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Kotaku UK Rumor: Xbox One, Windows 10, Halo 5, & Minecraft notably below expectations

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Joni

Member
I presume Microsoft hoped for a bigger uptake in Windows 10 amongst Windows 7 users, who are severly lagging in the transfer. The high percentage of continued Windows XP users - more than Windows 8 and Vista - can't encourage them either.
 

ShogunX

Member
Peiole are looking at total Minecraft sales but given other information, it's much more likely that the Windows Store version of Minecraft is not meeting expectations.

It's exactly that. People are missing the context and jumping straight on Minecraft underperforming overall when it's about underperforming on a single platform.

Minecraft is doing crazy numbers, just not on the Windows store.
 
I know the article is fairly vague on the actual details.

And yea, selling 50 milliom Minecraft copies is impressive.

But consider the ROTR news with it being 98% steam.

Perhaps it's not Minecraft as a whole that's significantly under expectations but the versions that MS benefits from most.

That makes sense to me. What am I missing?
 

ethomaz

Banned
I don't think that was the cause, Windows 10 is doing pretty well, also Xbox One is selling better than 360 at the same time last gen, so even though they're behind PS4 they're selling well there too, i think it's just that Microsoft wasn't happy on how the game was turning
The bold was true for end of 2015 and it was really close numbers because 360 was already catching.

Now for mid 2016 I'm strong in line to think 360 is ahead Xbone... the fact MS stopped to claim that in PR support this point.
 

watership

Member
Low Xbox one sales along with MCC. I feel the Xbox ones position is hurting all of their exclusives


MCC made it hard to convince any of my friends that Halo 5 had the best multiplayer of any Halo game. A few of them eventually figured it out, but some just refused to even try it.
 
windows store being below projections makes a ton of sense.

its games for windows live 2.0 under a new name.

No kidding! MS's ultimate wet dream is to have gamers pay to play online on PC the same way they do on Xbox. Gamers know they had better steer clear of any MS-owned gaming service because that's what's ultimately going to be headed their way as soon as they feel they can get away with it.
 

Gurrry

Member
They don't want to dilute the brand, and if it's selling why change it?

Because they are complaining about it not doing what they projected it to do. If they want to maximize off that brand, I would think Minecraft 2 would be the ideal goal here, no? That is how you would maximize profits.

The reason its not hitting their projections is because everyone and their mom already has a copy of this game in some fashion. The biggest way they make their money off of minecraft is through licensing deals and other things like toys and tshirts.

I just think its odd that you go buy that IP and do nothing but port it to every single device known to man and expect it to somehow hit your wild projections.
 

Welfare

Member
The first forecast for Minecraft after MS happened for FY July 2015 to June 2016... the news now is because MS is ending this FY.

How much they sold from July 2015? That is the number you need to use.

If we start there, that is +30 million sales.

Also, Minecraft officially became a part of MS in early November 2014.

The bold was true for end of 2015 and it was really close numbers because 360 was already catching.

Now for mid 2016 I'm strong in line to think 360 is ahead Xbone... the fact MS stopped to claim that in PR support this point.

360 sales in 2008 were not that strong to have somehow pushed itself ahead of the Xbox One. Your point doesn't exist because there has been no PR for any sales data in 2016 for MS to use that line again.
 
I know right. Halo 3 in this day and age would sell much less than Halo 5. Purists don't seem to realize that. The landscape has changed. Games have their periods in time and people move on

Lol no.

Halo 3 marketing was unreal. It would body Halo 5 free.
 
I know the article is fairly vague on the actual details.

And yea, selling 50 milliom Minecraft copies is impressive.

But consider the ROTR news with it being 98% steam.

Perhaps its not Minecraft as a whole thafs significantly under expectations but the versions that MS benefits from mkst.

That makes sense to me. What am I missing?

Yeah, the Windows 10 version makes a lot more sense to me.

But then again, the Windows 10 store has been a disappointment from inception, so /shrug.

Lol no.

Halo 3 marketing was unreal. It would body Halo 5 free.

We're talking about the core of Halo games, not the marketing.
 

gamz

Member
Because they are complaining about it not doing what they projected it to do. If they want to maximize off that brand, I would think Minecraft 2 would be the ideal goal here, no? That is how you would maximize profits.

The reason its not hitting their projections is because everyone and their mom already has a copy of this game in some fashion. The biggest way they make their money off of minecraft is through licensing deals and other things like toys and tshirts.

I just think its odd that you go buy that IP and do nothing but port it to every single device known to man and expect it to somehow hit your wild projections.

Who is? What's the source of the article?

