550°

Xbox business sees operating income plunge 94% in Q1

Microsoft has announced its first-quarter earnings for the period ended on September 30, and the Entertainment and Devices Division, which houses the Xbox and interactive entertainment business, saw revenues roughly flat year-over-year at $1.95 billion while operating income dropped precipitously, down 94 percent to just $19 million, but at least the company remained in the black. Shipments of the Xbox 360 console dipped from 2.3 million to 1.7 million units for the period.

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gamesindustry.biz
Nawert4198d ago

Looks like people want the next gen.

omi25p4198d ago

Or maybe everyone who would buy a console already has one....

EVILDEAD3604198d ago

But wait till they get a load of Quarter 2.

Black Friday and Holiday sales on console

Windows 8

Halo 4

And now the word is Micrsoft Surface is selling out of the entry level model..

Looks like it might be an interesting quarter for them

Evil

lastdual4198d ago

Halo 4 will be small beans compared to what MS will make when Windows 8 launches next week.

thorstein4198d ago

Yay! I haven't read a doom and gloom article about consoles on N4G in at least 3 hours. I am so glad somebody submitted this. I was going through withdrawal.

doogiebear4197d ago

Or maybe it's because people want new exclusives, to not be charged for online, etc. PS3 sales are at an all time high. No complaints there from fans. However, next gen is still welcome too.

JONESY64197d ago

Probably the only people that still buy Xbox 360s are people that have to replace their RED RINGED Xbox 360.

EVILDEAD3604197d ago

The other news was that out of the report was that the 360 shipped 70 Million. The article failed here immediatetly.

But, it's interesting that the 360 will probably end up at 80 million+ before the curtain falls.

Just to show how big this holiday may also end up huge..Kinect is going to be hotter than ever this holiday because of the big screen.

I don't know how MS pulled it off...but I just came back from Paranormal Activity 4 and it was the biggest Kinect commercial I ever saw.

Kinect was literally intertwined into the storyline and they did something in ot that I didn't even know Kinect could do, but will be emulated by millions after everyone sees it this weekend.

This may be the last hurrah for the 360 this year before the next gen, but like the Wii they had a good run. It's time to move on next year.

Evil

Blacktric4197d ago

Listing Windows 8 and Microsoft Surface. One can't get more desperate than this.

MaxXAttaxX4197d ago

What does Windows 8 and Microsoft Surface have anything to do with Xbox?
How desperate can you get.

You did read that it says "Xbox", right?

abzdine4197d ago (Edited 4197d ago )

it didnt even sell half of what the PS2 did or PSone did, so talk about everybody has one.

@EVILDEAD360: What a braindead fanboy you are. you sound like a microsoft executive trying to promote his console. Comment about the 94% fall or shut up. Kinect is a fail, you are the only one saying good things about itthe technology is broken it works correct 1/10 times. Remember that hype about Kinect Star Wars ? One of the worst motion controls games ever. Nothing for the hardcore, only desperate chick stuff.

http://www.otakufreaks.com/...

Athonline4197d ago

@Evildead360

As a freelancer software engineer I know fora fact that most businesses won't adopt Win8 anytime soon. The costs of upgrading and most importantly training personnel for the new UI that Win8 uses is far greater than the advantages over Win7. Even people in the IT industry switch to OS X/ Linux. There is a decline in the PC industry.
For MS Surface, at the current price it won't be a blockbuster. The price isn't competitive enough to compete with iPad and other well-established tablets. Moreover Apple is bringing out a new, cheaper iPad... It will sell, but not much, especially now that MS confirmed Office is coming for iOS/Android.

Oh and the article was about X-Box, not MS in general!

EVILDEAD3604197d ago (Edited 4197d ago )

'What does Windows 8 and Microsoft Surface have anything to do with Xbox?
How desperate can you get.
You did read that it says "Xbox", right'

LOL @ desperate..you did read the actual ARTICLE right?

Which is refers not ONLY to the 'Xbox' like the title, but THEN goes onto talk about the current quarter, which I was referring to and mentions Micrsoft Surface, Windows 8, AND Halo 4.

Here's the quote from the 4 paragraph article, which I'm SURE you read but for you got all emotional and started pretending I was desperate..

'Microsoft as a whole announced quarterly revenue of $16.01 billion for the quarter with net income of $4.47 billion. The current quarter will be a crucial one for the company with the release of Windows 8, the Surface tablet, and in the Xbox space, of course, Halo 4.'

