240°

Rick Sherlund owns Pachter – ‘Xbox is cool, but Microsoft has not made any Money off this’

Furious Francis from Playeressence talks about Michael Pachter, his inaccuracy as an analyst, and Rick Sherlund's take on Microsoft's income with the Xbox brand.

Read Full Story >>
playeressence.com
iamnsuperman3909d ago (Edited 3909d ago )

What is with the creepy conspiracy theory music....

Also I am not sure what argument you are making in this video. It is the same one point for 10 minutes over and over again. Also when you thought you one upped him by talking about E-shop sales, you completely missed the point. The E-shop did come too late. It should have been around when Sony and Microsoft showed off their stores. That was the point pachter was making. You theory that he is wrong because the store sales are soaring is just mind blowingly stupid. That still doesn't change the fact the store has only come in 2012 and not years ago (when these things were new)

AbortMission3909d ago (Edited 3909d ago )

Dude, playeressence is a Nintendo fanboy website lol that Furious Fanboy clown has been exposed as a fanboy by some guys on YouTube. This is the same guy who claimed Pikmin 3 is a "system seller" and also claimed that 3rd parties are "scared" of Nintendo. They're nothing but extreme pathetic fanboys trying to justify their purchase *cough* Buyers Remorse.

RicardJulianti3909d ago

Right because when Pikmin 3 released it didn't help move Wii U systems.

Try harder.

chadboban3909d ago

So then... what are you exactly? Every time I see you in the comments (I don't follow you around so I could be wrong about this) it's most of the time something negative.

AbortMission3909d ago (Edited 3909d ago )

Right because a measly 20k jump in console sales for a Nintendo game coming out with no competition is such a "system seller" Lol. I love how you fanboys downplay terms like "next gen" and "system seller" just to accommodate for the Wii u's lacking hardware/sales.

And I only comment "negatively" on fanboys.

chadboban3909d ago

"And I only comment "negatively" on fanboys"

Not from what I've read but whatever. I get so sick of these console wars anyway. They make grown ass folks act like damn children over which console is DA BEST. It makes me sick the way some of you behave.

BattleAxe3909d ago

Look out, Francis is on the war path!

Let's just get this out into the open. And just so people are aware, I have decided not to buy a next generation console at all, so I don't have a dog in this fight:

#1. Compared to Xbox Live and the Playstation Network, the E-Shop IS years too late. Both Sony and Microsoft have brand recognition associated with their respective market places and social ecosystems. Meanwhile, nobody outside of hardcore Nintendo fans knows what the E-Shop is, or even what the Miiverse is.

It's clear that when the Xbox One and the PS4 launch, all of the attention this holiday season will be focused towards Microsoft and Sony, but Sony in particular. At the end of the day when you look at worldwide numbers, the PS Vita is selling better than the WiiU based on year to date sales, and the funny thing is how people are talking about how bad the PS Vita is selling.

It's not complicated, the WiiU is in serious trouble, and so lets just hope that Nintendo's upcoming software releases can change the tide. Even if there is a large sales spike in Nintendo's hardware, it will be the hardcore Nintendo fan that buys theses games, and who will ultimately buy the WiiU. I don't believe that the WiiU will attract new gamers on anywhere near the scale of what the PS4 will, or even the Xbox One (unfortunately).

#2. Steve Balmer should have been fired years ago, and it's good to see him announce his departure. Xbox One was a complete public relations disaster, and I'm glad that they are turning back some of their policies that they originally announced around E3. I believe that Don Matrick and Steve Balmer were really holding Microsoft back, and I think there may be a great opportunity for Microsoft to chart a new direction once Blamer has finally left the company.

Personally I don't think Microsoft should leave the gaming industry, but it would make sense for them to drop the Xbox and concentrate on the PC. Recent news of Microsoft hiring a former STEAM executive to take charge in redesigning Games For Windows Live, leads me to believe that Microsoft might actually have something good to offer on the PC at some point in the not so distant future.

This would be great news for PC gamers who want to play Microsoft exclusive games on their PC's, and who knows, maybe they'll adopt a STEAM-like approach to doing business on GFWL, kind of like how EA is trying to copy STEAM's success with Origin. The great thing with Microsoft is that they have all of the assets and resources to put something great together for PC customers.

I say ditch the hardware (Xbox One) and concentrate on the PC, especially since PCs are the way of the future, and eventually we'll all be playing Playstation on the Playstation Client for PC at some point in the next 10 years anyway. I think that once Iwata finally gets the boot (and deservedly so), we'll all be playing Nintendo games on a Nintendo Client for PC, or maybe on Steam and Android devices. Nintendo is missing a massive market of consumers by keeping their games on Nintendo hardware only, and shareholders aren't stupid, they'll demand that Nintendo adapt to the new realities that todays technology offers, otherwise Nintendo will fizzle out into the dustbin of history.

