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110°

Here's why Xbox's success in the consumer market doesn't matter

ZDNet's Matt Baxter-Reynolds writes "I've always fancied having a computing industry law named after me. A good one, you know like Moore's Law, or Brook's Law. I'd even take an adage, like Hanlon's razor. (Easily my favourite razor.)

If I had a chance to create one, I'd like to create "MBR's Law" as being something like this:

Every discussion about Microsoft's inability to deliver in the consumer market will be met with the rebuttal, 'Yeah, but what about Xbox?'"

Of course, today we have to regard this in the context of Microsoft buying out Nokia's phone unit. Nokia do know how to sell to consumers, but let's look at Xbox first."

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Mystogan3888d ago

This article is such BS, that not even the Sony fanboys are commenting on this.

xHeavYx3888d ago (Edited 3888d ago )

" Sega is no more, Nintendo is floundering, and Sony's only chance with PlayStation 4 is if Microsoft fatally mucks up Xbox One."
What!? This guy is a joke, sounds like some random IT guy who decided to talk about video games, so he wrote an article after reading 1 or 2 other articles.
Then he does what every other respectable journalist does, compares the Ipod sales to game console sales, because everyone knows those 2 compete against eachother /s

christocolus3888d ago

Lmao.....the weight and importance of an xbox article can be immediately judged by the number of sony fans in the comments section of same article....lmao....Dude you are hilarious..

Axe993888d ago

Yup, I have a general dislike for Microsoft, and a preference for Sony's consoles (based on past performance - it would have changed if the PS4 had launched like the XB1 and vice versa!) and this article is bollocks, for more reasons than you can poke a stick at. Not worth the bandwidth it takes to download.

zeal0us3888d ago

I have read flamebait better than this article tbh and thats just sad :(

The author was comparing Xbox sells to iPad sells.

Anon19743888d ago (Edited 3888d ago )

You can kind of see where he's coming from though in the grand scheme of things. You want to look at devices, here's how Microsoft's devices are stacking up against their competition. Of course the problem with this comparison is the Xbox isn't in the same market as iPads. It's like comparing car sales to sales of forklifts because they both happen to have wheels.

Still, interesting to see how the Xbox is viewed in some technical circles. Despite the Xbox's success, MS's investors tend to view the Xbox as a millstone around the neck of the larger company, which is why so many are predicting the Xbox division to be spun off (that and ValueAct is now on the MS board and seems to be getting their way). You have to realize that the shareholders of MS are probably viewing this the same way, Xbox vs iPads, even if the comparison is flawed.

I thought it was an interesting perspective coming from ZDNet and not some fan site even though I don't necessarily agree with his assessment. A spun off Xbox Division has been estimated to be worth about 17 billion. Hardly as inconsequential as this article makes it sound.

Axe993888d ago

Yes and know though - you get a lot more sales after the initial console is bought relative to smartphones and tablets, particularly for the initial provider. Despite it's incredible install base, i-device app revenues still don't match those of console gaming. The article only looks at units sold, and pays no attention to revenue or profit per unit, or longer-term revenue streams. It's very shallow, and not terribly informative (or informed).

tokugawa3888d ago (Edited 3888d ago )

look who posted it ... yep n4gs very own pachter ( full of sh't just like him as well)

ffs give it a rest. why are you so adamant about posting these sort of blogs? what are you hoping to accomplish???

what are your motives? tell us what your goal is with this darkie?

i remember your SMgamers web-site. where you were editor in chief of various xbox is doomed material. i remember the one where you had the xbox symbol in a toilet as the picture lol. i bet you was well proud of that one.

did you write that for him also??

280°

Microsoft’s Surface and Xbox hardware revenues take a big hit in Q3

Microsoft just posted the third quarter of its 2024 fiscal financial results. The software maker made $61.9 billion in revenue and a net income of $21.9 billion during Q3. Revenue is up 17 percent, and net income has increased by 20 percent.

