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Will Microsoft’s XBox One survive?

Microsoft’s XBox One is in a far more dire situation than people realize. Why? In a word, demand. That and the fact that the developer community is already talking out loud about it not surviving.

The reasons for Microsoft’s predicament are quite clear, they botched the XBox one as some predicted they would almost a year ago. This site detailed why it would lose to the PS4, mainly because Microsoft architected an anti-user revenue stream rather than a gaming console. Management didn’t care about gaming, it makes them almost no revenue compared to the rest of the console so they ceded gaming to Sony and the PS4.

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xReDeMpTiOnx1354d ago

Tbh I don't know, Microsoft likes to put most their eggs in one basket and as seeing as Titanfall isn't as BIG as expected (so far) it seems like they have run into another major roadblock.

Time will tell though, it has yet to be seen how Titansfall is fully received but by early reports it don't look like it will be selling xbox ones the masses or winning any goty. Now comes the next test with some of sony's heavy hitters coming out.

If sony continues to put out heavy hitters that widen the sales gap and fan base then I can see Xbox being in big trouble

White-Knight1354d ago (Edited 1354d ago )

With the money they have?
Please, even if they don't dominate the market, they'll still be there.
They'll find new ways to exploit their loyal customers.

xReDeMpTiOnx1354d ago

While Microsoft has a lot of money and will never just disappear, the xbox division hasent been profitable in a very long time and actually costs them money.

raWfodog1354d ago

I believe that MS's game division will do just fine, specifically the XB1. True, it's sales are lagging behind the PS4 but their sales are still very good (better than 360 at this point). I believe each console gives gamers specific experiences that they enjoy and as long as they keep providing for those experiences they can 'survive'.

Charybdis1354d ago (Edited 1354d ago )

@xReDempTiOn
xbox made a profit despite rrod not sure if same can be said of their nokia, zune and tablet devices.

Microsoft execs have already commented that they are extremely committed to the new xbox

Anon19741354d ago (Edited 1354d ago )

Actually, the division itself has been profitable for the last couple of years or so, it's within the division that analysts have speculated the Xbox is actually costing MS $2 billion annually, and this is only made up for by Android revenues. It's hard to say for sure as MS will never break down what's going on inside the division.

Despite the divisions profitability now it's still around 3 billion in the hole over the past 10 years, and it's return on investment isn't even close to what MS sees from it's other divisions. That's the real problem..not that it isn't making money but the fact that if that capital was invested in other divisions it would be generating much, much higher returns. That's why investors and board members are calling for something to be done.

But this isn't anything new. What is new is Microsoft's management team, company wide restructuring and Investor Activists now sitting on Microsoft's board. Ballmer was a huge Xbox supporter. He saw it as his baby, but Ballmer's not steering the ship anymore.

Why o why1354d ago

Microsoft are resilient. Any organisation that survives rrod plus other issues must have a bit about em. One game wasn't going to erase all the prior crap but I can't see them giving up. Their ardent fans will be there til the death but are there enough of them to warrant Microsoft considering another Xbox. Who knows

Charybdis1354d ago (Edited 1354d ago )

Microsoft has made a record of $24.52 billion revenue in the 2 quarter 2014
http://www.theverge.com/201...

Rumours were that new xbox division ceo would want to destroy xb devision. Opposite has been said by execs Nadella and Elop who even indicated that they are extremely committed to xb1 contrary to former reports.
http://www.pocket-lint.com/...

Microsoft clearly has money and is dedicated to xb1 for example they bought the exclusive rights for titanfall 1.

mewhy321354d ago

I think the xbone is on the way out.

kickerz1354d ago

Another crappy doom and gloom xbox article. I think I see average 3 a day lately. Xbox will be fine.

darthv721354d ago

@redemption...using your analogy of eggs/basket then you are seeing it incorrectly. Titanfall is not the basket, it isnt even an egg.

The basket that MS has invested so much into is the live service in general. They are wanting to make it the prime service for entertainment. That includes games, movies, tv and other social interactions.

The eggs (if you will) are actually all the deals they have made to help make that live service so much more robust than it was. That is the one 'basket' that has been growing ever since it first came out on the original xbox.

they are very dedicated to it and would like to see it branch out to other devices than just the xbox platform but those deals arent dont yet.

+ Show (6) more repliesLast reply 1354d ago
Septic1354d ago (Edited 1354d ago )

I fully expect MS to unleash heavy hitters of their own. E3 will tell.

