiment basically. Because those could also probably still work for Day 1 in Game Pass, and it might be a while still before MS can work out a deal to get GP on Sony and Nintendo platforms. But by keeping those really small games timed console exclusive, MS don't risk losing much money in B2P sales (those games wouldn't sell a ton of copies anyway), and they don't risk losing a lot of money in general since those games are pretty cheap to make. Plus, they can be used to still honor some form of "Day 1 in Game Pass" marketing, and the service can help bolster the profile of those types of games.

I guess all those people I've seen talk out of their asses were more evolved than I thought.

IKR? 🤣

Was my post too long for you to understand?

avin

No, but I don't understand why you sign every post with your username o.0
 
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