So wait it gets better..

'@EVILDEAD360: What a braindead fanboy you are. you sound like a microsoft executive trying to promote his console'

LMAO at this fankid starting his comment with..

Bu-bu-but 'it didn't sell half as much as the PS2' but then he tries to call me out?

Does the title or the article mention the PS2? Does the article even mention Sony?

LOL..So I guess I'm allowed to call you a 'braindead' fankiddie so desperate that he has to use last gen PS2 sales in an article about this quarters Micrsoft operating income.

But, if I do exactly what you did I'm wrong right? LOL

Edit

@ Athonline

'Oh and the article was about X-Box, not MS in general!'

LOL..the article is about the operatining budget of the Entertainment and Services division which houses the Xbox, but also produces Windows 8, Surface, Windows phone, the games form PC to Halo 4...you know..all the stuff I mentioned.

Also let me clarify from above when I said

'The other news was that out of the report was that the 360 shipped 70 Million. The article failed here immediatetly.'

I dont mean THIS article fails..I meant the other article that also talked about the shipment numbers 'Failed' as it didnt get approved. This article is fine.

Evil

abzdine4197d ago

that's an example i gave you.. you talk about everybody owns one so i gave you a counter example of what you say. could have been a Gameboy or SNES or PSP or whatever console that sold more.
Your nickname tells better what kind of a person you are and what your preferences are, dont try to play the objective guy just try to assume it.

" I just came back from Paranormal Activity 4 and it was the biggest Kinect commercial I ever saw "

Blacktric4197d ago

@Evil

See you in a couple of months after Windows 8 and Surface gets tanked.

DragonKnight4197d ago

@EVILDEAD360: Would you just give it a rest? Seriously. Your PR schtick is really old.

bangshi4197d ago

Quite correct.

Market saturation has occured/is occuring.

Thus, they need the next-gen to make sure their revenues do not continue to fall.

So the original commenter is quite correct.

ClimateKaren4197d ago

@Evildead360

How was what you said a reply to omi25p at all?

I don't know what is most nauseating about you, the fact that you'll just insert yourself wherever you're most visible, regardless of what comment thread you derail, the fact that you seem to think you will melt if any non-flattering fact about MS goes uncontested by you and your spin-machine, or the fact that you leave a signature on article comments as if someone is going to challenge the authenticity of your drivel. The only thing I'm certain about is that you come across as a really sad individual.

Yes, that was a personal attack, in case anyone is hovering indecisively over the button. Be fair though, and use that "not a reply" button when it's called for too.

bangshi4197d ago

@EVILDEAD360

Windows 8 is not housed within IEB... an operating system is hardly 'entertainment'.

Services within Windows 8 (ie. Xbox Music etc) are, but not Windows 8 itself. That has its own department.

+ Show (14) more repliesLast reply 4197d ago
dedicatedtogamers4198d ago

Yeah it's pretty common that profits drop significantly as a console generation comes to a close. But it'll shoot up (for everybody) around the holidays again.

mcstorm4197d ago

I agree. Sales always dip off in this quarter as there is not many big name games out. But Look what we have in the next 3 months. Forza Horizon, Halo 4, COD BO, MOH, NFS, Doom, Fable, Dance Central 3, Just dance 5, Asian's creed, FarCry 3 and Hitman are just a few that will help sell consoles plus add that to the Christmas rush I see Microsoft Nintendo and Sony having a good 3 months.

Britainz-Fin3st4197d ago

Also we are in a global recession showing no signs of slowing.

hellvaguy4198d ago

I want next gen, but to get what id like in hardware specs, at an acceptable price point for most gamers, its better to wait until next fall or the following year. Vesus rushing something out thats half concieved and not as powerful as youd like.

CraigandDayDay4198d ago

Totally agree man. I want some pretty powerful next Gen consoles. But I don't want to pay more than $400 or so.

kma2k4198d ago

Im just hoping my systems hold up until next gen, im sacred to use my ps3 since its an old 40gb fat the fans go into hyper loud almost all the time. I only touch it for exclusives anymore but it scares me to use it.

Barneyco4198d ago

It sounds like you need to get the thermal paste replaced. It made a world of difference on my 40gb fat ps3. Check gophermods.com, they did a great job on mine. Good luck

hellvaguy4198d ago (Edited 4198d ago )

The bearings on your fans are worn out and not getting proper lubrication is why they get loud when they are old.