The Wii was a fad, and they will never make another home console that will sell up around 100 million like the Wii has done. Soccer moms, senior citizens, baby boomers and casual gamers will not be buying the WiiU as they might have done with the Wii. Those people are playing on their smart phones, tablets, facebook and the Wiis that they bought 4 or 5 years ago. It's time to change the business strategy, and Francis, I know that you know that way deep down inside, you know I'm right.

Theyellowflash303909d ago

All of that rambling and you proved nothing BattleAxe, if PSN and Xbox Live were so profitable, why isn't Microsoft and Sony making any money in their gaming divisons?

+ Show (3) more repliesLast reply 3909d ago
Belking3909d ago

This Rick guy is delusional if he thinks MS hasn't made any money off the xbox brand. XBL alone takes in over 1 billion a year...lol Xbox360 was making profits years ago.This stuff is hilarious.

Biggest3909d ago

You may not have a full grasp on the way business works. Profit on each device sold does not equate to overall profit. Xbox may be "making money" as we speak, but Xbox has a lot of loss to cover before it becomes actual profit.

http://www.neowin.net/news/...

http://www.tannerhelland.co...

http://www.destructoid.com/...

OC_MurphysLaw3909d ago

The problem is the Xbox has traditionally been lumped into The "entertainment and devices" division which includes much more than just Xbox. The loses in that division can be attributed to other things like Zune, Windows Phone (so far) Surface RT, and the like.

MS will be interesting to watch in the coming year though as they phase out Ballmer and whoever the new chief is steps up.

iamnsuperman3909d ago (Edited 3909d ago )

@Dlacy13g

That is completely true and it would be interesting to see how Microsoft reacts to this as that division needs a shake up. The question is what do they get rid of and what do they focus on. Tablets (despite the losses) and Mobiles are probably to important to pass up especially when Microsoft and consumers are moving towards a unified OS system but the xbox penetrates the home space (they need to see if that is still important now). Some people have said they should focus on a software future than a hardware future. It is going to be interesting what the new boss does.

Belking3909d ago (Edited 3909d ago )

Dude, I know how business works. Every division in ms has lost money. This doesn't mean they aren't making profits. Xbox division makes money off games,xbl, and additional stuff. Why you think sony has come aboard the online charge model....lol Xbox division does well. Believe that. Now sony on the the other hand is another story. It's pretty obvious they aren't doing as well. They didn't even start profiting on ps3 til 2011. Those profits were totally wiped out by ps4 development. That's why they had to sell off building assets to help with the cost and stay afloat.

Dude, you are misinformed. xbox division is profitable.

http://news.teamxbox.com/xb...

And that was way back in 2009...holla!

Mikeyy3909d ago

@Dlacy13g

Wow, just wow. Its funny how people have ragged on the ps3 for "not making any money". While ignoring the fact that the PlayStation brand is also in an entertainment division that had numerous products of varying performance. Then they turn around and use that same defense for the Xbox brand. MS doesn't have anywhere near the amount of products in its entertainment division then Sony has...

Manic20143909d ago

They Did to better for the 1st quarter this year: http://www.vgchartz.com/art...

OC_MurphysLaw3909d ago

@Mikkey yes the playstation line of products is part of the Sony Consumer and Products division... Both companies hide other devices and costs with in these divisions. That is why when people start trying to quote financials I question their sources. If you drill down on either company you can find specifically how certain hardware has done but far too often financial quotes are for the divisions as a whole and not the products and specific services they offered.

Muerte24943909d ago

Then why propose a sell of specific part of that division if that's the only part that's profitable? I mean, why would investors single out Xbox Division only?

Don't know this ultimately doesn't matter. Xbox One will launch with a pretty good launch lineup. I guess this is why they aren't dropping the price. Kinect needs to be a success given all the R&D money that went into it.

n4rc3909d ago

Your right... But the value of the Xbox brand I believe is a marketing tool.. It draws people to other Microsoft services and gets their name into the minds of young future customers..

They didn't enter the space to make billions.. They already do that.. its a promotional tool imo

+ Show (5) more repliesLast reply 3909d ago
porkChop3909d ago

The Xbox brand as a whole has yet to make Microsoft money. They're still trying to recoup their losses from over the years, losses that are in the billions.

