Thread: Xbox Series sales are tracking behind N64 sales. -30% year-over-year the second year in a row.
Xbox fans can live without new games, but don't you dare poke a hole in their fanfiction-addled "Xbox is actually an underdog, just you wait and see how they rise from the ashes" mentality. The more Xbox fails, the brighter Xbox's future becomes in the eyes of its fanbase.



No, it does not.
And for the record i'm not singling out xbox here, I also see PlayStation killing their brand but Xbox is WAY ahead of them in that regard.

Why Sony is choosing to follow MS's lead in devaluing their platform when it's clearly not working is beyond me.

"Hey we are clearly winning, why don't we try what the losers are doing?" Lol
 
I'm going to preach again.

Phil Spencer should have been fired after Halo 5.

Halo is Xbox and Halo under 343's pathetic tutelage has been a colossal failure. So naturally Xbox is failing and that is the result of Phil Spencer allowing 343 to run amok for a decade. The leadership restructuring at 343 that took place in the fall of 2022 was far too late.
Phil should've cleaned house at 343 after Master Chief Collection and he should have initiated a delay of Halo 5 and a complete reworking of that title for a 2017 launch.
Phil did none of those things and instead allowed 343 to continue bumbling on into the disastrous Halo infinite development.

By the way, do not believe any rumors you hear about the next Halo title being in full development. I have it on good authority that they do not even have level designers on payroll for Infinite multiplayer maps (hence outsourcing to fans/European support studios) let alone for a full title.

Cynical take: Phil did exactly what Microsoft wanted him to do, which was to play the front man and keep the customers hooked in while Xbox gets phased into a third-party gaming brand like EA. Maybe he genuinely loves dedicated gaming consoles but was unwittingly used as a puppet, or maybe he knew the game from the start and decided to play it anyway. Either way, I think he did an excellent job keeping Xbox fans hooked in while providing the absolute minimum to keep the brand going.

As more time passes, the more accurate the mid-360 era Doom N Gloom becomes. Strangely, it turns out that it wasn't just "Sony Ponies" who saw the writing on the wall... so weird!

And for the record i'm not singling out xbox here, I also see PlayStation killing their brand but Xbox is WAY ahead of them in that regard.

Why Sony is choosing to follow MS's lead in devaluing their platform when it's clearly not working is beyond me.

"Hey we are clearly winning, why don't we try what the losers are doing?" Lol

The common denominator is Western executives and investors calling the shots. The less Japanese the Sony brand becomes, the more we see the Xboxyness leaking in.
 
Exclusives are the only way, good exclusives but Xbox is going in the opposite direction and it will end them in the console market.

Don't bother. The Xbox mentality is literally just "well people laughed at [company] just like they're laughing at Xbox and look how [company] turned things around! You'll see!!"

Remember. 👏 Competition 👏 Is 👏 Good. The videogame market would be 1200% worse without Xbox brand here to underdeliver and buy up other studios.
 
What a debacle. Why did/are they spending billions to buy up devs. Their in court fighting for Activision why ? They are basically in a sunk cost fallacy where they invested so much they can't exit the console market.

This is failed like their windows phone or iPad clone. Just MS decided to spend billions on devs so their stuck. What an epic f up.
 
What a debacle. Why did/are they spending billions to buy up devs. Their in court fighting for Activision why ? They are basically in a sunk cost fallacy where they invested so much they can't exit the console market.

This is failed like their windows phone or iPad clone. Just MS decided to spend billions on devs so their stuck. What an epic f up.
I would not be surprised if a lot of Western devs, publishers, gaming "journalists" are purposely driving as many companies and franchises under and making gaming as bad as literally possible for gamers out of sheer spite no matter how much profit they are losing out on. Especially when you see just how twisted and psychotic many people in positions of power in gaming are on social media. I don't ascribe rational to any of them now. If Xbox and Blizzard were rational they would still have much of their golden age reputations, and far more games of far higher quality to show for it over the past two generations.
 
What a debacle. Why did/are they spending billions to buy up devs. Their in court fighting for Activision why ? They are basically in a sunk cost fallacy where they invested so much they can't exit the console market.

This is failed like their windows phone or iPad clone. Just MS decided to spend billions on devs so their stuck. What an epic f up.

Their revenue overall looks good though. Obviously only because of the Activision Blizzard acquisition, but that's why they bought them and their officially part of Xbox, so there's that.
 
