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

MilkyJoe

Member
?

They still making and selling vitas while letting that part of the company fade quietly into oblivion. The point is, it takes sony years and years to exit something. MS cuts things off like a highly caffeinated civil war doctor.

I honestly thought it was dead. well there you go.
 
Not really because it's their main product.

The Xbox console is nowhere near being Microsoft's main product though.

Why wouldn't they just continue selling the boxes they have, say they'll have continuing support, and just not make a new box?

It's a very plausible scenario.
 
Decline in a business is almost always considered a pretty big deal, and even stagnation can be damning. This is doubly true when you consider how bullish Microsoft were on gaming's growth this generation; while we can assume the "1,000,000,000" units sold prediction was a flight of fancy on the part of a particularly incompetent individual, it obviously came from a place of overwhelming optimism about the growth potential of the sector given China opening as a market, and proper expansion into South America and other parts of Asia.

There was no one at Microsoft who was being promised an even keel and revenue stagnation going into this generation. That's not what they spent the enormous R&D costs of the XB1--how much was the controller alone, again?--in hopes of achieving. There probably aren't many people there right now who are going to be very happy with that outcome.

It still baffles me not just how delusional Microsoft were at the time but how they even got there in the first place. All it took was a couple of great years thank to the Kinect and a narrow lead over Sony and suddenly their shit didn't shine. It was bizarre.
 

wapplew

Member
That's a big if.

Scorpio is either gonna make it or be the end of xbox.

Nah, Scoripio won't be the end, they are making Xbox console like steam box. Making console with on shelf part isn't too much cost for R&D.
Windows phone is more dire and they still making new phones. Surface, phones, Xbox, all just part of the devices in different form factor for Windows10.
 

Sydle

Member
It still baffles me not just how delusional Microsoft were at the time but how they even got there in the first place. All it took was a couple of great years thank to the Kinect and a narrow lead over Sony and suddenly their shit didn't shine. It was bizarre.

They had a huge lead over Sony in NA that never really narrowed. Sony caught up in total sales because of the rest of the world.
 

Zedox

Member
Nah, Scoripio won't be the end, they are making Xbox console like steam box. Making console with on shelf part isn't too much cost for R&D.
Windows phone is more dire and they still making new phones. Surface, phones, Xbox, all just part of the devices in different form factor for Windows10.

They (MS) aren't making Windows Phones (when I see a surface phone, i'll believe it). Partners are though and if that's what you meant then I'm sorry, I'm wrong.
 

Sydle

Member
They (MS) aren't making Windows Phones (when I see a surface phone, i'll believe it). Partners are though and if that's what you meant then I'm sorry, I'm wrong.

Surface Phone is happening, there's no doubt about it. Just a few months ago Nadella said they aren't done with phones, but he said he wants them to be category defining, like the Surface was, and focused on the Continuum capability.

The rumors from multiple insiders right now suggest it will be business focused.
 
April to June?

When all the rumors about a new model where everywhere?

As a matter of fact, my little brother wanted to buy an Xbox in May. I told him to wait after E3 because there were strong rumors a new model was coming. He did wait but he ended up buying the console because he found a good deal a few days ago since it seems many stores want to get rid of the old models.

Let's see how things develop the next months.
 

Papacheeks

Banned
They (MS) aren't making Windows Phones (when I see a surface phone, i'll believe it). Partners are though and if that's what you meant then I'm sorry, I'm wrong.

I THOUGHT the Lumia 950 was their own brand of phone DUde? So they have their own windows phones. I mean they showed the lumia's off at their March/April summit they did when they showed off surface laptops.
 

LordRaptor

Member
The rumors from multiple insiders right now suggest it will be business focused.

There is a legitimate unfilled niche for a blackberry successor phone aimed at business; physical keyboard, built in encryption systems for traffic, easy connectivity with Exchange.
Techblogs would rip it to shreds immediately for not being 'cool', obviously, but MS is not a 'cool' company. They're a company with enterprise trust.
 
As a matter of fact, my little brother wanted to buy an Xbox in May. I told him to wait after E3 because there were strong rumors a new model was coming. He did wait but he ended up buying the console because he found a good deal a few days ago since it seems many stores want to get rid of the old models.

So it was YOU! It was all your fault!
 