MonkeyNinja3909d ago

1 billion a year minus ads, money-hats to devs for timed-exclusivity deals, shady deals with the media, paying for celebs at conferences...

What he's trying to say is that compared to Microsoft's other divisions, the XBox brand barely turns a profit, so Microsoft would be better off handing it over to a company like Samsung. I agree.

RicardJulianti3909d ago

Here's the thing though.....MS may have been turning a yearly profit back in 2009...and possibly even SINCE 2009...

BUT, they have not posted a net profit for the lifetime of the 360...or the Xbox brand in general even with games, XBL and so forth. That's what Rick Sherlund is getting at when he says they haven't made money.

They may have spent less than they earned YoY, but LTD is a disaster. I wouldn't be surprised if losses are close to $10bn honestly.

AAWELLS093909d ago

It's funny how you criticise Pachter yet you're doing the same exact thing.

RicardJulianti3909d ago

@aawells07

It's funny that I'm not the creator of the video. I simply posted it here.

3-4-53909d ago

By making money I think he is referring to profit.

They overspend hundreds of millions of dollars.

They spent about 200-400 million on this connect BS and they will NEVER recoup that money from JUST kinect products.

That isn't a smart way to do business.

The thing with xbox is, it's good, it's solid, but considering who Microsoft is, it should be a whole lot better as a brand.

I love my 360, but there have only been a few games that really impressed me this gen.

Everything that is missing from the xbox 360 can be found on the PS3/Wii or handhelds.

360 is great for sports games & FPS, which I like, but there aren't many good RPG's, or action adventure games or 2D/3D platformers, or random various genres we haven't even thought of yet.

It all feels watered down compared to the games I played on the OG Xbox.

We didn't get anything even close to Crimson Skies this generation.

Nobody has topped that game or eve come close yet in terms of online multiplayer fun and it's addictiveness.

80% of the games on xbox 360 are souless and shouldn't have been made or should have been made much differently.

Once again, 360 is solid, I've had great memories and experiences on it, currently running through Borderlands 2 for the first time and liking it, but it's not enough.

All the game types from SNES/GBA/PS1/N64 era were abandoned or changed so drastically that they aren't even fun any more.

PS4 seems to be going back to the drawing bored and realises " Hey, we've been forgetting these 15 genres that people love "

n4rc3909d ago

People need to realize one thing....

All these analyst and youtube economists all want to talk about what's bad for bUsiness and how shortsighted ms is..

They are one of the most profitable companies in the world and have been for what? 30 years now? these people claiming to be experts couldnt hold a candle to microsoft in terms of success..

Its absolutely ridiculous.. When your company rakes in 10+ billion a year.. Then you can talk about how little microsoft undetstands about business

kewlkat0073909d ago

Microsoft has been making money off Xbox division over the last 5 years but they are still in the RED as a whole because of other factors.

Counting RROD, devices like Zune, Surface and the "initial brand investments" has kept them in the Red.

I think, those device are all in the Entertainment Division.

Eddie201013909d ago

This guy is not very accurate on what he is saying but as far as Microsoft making money from the Xbox division he partially correct.

Microsoft has made profit on sales of the system and games but they have never actually recouped the initial R and D investments in the division which were in the billions and were probably written off long ago by Microsoft but in the end was still money used to build the business and money they never got back.

assdan3909d ago

Have you heard of the XBOX? That thing was a MASSIVE money pit. And the profits of the 360 still hasn't made up for it.

+ Show (5) more repliesLast reply 3909d ago
No_Limit3909d ago

Can't believe I am saying this but Pachter is right on this one.

Eddie201013909d ago (Edited 3909d ago )

Nintendo is still making money and for the most part since the Wii, have been. Just there profits have went down a considerable amount. does not mean they should get out of the hardware business.

Xsilver3909d ago

its called 3ds thats whooping ass

WrAiTh Sp3cTr33909d ago

Pacther is right. Another thing I'm just now realizing is that he was right about PSN charging for online gaming.

KwietStorm_BLM3909d ago

Anybody could have assumed Sony would charge for PSN. In fact, a lot of people did. XBL subscribers year in and year out have told not just Microsoft, but the industry, that they are fine with it. So now Sony is using a similar model. The only reason they didn't do it sooner is because the gamers never would have accepted it in the middle of the generation. But look at the reception now. PS4 can do no wrong, and because PS+ is such a great service, it can be overlooked. Pachter just made an educated guess, that's all.