And whats with Titanfall not being as big as expected? I dont get this? Its not even on sale yet for many people. You mean review wise or...? Its got great scores (so much so that some people on here are saying MS paid reviewers off).

Sony has yet to deliver such a 'heavy hitter' as you call them. Not saying that they won't but it doesnt seem as dire as you make it out to be.

The main problem is with the disparity in quality of third party titles. THAT, I think is a big problem for MS at this stage.

Audiggity1354d ago (Edited 1354d ago )

Yeah, I agree Septic. This is just an endless stream of people pretending to be technical/economic experts. I've read "not as big as expected" and "not selling as much as they need it to" as if these people know what their internal sales goals and forecasts were.

The best part is, for as brilliant as the MS naysayers are on N4G - they seem to have an incredibly loose understanding as to why competition is good in this (and any) industry.

XB1 will "survive". There is plenty of space in the market for both.

BTW - this "news source" is just a blend of opinion with tech news *almost exclusively* from one dude. Who CLEARLY has a vendetta against MS, as you can see with a simple search: http://semiaccurate.com/?s=...

Everything from XB1 to tablets to their biz model.

mcarsehat1354d ago

9th time ive seen this article get heat in two days, what the hell is going on?

u got owned1354d ago (Edited 1354d ago )

@xReDeMpTiOnx

I think as long as MS make a profit with the Xbox brand it wont matter is they finish first or second in this race. This war is a product of the media feeding the fanboys. What companies want at the end is profit, you could be in first place and still report losses you know.

ObiWanaTokie1354d ago

problem is most people have ol dusty 360's in limbo waiting to play titanfall in 720p just as pretty as the xb1.

that right there is a problem for them.

Evilsnuggle1354d ago

darkride66
Look at all the disagrees you got for tell x1 fans the truth . The xbox brand is deep in the red xbox has never made a profit . that is why the broad members want to sale xbox brand fact. I think this will be the last xbox hardware in fact now that they have Stephen elop run xbox the guy who killed and sold off Nokia . X1 will not be as success as 360 if trend hold . X1 is weaker and more expensive than PS4 . Microsoft is waiting to long to cut the price of x1 big mistake . After Christmas PS4 will have a lager lead than now . The one way Microsoft can win if Sony mess up . Sony has great first party developers better that Microsoft . But Microsoft knows what 13-25 male want online multiplayer and Microsoft exclusive go for the .

+ Show (3) more repliesLast reply 1354d ago
lifeisgamesok1354d ago (Edited 1354d ago )

Yes because out of the next gen consoles it has the best games so far with greater titles on the horizon

Soon people will realize Microsoft is in this to win

GW2121354d ago

No it doesn't. And... no it doesn't.

Remember that around 90% of all titles are multiplats. The superior multiplats are on PS4.

But seriously, what games do you have on the horizon? Now that TF isn't as big as it was supposed to be... what else is there? Quantum Break? Halo? And? Right, that's it.

No1up1354d ago

Uh.. TF is most definitely is as big as it was supposed to be. ;-)

Kinect sports 2
Sunset over drive
Quantum break
Halo
All multi platform that the ps4 is getting

And let's not forget DLC for all the Awsome games out already. For DR3, ryse, titanfall

mhunterjr1354d ago

And sunset overdrive, and gears of war, and fable legends, and D4 and kinect sports, and [email protected] games, And unannoced revived IPs. Let's stop pretending for a second that MS doesn't have good games on the way... In addition to the good exclusives that have already released.

They do have a problem, specifically with the price point and the development tools. But when it comes to games, they have been delivering.

blackmanone1354d ago

No1, are you seriously using more DLC as a positive?

numNuts1354d ago

Don't forget Gears of Bore.

ThanatosDMC1354d ago

Still clinging on to Fable? Terrible IP full of failed promises. Fable 3 was the worst of the bunch.

GW2121354d ago

Are you guys serious? Kinect Sports? [email protected] games?

No1up - are you kidding? Lifeisgames, the biggest homer on this site, was speaking to exclusives. I am the one who mentioned multiplats. You then regurgitated to names I had already given you.

And then you really drove your idiocy home with that Ryse/DR3/DLC comment. Well done.