Their revenue overall looks good though. Obviously only because of the Activision Blizzard acquisition, but that's why they bought them and their officially part of Xbox, so there's that.

That was the last earnings report wasn't it? Where revenue and engagement were up massively due to folding ABK console, PC and Mobile takings and monthly active users into the stats, but they were still operating at a multi million dollar loss, without including the 70+ billion dollars that ABK ended up costing in the end.

So yeah, revenue wise they're doing great. They're millions away from making any actual profit, but on the revenue front, doing gangbusters.
 
I'm going to preach again.

Phil Spencer should have been fired after Halo 5.

Halo is Xbox and Halo under 343's pathetic tutelage has been a colossal failure. So naturally Xbox is failing and that is the result of Phil Spencer allowing 343 to run amok for a decade. The leadership restructuring at 343 that took place in the fall of 2022 was far too late.
Phil should've cleaned house at 343 after Master Chief Collection and he should have initiated a delay of Halo 5 and a complete reworking of that title for a 2017 launch.
Phil did none of those things and instead allowed 343 to continue bumbling on into the disastrous Halo infinite development.

By the way, do not believe any rumors you hear about the next Halo title being in full development. I have it on good authority that they do not even have level designers on payroll for Infinite multiplayer maps (hence outsourcing to fans/European support studios) let alone for a full title.

I believe they will abandon Halo single player and feed us free to play garbage from now on. When that dies out, and it will, Halo is finished.
 
It's a shame. I had high hopes for XBOX. They have absolutely NOTHING to look forward to. I like game pass, especially for PC. Fable has been in development for an eternity. They totally abandoned Halo, which should have resulted in mass firings. The reveal of infinite was a fucking meme. Starfield fucking sucked. The new Indy game is being developed by gay/diversity/sweet baby fuck heads.

PS 5 is no better to me. I'm glad their sales are great but they don't automatically get a pass because of this. They are just as pathetic at releasing games as MS. They also fully embrace sweet baby as well and to a WORSE extent as the games fucked by them were from great franchises. Spiderman 2 was a fucking disgrace. Their games eventually come to PC, so what is the point in even owning a console at this point (besides Nintendo if that's your shit).
 
Their revenue overall looks good though. Obviously only because of the Activision Blizzard acquisition, but that's why they bought them and their officially part of Xbox, so there's that.

How are they gonna make any money off spending 70 billion when they won't sell any games? GP is tied to their tiny instal base and on PC if won't ever beat steam.
Not to mention MS will run activisions games into the ground with their bullshit. Look what they have done to their other franchises. COD will probably sell half a million copies when their done.

If XBOX was selling 10s of millions with 50 million GP subs i could see it. Seems the plan is for Acti games to be multi plat and to just be a publisher.

I just can't see MS making another console if they are GC /N64 levels here. There going to go the way of Sega. Within a decade they will sell off activision. Share holders will demand it.

XBoX was always a Trojan horse anyways to try and get into the living room. Problem is cell phones came out and people stopped watching cable. So the plan to have people check their email and make video calls on their TV is dead.
 
It's a shame. I had high hopes for XBOX. They have absolutely NOTHING to look forward to. I like game pass, especially for PC. Fable has been in development for an eternity. They totally abandoned Halo, which should have resulted in mass firings. The reveal of infinite was a fucking meme. Starfield fucking sucked. The new Indy game is being developed by gay/diversity/sweet baby fuck heads.

PS 5 is no better to me. I'm glad their sales are great but they don't automatically get a pass because of this. They are just as pathetic at releasing games as MS. They also fully embrace sweet baby as well and to a WORSE extent as the games fucked by them were from great franchises. Spiderman 2 was a fucking disgrace. Their games eventually come to PC, so what is the point in even owning a console at this point (besides Nintendo if that's your shit).

Playstation's saving grace is that it offers a much wider library of games from third parties compared to Xbox. There are still new releases in 2024 only coming to PS4 and Switch. So if you don't care much about first party Sony or first party Xbox, the Playstation is still a great box to plug into the TV and play most contemporary stuff available.
 
Playstation's saving grace is that it offers a much wider library of games from third parties compared to Xbox. There are still new releases in 2024 only coming to PS4 and Switch. So if you don't care much about first party Sony or first party Xbox, the Playstation is still a great box to plug into the TV and play most contemporary stuff available.

I've said before that Xbox games coming to PlayStation actually makes the PS5 a worthwhile purchase again.

