The Sony PlayStation 2 won the battle back in the day but what about today? Truth is that the past doesn’t matter and these consoles have evolved.
The Microsoft Xbox might have lost the battle back then but today it’s a mighty contender, and here's why.
May 7 (Reuters) - A federal appeals court on Wednesday rejected a legal challenge by the U.S. Federal Trade Commission to Microsoft's (MSFT.O), opens new tab $69 billion purchase of “Call of Duty” maker Activision Blizzard.
The San Francisco-based 9th U.S. Circuit Court of Appeals upheld a lower judge's order that said the FTC was not entitled to a preliminary injunction blocking the deal, which closed in 2023.
Final nail in FTC´s coffin!
It was a lost cause from the start and a waste of taxpayers money!
Indeed. When sony got exposed with some of their deals it was pretty much game over.
That's not at all how this works. Sony made deals Microsoft, the trillion dollar company couldn't? You think that's what won them this case?
This wasn't seen as a act of attempting to monopolize the industry. Plain and simple.
"Indeed. When sony got exposed with some of their deals it was pretty much game over."
And now that MS is releasing all of its Xbox games for all platforms, Phil is free to buy whatever studio or publisher he wants and FTC won´t have a case to say sh!t.
Like I said; It´s final nail in their coffin!
"exposed with some of their deals"
Says the company who said their plan was to "spend Sony out of business", you know a year before they bought Zenimax.
What deals and what "exposed"? Sony did nothing that Microsoft didn't already do during the 360 era. You seem to have a selective memory.
@Reaper22
What? Exposed? Deals? Stop talking gibberish.
On topic:
Hope MS’s xbox continues to go down the drain for this. I love how this deal was the nail in xbox’s coffin when some of the corporation worshippers here were hoping MS would deprive others from games that otherwise everyone would be able to play. Instead, MS was forced to put its own games on other platforms to pay for the billions they spent on this mergers/acquisitions. Hope they choke on it.
It was a lost cause once ms went multiplat, they cant be anti competitive if they release on everything......
No bud this is an appeal, they already failed the first go and the FTC seeked to block the deal way before MS showed any signs of making their games multiplatform. Like most of the courts rulings, it just wasn't seen as the monopoly.
Right. And they stated from the beginning that their intent was not to keep games off of plastation. Microsoft served subpoenas on Sony to produce documents and testimony related to the lawsuit, and the FTC ordered Sony to disclose information about its third-party exclusivity deals. And it exposed their dealings with other publishers to keep games off xbox and Gamepass. That is what helped them most in securing the deal.
Right, however 10 years from now (gen after next) ms could very well reverse that and get away with it. They'd already have made their money back from the purchase, any contract deal they signed would've be honored and finally expired
Let’s not rewrite history though. They only went multi platform because they were forced to. They failed to compete so badly it was that or close Xbox completely.
lol, celebrating consolidation. Good thing this is the deal that broke Microsoft’s back and made them go the 3rd party route on every platform.
No. FTC has multiple appeals since then. It was very unlikely they would win any, but they still had them. People claiming it was over with the first judge ruling don't understand how the law works and what avenues the FTC had available to them even though appeals are quite normal.
It goes like this in the USA first trial the court of appeals it can be a partial court of judges if so after you got another appeal to the full court then after goes the supreme with a non full court after it’s another appeal to the full court when the full court decide on it then it’s over till then anything can happen.
Edit I forgot to say that this is a simplified version of things it can take multiple years to get through all the appeals on both sides
This FTC case provided fascinating insight into gamers' views on economics/politics. It's very common for gamers to blame capitalism for many of the negative trends in the industry, but as soon as the U.S. government started exercising one of the most recognized limitations on capitalism (monopoly regulation), most gamers turned into libertarians and starting spouting Republican talking points (or at least pre-Trump era Republican talking points, lol) on "government staying out of the way of private businesses."
They weren't told how to think on this topic so it let them use their brains without being told what to think about a topic. They ended up being reasonable and rational.
