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

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Genio88

Member
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
 
Defintely concur with the statements about the windows 10 store. It's a mess.

I have a 4690k and a 970 and it tells me that I don't have the minimum specs to run GOW, Quantum Break, ROTR and most other "AAA" games on there. It won't even let me buy them and when it does (minecraft win10 edition), it has endless problems with installing updates. Fuck that thing.
 

Welfare

Member
I don't know if I'm inclined to entirely believe this.

I don't doubt that MS isn't happy with performance, but this sounds like people who were fired looking for reasons other than "no one wanted Fable Legends"

Honestly, it does kinda sound like these people are throwing Microsoft under the bus because they got fired. Both Xbox and Win10 underperforming by 50% is so random because there is no timeframe for when that was decided to be their internal targets and Minecraft of all things being below expectations is crazy.

"Everything is on fire and we got caught in it, not because of our product", essentially.
 

Boke1879

Member
I thought Lucas had some share in Disney in that deal, not pure $4 billion. Isn't that different from Minecraft deal?

Even still Disney will make that money back quickly because the movies gross so much and they sell a shit ton of merch. MS needs to start doing similar things with the MC IP if they expect more money
 

gamz

Member
MS would need ridiculus expectations for Minecraft to under perform. We just had an announcment that it sold over 100m. Story Mode I could see but even that must have done well for them to extend the season.

And MS being a analytical company, it's probably right on par to what they thought it would sell.
 
People don't get the type of returns corporations want when acquiring things.

And also as impressive as 50 million is(sold since acquisition), with the price range that minecraft goes for thats probably "only" $500million, without taking into consideration costs.

for something like $2billion, you expect 2 or 3 times your return within 3-5 years, at that rate your not going to get much of a return.
 

Bsigg12

Member
I don't know if I'm inclined to entirely believe this.

I don't doubt that MS isn't happy with performance, but this sounds like people who were fired looking for reasons other than "no one wanted Fable Legends"

This is kinda where I'm leaning. I absolutely believe Halo 5 underperformed but has done OK on the microtransaction side with the REQ packs and such. Minecraft underperforming seems strange because it has sold a ton of copies since the Microsoft purchase as well as what I would assume is a very successful endeavor in selling skins and texture packs to the console and mobile versions. I so expect Microsoft to talk Minecraft at E3 as well.
 

toilet

Banned
Regarding the whole article. These former employees blame everyone and everything under the moon, but themselves. I don't doubt their stories though.
 
win 10 installs fell short from projection ? that doesn't sound right unless they had unrealistic projections.

Windows 10 installs among people who can run something a bit more intensive than solitaire is probably not quite what Microsoft is hoping for.

The steam hardware survey might be miss leading in that regard as you cant work out who is running windows 10 AND got enthusiast class graphics hardware.

As for Minecraft, it's very possible the underperformance comment relates to the windows store version.
 
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

Is this still true, surely for the 360 to reach over 80M sales must have sped up. Are Xbox One sales not around 20M
 

LewieP

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.
 

xabbott

Member
Other than the Halo 5 projections none of the other ones seem anywhere close to reality. It would imply they expected to sell as many consoles as Sony which wouldn't be reasonable. Even if MS kept it's 360 lead in the US it would have still been behind Sony and they wouldn't be 2x the amount of xboxes.

The Windows 10 installs have been going as well as they can. Probably way more than most expected due to the basically deceptive manner in which they are getting people switched over.

Minecraft continues to sell consistently and its merchandise continues to fill the toy sections of big box retailers. I think a lot of people expected more of a decline without a sequel vs what we have now.

Finally the idea that Lionhead would be saved if Microsoft was willing to give up the Fable IP is a bit of a leap. When Sony shutdown Evolution Studios it didn't stop Codemasters from snatching up the talent.
 
Holy. Halo 5, Xbox sales, and Minecraft all below??

It's crazy that they expected twice as many Xboxes on the market. Failing to meet that must put a lot of things in perspective. Perhaps the ex-employee was carelessly exaggerating?

I feel like Minecraft can get a big jump with a sequel... but that would never happen, would it? A "Minecraft 2" sounds like it would piss a lot of people off. It seems to continue to sell well, but it's a PC game, unless MS can make the Xbox version equal to the PC version.

As for Halo, it was never going to reclaim its old glory. But I'm surprised that it's way off from their expectations. What exactly did MS expect?
 

D4Danger

Unconfirmed Member
People don't get the type of returns corporations want when acquiring things.