Watch a youtube video and buy a $10-20 fan. Very easy fix, but a little time consuming to get inside game consoles.

kma2k4198d ago

@barneyco thank you i didnt know anyone offered a cleaning service i thought it was all after it broke kinda thing. Im gonna send my ps3 in asap! Thank you!

doogiebear4197d ago

Get a slim or superslim, it has a buttload of memory, however, if u want ps2 compatability, then nevermind

moparful994197d ago

I made the mistake of trying to clean my launch 60 myself.. I carefully took the system apart and memorized where every component, screw, wire and cleaned it carefully. While puttig it back together a wire that goes from the touch panel on the front to the blu ray drive was pinched by a screw and grounded it.. When I turned the system on it turned on fine then made a strange noise and red lighted... that was 3 years ago, but I have a slim now that runs phenomenally..

SirBradders4197d ago

@MOPARFUL99
I made a similiar mistake on my 60fat, it all happened when that date glitch happened a few years ago instead of just thinking it was a software problem I opened it up thinking I'm some repair guy forgot the plug was still on and tried undoing a screw latched on to the power pack somehow and let's just put it this way I got stuck to the screw driver for a few seconds and jumped up like a fairy lol then nerd raged battered it and had to buy a slim.

+ Show (3) more repliesLast reply 4197d ago
Ranma14198d ago

I used to be a sony fanboy.

But now I love my Xbox, PS3 and Wii.

But still i love the PS3 the most, although i play on 360 most because i have 100+ games on that

;)

shivvy244197d ago

lol at the haters disliking ur opinion

JellyJelly4197d ago

I dislike the fact that he's obviously pirating 360 games. Hence the wink at the end.

carlocgc4197d ago

I like the fact he's pirating Xbox games.

Britainz-Fin3st4197d ago

Can you guys tell me where you got your psychic powers from?
I have over a hunder 360 games and im no pirate.

+ Show (1) more replyLast reply 4197d ago
torchic4198d ago

Intel, Google, now Microsoft.

all the tech giants are posting weak earnings, so I don't think next generation has all to do with it, maybe a little bit

fermcr4198d ago (Edited 4198d ago )

Decrease in console sales is not surprising. Lot of people are waiting for next gen and Microsoft didn't release big hitters for that period.

Big hitters (Halo and Forza) are to be released this quarter, and Gears to be released 1st quarter next year.

After that i expect a new console announced at E3, and released October/November 2013.

Bigpappy4198d ago (Edited 4198d ago )

There a lot of gamers who are looking forward to next gen Xbox and PS, which will start next fall at least for Xbox. But the sales problem, I think, has more to do with the lack luster summer, as far as games are concern. The last new game I bought was ME3. I did finally pick up The Witcher2 for 360, but that was out for a while.

Remember, PS3's aren't exactly flying off the shelves either. The economy is still weak, and people will only spend money when you give them a good reason to (Halo 4). Watch those numbers shoot up this fall.

Britainz-Fin3st4197d ago

Hmm. IMO gamers who are waiting for the next gen already have a console.

Infact i doubt there are many people out there whom are thinking of buying a ps3 or xbox but deciding not to just because some un-anounced consoles maybe close round the corner.

Sales might be slowing down because of tough economic times, not everyone has disposable income at the moment with all costs soaring sky high.

Anon19744198d ago (Edited 4197d ago )

I expected 360 sales to be down roughly 40% again, because that's what they've been down all this year and that's also the dip we're seeing in the US. There's been nothing to change that. However, seeing profits for the EDD drop 94% was a bit unexpected. That certainly doesn't compute with the drop in 360 sales we've seen.

This article doesn't mention it but the reason for the drop in income is rather exciting. Microsoft has officially kicked their Xbox R&D department into full gear. While everyone knows the 360 was nearing the end of it's lifecycle, we haven't thus far seen the increase in spending that would indicate the next Xbox was full speed ahead. We're seeing it now, and if the Xbox 360's development is anything to go by, based on how quickly the 360 was released after the R&D suddenly kicked into high gear, I think it's now pretty much official. We'll see a new Xbox revealed at E3 and launched holiday 2013.