I remember when certain people here were saying they weren't going third party, guessing to recoup that 69 billion they are doing just that.
@TriniOutsider
MLB The Show. But arguably that is a special case. The seemingly accepted story behind that is that MLB told Sony they had to start making the game multiplatform to keep the MLB license. I haven't ever read definitive proof that happened, but assuming that (or something like it) is true, that isn't really indicative of a multiplatform trend in the same way that MS's recent launches on PS5 are.
The only PlayStation owned games on XB is Destiny 2 which was already multiplatform & MLB The Show & that's because it's licensed by the MLB & wanted the game multiplatform. XB first party legendary exclusives are going multiplatform as well as the new games that were supposed to be exclusive to the XB gaming console. It looks though the XB gaming console will have minimal timed exclusives to no exclusives at all.
@TriniOutsider
Get those gloves ready my boy. Gonna need em to move those goal posts. Think with your brain not your gamer heart. You think sony sees ms making all this money and says.. ok get that without us. Help me out here my guy! Sony charged you for psn, then they put their games on pc. What do you think is going to happen next?
Well said, hahahaha that’s so smart and intelligent and not gaslighty my man. you can now definitely play a lot of Ps games on Xbox. That’s the argument. That’s the point. Well done. PS is going third party. Wow, congratulations, no one realised it. Emphasis again on: it’s PlayStation making the moves to put games on Xbox AND PC. I can’t think of another publisher that’s actually doing that…. Mmmmmmm…. Anyway. Only Sony is doing that and not anyone else, not at all.
They also lost money on activision in the last few quarters too dont forget, ms make money hand over fist, that's not new, but I highly doubt the investment has paid off yet.
To be honest as a long time ps gamer, this deal initially made me panic.
but if I had known that it make MS u-turn on exclusive strategy, I would have happily joined xbox fans supporting the acquisition.
They never made a u-turn. Initially Microsoft offered sony a 10 year deal but they turned it down but eventually they agreed. They've always said they wouldn't keep games away from playstation. But that is something Sony was doing to them.
That's the thing. They said they did not aim to take games away from the competition with the acquisitions and that they weren't taking games away from PlayStation. But then they try to get Sony to sign a 10 year deal just to show to a court that they aren't keeping games away. Sony saw this as a tactic to make their acquisitions look like good faith but in reality they don't need to sign that 10 year contract. They just gotta keep developing games for the console. Then they still excluded games from Sony anyways which is what they wanted while saying they didn't. They are only now going third party because they couldn't monopolize the hardware side of things and they ruined their software sales by trying to make everything a service and now we see them continuously bumping the price and changing policies to stop losing money.
Yes they did. I mean I was worried about Elder Scrolls series leaving playstation those days, but now I can play Forza horizon and Gears of War on ps5… this is a crazy turn of events
@Reaper22
You are 💯 correct however we also have to consider these companies lie all the time. Or make plans and change them
Microsoft Chief Executive Officer Satya Nadella shared a bullish report on the performance of the Xbox gaming business also on PlayStation.
I'm kind of hoping they drop most hardware support here with a 'good enough console' next generation and focus more on being a publisher. Obviously that is doing well for them and they can still push cloud gaming since it's going to tons of smart TVS and devices. They're now the largest video game publisher in the world, if they aren't doing the most sales and pre-orders, then they would be in trouble. They aren't.
They're gonna try again with a new gen console. If they want to compete they need to actually be competive. Say games like Halo, Blade Elder Scrolls or whatever big game it is. Needs to only be on Xbox and PC. If those games go multiplat it needs to be after a few years or at least a year later definitely not 6 months as a good portion of ppl will wait. Knowing MS they'll probably try and compete, then when things don't go there way they pivot and change the metrics again.
I don't think you're reading the tea leaves here. Leadership hasn't used the word "exclusive" in quite a while, and they're now boasting about PS sales. They're probably done with consoles and exclusive at this point.
I don't think they'll try. They have been beating a dead horse for so long now and they have finally realized it isn't going nowhere.