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darthv721d 5h ago

Xbox content + services up 62% while hardware down 31%... seems about right with the way they tout you don't need the hardware to play. People can play on their phones or smart tv or other means. I don't hardly play on my consoles directly since getting devices like the logitech g-cloud and ps portal. Which is to also say I have been playing more digital than physical because of these devices.

solideagle16h ago

you should apply in MS PR team buddy, I think you will do a great job in my humble opinion :)

Sonic188113h ago

I thought darthv72 and Obscure_Observer already work for Microsoft 🤔

dveio13h ago

MS: "Xbox services and content without AB up 1%, with AB up 62%. Hardware down 31%. In total a loss of 350 mill."

darthv72: "Seems about right."

MS: "Excuse m ..."

darthv72: "I don't hardly play on my consoles directly."

MS:

Lightning778h ago

What he said was facts. How he plays games is no concern of you. Don't get too mad about it.

Cacabunga16h ago

I can tell people like you are an absolute minority..

If service is up means their fans and fanboys accepted this model and subscribed to it. The near future you will see a big decline because the service is saturated.

darthv722h ago

to you it may seem like the minority... but your bubble is shrinking because more and more are following suit. convenience is a hell of a drug and its also why physical sales only amount to 30% of overall game sales. times are changing, you either get with them or you get left behind.

shinoff218315h ago

But that's been ms for years. When things aren't going their way they try to change the way things are said. For instance console sales are down, they stop telling how many sold instead telling us how many hours spent in halo or headshots. So it makes sense console sales down just say people are playing on more devices then previous. What they won't say is how many xbox players jumped ship to ps5.

Cacabunga14h ago

Hardware sales are so bad that Sony and Nintendo are blowing the sales off the water with their hardware.

If Xbox are losers, others aren’t..
Xbox already tried everything with Xbox live then subscriptions went down so much that they had to find something else. Their fans subscribed then reached saturation rather quickly.

Hardware and exclusive games is where it’s at! Keep gamers excited, announce decent software and people will support you

itsmebryan10h ago

@shin
Well keep it simple Sony 's operating income is down 26% and Microsoft's is up 32%. No MS spin there, just facts. 😉
Cheers

S2Killinit2h ago

MS is after diminishing consoles as a medium. They want to destroy this market because they couldnt win. MS’s vision is to dissolve console gaming.

romulus239h ago

Odd that a company that touts you dont need the hardware to play is already touting another console in the works.

darthv728h ago

They are not reliant on the HW but still want to maintain a presence (no matter how small) is a good thing. It shows commitment to the craft. It reminds me of SNK and how they made games for their own hardware (Neo Geo) while also making them for others because they knew there was a market to do so. They knew they would sell more to others but also sell to their own niche fan base.

TheEroica2h ago(Edited 2h ago)

Perfectly reasonable post down voted by insecure corporation friendly folk.... But not gamers. Real gamer want accessibility and ease of acquisition for all.... Company shills are the only ones still telling us that hardware locking people from games is good for us.

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purple10118h ago

Xbox hardware revenue tanks to lowest point of Xbox Series generation

Profchaos18h ago

I'm not surprised surface is struggling they aren't relevant anymore

DOMination-8h ago

In the last two years they've started exiting the consumer market altogether. All of the newest Surface products are business models only. They can't seem to work out what they want to do with it.

XBManiac17h ago

Too expensive hardware when others offer the same or more for less? Good work, Green Team.

SimpleDad17h ago(Edited 17h ago)

"Despite some early successes for Xbox games on rival platforms, Xbox hardware is down by a massive 31 percent this quarter."
"Without Activision Blizzard, Microsoft’s overall gaming revenue would have actually declined this quarter."
"Xbox content and services would have only been up a single percent without Activision Blizzard..."
"It looks like next quarter is going to be a similar story for gaming at Microsoft, too."

That is crazy... so A/B/K is carrying the whole Xbox gaming.
Oh and Microsoft will be fine. Windows, Office and Cloud are growing with each pc purchase.

purple10117h ago

Activision: "we gonna need a bigger rucksack/backpack please"

Microsoft: "why's that"

Activision: "to carry yo' weak ass'

Profchaos16h ago(Edited 16h ago)

Top brass have also wanted to start seeing returns on the 100 billion they have put into various Xbox related moves so seeing more multiplatform games is highly likely especially from abk

It's basically saying that PlayStation is the reason Xbox is afloat right now thinks to Ps5 versions of COD

Kornholic15h ago

So basically PS and PC gamers' money is keeping Xbox on life support.