And also as impressive as 50 million is(sold since acquisition), with the price range that minecraft goes for thats probably "only" $500million, without taking into consideration costs.

for something like $2billion, you expect 2 or 3 times your return within 3-5 years, at that rate your not going to get much of a return.

that's just the game though. Minecraft has a ton of merch and in-game stuff which you have to assume they get a fair cut of. Also there's deals like that Nintendo pack on the Wii U. Anyone who thinks Minecraft isn't raking it in is mad.
 
that's just the game though. Minecraft has a ton of merch and in-game stuff which you have to assume they get a fair cut of. Also there's deals like that Nintendo pack on the Wii U. Anyone who thinks Minecraft isn't racking it is mad.

Yeah i'm not saying its not racking it in, but its not taking it in at the speed these corporations want/expect, for another example, see Disney infinity making money, but not enough money.
 

Audioboxer

Member
That blame rest entirely upon Don Matrick. I hope he is happy having basically destroyed all the progress Microsoft made with the 360. I would have never expected myself to go Sony, and I'm still bitter at them about the Dreamcast. But Sony simply has the best videogame consoles on the market right now.

Big Don absolutely destroyed MS. I mean, seriously. I'm sure he had many on board behind him but jeez what a fucking wrecking ball that keeps on giving even now.

I've always thought paying Notch what MS did was completely ridiculous as well. They got played. Even if making a profit talk about a resource hog and time commitment to turn that transaction deal around.
 
People don't get the type of returns corporations want when acquiring things.

And also as impressive as 50 million is(sold since acquisition), with the price range that minecraft goes for thats probably "only" $500million, without taking into consideration costs.

for something like $2billion, you expect 2 or 3 times your return within 3-5 years, at that rate your not going to get much of a return.

That's not how it worked they only needed Minecraft to make 25 million in cash in order for it to break even on a GAAP basis

"Well, $2.5 billion, the interest on that is just $25 million a year. When they say break-even they don't mean they're going to get $2.5 billion back. That's sunk cost, they don't care. They're talking about from a GAAP reporting perspective - EPS Microsoft Corporation - they will make more from Minecraft than they lose from not having that money in the bank, generating interest ..."

Minecraft is already a profitable venture for them.
 
I'm in oil & gas. The business division I'm in is making a LOT LOT LOT of money.

Everyday is a fucking disaster because every division is under-performing according to expectations. It doesn't fucking matter if we're profitable because we answer to our CEO who answer to shareholders.

Something can be very successful and still be "below expectations". Big-investment items have high expectations.

See, as a business major, this is interesting to me. When we did Performance Evaluation using Variances in Accounting, it was stressed the setting standards that were unrealistic did a lot more damage than needed.

So my thing is, what is the nature of the projections being placed on IP and ... is common sense not being used? Do they not have analysts in these meetings evaluating the downward or upward trends in market reception/brand engagement/sales performance data and making extrapolations based on that data?

I'm just interested in the science, mang.
 

Guevara

Member
I don't know if I'm inclined to entirely believe this.

I don't doubt that MS isn't happy with performance, but this sounds like people who were fired looking for reasons other than "no one wanted Fable Legends"

Yeah, this sounds more like shop-talk and post-hoc exculpation.

As for Minecraft in particular: they could have a bunch of discrete goals with Minecraft that aren't being met: Xbox One sales, or DLC tie rates, or whatever.
 

prwxv3

Member
Other than the Halo 5 projections none of the other ones seem anywhere close to reality. It would imply they expected to sell as many consoles as Sony which wouldn't be reasonable. Even if MS kept it's 360 lead in the US it would have still been behind Sony and they wouldn't be 2x the amount of xboxes.

The Windows 10 installs have been going as well as they can. Probably way more than most expected due to the basically deceptive manner in which they are getting people switched over.

Minecraft continues to sell consistently and its merchandise continues to fill the toy sections of big box retailers. I think a lot of people expected more of a decline without a sequel vs what we have now.

Finally the idea that Lionhead would be saved if Microsoft was willing to give up the Fable IP is a bit of a leap. When Sony shutdown Evolution Studios it didn't stop Codemasters from snatching up the talent.

There was a article recently about lionhead where it was said that employees there were shocked that evolution studios people were able to get hired so quickly.
 

Zedox

Member
So all in all, I can blame Phil Harrison for not having a Fable 4 and then he goes on and leaves Xbox. That fucker.
 

gamz

Member
People don't get the type of returns corporations want when acquiring things.