They're going to beat the next Playstation to market again as there's no indication in Sony's financials of an increase in R&D big enough to indicate a new console. Unless, of course, we see that increase in R&D spending in Sony's financials in a few weeks. If that's the case, next Christmas could be very interesting, but I somehow doubt Sony's ready for the next gen so soon, and PS3 sales aren't slowing nearly to the degree we've seen from the Wii or 360. 2014 is more likely.

hardcorehippiez4197d ago (Edited 4197d ago )

but i remember a while back that sony said they wouldnt be investing too much into r+d this time round as they already had done that with the ps3 and layed out the plan for the ps4 within that cost hence reusing bluray and cell. dont forget all weve heard so far have been rumour and speculation. if sony go with updated cell and faster br drive then they dont need to spend much on r+d there and didnt sony just buy out gaikai . thats a pretty big investment thats guaranteed to be used with the ps4. relax the ps4 is coming soon.

moparful994197d ago

You are doing an awful lot of speculating. For starters Microsoft would be foolish to release the next box so soon. Did they not learn their lesson after rushing the 360 to market and eating a 1billion dollar repair bill? They have an established fan base, however there would be far less tolerance of a console that fails at such a high rate.

Sony on the other hand thinks way in the future. A larger chunk of the R&D that was spent during the ps3 development was also intended to lay the ground work for the ps4. Blu-ray being the biggest component of that plan.. Now that blu-ray is established and the standard hd media it will drive down the development costs of the ps4 which tanslates to a cheaper price tag.. Sony will release at or around the same time as the next xbox...

pablo-b4197d ago (Edited 4197d ago )

nice post darkride.

but i think you are correct about the next xbox coming next year. i also think that they will beat sony out the gate because sony arent nowhere near ready.

sonys sales arent spectacular either! so i dont think that that is the reason. i personally think that sony just dont have the reslurces (money) to allocate towards ps4 r&d. or the board has not made it a priority, or they want the ps3 to return even more before they sanction a new console etc.. we just dont know!

when sony showed off some new i.ps this late into the cycle (not long in germany i think), it just smacked of "we dont have any plans for a new console anytime soon".

quite honestly, if sony give microsft and nintendo big headstarts, it could end up an absolute disaster for them.

i hope for the sake of console gaming that they dont!

DiRtY4197d ago

I expected these articles, but not from gamesindustry.biz

The Xbox 360 still makes enough money to compensate Windows Phone. That is the real news here.

They increased their R&D (Xbox 3), carried WinPhone and made 19 million USD.

MS as a whole and the Xbox business as well are by far in the best situation out of the three manufacturers.

KUV19774197d ago

All it needs is more Kinect-Titles :D

Edward754197d ago

The difference between MS and Sony.... Sales dropped but MS stayed out of the red. Sony cant get in the black.

morkendo234197d ago (Edited 4197d ago )

Shipments of the Xbox 360 console dipped from 2.3 million to 1.7 million units for the period

all the tech giants are posting weak earnings, so I don't think next generation has all to do with it, maybe a little bit.

Omnislash4197d ago

@EVILDEAD360

http://careers.microsoft.co...

Youre on the wrong site pal, why are you doing it for free when you can land youself a job spewing BS for Microsoft?

+ Show (13) more repliesLast reply 4197d ago
ChunkyLover534198d ago

Market is saturated, but we have to keep in mind that R&D and the Windows Phone count towards Xbox operations. The Xbox 360 actually makes profits on units sold.

Muffins12234198d ago

Yea,like 3 years ago,the new xbox slim is very durable and never gets RROD.... ignorant comment

palaeomerus4198d ago

R&D is "research and development" meaning spending money to develop new technology to be used in future consumer oriented products and services (like a new console possibly next year) not "Red Ring of Death".

So your 'ignorant comment' comment was kind of ignorant.

OC_MurphysLaw4198d ago

I am sure all the console makers are going to see similar numbers given how rough this year was for hardware sales.

Dungeoncrawler4198d ago ShowReplies(3)
unchartedxplorer4198d ago

But it's still a sharp drop. It looks like people are either hungry for next-gen. We'll have to wait and see if the ps are experiencing the same crisis

Show all comments (150)
280°

Xbox's Preservation Step Sets A Much-Needed Example, Especially For Nintendo

Hanzla from eXputer inquires: "If Xbox can care about preserving its games and legacy, what exactly is wrong with Nintendo, trying to kill game preservation single-handedly?"

purple1013d ago

Ahh yes the good old game preservation of saving all your games to a removable hhd on the Xbox 360, taking it round your mates house, setting up multiple tvs to
Be met with “save data corrupted, please re download”

Or how about removing 360 games
From the store
, download them now or else, and, better hope to god that save data doesn’t corrupt, or it’s lost for ever

Nice one ☝️

Zeref2d ago

It's better than what Nintendo and Playstation is doing. It might not be perfect but at least they are TRYING. Unlike the others.

