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VentureBeat: Microsoft’s Xbox and gaming sales decline 9%

wapplew

Member
Referring to the June NPD, but is it safe to presume of a hardware decline WW with the anticipation of the updated consoles?

Sorry, not sure what your saying. I'm just a bit baffled how the conclusion of all this is that they're going to leave the console race.

Oh, they are leaving the console race. Still in console business thou, just not the race.
They are trying to look for a different race.
 

etta

my hard graphic balls
Such wierd analysis surrounding BC. What do we think MS' expectations were? That BC Would overtake new games as the primary use of the console?

It's so weird, no matter what types of usage stats BC obtained, people would spin it as a negative...

Too much time spent = the new games aren't good enough
Too little time spent = the feature is useless

It makes no sense. Can't it just be good that people that want to carry their old catalog over to their new system have a means to?
Because of hyperbole.
Things can't be good or just ok. They gotta be the best thing ever or the worst.
 
If this trend continues, OG Xbox One will be cheaper than a brand-new 360 in a few months time.....Crazy

But there's no doubt in my mind that as a gaming machine 360 > One
 

ethomaz

Banned
Just because revenue has declined 9% even though hardware sales also declined for the PS4 as well in June?
Dropped 9% worldwide from an already bad 2015 April-June.

We don't have PS4 quarter yet to make comparison but remember PS4 did have a great quarter last year with Batman... even so I guess they will be UP due Uncharted and others releases.

Try to compared MS worldwide quarter with PS4 US month is silly.

BTW Sony shipped 3 million PS4 in April-June 2015.
 

W.S.

Member
Thanks, put it well for me. I didn't think about PC and how the apps with microtransactions would be under the same banner. Considering the uptake of W10 as well, that is alarming.

They really hurt themselves with the X1 didn't they. I wonder if they make any more ground with the Scorpio.
With the Windows store sucking, XBO's being discounted, and Quantum Break not doing to expectations it's understandable why they took a beating. However the XBO S and Scorpio show some promise in their future in the console space and if they fix the Win 10 store then Xbox brand can potentially go on an upswing.

Oh, they are leaving the console race. Still in console business thou, just not the race.
They are trying to look for a different race.

I was just about to chime in and say the same thing.

They're still producing consoles since that's probably their best platform to take advantage of their eco system in it's entirety, XBL Gold is definitely among their better revenue streams. But their play anywhere initiative on top of their steam releases certainly inches them that much closer to going fully multiplatform and they seem to be trying to distance themselves from the whole console race aspect at least with the XBO.
 

Cynn

Member
Man and I'm getting the 1S, all this talk here doesn't sound good at all

Kinda late to back out now since I already started buying games and they already passed the return date. Oh well
Don't let Gaf shape your shopping list when it comes to consoles. This is the same forum that guaranteed Sony's demise from the PS3 as fact for years until Sony proved a lot of people wrong.

We're enthusiasts not fortune tellers. The X1 is fantastic and you'll enjoy it.
 

longdi

Banned
As Apple, Sony, Samsung and Nintendo have experienced, all you need is one product hit and your fortunes will reversed.

I think if MS can make use of Scorpio stronger hardware and do something special, they can get back into the game easily. Neo and NX will be far behind Scorpio in power levels for the next 2-3 years, this is a big window for MS.
 

wapplew

Member
As Apple, Sony, Samsung and Nintendo have experienced, all you need is one product hit and your fortunes will reversed.

I think if MS can make use of Scorpio stronger hardware and do something special, they can get back into the game easily. Neo and NX will be far behind Scorpio in power levels for the next 2-3 years, this is a big window for MS.

Depend on what special something MS can do with the power. Games that look a whole generation apart from competition? Maybe possible if they cut tie with Xbox one.
There is nothing unique about Scorpio, it's an enhance Xbox one (for now). we know how the games will look like (on PC), there will be no wow effect on that front. Maybe price can be the wow factor, make it super affordable, like $399 or lower.

Nintendo is more likely to wow us at this point.
 

longdi

Banned
As Sony dominant victory with PS4 have shown, as long you make a great gaming system, you have a chance. A few years back, i vehemently said core gaming is 'dead', as in tablets/mobiles casuals will lead the way. But Sony have done the unthinkable with PS4.