WrAiTh Sp3cTr33909d ago

They way I'm interpreting your comment is that Sony added model because they seen how good they were doing with PS+. That's fine, but Pacther predicting this long before PS+ was thought about. I personally would have never thought Sony would go that route and I'm still surprised.

iceman063909d ago

I agree. Seeing as though it was an "untapped" source of revenue when Xbox was released and, as you said, gamers didn't seem to have an issue with it...it was a pretty easy guess. Sony, just like MS, need as much revenue as possible. They didn't have a lot of non-traditional revenue sources outside of Home. Thus, they had to do something to generate revenue. They put out the PS+ service and it seems to be gaining a lot of steam heading into the next generation. It only makes sense to wrap the multiplayer into the service that way you can generate revenue and still trump the competition by offering a little something for the troubles. That being said, I hate that they have to do that...but I understand fully that these businesses aren't charities and have to make money some way.

KwietStorm_BLM3909d ago

No that's not what I'm saying. I'm saying paying to play online on PS4 has pretty much been accepted by the gamers themselves, because of a combination of PS+ being so good, PS4 being so widely appreciated this early, and just not having issue with it. The reasons Sony went with it, besides the obvious constant revenue stream, is because of the necessity for an upgraded infrastructure, in compliance with many of the new features coming with the system and network. If Sony made boatloads of money off PS3, then MAYBE they wouldn't look at it as a necessary source of revenue, but I'm sure the income will be a large help regardless.

As far as Pachter goes, yea regular gamers were saying the same thing before PS+ too, because Sony's financial problems were persistent for a good while, and everyone already knew XBL was a good source of revenue for Microsoft, so it didn't take a crystal ball or an insider to presume things would change. It's not like he KNEW this would happen. He makes a lot of educated guess. Some turn out to be true, some make him look like he has not a clue what he's talking about.

OC_MurphysLaw3909d ago

lol... this guy is funny. Full of sh*t mind you but he is funny to listen to in a creepy way.

Show all comments (59)
180°

Xbox, do you even have a plan anymore?

TSA asks what is the future for Xbox.

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thesixthaxis.com
Chocoburger10h ago

They clearly never did, hence why they spent so many BILLIONS on other publishers as a last resort.

anast9h ago

They have a plan. It's to move everything toward streaming and mobile. This is just the next step.

Cacabunga8h ago(Edited 8h ago)

With half of the money they spent, they could have been on the very top and the gaming industry would be way bigger than it is.. encourage developers, indies, make them grow trust them and they will deliver.

Tody_za7h ago(Edited 7h ago)

What are you talking about Cacabunga? The Xbox faithful insisted that Microsoft has infinite money, and after Activision they should buy Square Enix and Capcom before Sony does. There was no chance ever that Microsoft would do this. They would use their infinite millions and Bitcoins to invest in 50 new IP and beat everyone.

Tody_za5h ago

Did I really need to add a /s to my comment...

SonyStyled3h ago

The Parent company of Xbox spent billions on publishers, not Xbox

andy858h ago

To ruin great studios it's looking like

Skuletor8h ago

Sure, a plan to be a more hated game company than EA. Ubisoft were recently giving them a run for their money but I think Xbox have really knocked it out the park with their latest stunt.

neutralgamer19928h ago

Absolutely not, their whole plan is at odd with what MS wants

Phil wants GP to become big
MS wants to sell games and make billions

GP can’t be sustained with AAA games which take 3-5 years and 7 figure budgets. Only go put those games on GP day one. Why do you think games are coming out on other platforms?

People want a change and want Phil gone without realizing if someone new comes along they may want to change everything again so we just keep going in circles. Phil has to realize that and give clear message on the direction of Xbox

Show all comments (26)
380°

Brad Hilderbrand explains the reason behind the recent Xbox studio closures

There are two reasons why all those Bethesda studios closed, and neither of them have anything to do with Bethesda (directly)...

Game Pass and Activision.

Read Full Story >>
linkedin.com
Christopher13h ago(Edited 13h ago)

The guy confirming what we've all (well, most of us) been saying since the latest purchase.

crazyCoconuts10h ago

Remember the relatively common counter that went something like "I'm sure you arm-chair CEOs know better how to run a company than the biggest company in the world"?

I mean - there's a lot to running a company for sure, but on this topic it's hard to understand how Phil and team didn't see this coming.

Tody_za10h ago(Edited 10h ago)

Phil and team knew it was coming and planned for it. It's not even a conspiracy, it's simply the business of cutting costs and superfluous studios after a major acquisition. They don't give a damn about Tango Gameworks or other small creative studios that won't recoup their losses. They don't care about investing in this industry. They have no interest in risky and expensive new IP. They are only interested in profiting off ownership of Bethesda IP, Call of Duty and Candy Crush.

I guarantee you that not one single game under their banner will improve or become bigger and better.