CCIE

Banned
You might need to understand the Fiscal year for many companies does not follow the calendar year - I know that is the case for MS. This is very recent news ... and it isn't good for the Xbox division to be called out by the higher-ups
 

DeepEnigma

Gold Member
Well I generally only look at the first page and then tab threads I an interested in... Eg new hardware and Star Wars, at the moment.

I understand. They are usually on the first page, often.

But if you are also not looking for it, they can easily be missed I suppose. Just saw a new one for a Macross (Robotech) game today.
 

Kleegamefan

K. LEE GAIDEN
So will Neo and not everyone in the gaming community/xbox fans is going to go build a gaming pc...believe it or not there are people out there who don't care about PC gaming, what's your point?

The difference between Neo and Scorpio is that thanks to Microsoft's Play Anywhere initiative, you will be able to play 100% of all future Xbox games on the PC. Indeed, compared to Scorpio, you will be able to play even prettier versions of those games if your PC is up to the task.

On the other hand, if you are interested in the new God of War or Horizon or the new Spiderman or Days Gone, you will need a Playstation 4 for this.

A subtle, but important distinction.
 

MilkyJoe

Member
I understand. They are usually on the first page, often.

But if you are also not looking for it, they can easily be missed I suppose. Just saw a new one for a Macross (Robotech) game today.

Nae bother. Lots of work on lately, my loafing quota has gone right through the floor.
 

Zedox

Member
Surface Phone is happening, there's no doubt about it. Just a few months ago Nadella said they aren't done with phones, but he said he wants them to be category defining, like the Surface was, and focused on the Continuum capability.

The rumors from multiple insiders right now suggest it will be business focused.

I know that it's coming...but at the same time, that's spring 2017. I know all what Nadella said. It will most likely be very similar to the HP Elite x3.

I THOUGHT the Lumia 950 was their own brand of phone DUde? So they have their own windows phones. I mean they showed the lumia's off at their March/April summit they did when they showed off surface laptops.

Yes it is. I own that phone. Yes, they have it but they aren't making any right now. The 650 was the last phone that they revealed. Nothing since then and nothing until the surface phone. Since the 950, everything has been fluff and even including the 950 (and I love my phone). They won't be serious until the surface phone.

But anyways...gotta get back on topic.
 

Bgamer90

Banned
The problem is that the number of people that actually use the Windows Store is so small that adding it as a platform will probebly cost more than it will ever earn.

The point of Xbox Anywhere is to try to get people to actually use the Windows Store, not to increase individual title sales.

And I think having titles that are bigger/"AAA" console quality instead of simply small mobile-like titles & apps will help with that.

It makes sense. It's UWP. Who cares about UWP. That's the point.

But people can "care about" (in this case, use) UWP if it has a game (or multiple games) that they are interested in.
 

anothertech

Member
Yes it is. I own that phone. Yes, they have it but they aren't making any right now. The 650 was the last phone that they revealed. Nothing since then and nothing until the surface phone. Since the 950, everything has been fluff and even including the 950 (and I love my phone). They won't be serious until the surface phone.
I also had a Lumia, it was a great phone. unfortunately the apps I absolutely needed for work were never released on the Windows store.

I think that is the main issue with their mobile products across the board, is the availability of apps and the issue with no developers making their store a priority.

It will likely be the same with surface phone.
 
This is odd, isn't it? Given that the new, most likely not heavily discounted XBOX One S arrives?
Yeah, kind of surprising they don't expect the SlimBone to really increase revenues…


The Xbox console is nowhere near being Microsoft's main product though.

Why wouldn't they just continue selling the boxes they have, say they'll have continuing support, and just not make a new box?

It's a very plausible scenario.
Indeed, Phil seemed to indicate there wouldn't be much need for another XBox after Scorpio when he talked to Polygon about inflection points.

"You and I lived through the transition from standard def to high definition, and that change was obvious to people. We're doing more work on PC and I see the change to 4K resolution and some of the capabilities there, and that's what we picked, to make 4K a design point for this box. So if we can't hit true 4K this year, let's not do it, even though that would have been easier. We said let's do it next year, because it's really part of this vision of trying to create this cross-platform vision of games across Windows and console to define entry points for people. If I'm a customer with a 1080p TV, you should go buy an Xbox One. That's a great box for a 1080p television, and there's no reason to go buy something that supports 4K right now. If you got a 4K television, we've got a box coming for you. If you just play on Windows, we want to make sure we're investing in it fully if you're not on console. That vision we've been talking about in pieces."