DarXyde2d ago

Trying? Take off the blinders for a moment, mate.

1. A failure to preserve games is just that: a failure to preserve games. Don't try to sugarcoat it: NO ONE is doing it properly. Better than awful is nothing to write home about.

2. At the time of this comment, isn't it the case that you need an internet connection to play Xbox games even if you buy physical discs that are hardly in circulation anymore? I don't have a Series X and I can't verify, but I think that is correct. I'm fairly certain you can at least play PS5 games at version 1.0 (not much of a win really when many games require day one patches). I think Microsoft's all digital, licensing approach is by far more aggressive than anyone else's. They really try to push you to game pass where you lose your entire library by umm.... Skipping a month of payments.

I don't think anyone is doing it right whatsoever. Don't get me started on Nintendo, who goes after anyone looking to preserve their games better than they ever would with extreme litigation.

Don't be a simp for any of these companies. Get it together.

PhillyDonJawn2d ago (Edited 2d ago )

@DarX never speak on Xbox again. You lost all credibility with your internet connection comment. Smh you have 0 clue and misinformed yet speaking on something you don't no squat about.

Einhander19722d ago

What has Sony done exactly? You guys keep deflecting to Sony but I am not actually seeing any results, and ai am certain nothing that you can come up with even comes close to what Microsoft has done and what they have tried and failed to do, like tie all your disks to your account on xbone.

Microsoft removed their whole indie section when they moved to the xbone because they were going to only allow games on the service that came from a publisher, id@xbox started after xbone launched and it only exists because Sony embraced indie and Microsoft was forced to cancel their plans and reverse course.

And every single game that was part of games for windows live including disk games (I have gta 4 on disk that won't work) so hundreds of games that use that DRM no longer work unless the company themselves patched it out which of course very few did.

MrBaskerville2d ago

Not trying. Tried. they killed of the backcomp program years ago. They set something up again, but sounds like it's more of an attempt to save the current library on whatever they are planning next. With luck they save everything and more, but let's see. I could see them killing off parts of the OG xbox and 360 libraries. Can't imagine that they would allow us to play Forza 5-7 in the future.

With that said, I do like what they've done and really wish they could have done more.

shinoff21831d 23h ago

Zeref

So killing off physical media is trying what exactly. Ms don't really give a fk if you think they do your kidding yourself.

Profchaos1d 22h ago

They are not trying this team is established for forward compatability the team is. It interested in preserving Xbox or 360 games.

+ Show (3) more repliesLast reply 1d 22h ago
isarai3d ago

Is that why Hellblade 2 is digital only?

Zeref2d ago

Just because it's digital only doesn't mean you can't preserve it. Just put it on an external and you have the exact same functionality of what a disc does.

MrNinosan2d ago

Guess you're trolling, but if you actually think that's how it works, I'd recommend buying some braincells.

mkis0071d 14h ago (Edited 1d 14h ago )

Volitile vs nonvolitile data. A disc will not corrupt either. A drive can be corrupted.

Einhander19722d ago

This is just a scammy PR move to distract from the fact they are going digital only and trying to push streaming and subscriptions only.

No gaming company has pushed harder to remove ownership than Microsoft.

Without discs there is no preservation, preservation can't be done by the rights holders it can only be done by the consumers, anything else is a lie.

2d ago Replies(3)
Einhander19722d ago

Anyone remember xblig which Microsoft removed their whole 360 indie section removing hundreds of games from people?

2d ago
2d ago
Zeref2d ago

Do you know you can put your games on an external and preserve them that way? There are no benefits to discs. ZERO. Idk why some of you are still obsessed with them.

DarXyde2d ago

Because games like Persona 5 exist. It's STILL V1.00. On Playstation, that's a win because 1.00 is installed on the disc—no need to download anything.

If a game does not require any updates, it's all on the disc.

Extremely low bar in the modern era, of course. It's not much of a win by any stretch.

But for now, physical media does have a purpose, at least on Playstation.

Einhander19722d ago

That is factually not how game licensing works, try plugging your hard drive into someone else xbox, It's not going to work, and it won't work if the licensing servers ever go down.

Einhander19722d ago

Anyone remember games for windows live.

I have around a dozen games, some on Steam itself that will not work because Microsoft shut off the licensing servers.