Don't you think if it was under-performing they would create a sequel?
 

Chris1

Member
Because they are complaining about it not doing what they projected it to do. If they want to maximize off that brand, I would think Minecraft 2 would be the ideal goal here, no? That is how you would maximize profits.

The reason its not hitting their projections is because everyone and their mom already has a copy of this game in some fashion. The biggest way they make their money off of minecraft is through licensing deals and other things like toys and tshirts.

I just think its odd that you go buy that IP and do nothing but port it to every single device known to man and expect it to somehow hit your wild projections.

If they want to maximize of the brand they can't release a Minecraft while it's still selling gangbusters, that's thinking short term which isn't exactly a smart thing to do.

They should release spinoff's instead and wait for Minecraft to slow down before coming out with 2. Announcing Minecraft 2 will hurt Minecraft sales, announcing Minecraft Kart/story mode/fighter/insert spinoff here won't.
 

kiguel182

Member
Honestly, given what's selling today, I don't think he was really wrong.

The main miss he made is that on consoles, you sell a $60 game, and then you flood people with endless DLC and/or microtransactions along with new content for years.

The problem is not consoles but making studios make games they don't want to make or have no expertise making.

If you go to a traditionally single player studio and want them to compete with LoL you have to be ready for them to have a bunch of setbacks and learning pains.

Phil Harrison wanted too much out of them. He should've just hired people that are in that space instead of forcing their studios to do what they weren't there to do.

Everything can make money if done right and by the right people.
 
Yeah, the Windows 10 version makes a lot more sense to me.

But then again, the Windows 10 store has been a disappointment from inception, so /shrug.

Right, but it also ties into the ROTR news we got. Because as everyone rightfully pointed out, sales for MC overall being dissapointing doesn't make a whole lot of sense.
 
XB1 sales were higher than 360 at the release of Halo 3.

Halo 3 was the pinnacle of Halo though. Reach and ODST were on the same level then Halo 4 was trash, and well, you know how MCC went. Halo 5 isn't a good Halo game so not surprising it isn't living up to expectations.
 
Lol no.

Halo 3 marketing was unreal. It would body Halo 5 free.

Halo 3 marketing is something that is difficult to replicate. It's as much the corporate mastery of marketing as well as the audience's reaction to it.

Closest thing I've seen to H3-tier marketing this gen is still the lead-up to Titanfall. It's a smaller scale, but the pre-launch frenzy that game generates is insane to look back at in hindsight .
 

Knuf

Member
Where's the rumor here? More like SHOCKING NEWS, we know for a fact that all of them (except for Minecraft) hugely underperformed.
I even remember that sometimes before W10 launch MS publicly said they wanted it to be installed on 1 billion devices within two years: there's a reason why they're sticking W10 down everyone's throat without users' consent for months now, lol.
 

etta

my hard graphic balls
So what doesn't add up here? Halo 5 underperforming adds up. Minecraft doesn't. Xbox consoles doesn't. Windows 10 installations doesn't. Is the source just an ex-Lionhead employee?

When were the 40 million units projected for Xbox consoles? Was this before the 2013 reveal of the console?
Did they honestly expect Windows 10 installations to be at 600-700 million by now? Isn't it the fastest OS adoption already?
And then Minecraft underperforming.
 

ethomaz

Banned
They have sold roughly 30 million copies since then

If we start there, that is +30 million sales.

Also, Minecraft officially became a part of MS in early November 2014.
Now we just need to know how many copies MS expected to sell.

While it is amazing numbers it could be underperformed if MS predicted/expected 50m sales for example.

I think it is like the Windows 10 case... they probably won't reach 1b in 2017 (even giving free copies to everybody) when they are only at 200 million right now... it is underperforming even when the number is huge.
 

xabbott

Member
No doubt Minecraft has continued to be a huge success after MS acquired it.

The point is that likely the majority of that success came from direct sales of the java version, iOS, Android, and the existing consoles versions across Xbox, Playstation and now Nintendo.

MS have gained little to no strategic advantage from the acquisition. They have not succeeded in bringing users over to the Windows App Store.

Minecraft has been in the top 20 or so in the Windows app store for awhile. I think it's free if you have the java version. With that said I believe the PC version was always one of the lower selling versions anyway.

In any case they apparently broke even on Minecraft last year. They also seem really into using it for Education and demos for stuff like Hololens. I would imagine they are happy with the acquisition.
 

Gurrry

Member
If they want to maximize of the brand they can't release a Minecraft while it's still selling gangbusters, that's thinking short term which isn't exactly a smart thing to do.