As such, Scorpio's raw gaming power can lead MS to something beautiful. While Nintendo will search for their next Wii-like casual hit. Another worrying thing for me, is the spate of Sony big names leaving SIE of late. I wonder if it is a preempt of something brewing beneath SIE (aka another openings for MS).

I would not rule out Xbox division just yet...
 

Ascenion

Member
i'm sure this'll all change with scorpio

It could but is it really all that probable? I mean the thing has to be priced properly and marketed perfectly at this point imo. Honestly I would disassociate it from Xbox One as much as possible outside of backwards compatibility. I'd probably even change the game cases ala Kinect on 360 too. It's sad but Xbox One still has a lot of negative word of mouth at this point stemming from 2013. I'm hoping Xbox One S can do some work on the goodwill front before Scorpio drops.
 
I'm not. An enthusiast priced console is speaking to a smaller subset of the weakening xbox brand. Worldwide it will still fail to impress.
isn't it 2x more powerful than Ps4K? power is one of the things people always used in an argument as a crutch for why Ps4 was better than xbone.
For better or worse?
better
It could but is it really all that probable? I mean the thing has to be priced properly and marketed perfectly at this point imo. Honestly I would disassociate it from Xbox One as much as possible outside of backwards compatibility. I'd probably even change the game cases ala Kinect on 360 too. It's sad but Xbox One still has a lot of negative word of mouth at this point stemming from 2013. I'm hoping Xbox One S can do some work on the goodwill front before Scorpio drops.
i don't see how disassociating it from xbone will help. that'll confuse people in a similar manner that Wii U confused people with Wii, except that's what scorpio is supposed to be...and who knows? xbox could make a triumphant comeback. who really knows, you know. coz this iterative console shit really is the first of its kind in a generation
 

ethomaz

Banned
isn't it 2x more powerful than Ps4K? power is one of the things people always used in an argument as a crutch for why Ps4 was better than xbone
More like 40% more powerful or 1.4x.

The power in Scorpio/Neo won't be used in the right way because the gaming experience will be held by lower denominator PS4/Xbone.

PS4 did have nothing holding it to use the 40% more power.

And it was proved that one year head start do wonders even for week hardware... 2017 release is a big risk for Scorpio... one of 360 success was launching one year ahead competition.

If we are talking about Scorpio releasing this year then I could agree with you.
 

2thepoint

Junior Member
As Sony dominant victory with PS4 have shown, as long you make a great gaming system, you have a chance. A few years back, i vehemently said core gaming is 'dead', as in tablets/mobiles casuals will lead the way. But Sony have done the unthinkable with PS4.

As such, Scorpio's raw gaming power can lead MS to something beautiful. While Nintendo will search for their next Wii-like casual hit. Another worrying thing for me, is the spate of Sony big names leaving SIE of late. I wonder if it is a preempt of something brewing beneath SIE (aka another openings for MS).

I would not rule out Xbox division just yet...

Something nefarious is definitely happening at Sony. A couple of indie guys leaving and Adam Boyes starting an indie studio is definitely signs of impending doom at SIE.

.... Shivers
 

Trup1aya

Member
Oh, they are leaving the console race. Still in console business thou, just not the race.
They are trying to look for a different race.

This is a pretty accurate way to explain the situation.

They'll no longer be looking to sell the most consoles per generation (race) instead, they just want to have a very large installed base across all their platforms to sell software to.

Console hardware will still be a part of that equation, but shifting the most wont be a necessity for success.
 

tapedeck

Do I win a prize for talking about my penis on the Internet???
I'm not. An enthusiast priced console is speaking to a smaller subset of the weakening xbox brand. Worldwide it will still fail to impress.
Well you have no idea what Scorpio will be priced at, assuming anything over $399 is reaching. The modern gaming market clearly prefers the most powerful console option, PS4 dominance proves this, from every indication that's exactly what Scorpio is. At the very least I expect it to match Xbone marketshare and depending on how Neo is recieved Scorpio could be the clear leader till PS5/Xbox Two.
 

Lady Gaia

Member
isn't it 2x more powerful than Ps4K? power is one of the things people always used in an argument as a crutch for why Ps4 was better than xbone.