BehindTheRows2d ago (Edited 2d ago )

I do. I STILL have games (Gears of War being the big one) I cannot access because Games for Windows LIVE is total garbage and no one has held Microsoft accountable.

Zeref2d ago (Edited 2d ago )

You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership.

Chevalier2d ago

"You don't have an Xbox apparently. Because you can 100 percent plug in your external and play games from it on any Xbox console lol. You just have to be logged in to prove ownership."

Damn how many times do people got to explain your idiocy to you? You can take a copy of Persona 5 like someone used as an example and play that game on ANY console WITHOUT logging in which means I can lend the game to a friend without internet and they can play my game. Can you lend your hard drive to anyone without logging in for them to play? NOPE. That is a huge difference and if you think otherwise then sorry you're an idiot.

Tacoboto2d ago

"No gaming company has pushed harder to remove ownership than Microsoft."

Ubisoft is literally erasing games people bought from their libraries... My PS1-3 discs are useless on modern hardware. Nintendo's re-published and resold almost their entire Wii U library, and the eShop is completely dead with no BC mechanism in the Switch software. Microsoft publishes everything they make today day one on Steam and Xbox/Windows. Sony only brings to PC the titles they think you might want some years later and Nintendo won't even design a functional long-lasting joystick.

You're absolutely trolling and not serious if you think Microsoft today is the worst offender.

shinoff21831d 23h ago

Yay steam

Not everyone fks with computers though. The disc is still the best way as a console player. Period.

Tacoboto1d 21h ago

How do Sony and Nintendo feel about these discs from 2001-2013?

Don't be stupid, you know Xbox is the best at this today.

+ Show (3) more repliesLast reply 1d 21h ago
Hofstaderman2d ago

Nobody wants this. Sales or the lack of it in the case of XBOX is very telling. I wonder how the adorably all digital series X will fare. Adorably dismal perhaps?

crazyCoconuts2d ago

Only time will tell, but for from someone like me suspecting that Xbox is trying to gracefully exit the console market, that "forward compatibility" team is trying to get Xbox games playing on Windows PCs. I mean, it's nice that they're not planning on exiting with a "enjoy your games while the hardware still works" message, so that's nice. They still have a brand to protect via Microsoft so probably feel obligated to have a better exit strategy.

Xeofate2d ago (Edited 2d ago )

That is not their plan, their plan is to transfer users accounts to the cloud.

Phil Spencer himself said as much a few months back, plans could have changed but I think people are reading way too much into one statement where Phil said he would allow Epic on xbox because he wants to be able to sell xbox games directly on other platforms. Aka, instead of selling Sea of Thives through PSN he wants to have an xbox store to sell his games on PlayStation without giving PlayStation any money.

Again, it's extremely unlikely that Phil plans to put PC on xbox and licensing would prevent them from just giving out other publishers games purchased on xbox copies of thier games on PC, Microsoft does not own their games.

crazyCoconuts1d 9h ago

The thing that doesn't align with the cloud strategy is the giving up on exclusives. You'd still need strong exclusives for cloud streaming - it's still a "platform" , just with a lower upfront hardware investment. I feel like they've learned what PS learned with PSNow long ago. We're not ready to stream games and it's only gonna lose them money to try at this point

FinalFantasyFanatic1d 17h ago

I would love that, I'd buy up some of the Xbox games if they could run on PC, like the Rare Replay, Lost Odyssey and Dead or Alive Ultimate, probably a pipe dream though.

Show all comments (43)
370°

Could Xbox Soon Become The Next Dreamcast?

Microsoft's future in the video game space is murky right now, so let's break it all down.

Read Full Story >>
thegamer.com
ApocalypseShadow15d ago (Edited 15d ago )

Not anytime soon. But they're on that path.

One thing not mentioned in the article is Microsoft's money bags. If Sega had Microsoft's money, they would have still been around as a hardware manufacturer. Xbox as a platform only survives because of the money bags. They can continue making consoles for the core and port to PC.

The multiplatform strategy is only the result of arrogance and misguided leadership that blew up in their face. They thought gamers would jump on Xbox in droves if they knew that many of their favorite games would be only on Xbox. But that's not happening at all. Sales didn't increase. They decreased. Why? Because the dumb asses thought giving away these expensively made games in a cheap service would also turn the tide.

Gamers on other platforms are willing to buy quality. They don't need to be handed nearly free games in a service that aren't even finished and sometimes average in their development. Gamers buy Nintendo games. They buy Sony games. Microsoft groomed their base to not buy games. Even the quality ones. It has always been their plan to go digital. But most gamers still like single player gaming. Still like physical releases.