Welcome to the Xbox family, what a pathetic joke.

Anyone who continues to support this, enjoy your future, because this is it. Ninja Theory is next, and Perfect Dark after that.

Christopher9h ago

Especially not with the evidence of tons of existing movie streaming subs out there and how they fail to make a profit with over 100m users each quarter.

fr0sty2h ago

Xbox releases more first party studios than first party games.

Lightning777h ago

Apparently they're debating if they wanna put the new Cod on Gamepass or not.

Either grow GP with Cod or don't put it on GP and grow the revenue the traditional way while GP will suffer.

The mess that MS puts themselves in.

badz1491h ago

LOL the cheerleaders for the ABK acquisition were all cheering for CoD to be on GP day 1 and they were adamant that Jim Ryan was scared because of THAT and was fighting for the survival of the PS brand if CoD is taken away or given day 1 on GP. hahaha...now suddenly MS is unsure if they wanna put CoD on GP day 1??

isn't this false marketing? they said ALL (not some) 1st party xbox games will be released on GP day 1 and CoD is now 1st party starting last year! it's right there still on their website.

https://www.xbox.com/en-US/...

lawsuit time??

Outside_ofthe_Box1h ago(Edited 1h ago)

@badz149

People were being blind fans. Things is if you look at things objectively and logically since inception, gamepass from a business perspective was never going to be good idea unless you had hundreds of millions subscribed, which Microsoft was never going to get in a timely manner.

People kept pointing out the cons and people kept having their hands over their ears. I wonder how guys like Orchard and Septic who were rooting for the acquisition to go through like people do when their team makes it to the Superbowl are receiving this news lol

XiNatsuDragnel13h ago

I'm not surprised Microsoft guys are crock nuff said

isarai12h ago(Edited 12h ago)

Honestly i think Bethesda needs to buy themselves out of zenimax/MSs hands and do their own thing, i honestly think that would fix a lot of issues and save them from a potential closure.

Zeref12h ago

There's a reason they sold in the first place. And Bethesda is not closing anytime soon lol. As much as I hate the studio closures. They were all small studios 2 of them were mobile studios.

I think these are growing pains and Xbox will get back on track. But they're not getting any more passes.

jwillj2k411h ago(Edited 11h ago)

I’d like to see your reaction to being growing pained out of your job after the launch of a successful product.

Mr_cheese9h ago

Excuses, Excuses, excuses.

If growing pains have been happening for the best part of a decade, they're not growth.

XiNatsuDragnel8h ago

Zeref nii San
I'm sorry but xbox has been rightfully bashed due to constant incompetence

romulus238h ago

Yet you literally just gave them a pass, being "small studios" or "mobile studios" is irrelevant. There's no excsue for closing Tango, none. They praise the game, they PR talk about it's the kind of game the company needs and yet they shutter the developer, that's foul on every level.

Chevalier1h ago(Edited 1h ago)

Ah Zeref head in the sand like a idiot. Gamepass is a absolute failure like we all told you. Nothing at this point will turn this around. It's not growing pains, the growth is done. Even streaming with 100 million subscribers can't turn a profit and you think Xbox with Gamepass will turn it around? Lol.

It's not a coincidence that Xbox stopped announcing Xbox Gamepass numbers just like they stopped announcing Xbox One hardware numbers and no Series S/X numbers which are behind the Xbox One even.

Remember when we said Xbox customers don't buy games?! Lol. Well this confirmed literally everything we told Xbox fans that said Gamepass was very profitable? Sorry revenues and lack of profit suggest otherwise

Can't wait to see your reaction when their 2nd round of closures happens. Perfect Dark studio and Ninja Theory will next.

+ Show (2) more repliesLast reply 1h ago
Tacoboto8h ago

Bethesda greenlit Redfall, launched Fallout 76 in the condition it was in (and the fiasco with the bonus bag), and spent all that time on Starfield finishing it as it was with that same engine. Wolfenstein Youngblood exists because of them too, not Microsoft.

Are you *sure* leaving them alone would actually result in a better outcome, not just a different one?

isarai7h ago(Edited 7h ago)

A lot of this excessive monetization, and GAAS crap started when Zenimax decided to start looking for a buyer. Not a coincidence that there was a sudden shift in prioritizing profits above quality or even coherence at the same time. They wanted big numbers to attract buyers, now that they've been bought, MS wants exactly what they were baited with.

However even under Zenimax they made enough to self publish sometimes, so i would imagine it's not too far fetched that they could pay their way into independence if they REALLY wanted to.