And also as impressive as 50 million is(sold since acquisition), with the price range that minecraft goes for thats probably "only" $500million, without taking into consideration costs.

for something like $2billion, you expect 2 or 3 times your return within 3-5 years, at that rate your not going to get much of a return.

They didn't buy Minecraft for huge profits. They bought Minecraft because it's a tireless brand. It's a platform for kids to grow up on a MS product.
 
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.

Make you wonder if Minecraft 2 happened, they would release it on many platforms as possible or just MS platforms.
 

Chris1

Member
People don't get the type of returns corporations want when acquiring things.

And also as impressive as 50 million is(sold since acquisition), with the price range that minecraft goes for thats probably "only" $500million, without taking into consideration costs.

for something like $2billion, you expect 2 or 3 times your return within 3-5 years, at that rate your not going to get much of a return.
Where are you getting $500m? 50m*$15 (after 30% cut) that's $750k, and it should be more than that since they get the full $20 plus the $30 editions on WiiU/Xbox/Etc.


They'll make it back whenever they plop out a sequel, I'd hope MS didn't expect to make 2-3x it back in a few years on the same game.
 

ethomaz

Banned
Microsoft bought Minecraft in September 2014, and in June 2014, Minecraft was about to hit 54m. Since then, Minecraft has almost doubled.
It is not like that.

You have a time after the purchase to change the management of a company from one hand for another hand... after that MS needed some time to make a new Forecast and then show what they expected from Minecraft.

I think the first Forecast for Minecraft after MS was made for the next fiscal year... that means for July 2015 to June 2016 (that is my guess part but it is reasonable to think that).

So after July 2015 how much Minecraft sold?

That is the mistake you did here... you based the sales in a old new... 54m is too old to be used to gauge expectations.
 

Lucifon

Junior Member
There is more than enough Xbox's and Windows 10 machines out there for a F2P audience. Making a game noone wants however is a bigger problem for reaching an audience. (Not the devs fault, I actually thought the game was pretty fun, but it's obvious what everyone wants from the Fable IP)
 

Gurrry

Member
Make you wonder if Minecraft 2 happened, they would release it on many platforms as possible or just MS platforms.

This is what I dont get. You go buy Minecraft for a gajillion dollars then just repackage it in different ways for your platforms when there is already enough versions out there to suffice. For instance, the regular minecraft pc version vs the windows 10 version.

If youre gonna buy the biggest IP in decades, you might want to do something with it like make a sequel.
 
It sounds like MS has unrealistic expectations about all its products and thats probably because of a mentality that desktops and laptops will contunue to grow in sales when that hasnt been the case in years.
 

gamz

Member
This is what I dont get. You go buy Minecraft for a gajillion dollars then just repackage it in different ways for your platforms when there is already enough versions out there to suffice. For instance, the regular minecraft pc version vs the windows 10 version.

If youre gonna buy the biggest IP in decades, you might want to do something with it. Like make a sequel.

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

Zedox

Member
He gave Sony PS Home and then left. Guy gives no fucks lol.

I remember that too. I had fun in Home as well and wanted to see what else they would do with it. Man, fuck that dude. I can only hope for a Fable 4 in like 5 years. Hopefully Sea of Thieves can be successful.
 

ethomaz

Banned
It's sold like 50m copies since Microsoft bought it.
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.
 

Chris1

Member
This is what I dont get. You go buy Minecraft for a gajillion dollars then just repackage it in different ways for your platforms when there is already enough versions out there to suffice. For instance, the regular minecraft pc version vs the windows 10 version.

If youre gonna buy the biggest IP in decades, you might want to do something with it. Like make a sequel.
I'm sure a sequel is coming but at the same time you have to be careful to not damage the brand either, when the game is selling 50k a day would you release a sequel?

I wouldn't be surprised if they're already working on it just waiting for sales to slow down before they announce it.
 
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

Windows 10 <> Windows store, and x1 will fall way below 360, way below......
 
For some Windows 10 context, MS said they're hoping for 1 billion W10 devices by 2017/18.

One year in, despite it being free to upgrade on many hardware... we're at 200 million.

From an outside-in perspective, 200 mil makes sense for where MS is at.

But clearly they don't think that way. To them, their competition is Facebook, Whatsapp, Google, etc which boast billions of users. That's why they're super aggressive to push upgrades.
 
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.


They have sold roughly 30 million copies since then
 
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