Now most games from Japan, PC, Xbox and PlayStation themselves will be on the system, so the only real difference between a PS5 and PC are mods, expensive high end gaming vs best value for money, and the really obscure little PC indie games.

Well, and piracy.

But then again there's games like Unicorn Overlord that aren't getting a PC port that are GOTY contenders on consoles only too.

Really, at this point I can't fault anyone for going either PS5 and Switch or PC and Switch, to get 99% of what's worth playing on the market.

Xbox just doesn't have a competitive reason to own it unless you're a real skinflint and will only spend the absolute minimum possible to play games, ANY games, regardless of quality, and that's not exactly a growth market to have from MS's perspective is it?
 
Don't bother. The Xbox mentality is literally just "well people laughed at [company] just like they're laughing at Xbox and look how [company] turned things around! You'll see!!"

Remember. 👏 Competition 👏 Is 👏 Good. The videogame market would be 1200% worse without Xbox brand here to underdeliver and buy up other studios.

Competition is good but it means nothing when it is getting destroyed. Xbox is just goddamn useless. The Gamepass cloud feature has killed all reasons to owning it. They even shutdown their physical media department. Xbox has shown they are a cancer of gaming. I have basically stopped gaming on their platforms entirely.

I wish there was competition since the PS5 is also trash, but nope. The only "competition" is who can do worse. So glad I switched to PC gaming. Decentralized and free. Even Windows sucks (I use Linux Mint). Everything M$ does, becomes sewage. They have no goddamn clue what they are doing with gaming. They should just fuck off entirely.
 
Competition is good but it means nothing when it is getting destroyed. Xbox is just goddamn useless. The Gamepass cloud feature has killed all reasons to owning it. They even shutdown their physical media department. Xbox has shown they are a cancer of gaming. I have basically stopped gaming on their platforms entirely.

I wish there was competition since the PS5 is also trash, but nope. The only "competition" is who can do worse. So glad I switched to PC gaming. Decentralized and free. Even Windows sucks (I use Linux Mint). Everything M$ does, becomes sewage. They have no goddamn clue what they are doing with gaming. They should just fuck off entirely.

The problem I see is too many soulless corporate managerial types holding the reigns.

6th gen was a golden age of gaming, but it was an absolute bloodbath where PS2 skullfucked everyone else. No one was able to compete with Team Blue.

But because Crazy Ken had a vision, a passion for gaming, and an irrational desire to piss on Nintendo with the fury of a stallion with a UTI, it didn't matter.

And that led to 7th gen, which saw the most innovation and fiercest, most closely contested gene in all of gaming history.

And that's the thing, competition does not mean everyone does well. It doesn't even mean everyone makes the best possible hardware and has the best games. In both 6th and 7th gen, it was the weakest hardware with the most shovelware that won out.

No, competition in gaming is about doing your best to give people the best possible gaming experience.

6th gen saw PS2 prove that it had no real competition, but no one who bought a GameCube, Xbox or even Dreamcast got shortchanged either, because even though they couldn't compete, they damned well did their best to make great games.

So too we're the Wii, PS3 and 360 all absolute blasts to play in their own rights. Whether you had just one, or bought all three, nothing felt redundant or like it wasn't trying it's damndest to keep you entertained (at least by generations end, when PS3 got it's act together.

Last gen however, first Nintendo, the Xbox just flat out stopped trying. They half arsed it, and it was obvious. Sony was hungry for redemption still though, and my god was the PS4 the comeback story of the generation. Then they put that cunt Jim Ryan in charge, and PlayStation has been shit ever since.

Nintendo did howeve get themselves sorted with their do-over last gen machine. And you can tell that passion for games is still there, even if they are being a bunch of tossers in every other way.

But the point of this long, rambling, drunken rant is that platform holders need to give a shit about games and the people that play them. Xbox doesn't, and hasn't for over a decade. PlayStation doesn't, and hasn't for years. Nintendo does, but they kind of care more about money than either.

Valve are pretty fucking dope though. God I love the Steam Deck.
 
6th gen saw PS2 prove that it had no real competition, but no one who bought a GameCube, Xbox or even Dreamcast got shortchanged either, because even though they couldn't compete, they damned well did their best to make great games.

I miss that. Even the weakest consoles had some redeeming qualities. Depending on which genres you liked, a console with a tinier library might end up being a much better match for your tastes compared to the juggernaut with the larger library. I don't think that's the case anymore. Xbox and Playstation are just cheap PCs. You can get access to the overall market of third-party stuff, but neither console feels like it's trying to push certain genres forward or conquer certain fanbases with a superior number of games of a certain type. Both consoles play a lot of contemporary games, with a few exclusives on the side. At this point I no longer think Sony or Microsoft exclusives should be a deciding factor in console purchase because both have become so weak.