Also even people at Bethesda and Arkane were hoping MS would cancel the game as again, they were forced to make something they didn't want to make.

Einhander197212h ago

Ah, we can see how the Microsoft media machine works.

Every article I read now is some kind of attempt to shift the blame off Microsoft and paint them as the victims or convince people that Microsoft mistakes were just some kind unforeseeable unfortunate twist of fate.

The shills are out in full force today.

Christopher12h ago

This is not at all what this article is saying. It's saying that honest and useful studios are getting closed because of big money deals elsewhere and the faults with game pass as a model.

Einhander197212h ago

I understand what the article is about.

It's a deflection, it's a putting the cart before the horse article.

Let me tell you how this problem wouldn't have existed in the first place.

Microsoft not creating a service funded by subsidization and having the foresight to see that it would disrupt consumer spending habit to begin with. Then not buying Bethesda and undertaking costs for a service that was already failing to pay for itself because their own expectations of Game Pass having "billions" of subscribers was unobtainable from the very start.

And if you don't think that was the case go back to the article on the day Game Pass launched and read the comments from people from day one who foresaw that this would be an unsustainable model and would cause people to stop spending in the same way.

Christopher11h ago

***Microsoft not creating a service funded by subsidization and having the foresight to see that it would disrupt consumer spending habit to begin with.***

This article literally supports this opinion. He's not praising Game Pass or the ABK purchase.

Einhander197211h ago(Edited 11h ago)

This is an explanation of why it failed, there is zero blame put onto Microsoft itself.

Yes, it talks about what went wrong, but it doesn't say Microsoft shouldn't have done it. It doesn't say Phil should have foreseen this outcome and stopped before it got to this point.

"convince people that Microsoft mistakes were just some kind unforeseeable unfortunate twist of fate"

Christopher11h ago(Edited 11h ago)

***but you're seeing the impact; all those smaller studios making really interesting games are going to fall away, simply because as good as games like Hi-Fi Rush are, they're never going to make enough money to make up that $70B hole that Xbox now has to dig itself out of.***

If you see that as support or you explicitly just want people to end their argument with "and, in conclusion, Microsoft bad" then that's on you. This article does not support Microsoft's choices and highlights the faults. Nothing it says is good about these choices, even saying that putting CoD on Game Pass would be money losing for them because they've set themselves up for failure (and not putting it on there will drop subscriber numbers like crazy, meaning their Game Pass plans were shit to begin with).

No matter how you look at it, they're saying Microsoft made decisions that hurt the bottom line, force closures, and leave Game Pass in a situation where they lose no matter what they do. It's all negative.

Einhander197211h ago

Christopher, if Microsoft hadn't made Game Pass and bought a bunch of publishers would this article even need to exist?

Christopher10h ago

***Christopher, if Microsoft hadn't made Game Pass and bought a bunch of publishers would this article even need to exist? ***

How is this an argument to anything being discussed? This is just as valuable of an argument as "if fish had stayed in deeper waters, they wouldn't have evolved to tetrapods, adapted to shallow water and then to land, and we wouldn't even exist and have to worry about game pass at all."

You're bringing nothing to this argument and then complaining that other people are highlighting the issues with Game Pass and spending tens of billions on studios because what we should be discussing is what it would be like if Microsoft hadn't done any of that.

Well, they did do it. Now pull up your big boy pants and join in on the discussion of what that has meant for the industry since then and, especially right now, how that is affecting the industry and game studios under Microsoft. None of us are able to go back in time and change what was done.

Einhander197210h ago(Edited 10h ago)

Christopher, this isn't me not understanding what the article is about, it's you not understanding what I am saying.

If you want me to make excuses for Microsoft's bad decisions you're not going to get that or just agree with people who are doing that, it's not going to happen, nor are you going to convert me into thinking xbox "needs to exist".

Ya know what, maybe "Microsoft bad".... maybe their decisions ARE having a negative effect on the industry, and instead of deflecting from their actual actions and making excuses for them we stand up and say "no" "Microsoft is hurting the industry"

And maybe, just maybe, it was so obvious that this was going to be the outcome that even nobodies in comment sections on websites were able to easily predict this outcome, yet Microsoft did it anyway then kept doing and even when it became undeniable that it was having a negative impact on their business and and the industry itself, then they knowingly made even bigger purchases and caused more problems.

And the one thing you're right about is that I can't go back in time, but I CAN speak up and try to keep it from happening again...

Maybe if the people who were speaking up 7 years ago were listened too we wouldn't be having this discussion and Tango and Arkane would still be in business along with all the other people who have lost their jobs due to Microsoft's actions.

Do you like analogies?

