Yeah but if you believe vgchartz their actual console sales have been up yoy by double digit percent. So their actual revenue is down from that percent at 2%. So revenue doesn’t paint the picture you would expect.
What are you smoking? They totally messed up their momentum of the 360. They had a poor reveal of Xbox one and then had terrible exclusives/no games in the last couple of years, they had a 4 year head starry and got out sold by the Nintendo switch bin under 3 years. But hey, I guess people are saving for the next generation 🤣🤣 If XSX fails they wool be more focused on game pass as a service and step out of the hardware business and that may work out better.
PS4 was sold out for awhile as they were selling on EBay for more than cost . Used prices also went up considerably . I’m not sure what the situation is now but it was like that for some time
Technically everyone would do better if they didn’t have the cost of hardware... they make their money off content and services mostly. But you need the hardware to sell your services. People still need boxes, and it will be that way for decades to come.
So would Sony, console sales are a very small portion of profit, and that only occurs towards the end of a consoles life cycle. At the beginning both firms will be losing money on each console sale, so services and software are pretty much the name of the game for these company’s
But nooooo, no one wanted to believe that gamepass is actually a money pit for not just Microsoft, but the industry as a whole! No one in their right mind could think gamepass is profitable in the sense that Microsoft is making lucrative income off of it.
Did you know that roughly 85% of new tech investment and ideas tend to fail?
Silicon valley tends to be a throw everything at the wall to see what sticks, with companies chasing after the next big thing, which is often just a reimagining of some other existing thing for a different market...say the netflix of gaming for a relevant example. 100 failures is usually chump change when the big one hits.
Its not to say itll fail, and of course MS has the financial backing in spades, just to say that tech business models tend to be highly unreliable.
@rainslacker i don't know about fail but the amount of success rate varies for sure with only a handful really taking off. i was at a hardware comapany that went to SaaS then all the way to cloud. some of our competitors failed, but ours took off and was bought by a huge corporation in Cali, so sure i know that it is a risk, but if you can have business model that involves reocurring subscriptions its great for finance, but only after several years because you don't have the giant up front sale, but continued sales over time.
From a common sense perspective, it's hard to believe xgp can be sustainable, even in it's current form of very little exclusives, let alone AAA experiences.
Halo infinite cost MS 500 mil. How many years would it take for them to recoup that cost for that single game? Not to mention all their other dev teams that won't have any releases for maybe another 2-3 years and all the 3rd party subsidy they have to constantly pay
It's very clear quality is most likely going to have to suffer in order to make this profitable.
@fiveby9: First party games include all DLC, but not MTX. For Halo, they tend to allow all content for everyone but have MTX (cosmetic stuff you can buy) to offset the costs of getting everyone to have the same content always for MP. Gears 5 DLC is free on XGP, for example.
We don't even know net income/ profit for the Xbox division, just revenue. They don't share the breakdown by division as far as I can tell. So they could be losing money and we wouldn't know it
Everyone saving for next gen
And new next gen ready TVs
They would be better off going software and services
But nooooo, no one wanted to believe that gamepass is actually a money pit for not just Microsoft, but the industry as a whole! No one in their right mind could think gamepass is profitable in the sense that Microsoft is making lucrative income off of it.