Microsoft's problem has always been that they don't produce high quality games at the same output as Nintendo and Sony. Actually, they should be producing quite a lot more because they're worth over 2 TRILLION. How they don't have more is ridiculous and no excuse. Buying publishers to take away from competition only backfired. Because it still takes millions of dollars to continue to make those games from the publishers they snatched. Their only choice was to crawl back to their competitors to help sustain those developers because Nintendo and Sony platforms were the ones buying games.

Am I sorry for Microsoft? Hell no! They deserved last place for putting in the least effort. They deserved the fallout for buying up the industry and didn't make a single blip on the radar against their competitors where they now need those same gamers they took away games from to support them. Part of it may have been to cash in on their competition. But the result is the slow death of their platform. They may go 3rd party. They may keep making hardware. I don't give a shit about them to worry about it. I only give a shit about the destructive nature of their industry moves that only negatively affect gamers. They could sell and drop out of the industry and I wouldn't blink. Probably laugh. But not blink. They deserve whatever comes to them. At least Sega put in the effort when it came to games. They just had poor leadership. Microsoft has poor leadership and barely makes memorable games. That's a killer combination. And not in a good way.

Cacabunga14d ago

That would be an insult to Dreamcast.. it had a crazy line up of legendary critically acclaimed games.

Crows9014d ago

I was thinking the same. Dreamcast had incredible games in such a short amount of time. It was truly exceptional.

darthv7214d ago

...and yet all those great games were not enough to sway people from the looming release of the PS2 at the time. Sony just has that kind of brand loyalty.

Cacabunga14d ago

Darth

I do not agree.. Sony had even better games thanks to an unprecedented 3rd party support..
DC had amazing lineup but 90% were arcade games..

88314d ago

@darth:
And Sony showed off "The Emotion Engine" and their real time demos that made everyone think they would miss out on REAL next gen 128bit magic if they jumped in before PS2s polygon pushing monster (and early lack of anti-aliasing with a healthy heap of shimmer + DVD playback) stepped up. PS2 was a fantastic system though with amazing games.

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blacktiger14d ago

That's not true. Just because Microsoft has the money doesn't mean Microsoft can allow xbox to bleed entire Microsoft money. It doesn't work like they. Also SEC will be watching and investor won't allow it. Lot of reasons why Microsoft can not continue even if they wanted to. SEC regulations is expensive.

fr0sty14d ago (Edited 14d ago )

Exactly this... Microsoft is a publicly traded company, mostly owned by their shareholders (Approximately 59.24% of the company's stock is owned by Institutional Investors, 7.73% is owned by Insiders and 33.03% is owned by Public Companies and Individual Investors.). Their shareholders call the shots on the business decisions, and their shareholders want one thing and one thing only, for their stock price to go up. Losses do not make stock prices go up... so if the division continually posts losses on hardware, but shows profits on software and services (which has been the case with Xbox its entire lifespan, for over 20 years now), the shareholders are going to grow impatient and demand they stop making hardware and focus on the only thing that has ever made them money, software and services.

When Microsoft bought Blizzard and Activision for almost 100 billion, I knew that was the nail in the coffin for Xbox as a console... as the shareholders were going to expect a quick return on that investment, and when it didn't materialize, they were going to be out for blood... out to force Xbox to sell those games on as many consoles as possible, "and while you're at it, sell those first party exclusives that aren't selling well on other consoles as well... hell, just stop making consoles and sell games."

If there is another Xbox console generation, it will definitely be the last, but I doubt there even will be one at this point. I think the Xbox division planning on it just in case, but I don't think the project has been greenlit from Microsoft itself. The rumors that they have not yet even secured the chips needed from the chip fabrication facilities ties into this.

shinoff218314d ago

While I usually agree with you . Alot of what was said can just also be asked before any of that.