We won't have any real idea how they compare until we see titles running on both. Raw specs are useful but not always determinative. If the GPU compute units are the bottleneck it's expected to be 43% faster. If memory bandwidth is the limiting factor it's more like 50%. If texture units or ROPs wind up being a factor we have no idea. Likewise for CPU aside from a few wild guesses. All of this assumes they deliver on the announced specs, and that the leaked Neo specs are accurate.

So it could be a reversal of the 8th gen launch — except with one console arriving a year later this time, and good reason to expect the price disparity will also be reversed. In short: nobody really knows how it will play out, and it's definitely not directly comparable to the PS4/Xbox One launch.
 
How is announcing Scorpio a problem?

Are Sony sales slowing down? Because everybody knows Neo is on the way.

The fact is Scorpio isn't just the problem. MS have given people the options of buying a Xbox or building a PC and playing their games. That was always going to be a factor.
The move from xbox to Windows gaming will continue to cannibalized their console business, the problem being they probably don't have a viable strategy to take on Steam while conceding their console business.
 

jdmonmou

Member
I'm still not sure I like Microsoft's strategy to revive its gaming division partly because I don't trust the promises they made. The clarification they made with Xbox Play Anywhere and their declaration of "No Scorpio" exclusives when Scorpio is much more powerful than the Xbone make me cautious.

I think Microsoft should really be trying to lead on cloud gaming. I don't understand why they haven't made much progress on this when they own the Azure platform. For an Xbox Live subscription you could unlock any game you purchase on the cloud and stream to devices at ultra settings. That would be a game changer. I think I would rather pay a low subscription fee than spend hundreds of dollars on new GPUs every couple of years to stay current. I don't think Xbox PlayAnywhere or Scorpio is going to add much to Microsoft's bottom line.
 

wapplew

Member
Well you have no idea what Scorpio will be priced at, assuming anything over $399 is reaching. The modern gaming market clearly prefers the most powerful console option, PS4 dominance proves this, from every indication that's exactly what Scorpio is. At the very least I expect it to match Xbone marketshare and depending on how Neo is recieved Scorpio could be the clear leader till PS5/Xbox Two.


We know Neo will have one year head start, after that a high chance for price advantage and than there is NX wild card.
With all that said, we have no idea how big is this premium console market will be. It could be 10%, 30% of none premium market, we might be talking about 10-20m niche enthusiast market here. The main stream product is still PS4 vs Xbox one vs NX.
 

ethomaz

Banned
Well you have no idea what Scorpio will be priced at, assuming anything over $399 is reaching. The modern gaming market clearly prefers the most powerful console option, PS4 dominance proves this, from every indication that's exactly what Scorpio is. At the very least I expect it to match Xbone marketshare and depending on how Neo is recieved Scorpio could be the clear leader till PS5/Xbox Two.
PS4 success has little to do with being more powerful... that the mistake some do here.

Simultaneous release did wonders for PS4 and one year head start is way bigger deal than hardware specs for example.

In normal circumstances PlayStation brand will always sell more than Xbox brand... MS needs advantages like 360 had to put pressure and Scorpio won't have any of them.
 

Purest 78

Member
Well you have no idea what Scorpio will be priced at, assuming anything over $399 is reaching. The modern gaming market clearly prefers the most powerful console option, PS4 dominance proves this, from every indication that's exactly what Scorpio is. At the very least I expect it to match Xbone marketshare and depending on how Neo is recieved Scorpio could be the clear leader till PS5/Xbox Two.

Not true at all MS screwed up in just about every way at launch. You only have 1 shot at a 1st impression They gave Sony this generation. Power certainly isn't the only reason ps4 dominated.
 

tapedeck

Do I win a prize for talking about my penis on the Internet???
We know Neo will have one year head start, after that a high chance for price advantage and than there is NX wild card.
With all that said, we have no idea how big is this premium console market will be. It could be 10%, 30% of none premium market, we might be talking about 10-20m niche enthusiast market here. The main stream product is still PS4 vs Xbox one vs NX.

PS4 success has little to do with being more powerful... that the mistake some do here.

Simultaneous release did wonders for PS4 and one year head start is way bigger deal than hardware specs for example.