MS is going to drop being hardware exclusive, they are going publisher and subscription. You will be able to buy a Xbox, but you will be able to play on any platform, that's their new goal. After the hit with Oblivion remastered and major sales on PS5, no more Xbox/PC exclusives long term..
I think with the latest price hike on their console, they’re well on their way to axing hardware.
Hardware axing entirely is bad news. They've sold most of their hardware on the Series S this generation. I think if they capture a lower hardware market that can still buy games (especially on sale), they'll actually hit a good market considering how the economy is going. Especially in the U.S. People are going to want to keep gaming and streaming isn't that good for online gaming at all.
@crazy they've stated multiple times they're going another gen. The next gen Controller even got leaked.
Tired of repeating myself whenever it comes to this subject of Xbox having another gen.
Xbox consoles are done, all we gonna get is some branded 3rd party shite at best, ms aint interested in being a console manufacturer no more, this much is obvious.
Microsoft has too much money for that. They are rumored to release a PC/console hybrid in 2026. They will push all you hope as a publisher while having new hardware next year, so the games will appear on their platform and every other platform which is good to me if the goal is to sell software. If that is where the money is why would anyone fault MS for that? The prices are going to be insane for the next PlayStation and console from Microsoft, though, but it is what they voted for, so this is what we got.
I think they have to at this point I'm sure they are developing new hardware because they still have to team on payroll but it's absolutely a hail mary play.
They want to try and shift the console to be more like a PC so development costs are drastically reduced you don't need your trams to develop a Xbox version if the PC version will already run jon your console ust have it preconfigured with the graphical settings to make it seem less PC like and job done using uwp apps.
I can see it working for a few years but eventually there will be problems like with the series s as pc hardware typically ages out faster than console hardware I guess the jury's out on how it goes when your console is forced architecture will it still be a development target 5 years later will it slow PC hardware growth if games have to account for such weak hardware 7 years on
“We continue to transform the business and focus on margin expansion as we bring our games to over 500 million monthly active users across devices. We ended the quarter as the top publisher by pre-orders and pre-installs on both Xbox and PlayStation Store.”
Amazing news!
Xbox reigning within rival territory.
Big slap in the face of haters who used to crap on Xbox´s games and its quality.
One minute he says that they will NEVER go third party
Now he's all for it like this was Microsofts grand master plan all along.
@-Foxtrot
"One minute he says that they will NEVER go third party"
Fact.
"Now he's all for it like this was Microsofts grand master plan all along."
False.
Never said it was Microsoft´s master plan all along. But it is REALLY working for us, as the fact that you´ll be able to enjoy Xbox gamers isn´t killing us. Rather the contrary, we are happy that everybody is funding our games on Gamepass.
Specially now with the imminent new $80 price tag for Xbox first party games.
It is what it is.
So xbox division can't afford to fund new xbox games on GP subscribers alone?
ooooh your in trouble imma tell papa phil and he's gonna take away your xbox card
He loves it. Now he gets to support the trillion dollar company even more by giving them more of his money.
I agree.. great news for Microsoft and tbe xbox brand. Your Playstation is now a xbox. Microsoft wasn't kidding around when they said xbox will be everywhere. Now they are laughing all the way to the bank. Imo sony needs to do similar things. They're putting their biggest titles on PC. Might as well bring them over to other consoles too. They aren't making much on console sales.
Of course MS wants PlayStation owners, their is literally twice as many of them.
Theres been one game in the last few years that's been good. Indy. Long way to go before you start talking about their games and their quality
Xbox gamers really are the strangest demographic. Not so long ago you are all saying PlayStation isn't the competition Amazon is because Phil said so. You love to parrot what your corporate talking say. That wasn't actually true Xbox and PlayStation were in direct competition but because Xbox was losing so badly Phil had to act like they weren't.
Cut to present day and Xbox and PlayStation aren't competition because Xbox has no hardware presence it's zero. In fact Microsoft is now a third party publisher and they need PlayStation they don't need Xbox or Xbox gamers they need PlayStation gamers and PC gamers and mobile phone gamers and switch gamers.
