Let's be honest: the Xbox Series S/X is finished, and Microsoft no longer cares about increasing hardware sales. This generation is over for Microsoft, and no one needs to invest in an expensive series when they can wait 1-2 years for the next-generation XBOX hybrid consoles, which will be a completely different platform that combines PC gaming with the console hardware format. The next XBOX hybrid will combine the console and PC libraries using the "XBOX Play Anywhere" feature; it will be backwards compatible and will include Game Pass, Steam, and other PC stores, all within the "gaming windows full screen" new gaming OS that we have already seen on the XBOX ROG ALLY. I fully expect the PC Game Pass to merge with Ultimate, which will be the only tier that includes day-one releases.
Why did Xbox choose the multiplatform open ecosystem strategy instead of keeping the traditional "hardware platform holder—exclusive games" approach? Phil Spencer had the answer to that question from the start, but no one paid attention to his word, which proved true:
Phil Spencer decided for Xbox to become a multiplatform publisher with Game Pass as its main service, rather than continuing with the "hardware platform holder—exclusive games" model, which was unsustainable because most gamers have built their digital libraries on PlayStation and Steam and will not leave their digital libraries to join a new ecosystem and start from scratch even if Xbox produces stellar quality exclusive games.
Personally, I believe Microsoft made the correct decision by pursuing a multiplatform strategy, but they should invest more in Game Pass to significantly increase the value of the content in order to justify the recent price increase. I'd rather have 30-40 AA/AAA high-quality games than 75 low-quality indie slop releases on the first day.
I've created this scenario for a fantastic lineup of day-one games that can truly make Game Pass the dominant platform:
**September**: Remakes of Halo 2, 3, 4, and Reach ($200m) + new Halo 7 ($400m). Total $600m, 5 games. **October**: Remakes of Gears of War 1–5 ($100m) + new Gears of War ($250m). Total $350m, 6 games. **November**: Remakes of Fallout 1, 2, 3, 4, and New Vegas ($250m) + Fallout 5 ($300m). Total $550m, 6 games. **December**: Remakes of Elder Scrolls 1–5 ($250m) + new Elder Scrolls ($300m). Total $550m, 6 games. **January**: Remakes of Fable 1/2/3 ($150m), Fable: The Journey ($20m), Fable Heroes ($5m) + new Fable ($200m). Total $375m, 6 games. **February**: Remakes of Doom 1/2/3/64/Final Doom ($200m) + new Doom ($200m). Total $400m, 6 games. **March**: New Forza ($200m), Perfect Dark ($150m), OD ($200m). Total $550m, 3 games. **April**: Hellblade 3 ($150m), Star Wars Eclipse ($250m). Total $400m, 2 games. **May**: Blade ($150m), new Superman ($250m). Total $400m, 2 games. **June**: Everwild ($50m), Hi-Fi Rush 2 ($80m), new Diablo ($400m). Total $530m, 3 games. **July**: New Age of Empires ($100m), Banjo-Kazooie 1/2/3/5 remakes ($100m), new Banjo-Kazooie ($50m), Crash Bandicoot: Titans/Mind over Mutant/Crash 4 remakes ($100m), new Crash Bandicoot ($80m). Total $430m, 10 games. **August**: New Minecraft project ($100m), new StarCraft ($150m). Total $250m, 2 games. Overall: 31 projects, 53 individual games, total budget $5.385 billion. One major Xbox title every 10–12 days for an entire year.
Total Scope (12 months)
31 projects → 53 games Total budget: $5.385 billion Remakes: 10 bundles (≈32 games) – $1.375B New games: 21 titles – $4.01B
Studios Required 25–35 studios
21 dedicated to new AAA games 1–2 for remake bundles + outsourcing for smaller titles Shared QA/art/localization teams
The next-generation Xbox console will be a hybrid PC-console with full-screen gaming windows containing the entire console library and backwards compatibility, merging with the PC library via "XBOX Play Anywhere." The PC Game Pass tier will merge with Ultimate, making it the only tier with day-one releases. Also, the XBOX hybrid will include Steam and all of the other stores that are already available on the XBOX ROG ALLY X.
It looks so good, but it's expensive AF. It's a good thing it's PC compatible, so I'll consider purchasing if the price drops during the sales period for the next year.
The Initiative was closed because it was a problematic studio, but the cancelled Perfect Dark game can be saved by outsourcing the entire project to Crystal Dynamics, which was co-developing the game. Microsoft can save Perfect Dark and Everwild by outsourcing all canceled projects to third-party studios to be completed. Crystal Dynamics should handle Perfect Dark, while Toys for Bob, a former Xbox studio that also works on Crash Bandicoot, can work on Everwild.
It was a B show with some good games, but I'm expecting more high-quality content to justify the price increase.
As I've previously stated, Xbox should release more single-player AA/AAA content on day one to justify the price increase by increasing the overall value of Game Pass. Out of the 75 day-one games released each year, I fully expect 20-25 to be high-quality AA/AAA single-player games such as Clair Obscur, South of Midnight, Avowed, Hellblade 2, Hi-Fi Rush, Doom, Gears, Indiana Jones, Halo, the upcoming Fable, Clockwork Revolution, the Blade game, the new Crash Bandicoot, etc.
I'd also like to see more Japanese games like Yakuza, Persona, Final Fantasy, the Mana series, and Code Vein, as well as anime games like Naruto, Demon Slayer, Bleach, Jujutsu Kaisen, and so on. There are JRPGs/anime games that are very popular and can appeal to many anime fans who can use Game Pass exclusively for these types of games.