In normal circumstances PlayStation brand will always sell more than Xbox brand... MS needs advantages like 360 had to put pressure and Scorpio won't have any of them.
Of course head starts are certainly a big factor for overall market lead, but (if competively priced) I think Scorpio's significant power advantage will be a large draw next fall. PS4 is largely seen as the go to 3rd party console because games run better on it..that's where I believe the system still maintains its hold on the market.
 

MilkyJoe

Member
Except being the better console. Probably have the better VR too. All inconsequential, the new generation-less model does away with the head start thing every time a new console drops. Console war has gone cold, infinite (?) BC is about keeping people in the ecosystem.
 

jdmonmou

Member
Except being the better console. Probably have the better VR too. All inconsequential, the new generation-less model does away with the head start thing every time a new console drops. Console war has gone cold, infinite (?) BC is about keeping people in the ecosystem.
I think Microsoft is doing a stealth next-gen console release with Scorpio. "Beyond generations" is just spin to avoid pissing off people with Xbones.
 

MilkyJoe

Member
I think Microsoft is doing a stealth next-gen console release with Scorpio. "Beyond generations" is just spin to avoid pissing off people with Xbones.

If the same disk installs the game on both machines then it's what they said. If there are Scorpio only disks, then it's what you say.
 

wapplew

Member
Except being the better console. Probably have the better VR too. All inconsequential, the new generation-less model does away with the head start thing every time a new console drops. Console war has gone cold, infinite (?) BC is about keeping people in the ecosystem.

Let's see how this generation-less model do in the future.
One thing for sure, the excitement level for generation change is on another level.
 

MilkyJoe

Member
Let's see how this generation-less model do in the future.
One thing for sure, the excitement level for generation change is on another level.

Being able to play all my games in the future, a la PC, is awesome. I'm hoping they add OG Xbox too...
 

SOR5

Member
Let's see how this generation-less model do in the future.
One thing for sure, the excitement level for generation change is on another level.

Im getting certain that Microsoft isnt doing generations anymore but Sony might still be, and im not sure what kind of schism that would create. If one big company acts like generations dont exist and one big company acts like they totally do, I wonder how audiences will respond
 

Unknown?

Member
As Apple, Sony, Samsung and Nintendo have experienced, all you need is one product hit and your fortunes will reversed.

I think if MS can make use of Scorpio stronger hardware and do something special, they can get back into the game easily. Neo and NX will be far behind Scorpio in power levels for the next 2-3 years, this is a big window for MS.

Nah if Neo releases this year I don't think it'll have any impact. It will have a year head start and much more software. Being more powerful won't mean squat if they don't have games to back it. That's why PS2 steamrolled the OG Xbox despite it being more powerful.
 

MilkyJoe

Member
Nah if Neo releases this year I don't think it'll have any impact. It will have a year head start and much more software. Being more powerful won't mean squat if they don't have games to back it. That's why PS2 steamrolled the OG Xbox despite it being more powerful.

Scorpio will have all the same games you can buy on Xbox One the day it releases.
 

tr1p1ex

Member
MS shot itself in the foot early. The digital debacle. The unwanted/unncessary mandated addition of Kinect at the consumer's expense. The surprisingly horrible UI.

And then hardware that is the size of some graduate student's prototype.

To MS's credit, they've went about addressing their mistakes. They ditched digital early as in pre-launch even. Ditched Kinect within a year. Finally offered up a new UI 2 years in. And now they are finally addressing the other glaring error, the junior varsity hardware design. Sony's hardware was just so much more compact and sleeker from day one. It was consumer electronics worthy. The Slim is MS's answer to that.

They still have other problems. As someone mentioned Halo and GoW aren't what they used to be.

I haven't heard anyone raving about the new UI so not sure that still doesn't have problems.

And because of all of this they've had to make sure they are priced lower than Sony which is a hint that they aren't doing that great financially with the Xbox division.

The S should help, but is it enough? I'm not seeing it. Sony has momentum, and they got new stuff like the PSVR around the corner. MS's new stuff is, like everything else for them this gen, another year into the future.

*****
One thing hasn't been good at in the console business is making money. They can correct all their mistakes. But it taken lots of resources. I would not be surprised if MS is still in the red going back to the 1st day they entered the console business in the beginning of the century.
 