So, Bone is "great" for 1080p, and Scorpio is being held until it's similarly great at 4k. Presumably, the box after that would be targeted at 8k gaming, whenever that happens…


There are those who said Xbox One would be the end of Xbox as well.
Wasn't it? /rimshot


Nah, Scoripio won't be the end, they are making Xbox console like steam box. Making console with on shelf part isn't too much cost for R&D.
Windows phone is more dire and they still making new phones. Surface, phones, Xbox, all just part of the devices in different form factor for Windows10.
If that's the case, what's the point in actually manufacturing the boxes themselves? Seems that if XBox is going to be a steam-style box, MS would just license the XBox brand to PC manufacturers who meet some minimum performance spec. Hell, at this point, "Project Scorpio" is literally nothing more than a vague performance target as it is. Who knows what it'll actually turn out to be.
 

Zedox

Member
I also had a Lumia, it was a great phone. unfortunately the apps I absolutely needed for work were never released on the Windows store.

I think that is the main issue with their mobile products across the board, is the availability of apps and the issue with no developers making their store a priority.

It will likely be the same with surface phone.

Yep. Apps have been the main reason why their phones never "made it" and the reason why Windows Store isn't doing anything right now. I agree with you.
 
I would be all for Xbox just being a branded PC with gaming performance in mind. Atm, there just isn't any room for PS and Xbox in my house, the consoles are just way too similar. Since I've gotten out of high school I haven't cared about the odd exclusive I miss out on by choosing one platform over the other. I don't have 10-12 hours of free time a day to dedicate to gaming, and the software library is just too similar to justify both so I'm gonna go with the most appealing box.

Perhaps not the best comparisons but in gaming world it feels like Nintendo is Apple, you get their hardware to play their software and the best software comes from them.

On the flip side it's like both PS and Xbox are essentially there to play everyone else's software. Sony's a little stronger in first party diversity, but still essentially a box where 3rd party stuff shines. So they are both trying to be Android, and IMO you just don't need two consoles doing basically the same thing.
 
What is this thread shitting here?
After you climb out of the backseat, you may want to reconsider what he's saying. MS has known for ages that the Xbox division has been in decline, so developing/announcing new hardware would be a legitimate tack to take in an attempt to reverse their fortunes. Announcing Scorpio this far in advance is absolutely a desperation move.
 

Pif

Banned
There are those who said Xbox One would be the end of Xbox as well.

Satya killed windows phone.

Xbox doesn't get a free pass on bad financial performance because of keyboard warriors.

Xbox can very well be another Steam, Microsoft goes 3rd party and software only: their strengths.
 
Do developers already work with scorpio dev kits or is this console still a concept?

Haven't heard of any.

Seems that if XBox is going to be a steam-style box, MS would just license the XBox brand to PC manufacturers who meet some minimum performance spec. Hell, at this point, "Project Scorpio" is literally nothing more than a vague performance target as it is. Who knows what it'll actually turn out to be.

Exactly. The concept is fairly open ended at this point. Maybe it's a new console, maybe it's something else.
 

Sydle

Member
If that's the case, what's the point in actually manufacturing the boxes themselves? Seems that if XBox is going to be a steam-style box, MS would just license the XBox brand to PC manufacturers who meet some minimum performance spec. Hell, at this point, "Project Scorpio" is literally nothing more than a vague performance target as it is. Who knows what it'll actually turn out to be.

The same reason they make things like Surface Pro (2-in-1 convertible) and Surface Book (laptop with a detachable screen), and presumably the Surface Phone with Continuum (phone that can be a PC), to create examples of category-defining hardware showcasing what Windows can do that other manufacturers can follow.

I do wonder if Satya is applying the same category-defining criteria to the Xbox console as he did to their other hardware. Rumor is he killed the Surface Mini right before its reveal because it wasn't unique. It's hard to think of how they would make a video game console category defining without tying another Kinect-like noose around its neck.