How long will the shareholders wait? It doesn't appear long at all

Babadook713d ago

I think I get your point. Like just because MS has money does not mean they are content to throw it away on a dying ecosystem. Xbox has to be profitable or “what’s the point?”

ifinitygamer14d ago

Money bags, yes, but are we ignoring that Xbox actually makes a profit on games and GamePass? Hardware is often a loss leader, and they're probably making profit 4 years into the life cycle, but games and services revenue have been very profitable while other parts of Microsoft's business is struggling. Say what you will about the quality of those games, of course, but this is kind of a reverse Dreamcast situation, where the console was dragging down the company and put it at risk of shuttering entirely. Killing that console saved the business and allowed it to continue to make games on multiple platforms. In this case, the service is very profitable, as are the games, and they're also double-dipping into Multiplatform to extend this further, while their hardware is just sort of what they believe to be the best for gamers and their own titles (whether that is the case or not...)

fr0sty14d ago (Edited 14d ago )

The issue is, they aren't selling enough hardware to make their exclusives profitable, and now that they've bought half the gaming publisher/dev industry, they have no choice but to go third party to make a profit... and that is making their shareholders take a real close look at their hardware division under the microscope... why keep making the hardware if the software is all that is making them money, and they continually, generation after generation come in dead last with hardware sales?

Look at a game like Spiderman 2... if it had been an Xbox exclusive, with the amount it cost to develop, it would have been a huge failure... simply not enough consoles out there to sell it on. They would have been lucky to break even.

ifinitygamer14d ago

@fr0sty agreed completely, which is why they're hedging by releasing other games to multiplatform, plus they have PC to make up for the difference in a lot of ways, which is why their games are not complete money pits. It brings up the question of whether or not those exclusives would drive sales of consoles, though. Let's say Spiderman 2 was an Xbox exclusive, it would certainly have pushed console sales, though who's to say how much is anyone's guess.

fr0sty13d ago

That's why you can't rely on just one exclusive, Sony has always delivered on a wide range of solid exclusives, even this generation (even if they haven't been strong on the first party exclusives, they've made up for it with third party). They don't rely on just one "system seller", they have a portfolio of them.

14d ago
JBlaze22613d ago

ApocalypseShadow To be honest Sony has more of a chance to go 3rd party because like you said Microsoft has money, Sony does not. Sony does not have games, Only games they have come from 3rd party. Sony has been losing money for years and you. Saying Microsoft has been putting the least effort just proves you have no idea what's been going on. All Sony has done is repeat and recycle, never innovating or doing something new. All Sony has is brand loyalty nothing else and it shows.

+ Show (3) more repliesLast reply 13d ago
LG_Fox_Brazil15d ago

Not sure about that. It's been two decades and I still think about Power Stone, Shenmue, Crazy Taxi, Jet Set Radio, Seaman and others, but I'm not sure I'll remember Xbox Series X/S games in a few years from now... Maybe I'll remember about the franchises that the Xbox brand spawned, but I don't believe that the Xbox Series lives up to the late Dreamcast or even to the Xbox name itself. I do have great memories about the 360 with Blue Dragon, Gears 2 and Lost Odyssey though

isarai15d ago

Nah, sega actually makes good games

Becuzisaid14d ago

No, Dreamcast was ahead of it's time and most still have very fond memories of it that had one. It also had some good games on it even in it's short lifespan. Xbox has none of these qualities.

Profchaos14d ago

I remember it coming out at the time in a really bad place they hit the market before the PS2 but it was during this transitional time when Sony was promoting the power of the PS2 and so many of the Dreamcast games were awesome but often third parties simply ported the PS1 version increased resolution and performance but rarely fully utilise the capabilities of the console.

I think in the end bad marketing done it in and like the GameCube so many people are fond of it now but at the time it was looked at in the lense of the day and it didn't stack up.

Personally I miss Sega in hardware they took risks that many companies won't

Becuzisaid14d ago

I never owned it, and got the PS2 right when it launched. But there were certain games it had that I was always jealous of that I didn't have access to - Sonic adventure, crazy taxi, power Stone, code Veronica, shenmue, skies of Arcadia. I always thought it was a really cool machine though. I've never heard a bad thing about it though from those that had it.

FinalFantasyFanatic14d ago

I only ever saw one Dreamcast, and that was one my friend owned, pity I never got to play it, I wonder what games he had for it?

It would be nice if some of those games got ported to modern systems.

Profchaos14d ago

Oh man sonic adventure on the Dreamcast made me so jealous as a huge sonic fan on the mega drive who also moved to PlayStation 2 I never got the chance to play it back in the day either. The Dreamcast in Australia where I am was always relegated to the smallest corner of EB Games it was kind of a strong first indicator that things were not going well at the time.

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Microsoft Rewards app on Xbox and weekly streaks to be killed off soon

Microsoft has announced the Microsoft Rewards app on Xbox will be discontinued in April and has confirmed that weekly streaks will also be coming to an end.

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