They should release spinoff's instead and wait for Minecraft to slow down before coming out with 2. Announcing Minecraft 2 will hurt Minecraft sales, announcing Minecraft Kart/story mode/fighter/insert spinoff here won't.

Dont you think Minecraft 2's sales would be so grand that it would surpass any sales that Minecraft 1 is projected to do?

I would imagine a sequel to the best selling game of all time would quadruple the projected sales of MC1 in its current state.

I understand wanting to wait it out and get every last cent you can from it, but at some point, if they really feel they arent hitting their projected numbers, there is only 1 solution and thats to make the sequel.
 

kiguel182

Member
In 2016 Minecraft is selling 50k copies *per day*. If that's underperforming expectations their expectations were crazy.

I think the problem is that those copies aren't being bought on the Windows store.

I wouldn't be surprised if the killed the Java version and tried to push the Windows one more.
 

gamz

Member
Is Minecraft maybe a big miss on the Windows store but generally very successful elsewhere.

That's the only thing I can think of. They advertise the free version on Windows 10 tho. I see the free beta ads more then the pay version.
 
Now we just need to know how many copies MS expected to sell.

While it is amazing numbers it could be underperformed if MS predicted/expected 50m sales for example.

I think it is like the Windows 10 case... they probably won't reach 1b in 2017 (even giving free copies to everybody) when they are only at 200 million right now... it is underperforming even when the number is huge.

I mean true but if they expected over 30 million units in their FY I'm not sure what to even say. The game came out in 2011 and there are only so many gamers in the world. 106 million install is pure madness.

Maybe they did expect more but if so they are out of their minds
 
So what expectations would you place on the returns for a Software property?
Lets assume Microsoft wanted a return on equity of 20%. That would be $500m a year.
Which they should more than get on sales of ~35m units.
Problem is software has a usable lifespan that is inherently more risky.
Oilwells will produce oil for 20+ years. Real estate will continue providing returns for longer and add capital growth on top.
Software (and games especially) can go from flavour of the month to yesterday's news pretty quick so you would want more return than that to amortise your capital outlay.
So it may be pulling in $500M-$700M a year but MS may be needing it to pull in more than that simply because it could become worthless pretty quick.
 

Opt1kon_

Member
I can think of a few way that Minecraft has been a miss for MS, I could've sworn there was a thread (if someone can find it I'm on mobile) that MS bought Mojang and Minecraft because it was a smart business decision for its Mobile side Mainly because the lack lack of developer apps on the win phone and they figured it would sell more Windows phones in general, however the win Phones just fell under .7% market share and not only that I'm guessing they felt it would sell more Xbox ones systems or bring more MAU into fold? The last bit is just MY personal Speculation

http://www.neogaf.com/forum/showthread.php?t=1222807&highlight=windows+phone Thread on Windows phone
 
People ridiculing article for Minecraft need to do some math.

Even if each copy sold was worth 20$ to Microsoft (which we can safely guess it isn't) it would be 1 bilion $ in sales which isn't even half of what they paid.
 

shoreu

Member
XB1 sales were higher than 360 at the release of Halo 3.

Even still I see the console as more of a part of bad sales. The console itself is not as desirable as the 360 was. Say if Halo 5 released on PS4 i feel as if it would have emulated halo 3 success if not better.
 

bidguy

Banned
halo 5 didnt sell because master chief is the driving force. its true just look at previous halos. thats what you get for sidelining the chief 343
 

styl3s

Member
Why not? They spent $2 billion to buy it. You don't spend that much money without having big plans. That's half of what Disney paid for Marvel and Star Wars (separately).
But what can you do with Minecraft that hasn't already been done? Minecraft 2 would be a massive mistake.
 
Halo 5 is pretty great, slightly disappointing story aside.

I love Halo 5's MP, but it's gonna have a much narrower fanbase than other FPS' just because of it's difficulty. I think one of the bigger issues is that, despite being Microsoft's premier studio, 343 really doesn't inspire any confidence.

They just ripped off CoD mechanics for Halo 4, and MCC was straight up broken, and still is. Where's Frank O Connor with that explanation of why it launched as it did that he promised? They launched Halo Waypoint, which had a bit of life, then replaced it with The Halo Channel, which basically died immediately, never mind because it lacked content, it performed horribly on XB1. Why did a video streaming service stutter and lag so much? Forward unto Dawn was decent, and Nightfall was abysmal, and what happened to that Spielberg TV show? The most recent offense being Halo 5's boring story, especially compared to what the marketing and Hunt the Truth were doing, how come we didn't get that in the game? Instead, the big thing for campaign was 4 player coop and some of the most basic AI commands seen in any video game.