What you're saying is like an alcoholic crashing their car then trying to explain it by saying it was caused by everything except the fact that they were dunk because they are an alcoholic and don't want to stop drinking.

Chevalier1h ago

Why the excuses here? Microsoft did one thing no other company can do which is subsidize Xbox with these insane purchases in hopes of suffocating the industry out in hopes to be the last one standing so they can charge whatever they want.

How are you excusing this crap even and putting your head in the sand here? It's pretty clear who is at fault here for the situation they built and put themselves in. It's them trying to push everyone around with cash that no one else can compare.

They knowingly did all that and now are trying to pretend the market is to blame? Lol. That is absolutely rich irony. That you can't see the forest for the trees here too.

TiredGamer10h ago

The article is essentially focusing the blame on MS. GamePass was a hail mary play to change the gaming paradigm and carve out a special niche for themselves, emulating the Netflix model, that might have led to MS becoming the leader in the long-term. Unfortunately, the subscriber growth isn't really there, and the model isn't really built to weather that lack of revenue. MS is now in a restructure mindset to figure out how they balance out their model in a way that can still make them money.

've always believed that GamePass was a high risk shot that had a very low chance of long-term success. But the problem with it, whether it succeeded or not, is that it accelerated the proverbial "race to zero" consumer expectation that ran its course in the mobile gaming industry in the late 2000s. When consumers start thinking that games should be "cheap" (as in through a $10/month all-you-can-eat subscription model), it turns the narrative against games being priced at realistic levels. So with the GamePass failure, they've not only sabotaged their market share, but they've impacted the entire industry and devalued the cost of game development to the average consumer. So now it's harder to develop mega-big budget games and to earn the revenue needed to pay for them.

XiNatsuDragnel8h ago

Again terrible excuses in the 1st place

Christopher9h ago

***If you want me to make excuses for Microsoft's bad decisions you're not going to get that or just agree with people who are doing that, it's not going to happen, nor are you going to convert me into thinking xbox "needs to exist". ***

No one is asking you to make excuses for Microsoft's bad decisions nor is anyone asking you to convert to anything.

***Ya know what, maybe "Microsoft bad".... maybe their decisions ARE having a negative effect on the industry, and instead of deflecting from their actual actions and making excuses for them we stand up and say "no" "Microsoft is hurting the industry" ***

Literally no one here is doing this. They're literally discussing how Microsoft's decisions have hurt the industry. Except you. You're rambling about why people aren't complaining about Microsoft when people are in fact complaining about Microsoft.

*** And the one thing you're right about is that I can't go back in time, but I CAN speak up and try to keep it from happening again... ***

Then perhaps actually add something to the conversation other than calling people shills when people are complaining about the decisions and repercussions of Microsoft's actions.

Tacoboto8h ago

Christopher, you're fighting a block wall here - Ein will continue twisting and contorting any remark to fit his self-created narrative.

Einhander19728h ago(Edited 8h ago)

"Then perhaps actually add something to the conversation other than calling people shills when people are complaining about the decisions and repercussions of Microsoft's actions."

Cristopher, in no way is the author of this article complaining, they are explaining what happened it's literally the title. They never once say that Microsoft shouldn't have bought Zenimax or Activision or that Game Pass was a bad idea to begin with. They think the problem with Game Pass is that it didn't grow fast enough, not that it was a bad idea from the get go.

BTW this is his job title.

"Public Relations and Communications Leader"

What do you think a Public Relations and Communications Leader does to make money?

Edit: I have read a dozen of these articles that just started coming out in the last 24 hours that are trying to shift the conversation away from blaming Microsoft, the shift here and in several other articles is trying to say it just didn't gain subscribers fast enough, not that it was a bad idea to begin with that was doomed to fail or placing the blame on anyone.

It was all just an unforeseeable outcome, no one should be held responsible it was just a billion dollar oopsie that's costing thousands of people their jobs and has caused a downturn in the entire industries sustainability.

Oopsie!

+ Show (3) more repliesLast reply 1h ago
MrDead11h ago

It's greed. MS has the IP's it wants now it's dumping the studios that it's raided, MS will still make money from Tango's games unlike the people that made them. If anyone follows MS outside of gaming you'll see this is what they do, buy companies take what they want consolidate some of the workforce and shut them down. I don't know why people are acting so surprised when this is Microsoft being Microsoft.

MS is a three trillion dollar company, if it enters a market it has no need to compete, they take what they want and with the financial influence it can bypass laws that are meant to protect the consumer and the workforce. Just look at how they are cornering the AI market right now with buyups and investments.