Well you have no idea what Scorpio will be priced at, assuming anything over $399 is reaching. The modern gaming market clearly prefers the most powerful console option, PS4 dominance proves this, from every indication that's exactly what Scorpio is. At the very least I expect it to match Xbone marketshare and depending on how Neo is recieved Scorpio could be the clear leader till PS5/Xbox Two.

PS4 is a stronger brand worldwide. That's why it's dominating. MS will see this firsthand. Again.
 

EmiPrime

Member
Microsoft are struggling to sell Xbox Ones at £200 so a £350 Xbox One isn't going to change their fortunes.

They need to ride things out for another 16 months and minimise any damage to the Xbox brand in any way they can until Scorpio comes out.
 
I see no indication of scorpio turning this around.

nor any indication that any version of the one will go anywhere much beyond the u.s/u.k. at any point this gen (at least not without some kind of extreme marketing campaign / super-deep discounting). no matter how powerful :) ...
 
nor any indication that any version of the one will go anywhere much beyond the u.s/u.k. at any point this gen (at least not without some kind of extreme marketing campaign / super-deep discounting). no matter how powerful :) ...

Exactly my point. It's a Hail Mary pass and there's no one but a subset of their core that's there to catch it.
 

Crayon

Member
nor any indication that any version of the one will go anywhere much beyond the u.s/u.k. at any point this gen (at least not without some kind of extreme marketing campaign / super-deep discounting). no matter how powerful :) ...

That is the issue. Without some strategy to start selling consoles in the rest of the world, nothing changes.
 

Trup1aya

Member
Exactly my point. It's a Hail Mary pass and there's no one but a subset of their core that's there to catch it.

I don't see the Scorpio as a Hail Mary pass at all. I equate that as being a last ditch effort to win the current game. They aren't attempting to shift generation's console race.

They are launching a device that will allow them to have one foot in this 'generation'AND the next, so that there won't be a need to 'reboot' their installed base when the xbox2/ps5 round of hardware arrives.
 

Shin-chan

Member
Microsofts biggest problem will forever be brand appeal on an international level. Because it just doesn't exist outside of English speaking markets. And whatever progress they made last gen was squandered at the start of this one.

I just don't think the organisation is willing to put down the resources necessary to develop the brand on this scale, either. It's not worth it for them and you can tell that they've cared less and less throughout the last 3 years or so (they have no European conference this year at all, just a fan event which is the same as they had for TGS 2015 lol). They made a half hearted attempt but it didn't do anything and now they're just going to focus on their core markets, being the US, UK then smaller areas like South America and the biggest of them all New Zealand.
 

Unknown?

Member
Scorpio will have all the same games you can buy on Xbox One the day it releases.

And? I know this but I'm saying it needs killer exclusives and needs a major ramp up on games coming to their platform. The big reason PS4 is doing better is a bigger, more varied line up of games. They can't continue this having three or four exclusives a year piled in during the holidays. They need more and be more spread out.

Just being more powerful doesn't make up for its lack of games in regards to the competition.
 

Moreche

Member
What I want from Scorpio is what Sony are doing with Neo.
I want Xbox one versions of games but with rock steady frame rates, better texture quality and 16xAF.
What I don't want is 4K versions of Xbox one games.
 

Zedox

Member
Microsofts biggest problem will forever be brand appeal on an international level. Because it just doesn't exist outside of English speaking markets. And whatever progress they made last gen was squandered at the start of this one.

I just don't think the organisation is willing to put down the resources necessary to develop the brand on this scale, either. It's not worth it for them and you can tell that they've cared less and less throughout the last 3 years or so (they have no European conference this year at all, just a fan event which is the same as they had for TGS 2015 lol). They made a half hearted attempt but it didn't do anything and now they're just going to focus on their core markets, being the US, UK then smaller areas like South America and the biggest of them all New Zealand.

Probably and from a business perspective that makes sense. Focus where you can be profitable and then branch out. We'll see if it works or not.
 

tapedeck

Do I win a prize for talking about my penis on the Internet???
PS4 is a stronger brand worldwide. That's why it's dominating. MS will see this firsthand. Again.
Lol you sound like a fanboy. This is videogames it ain't that serious.

And of course PS4 has the worldwide market, MS never has and never will lead outside the states it's not even worth mentioning. Still doesn't change my belief that I think Scorpio will easily match Xbone sales, probably far exceed it.
 
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