I think all of this stems from the fact that 343 doesn't really have much in the way of creativity or innovation. Bungie pushed brand new features, and we've not actually seen anything "new" in Halo since they left. Look at Doom's Snapmap versus the current state of Forge in Halo 5. Sure Tom French and the Forge team are doing amazing work putting in new features with every update, but then they're hindered by the lack of a custom games playlist in matchmaking and a decent way of finding the content people are making. Even Halo 3 had the "Bungie Favourites" bit.

It hurts to say it, because I really like Halo, especially Halo 5, but even when you look at the DLC plan for Halo 5 being old features from previous games, I can't say 343 is a studio I trust. In all honesty, I only really enjoy the Arena multiplayer, and I'm inclined to say it seems to have come together as more of an accident than any skill or direction.

On top of that, the Xbox One's position is probably hurting all its exclusives, so they have less and less money to play with.
 
So what doesn't add up here? Halo 5 underperforming adds up. Minecraft doesn't. Xbox consoles doesn't. Windows 10 installations doesn't. Is the source just an ex-Lionhead employee?

When were the 40 million units projected for Xbox consoles? Was this before the 2013 reveal of the console?
Did they honestly expect Windows 10 installations to be at 600-700 million by now? Isn't it the fastest OS adoption already?
And then Minecraft underperforming.

Yeah something doesnt add up. xbox is outperforming 360 which did amazing in the end but is underperforming? Minecraft is selling in the top 10 for ages now, underperforming? Everyone i know has win10 installed, underperforming?

Id love to know what the actual expectations were.
 

gamz

Member
So what expectations would you place on the returns for a Software property?
Lets assume Microsoft wanted a return on equity of 20%. That would be $500m a year.
Which they should more than get on sales of ~35m units.
Problem is software has a usable lifespan that is inherently more risky.
Oilwells will produce oil for 20+ years. Real estate will continue providing returns for longer and add capital growth on top.
Software (and games especially) can go from flavour of the month to yesterday's news pretty quick so you would want more return than that to amortise your capital outlay.
So it may be pulling in $500M-$700M a year but MS may be needing it to pull in more than that simply because it could become worthless pretty quick.

Not going to happen. Been saying this for how many years now?
 
People ridiculing article for Minecraft need to do some math.

Even if each copy sold was worth 20$ to Microsoft (which we can safely guess it isn't) it would be 1 bilion $ in sales which isn't even half of what they paid.

Again......MS did not expect Minecraft to generate 2.5 billion in revenue for a very very long time. They wanted it to hit break even on a GAAP basis by FY 2015 which it more than has
 

gamz

Member
People ridiculing article for Minecraft need to do some math.

Even if each copy sold was worth 20$ to Microsoft (which we can safely guess it isn't) it would be 1 bilion $ in sales which isn't even half of what they paid.

Even if your math is correct that's still massive. It's not like sales are slowing down.
 

Chris1

Member
Dont you think Minecraft 2's sales would be so grand that it would surpass any sales that Minecraft 1 is projected to do?

I would imagine a sequel to the best selling game of all time would quadruple the projected sales of MC1 in its current state.

I understand wanting to wait it out and get every last cent you can from it, but at some point, if they really feel they arent hitting their projected numbers, there is only 1 solution and thats to make the sequel.
But you can't just look at it from MC2 perspective. When you announce MC2 you cut into MC1 sales, yes they will sell millions of Mc2 a few month later when it comes out, but it will sell millions regardless of when it releases, the only difference is you just slashed the sales of MC1 for no reason and you brought the sales of MC2 forward, even though they would have happened anyway.
 

ethomaz

Banned
360 sales in 2008 were not that strong to have somehow pushed itself ahead of the Xbox One. Your point doesn't exist because there has been no PR for any sales data in 2016 for MS to use that line again.
Xbone is doing lower than 360 (relative at the same period/month) even in NPD this year... shipment was close at the end of 2015 (even using some optimist estimations for Xbone).

I'm confident 360's shipment is catching Xbone's shipment this year.

Let't see how it will works until the end of 2016 but MS indeed stopped to say they are ahead 360 when in 2015 they said a lot of times in NPD monthly PR without any sales data or Financial Earnings.
 

JaggedSac

Member
damn i thought phil harrison would've been great for xbox's eu branch


looks like he was too enamored with mobile's games success at the time

So Harrison is to blame for Fable Legends?


Also, Legends was a crappy F2P game. Wouldn't have mattered what size the userbase was. MS probably noticed that from the beta numbers.
 
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