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350°

Microsoft Is Finally Ending Its Focus On Big Budget Gaming Nonsense

Back when the Xbox 360 launched, Microsoft pushed the big budget game as a differentiator. Following all the recent layoffs, it’s clear this strategy has run its course.

Einhander197214h ago(Edited 14h ago)

The Microsoft shill take on the Microsoft causing the death of big budget gaming...

The whole driving force for growth in gaming both technologically, creatively and financially was all nonsense, and it was definitely not because Microsoft ran the industry into the ground with obviously bad decisions and creating an unprofitable business model that massively disrupted consumer spending habits. /s

RpgSama12h ago

First, F**** Forbes and their shill take, I hope the money cleared by now.

Second, Which big budget games I might ask? Microsoft has been in a rut for like a decade now, with no big publisher and developers puechases they would have not released anything in the last 5 years but the new Halo and Forza.

Eonjay9h ago

Fortunately for us, since we know this message is basically coming from Microsoft, we can read into their motives. Why are they trying to turn people against big budget games and who would it help.... hmmm.

neutralgamer19929h ago

GP is like any content service it needs new content. AAA games take 100 plus million (low end estimates since most AAA games take double that) and it 4-5 years to develop. That’s why there were 2 god of war games instead of 3 because Cory felt like it would take too long

I am not defending MS. That’s just the reality when you put all your eggs in one basket (gamepass) and now they need content. Sadly that’s what we all said would happen and is happening. GP will be a service for AA games with 1-2 AAA games on yearly basis. And I am all for AA games because to me that’s where developers can take chances on smaller budgets but MS has mismanaged this whole situation from the beginning. Their messaging needs to be clear and it’s not

They own so many studios and IP’s they just need to get everyone on schedule so that there are games releasing every few months on GP. But I don’t even think Phil knows what he wants. It seems his goals change constantly

Game pass is not a sustainable and take two ceo was right when he said that it doesn’t make any business sense to release huge AAA games day one on GP. Just like call of duty shouldn’t be on GP because why give up on 15-20 million sales

Einhander19726h ago

"And I am all for AA games because to me that’s where developers can take chances on smaller budgets"

How'd that work out for Tango?

Do you think less AAA games will increase game pass revenue or decrease it when it has less value? What if they also have to increase the costs?

S2Killinit8h ago(Edited 8h ago)

Right on.

Hahaha MS has ended “focus” on games? Lol when? 3 generations ago maybe?

Skuletor22m ago

I noticed it near the end of the 360 era.

notachance2h ago

Man I don’t know what the writer is smoking, anyone with a braincell can see what will happen is the exact opposite, they’re gonna double down on big name IPs and turn them into GaaS and milk them to the extreme with multiple studios focusing on specific IPs instead of creating their own games.

It was so clear with the way they keep 343 despite multiple failures and shutting down Tango even after winning awards, MS is a service provider and not a product creator, they will buy the product from others and turn it into a service.

+ Show (1) more replyLast reply 22m ago
Hofstaderman13h ago

Ah Forbes. One of the prominent MS mouthpieces....

Luc2013h ago

Microsoft is finally... ahhh I've never heard this one before!

Petebloodyonion13h ago

LOL, this article is a big pile of dog crap...
Spencer has been constantly telling ppl that NO they would not go the route of having games like TLOU, Uncharted, etc because Playstation exists and prefers to focus on a diverse portfolio.

How many years have we seen Xbox as no game and we don't want small games like ORI, Pentiment, Grounded, etc.?

That's the real tragedy and why lots of gamers are mad at MS right now
because they have been championing smaller titles and yet fired the ppl delivering exactly what they were proning about.

So no the only nonsense is that MS seems now to be going BACK to AAA popular titles..sorry, I meant refocusing effort on core established IP where broken GAAS might be rewarded versus praised and rewarded work.

Einhander197213h ago(Edited 12h ago)

https://media1.tenor.com/m/...

You read an article cheerleading the end of big budget games and all the other articles about problems and this is what you have to say? That's what you think "the real tragedy" is?

I thought that xbox fans might finally "get it", but no, it seems they don't even understand what is happening and what is at stake.

Petebloodyonion10h ago

Please tell me what's happening and what is at stake

Since it's not big companies closing small studios, killing innovation while refocusing assets on big ongoing projects and core IP?

Let's See MS Close Tango Studio mentions that they are too thin on key project
Sony Close London Studio and make massive cuts in Firespite will reallocate resources to core project
EA will focus on Core project
Square will focus on big established IP
.....
.....

crazyCoconuts13h ago

Hurray! No more big gam.... wait... what??

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