+ Show (3) more repliesLast reply 1354d ago
ltachiUchiha1354d ago

I would agree if they proved that at the end of the 360's life cycle but they were a disappointment for the last 3-4 years of the 360. Just shows that once they reach their goal with a big enough user base, they will not waste a penny on anymore new AAA exclusives but rely on the same few exclusives & big 3rd party games like COD to keep their loyal fanbase happy. If your happy with that then more power to u but for me, im still iffy about grabbing an xb1 right now. Prolly hold out untill they drop the price more & see how QB turns out. Dont need an xb1 for TF, i'll be happy to buy the 360 version. Prolly rent it 1st & see or i like it but if its too easy like COD then ill pass. Im more into strategic multiplayers like BF & TLOU.

poboy9931354d ago

If XB1 fails then Console gaming is doomed in general. Competition is always better for future quality products.

Hicken1354d ago

The industry survived before them. It'll survive after them.

pornflakes1354d ago (Edited 1354d ago )

MS sells for a higher price TAG more ONEs compared to the 360 so what is this folish article about??

As for right now.. MS simply has MORE exclusive blockbusters.

The only ones Sony has RIGHT now is The Order.

And the fanboys dont need to bring unannounced games for the PS4 right now.

Also Deep Down is not anounced for the WEST market.. JP only.

XBONE owners play games right now while PS4 gamers hame much time to comment every news on N4G :)

Freedomland1354d ago

Stop eating too much pornflakes, that's what i can suggest.

AgitatedOcelot1354d ago (Edited 1354d ago )

Yes, Sony only has the order coming up, that's it.

Uncharted 4, The Last of us franchise, the Infamous franchise, the God of War franchise. Those are all completely meaningless and surely we will never see another game beyond the order on the PS4.

What are these games the Xbox owners are playing right now? Oh yes, the same multiplats the PS4 gamers are playing like Tomb Raider, Call of Duty, Battlefield, and Black Flag. But you're right, I'm sure Ryse and Forza, a downgraded ass ugly racing game with microtransactions, and a 4 hour hack and slash that sold 900k copies, are literally burning up the charts on playtime for those excited Xbox owners.

Seriously stop embarrassing yourselves talking about the amazing wealth of games the Xbox one has, you only sound stupid. Neither console has a ton of games and 90% of what there is are multiplatforms which look and play superior on the PS4. The Xbone has dead rising and killer instinct. Yah-fucking-hoo this thing is bristling with more games than the PS4 man, it's insane, two extra exclusives! How to decide which one to play first. The downgraded 10fps zombie game, or the 720p bland arcade fighter. Man, no wonder Xbox owners are so happy that the thing is literally flying off the shelves.

Or maybe it's kinect sports and fighter within that's driving these amazing sales of the Xbox one. That Kinect, That was definitely worth the extra $100 to play those gems. Man they sure proved everyone wrong who said Kinect was still a lame duck didn't they?

gamer20131354d ago (Edited 1354d ago )

X1 has no games?

I didn't include indies because people don't spend a few hundred bucks for a console to play them and they didn't matter last gen so why the hell should they matter now? Because now Sony is doing it?

I'd also like to add that Phil Spencer has said that even more games have yet to be announced for the X1.

X1

Forza 5
Ryse: Son of Rome
Dead Rising 3
Killer instinct
Titanfall
Quantum Break
Sunset Overdrive
Project Spark
Fable: Legends
Halo 5
Kinect sports rivals
Gears of war or New IP from Black tusk game
D4: Dark dreams don't die
Max and the curse of brotherhood
Crimson Dragon
Zoo tycoon
Fighter within
Fantasia: music evolved

vs

PS4:

-AAA titles:
DriveClub
inFamous: SS
The Order
Uncharted 4
Deep Down
Knack
Killzone: Shadowfall
Lily Bergamo
Shadow of the Beast
Rime
Everybody's Gone To The Rapture
Earth Defence Force

AgitatedOcelot1354d ago (Edited 1354d ago )

You dredged up everything you could remotely call a game for the Xbox, Including games that don't even exist yet, while simultaneously ignoring many existing games.

Project spark isn't even a game so much as a build your own game concept that's in beta, and you list Kinect Sports rivals as a AAA game. Good one. (And you even edited your post to change that when you saw me call you out on it.)

That's some nice creative writing but try again. Your list is probably the most stupid thing I've seen someone post yet.

GW2121354d ago

Yeah dude. Clearly you're off playing games. Ha.

You've commented quite a bit in the last 36 hours. Nice try though.

I won't even comment on your other ridiculous statements. They are just laughable at best.