Agreed that there's no telling what it is right now other than a few target specs.

Satya killed windows phone.

Xbox doesn't get a free pass on bad financial performance because of keyboard warriors.

Xbox can very well be another Steam, Microsoft goes 3rd party and software only: their strengths.

This would be great, but I don't think there's a chance of this happening as long as the Xbox division sits within the Windows division.
 
The same reason they make things like Surface Pro (2-in-1 convertible) and Surface Book (laptop with a detachable screen), and presumably the Surface Phone with Continuum (phone that can be a PC), to create examples of category-defining hardware showcasing what Windows can do that other manufacturers can follow.
Not really the same situation at all though. First, the tablet market dwarfs the console market, both in terms of user visibility and hardware sold. In the last six years, Apple have sold 308M iPads. By comparison, in the last twenty years, super-successful Sony have only sold 380M consoles. To put that in to more perspective, Apple's 308M sales have come in the span of what could reasonably be called a single console generation. In the three years that PS4 has been available and sold 40M units, Apple have moved almost 140M iPads. And Apple are only a quarter of the tablet market at this point.

Further, the markup on a Surface is nearly 100%. Someone argued that MS could try to position themselves as "the Apple of" console gaming. So I guess they figure on MS selling Scorpio for $800+ and/or games for $100? Apple survive as a boutique vendor — 5% of the market and 45% of the profits. I don't personally see MS pulling that strategy off, especially in the console space…

I do wonder if Satya is applying the same category-defining criteria to the Xbox console as he did to their other hardware. Rumor is he killed the Surface Mini right before its reveal because it wasn't unique. It's hard to think of how they would make a video game console category defining without tying another Kinect-like noose around its neck.
… and that's why. What category-defining have MS done in the console space beyond conference calls and paywalls? How will MS lure users in to their console boutique and persuade them to start paying Apple-like prices? "Just like Apple does," isn't an acceptable answer, BTW; if MS could be Apple, they wouldn't be MS. ;p
 

RexNovis

Banned
A bit OT I know but I was wondering, does anyone know what sort of cost UHD drives entail at this point? I'm curious about just how expensive they are and whether or not that is one part of the high debut pricing for the XB1S. If they are expensive then it might be that they have to keep prices up in order to avoid taking a loss on the HW.
 

Bastables

Member
No, they did not and I have no problem admitting to it. What also came to mind was Google in the IAAS cloud market. They aren't doing as good as Amazon or Microsoft in that market but I doubt that they would leave it nor not find profitability and a business there.



.

Yeah you have no problem admitting to it after the fact and then proceed to draw another long bow with IAAS references that is another market littered with dead providers and is coalescing around only the biggest providers. Competition can and does forces providers out of the market.

http://www.gartner.com/newsroom/id/3055225

Speaking at the Gartner Infrastructure, Operations and Data Center Summit in Sydney today, Gartner vice president and distinguished analyst Lydia Leong said the IaaS solution ecosystem is rapidly consolidating around a small number of market leaders.

"The sky is not falling — customers are getting great value out of cloud IaaS — but the competitive landscape is shifting," Ms. Leong said. "Few providers have the financial resources to invest in being broadly competitive in the cloud IaaS market."
 

CoG

Member
Surface Phone is happening, there's no doubt about it. Just a few months ago Nadella said they aren't done with phones, but he said he wants them to be category defining, like the Surface was, and focused on the Continuum capability.

The rumors from multiple insiders right now suggest it will be business focused.

Why? There's zero reason it make one. It has zero chance of adoption and Microsoft is literally a decade behind the smartphone industry. Unless it runs 100% Android it's a non-starter.
 

Sydle

Member
Not really the same situation at all though. First, the tablet market dwarfs the console market, both in terms of user visibility and hardware sold. In the last six years, Apple have sold 308M iPads. By comparison, in the last twenty years, super-successful Sony have only sold 380M consoles. To put that in to more perspective, Apple's 308M sales have come in the span of what could reasonably be called a single console generation. In the three years that PS4 has been available and sold 40M units, Apple have moved almost 140M iPads. And Apple are only a quarter of the tablet market at this point.