You're here cheering for the fact you've become irrelevant because you think it's important that your uncle Phil is making money. You think PlayStation gamers are upset if Microsoft releases more good games in a year than sony does. when Microsoft makes a good game you shout take that playstation!
PlayStation gamers simply say thank you I will third party publisher that makes me games
I think you're confused. Microsoft never saw Sony as their biggest competitor. They've reiterated it for years. Sony is doing the same thing by putting their biggest franchises on PC, which is OK with Microsoft. Their will be more playstaion games coming to Microsoft ecosystems. Maybe not to xbox consoles but playstation won't be the only place you can play their games. Kind of how it is now. I would bet that they are making plans to do just that but they probably fear the backlash from their fanbase which is silly because noone is gonna stop playing games just because it's on on another platform.
"Cut to present day and Xbox and PlayStation aren't competition because Xbox has no hardware presence it's zero."
If that was remotely true you wouldn´t be so mad about Xbox gamers getting day one games on Gamepass that you have to pay full price for.
"PlayStation gamers simply say thank you I will third party publisher that makes me games"
And we´re thankful for Playstation gamers supporting Xbox games funding our day one games on Gamepass.
Like I said: Everybody wins.
We brought two of the biggest publishers in the world, cost thousands of people their livelihoods and consolidated a huge part of the industry, look how successful we are at gaming!
Top Secret Strategy for How to Become the Biggest Publisher in the World:
1. Buy everybody
And this has been standard business practice in every industry. Don't hate the player hate the game! lol
I have no doubt that the vast majority of developers and studios will be looking at Microsoft as far job security is a concern.
Microsoft will allow its studios to release their games to every single platform, which means more investment on new games, more money, more jobs positions, better payment, benefits and recognition among gamers worldwide.
You though MS would crash and burn
You want MS to leave gaming forever but GAMERS clearly wants otherwise.
You said MS doesn´t know how to make great games but Xbox games dominating sales on Playstation clearly says otherwise.
Now you also have Playstation gamers to blame for helping the rich to get richer.
I warned you. You were on a fool´s errand all the time.
Now all you can do is watch as MS and Xbox gaming grows bigger and better than ever and release games for everyone!
At the end of this road, Bethesda, Activision, etc, will still be releasing games for everyone and Xbox consoles will be no more.
If that's what you claim to have foreseen, then congratulations, you win.
You think three major publishers no longer competing and thousands fired to feed the piggies at MS is a good thing, I don't.
More and more owned by fewer and fewer is what you're cheering for, all that leads to is $80 first party games kid.
Microsoft announced its financial results for Q3 of fiscal year 2025, including an update on its gaming business.
Replies(1)
That's not how that works.
Gaming revenue is already a balance of Content and Services +/- Hardware. So it's simply one step forward. Microsoft's gaming business is growing, and has been growing pretty much forever.
...two steps forward and one step back still amounts to one step forward, does it not?
@darthv72: But in this case, it's more one step forward that would be pretty large, but is held back by some weight, so it's instead a bit smaller, but it's still a sizable step forward, since hardware weighs a lot less than content and services. Your comparison would work if C&S and Hardware were equivalent.
Revenue is not profit. So, we don't know if they have actually been growing or playing catch up.
Darth is correct by the way.
I imagine we would have to know the profit they make off of each category. To be able to access how much of an impact the negative console sales have on the whole. If they barely squeak a profit out of hardware or better yet, are in the negative for each sold. It won’t impact the other categories as much. Considering the bulk of the profits come from software. But just my take.
Care to reassess your statement? Xbox is officially dead in the water now, console wise. No one was buying it before and they damn well wont be doing so going forward. They just raised the cost on their controllers, consoles, and pushed the price to $80 on games. Gamepass will be soon be seeing another price hike as well, book it.
Really depends on your goal. I was told by Microsoft that they were still pushing hardware, so I don't know what to believe.
One step forward toward becoming a 3rd party publisher. But yes one step forward.
Hardware revenue will probably sit somewhere between 800M - 1B for the quarter.