MrDead8h ago

The only growth MS will get out of the console industry is if it supports it's rivals platforms. Xbox is a pointless machine now. I can see them on a big push for live next, and they won't give up on trying to buy Steam.

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300°

Microsoft Seemingly Closes Bethesda France

As part of its plans to cut 1,900 jobs, Microsoft has reportedly shut down operations at Bethesda France, letting go roughly 15 people

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Hereandthere2d ago

Microsoft should have left them stay 3rd party

GamerRN1d 23h ago

If they are let go, they can be whatever they want. They ARE 3rd party now... 🤦

Barlos1d 21h ago

Yeah, they're also jobless.

GamerRN1d 14h ago

They can form a company if they want, they are just as jobless as if "Microsoft had left them as 3rd party".

peppeaccardo1d 15h ago

"MIcrosoft leaves Bethesda do what they know how to do best" ... close! Oh the irony ....
(Citation from a week old article)

ChasterMies1d 11h ago

I think Microsoft and other game publishers are letting people go because they think ai will replace them. Doesn’t matter how much profit they make. They were always going to be let go.

PassNextquestion2d ago (Edited 2d ago )

Bethesda France was made up of roughly 15 people... they couldn't of being doing much

Bethesda France mainly did publishing and marketing within the region

blacktiger1d 23h ago

that's a shame for you to say that, i'm sure Elite loves hearing what you just said.

Mr Logic1d 9h ago

What a stupid thing to say. The elites give 0 fucks what we say on an obscure website in the comments section.

Crows901d 9h ago

You can always reach out and give them jobs at your company man. Don't wait

blacktiger6h ago

You own nothing snd be happy. I'm sure you heard that

Profchaos2d ago (Edited 2d ago )

Bethesda France focused on publishing and marketing in the region. And 15 people lost their jobs as part of the closure.

I wonder if this is part of Microsoft's strategy to abandoned physical media or possibly gamepass advertising makes their roles redundant you don't need to market a game as hard when the majority of players get the game as part of a sub which already promoted upcoming games

Tacoboto2d ago

It's France too, there's a high likelihood only 1-2 people on the team even had an Xbox.

Profchaos2d ago

Possibly guven all the leaks we know the Xbox brand is really struggling in the region.

Yi-Long1d 22h ago

Well, if your consoles and games are barely found in any stores any more, of course you're gonna struggle finding consumers ...

XiNatsuDragnel2d ago

Tbh Microsoft I think Bethesda being 3rd party same with Activision would probably more competitive than thus scenario imo

Profchaos1d 22h ago (Edited 1d 22h ago )

I think it would have been better for all parties really especially gamers

TheColbertinator1d 23h ago

The recently purchased Activision French offices might take over all the licensing and marketing for Microsoft in France from now on.

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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?"

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purple10113d 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 ☝️

Zeref12d 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.

DarXyde12d 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.

PhillyDonJawn12d ago (Edited 12d 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.

Einhander197212d 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.

MrBaskerville12d 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.

shinoff218312d 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.

Profchaos12d ago

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

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isarai13d ago

Is that why Hellblade 2 is digital only?

Zeref12d 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.

MrNinosan12d ago

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

mkis00711d ago (Edited 11d ago )

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

Einhander197213d 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.

13d ago Replies(3)
Einhander197212d ago

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

12d ago
12d ago
Zeref12d 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.

DarXyde12d 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.

Einhander197212d 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.

Einhander197212d 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.

BehindTheRows12d ago (Edited 12d 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.

Zeref12d ago (Edited 12d 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.

Chevalier12d 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.

Tacoboto12d 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.

shinoff218312d ago

Yay steam

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

Tacoboto12d 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.

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Hofstaderman12d 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?

crazyCoconuts12d 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.

Xeofate12d ago (Edited 12d 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.

crazyCoconuts11d 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

FinalFantasyFanatic11d 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.

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