Further, the markup on a Surface is nearly 100%. Someone argued that MS could try to position themselves as "the Apple of" console gaming. So I guess they figure on MS selling Scorpio for $800+ and/or games for $100? Apple survive as a boutique vendor — 5% of the market and 45% of the profits. I don't personally see MS pulling that strategy off, especially in the console space…


… and that's why. What category-defining have MS done in the console space beyond conference calls and paywalls? How will MS lure users in to their console boutique and persuade them to start paying Apple-like prices? "Just like Apple does," isn't an acceptable answer, BTW; if MS could be Apple, they wouldn't be MS. ;p

Nadella said they're not making hardware for the same reason Apple is, they make it it to showcase Windows and create things other manufacturers can follow. That's why the hardware division is within the Windows division and not the other way around. At Apple I'm fairly certain the device design takes priority because that's where most of their revenue comes from. At MS most of their revenue comes from software and services. The comparison makes no sense.

Nadella's whole vision is about your experiences (and all the MS services you pay for) going with you across every screen in your life and the TV is still a major screen. He's acknowledged that gaming is the biggest life (non-business) category in terms of time spent and revenue, so they've got to have something there to get those MS accounts and Windows Store users.

Why? There's zero reason it make one. It has zero chance of adoption and Microsoft is literally a decade behind the smartphone industry. Unless it runs 100% Android it's a non-starter.

Probably because they want to see if they can gain traction with Continuum, or the idea that your phone can be a PC. That's all I can gather from what Nadella has said.
 

Shpeshal Nick

aka Collingwood
Satya killed windows phone.

Xbox doesn't get a free pass on bad financial performance because of keyboard warriors.

Xbox can very well be another Steam, Microsoft goes 3rd party and software only: their strengths.

Firstly, Windows Phone isn't actually killed off.

Second, let's say it is. It wasn't killed due to bad financial performance. It was killed due to having less than 2% market share.

Not only is the Xbox market share healthy, Xbox is needed for Microsoft as a brand. It's literally Microsoft's only link to a youth demographic and these organisations aren't stupid. A kid who grew up playing Xbox is more likely to buy a Windows PC later in life than someone who grew up on PlayStation. Especially if the foundations for a good ecosystem are in place, which Microsoft are currently doing, step by step.
 

RPGam3r

Member
They make very little on consoles. If people are buying the games on PC they still win.

MS don't really care either way as long as you buy their software.

This is a very narrow view on what losing a console does to MS. Losing the hardware sale is not important. Losing the Live subscription and the money made on all software sales in that ecosystem is important.

You're thinking only about their software.
 

Kaji AF16

Member
Firstly, Windows Phone isn't actually killed off.

Second, let's say it is. It wasn't killed due to bad financial performance. It was killed due to having less than 2% market share.

Not only is the Xbox market share healthy, Xbox is needed for Microsoft as a brand. It's literally Microsoft's only link to a youth demographic and these organisations aren't stupid. A kid who grew up playing Xbox is more likely to buy a Windows PC later in life than someone who grew up on PlayStation. Especially if the foundations for a good ecosystem are in place, which Microsoft are currently doing, step by step.

I agree.

Could the current Windows Phone situation become a worst-case scenario for Xbox? I doubt Xbox market share will fall, at least in the foreseeable future, to WP levels. Sony hasn´t the strength of Apple and Google, plus the Xbox ecosystem itself is becoming hardware-agnostic and could eventually survive without a dedicated device.

Lumia 720/630/650 and Xbox One user here, loved all of them. And waiting for Scorpio!
 

magnumpy

Member
scorpio represents an opportunity to change things in the console market, but I don't know we'll just have to wait and see how things work out. nothings guaranteed.
 
I agree.

Could the current Windows Phone situation become a worst-case scenario for Xbox? I doubt Xbox market share will fall, at least in the foreseeable future, to WP levels. Sony hasn´t the strength of Apple and Google, plus the Xbox ecosystem itself is becoming hardware-agnostic and could eventually survive without a dedicated device.

Lumia 720/630/650 and Xbox One user here, loved all of them. And waiting for Scorpio!
that bolded part may make you inherently biased then. Things can change dramatically gen to gen and Ms is only operating within U.S and UK marketplace, they are dying out just about every where else with Xbox and while Windows might dominante the workplace it holds little sway in consumer goods.

I wouldn't rule anything out.
 
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