And in the same way that Xbox and PS are cheap PCs, PCs have become nothing more than premium consoles. Games aren't designed for high-end hardware anymore. The vibrancy of PC gaming does not exist in the AAA space for the most part, it's almost entirely in the realm of indie and mid-size games. I can't help but chuckle at the irony... the sweet spot for modern PC gaming is running Steam on reliable mid-tier hardware, allowing you to play 95% of the interesting stuff coming out at a sub-$1000 price point.... or in other words, a Build-A-Bear console.
 
And for the record i'm not singling out xbox here, I also see PlayStation killing their brand but Xbox is WAY ahead of them in that regard.

Why Sony is choosing to follow MS's lead in devaluing their platform when it's clearly not working is beyond me.

"Hey we are clearly winning, why don't we try what the losers are doing?" Lol
Because they're winning in a stagnating or even shrinking market. They're not changing their strategy because they're bored, they just see the writing on the wall.
 
MS is making more profit on gaming than they ever have in over 30 years, and that's why Phil has his job, because that's how business works.

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MS is making more profit on gaming than they ever have in over 30 years, and that's why Phil has his job, because that's how business works.

Fresh Prince Reaction GIF by MOODMAN

I've only seen reports on revenue being up. Profit wise, I have strong doubts that they're healthy. They aren't anywhere even remotely close to making the expenses back for the Activision acquisition. Revenue doesn't mean that much and is obviously high after they bought the largest gaming publisher.
 
I've only seen reports on revenue being up. Profit wise, I have strong doubts that they're healthy. They aren't anywhere even remotely close to making the expenses back for the Activision acquisition. Revenue doesn't mean that much and is obviously high after they bought the largest gaming publisher.

We know from the ABK court cases that a couple years ago Xbox profit margin was roughly half of Playstation, so around 4-5%.

Then we got this rare info tidbit last quarter:

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Profit margin improved in gaming and expenses have decreased. We're seeing a similar effect in Playstation where profit margins have recently improved. Both used the same strategy of increasing prices and firing a bunch of people.

It's safe to assume that Xbox (or Microsoft gaming, if you like) currently makes more money than ever before.
 
I've only seen reports on revenue being up. Profit wise, I have strong doubts that they're healthy. They aren't anywhere even remotely close to making the expenses back for the Activision acquisition. Revenue doesn't mean that much and is obviously high after they bought the largest gaming publisher.
When it comes to corporate spending, and accounting you can't compare it to household spending. MS didn't 'spend' 68 billion on ABK that has to be paid back within a set time period, they transferred 68 billion in rapidly depreciating liquid capital (given the inflation rate at the time) to a profit-generating asset that sits on a different section of the balance sheet.

As far as profitability here's MS's investor statements for the Personal Computing segment where gaming is contained. This is for the 2025 Q1 that just ended.


More Personal Computing

Revenue increased $1.9 billion or 17%.

•Windows and Devices revenue decreased slightly. Windows OEM and Devices revenue increased 2% driven by growth in Windows OEM, offset in part by a decline in Devices.

•Gaming revenue increased $1.7 billion or 43% driven by growth in Xbox content and services. Xbox content and services revenue increased 61% driven by 53 points of net impact from the Activision Blizzard acquisition. Xbox hardware revenue decreased 29% driven by lower volume of consoles sold.

•Search and news advertising revenue increased $207 million or 7%. Search and news advertising revenue excluding traffic acquisition costs increased 18% driven by higher search volume and higher revenue per search.

Operating income decreased $157 million or 4%.

Gross margin increased $984 million or 16% driven by growth in Gaming, with 12 points of net impact from the Activision Blizzard acquisition. Gross margin percentage was relatively unchanged as improvement in Gaming and Search and news advertising was offset by sales mix shift to those businesses.

•Operating expenses increased $1.1 billion or 49% driven by Gaming, with 51 points of growth from the Activision Blizzard acquisition.



It seems that other segments of the Personal Computing branch of MS were down, and offset by the margin gains in the gaming division that left the entire Personal Computing profit margin rate flat, just with a huge boost in gross profit from ABK. Now that they're going full-tilt with selling everything everywhere I expect their profitability to explode, hence the reason why Phil is still at his position.