And content & services make up around 75 - 80% of total gaming revenue. Total gaming revenue is up 5%.
While positive numbers are positive, I don't find +5% year-on-year in total revenue a great, not even a good result considering what they've been throwing into the pot since their last Q3.
I don't think they are happy with only a +5% payoff since and compared to last year's Q3, which was abysmal, despite these numbers are indicating "Positive!" at 1st glance.
Especially since in terms of revenue, hardware doesn't contribute a lot to overall revenue anymore ("only" -6% down, because there's no hardware really being sold anymore).
Edit:
"Hardware revenue will probably sit somewhere between 800M - 1B for the quarter."
Was too optimistic.
It's estimated to be at ~330M in Q3.
This means hardware revenue contributed ~6% to Xbox total gaming revenue.
Which then means that 94% of Xbox total gaming revenue in their Q3 '25 was driven by content & service.
And that big portion is up 8% compared to last year's Q3, dragged down by -6% hardware revenue, totalling +5% overall.
Is that really a good result for an up to now 94% "content & services segment", considering that, after last year's Q3, there were Call of Duty, Indiana Jones, Stalker 2, Flight Simulator & other 3rd parties being put D1 into GP?
And considering that subscriptions themselves also fall into content & services segment?
+5% is growth no matter what, sure. No denying.
But ... looking at what they've been throwing into their "content & services" playground since Q3 '24, I don't really see how +5%, while being growth, is a good result business-wise (ROI).
I'm thinking the same thing. This year is kinda like a sugar high for MS. Lots of great games coming out of the pipeline, plus relatively "free" revenue by cashing in on prior opportunity costs by putting prior exclusives on PS. This year, if any, should be gangbusters for them. I can't imagine next year being as good with all these studios back in the development phase...
@crazy
Last Q3 '24, their overall revenue was up 61%. (Thanks to ABK.)
What's left?
5%. In 12 months.
After they increased GP for an average of +18% across all tiers.
After they put Call of Duty (!) D1 into GP.
5%.
That's crazy if you asked me.
Missed that:
Because the actual question for them today is:
• Let's look at retail revenue we've lost from games being D1 in GP, e.g. Call of Duty (just to name the biggest one).
• And ask ourselves: would we've had gained more than +8% in content & services with the retail model?
Keep in mind there was a price increase of GP tiers which came effective in Sept. 2024.
And Sept. 2024 was, logically, after (!) their last Q3.
So - no, +5% in revenue (!) ain't good.
Well what do you know. When you release good games, good consecutive 1st party you output you actually make money.
Minus hardware of course.
I'll give credit where it's due. MS is starting to capture that old 360 energy when it comes to games and releases. It took them 14 years of having a clue but they seem to be doing it now. All will be lost if they step on rakes like they're known to do. Who knows how long it'll last.
It took them essentially going third party but still making hardware to capture that energy.
Revenue is revenue.
If by, 'make money', you mean profit, there's nothing here to show they made a penny of profit.
I'd imagine profit margins are either razor thin or non-existent. But I also think this will change over time. The one thing I can't wrap my head around is Microsoft's desire to create a next-generation console. No one is interested. Last month Xbox sold an estimated 50K units outside of the US. A 6% drop may seem like a low percentage but it's a drop from already low starting point, signaling that interest in Xbox hardware is approaching rock bottom.
In terms of power: Xbox
In terms of EVERYTHING else: PS2
Really? You're gonna' tout modding on OGXBOX to play emulated games and add in M/Kb over the PS2 when you can do the same to THAT console too? -_-
to xbox just after Gran Turismo 4 came out and never regreted it
PS2 was always quantity over quality. The only thing the Xbox was short on was JRPGs and quality platformers. It slayed at everything else.
Ah, back when Sony just didn't care that much about having the most powerful hardware (the Xbox had better graphics, the Gamecube had better graphics, and proof is RE:4).
The PS1 was weaker than the saturn and N64 (the graphics only looked good because of prerendered backgrounds for some games).
Yet Sony destroyed in both gens. Now they're last.