It feels like the video game console is at a crossroads. With Xbox Series X and S floundering in the ‘console war’, Sony suggesting PlayStation 5 is approaching the second half of its life after missing sales targets, and uncertainty around the release of the Nintendo Switch 2, there is growing concern that the traditional video game console business could be under threat.
Shaz from GL: "Where Sony is ramping down support for PSVR2, and Apple are reconsidering their future with the Vision Pro, Meta and the Quest 3 continue to shine."
I'll admit that Facebook is doing more for VR than others. But they also have blown over 50 billion dollars so far and growing in R&D, building the meta verse, buying up exclusives and underpricing their products below build price, to kill competition in the stand alone space. Sony and Valve aren't willing to go into the red at an unheard level to capture the market. We know Sony could build a stand alone device that beats Quest just by the features in PS VR 2 and the new stand alone headset they built. But the new Sony would rather build a device they can profit from day one.
But, Sony so far has profited on hardware and on software. They just don't seem willing to spend the money on marketing, selling under build price or spending millions on making in-house VR exclusives for PS VR 2. Which sucks big time. They're just letting 3rd parties and indies run the show.
Article also doesn't mention that Apple's headset is more a developers product than a mass market item. To say they are looking into making a cheaper one for the next iteration is speaking the obvious. Duh. That was always the case. Build something the public sees as quality not can't afford, then make another that the masses can afford. TVs, cars, cellphones etc all were once expensive. Now, they're cheap to buy with many options to choose from. And Apple isn't even selling VP as a VR headset. I'm well aware that Apple's true intentions is to build a device that pushes AR with VR as an option. Not build a VR device. Because they know eventually that they want to replace the cellphone with AR glasses or an AR headset. If they cared about games, they would have launched as a gaming device.
Lastly, Facebook launched Quest 3 last year. But has not mentioned how many they sold up to this point. Why is that? Besides Quest 2 selling more by being cheap, the market can't move forward until they start selling more Quest 3 headsets than 2. Maybe the new exclusive Batman and Hitman games will help. But we'll see.
Meta is also Billions and billions in the hole in regards to VR. If Sony were to do what Meta has done, they'd be bankrupt
Meta is losing billions on a business that theh will probably walk away from like they did the Facebook phone. Temper your expectations of your investments in Meta’s hardware.
I do wish Sony would release more for PSVR. It’s a neat product, but they don’t support it much. It may have the same fate as the Vita.
I know it’s two completely separate products as Vita was stand alone, and PSVR is a companion to PS consoles. More 1st party support would really boost it though.
They are done supporting it. They're relying on pc to do it for them. Sony even paused production because it's not selling
Recently Gareth at Skewed and Reviewed spoke with Soham Jaiswal, CEO, SD Games about the pending Eternal Damnation game. The game is a hybrid of RPG and RTS and cast players as a Spider.
By putting Black Ops 6 on Game Pass, Microsoft plans to gauge its growth, pricing, and monetization changes, at the cost of less game sales.
If they have follow up games that are bangers, then this strategy will work. But if it’s Call of Duty followed another dead period then it won’t last.
From MS financial perspective I think it may be the opposite.
A year of GamePass on PC is less than the price of two full price games. For all the people that would have bought COD for $70 but instead started subbing for GP, MS will get an extra $50/year which is good.
However, for each banger that MS puts out, that's lost potential revenue because the GP sub won't need to buy it.
So it only makes sense where the new GP customers would have otherwise not spent more money with MS... Which is the case if MS puts out low quality shovelware.
If you’re looking at the short term you are correct. But if Xbox can have multiple bangers then subscriptions should increase. Which is what they want, recurring revenue.
I don't see it working if Call of Duty makes less money and profits over time from gamepass 🤔
I dont understand why have it on it when we all know it sells with the name alone. Seems stupid to lose so much sales and $ just to have it on game pass. They basically shooting themselves in the foot with a already injured foot from all the other times they shoot themselves in the foot.
@blackblades, that's my exact point, even on xbox where most software sells poorly CoD still sells millions, but the thing is, if you don't put it on GP you kinda shatter the whole idea they've build GP up to be, they've dug this hole themselves.
I think it might tick up subscribers a bit, but warzone is already free and gets millions of players regardless of GP. But where will those extra subs come from? Xbox sales are dropping like a rock, PC gamers are very firmly rooted in Steam and will just buy it there.
@black
If they don't include it on Game Pass, they lose the claim of First-Party Day-One on Game Pass, and thus would begin the slippery slope of what's-ok-to-not-include and the devaluing of the service, and further sinking Microsoft/Xbox's already tarnished reputation.
Stuck between a rock and a hard place and this move buys them time to work out more future-math.
I still expect a price increase in GP to compensate but who knows. With all the factors in play like COD points there are too many variables for someone on the outside to predict what will happen. I assume they have a forecast model where this all looks peachy.
When the game does not hit 1 Billion in revenue in under two weeks they will wonder why and the next thing you know; Season Updates will no longer be free.
Yeah I expect paid DLC and season pass in your face, now you are buying for a game you are renting
subscribers go up, execs celebrate win, get bonus, price goes up, subscribers go down,
execs dont care, got their bonus,
If it works CEOs and shareholders get a payday and if it doesn't even more studios get closed by MS so CEOs and shareholders get a payday.
It will sell on PC & PS but as long as COD is for rent on Gamepass it will not sell well on the XB platform. Most folks such as myself that like COD just for the campaign would rather rent it for that month instead of paying $70 plus tax for the game.
Your smart.
its 70 for base plus 10 to 20 for a season pass plus another 30 for there better season pass,
...now you are finally getting how to use GP. No commitments, just play what is offered. if you like it so much and want to keep a copy for yourself... you can buy it when you want to. I used to buy games based on if they looked appealing and have been burned many times on things. With this, I can try before I buy. And I have actually bought several games after having rented them in the service. It literally is like the old days of renting only you get the whole store instead of pay per rental.
I've been knowing how to use Gamepass. I sub the service yearly & I play games on the service that I don't have to pay the full price for such as Persona 3:Reload. I mostly play & pay for games on my PS5 but if a game lands on GP that I'm interested in playing & I don't have to buy a copy for the PS5 I'll definitely play it on Gamepass.
It's obvious that MS is leaving the console biz. MS may have tons of money, but that doesn't mean they want to keep losing money on the gaming division to prove a point. Thanks Phil
Good article and this is not a duplicate. The link that @Maximus Prime shared is just a small portion of the full interview. This post is the full interview.
Times are changing quick, the same ol way the industry been is changing. Where people play is changing.
“What I think Phil is doing is setting up some smoke signals that we're thinking very differently”
I’m surprised how slowly Microsoft is moving toward Xbox as a software platform. They usually don’t care so much about upsetting their customers with unpopular changes like they do with every other version of Windows.
This "console market hasn't grown narrative " is overblown. The market has grown just not as fast as say smartphones. But so what? There is still money to be made in the business and just because Microsoft has failed doesn't mean the entire industry is facing sudden collapse. Gaming will be fine, every industry has to go through periods of restructuring. AAA games are made becuase its what attracts gamers the most and is where they spend the most money. (Demand/supply) Microsoft abandoning hardware should have happened years ago, they clearly lost interest at a base level in producing games and/or paying 3rd parties to back during the tail end of the 360 generation. Tired of hearing about the future of gaming, just make great games and/or invest in one's made by other to attract people to your platform.
They don’t. TVs have Gamepass and everything’s on PC.