As I've previously stated, Xbox should release more single-player AA/AAA content on day one to justify the price increase by increasing the overall value of Game Pass. Out of the 75 day-one games released each year, I fully expect 20-25 to be high-quality AA/AAA single-player games such as Clair Obscur, South of Midnight, Avowed, Hellblade 2, Hi-Fi Rush, Doom, Gears, Indiana Jones, Halo, the upcoming Fable, Clockwork Revolution, the Blade game, the new Crash Bandicoot, etc.
I'd also like to see more Japanese games like Yakuza, Persona, Final Fantasy, the Mana series, and Code Vein, as well as anime games like Naruto, Demon Slayer, Bleach, Jujutsu Kaisen, and so on. There are JRPGs/anime games that are very popular and can appeal to many anime fans who can use Game Pass exclusively for these types of games.
All these games are small, so we haven’t lost any value. However, I believe XBOX should invest in more second-party and third-party deals to bring more games permanently to the service. That’s right—no game should leave the service. This would help grow the Game Pass library to 2,000 games in the next few years. To achieve this, XBOX should secure more second-party deals, like Ninja Gaiden and Flight Simulator, which involve funding and owning games developed by third-party studios. They should strike massive deals with 70-80 studios simultaneously if they want 20-30 day-one releases from second-party developers each year.
With a strategy of no games leaving the service, the value of Game Pass content would dramatically increase over time, building a massive library of both old and new games.
Xbox should remake the entire Halo trilogy, along with Reach and 4, bundling them all together in a massive collection available on Game Pass. They should also add Halo 5 to Game Pass while focusing on developing Halo 7. Infinite was a missed opportunity—it had a strong story mode, but it failed as a live service project at its core.
Asian gaming publishers, both Chinese and Japanese, are cutting ties with Western studios, which tend to have higher salaries and produce mediocre games. Instead, they are focusing their resources on their homeland and the emerging Asian gaming market. For Square Enix, it is more profitable to produce exclusively Japanese games with lower budgets that can sell millions of copies in the domestic market and even in the West.
The Chinese market is poised to become one of the most dominant gaming markets in the world within a few years, sharing a similar gaming culture with Japan, such as creating "anime-style" games and moreI expect Netease to completely divest and either close or sell its western studios, such as Quantic Dream, Bullet Farm etc
Gaming studios facing challenges and sustainability issues, like Bioware at the moment, present a great opportunity for Xbox to step in and strike a deal to have their games available on Game Pass from day one. The next Mass Effect might launch as a day-one title on Game Pass if Microsoft strikes a deal and funds the game's development.
20) Microids: making a major deal to bring their classic and new games to Game Pass, featuring titles like Smurfs, Asterix & Obelix, Garfield, and Agatha Christie, while also developing second-party games for Xbox.
21) Outright Games: making a big deal to bring all their old and new game to Game Pass, enhancing its family-friendly and kids' catalog with titles like Barbie, Paw Patrol, Dora, and My Little Pony. They would also be working on creating new second-party games for Xbox.
22) Dotemu: massive deal to bring all their old and new games on Game Pass, such as Ninja Gaiden Ragebound, Ninja Turtles, Marvel Cosmic Invasion, Metal Slug, etc, while also developing new second-party titles for XBOX.
23) Tribute games: a massive deal to bring all their old and new games to Game Pass, while also developing new second-party titles for XBOX.
24) Kepler Interactive, making a second-party game with a $150 million budget for XBOX and Game Pass.
25) The Chinese Room: making a second-party game with $100 million budget for XBOX
26) Game Science: a deal to bring older and new games to Game Pass
27) Paradox Interactive: massive deal to bring all new and old games to Game Pass
28) Avalanche Studios, making a new second part game for XBOX
A potential scenario for Xbox's second and third-party strategy:
1) Sega: More partnerships to bring games like Persona and Yakuza to Game Pass.
2) Capcom: Additional deals to bring games such as Kunitsu Gami and major franchises like Monster Hunter, Street Fighter, and Resident Evil.
3) Square Enix: Further collaborations to include games like Final Fantasy and the Mana series, and Dragon Quest on Game Pass.
4) Bandai Namco: Expanded agreements to feature anime games like Naruto, Demon Slayer, Bleach, Jujutsu Kaisen, and JRPGs such as the Tales series, Code Vein, or platform games like Pac-Man.
5) Don't Nod: A deal to create a high-budget $200 million second-party game, focusing on a quality single-player experience.
6) Remedy: Agreements to develop second-party games for Game Pass, potentially funding titles like the next Alan Wake or Control, securing exclusive rights similar to Epic Games with Alan Wake 2.
7) Kojima Productions: Future second-party deals, including projects like "OD."
8) Bloober Team: A partnership to create a new second-party horror game with a $150 million budget.
9) CD Projekt: A significant deal to release the next Witcher and Cyberpunk titles as day-one Game Pass inclusions.
10) Koei Tecmo: More second-party collaborations for games like Ninja Gaiden and Wo Long to join Game Pass.
11) Ubisoft: A major agreement to bring multiple games to Game Pass annually. Xbox could also partner with Ubisoft and Disney to develop new titles like a Star Wars Outlaws sequel, Avatar games, or Marvel projects.
12) Warner Bros. Studios: Additional deals for day-one releases of games like The Lord of the Rings, Harry Potter, and DC titles on Game Pass.
13) Telltale Games: Deals to create second-party episodic games fully funded by Xbox as the publisher.
14) Tango Gameworks(former studio): A new second-party arrangement to develop a sequel to Hi-Fi Rush.
15) Toys for Bob(former studio): Already in a second-party deal for a rumored new Crash Bandicoot title for Game Pass.
16) Crystal Dynamics collaborated with The Initiative on the canceled Perfect Dark. Xbox should continue this partnership with Crystal Dynamics to complete the project and release it on Game Pass as a second-party deal.
17) Larian Studio, making a second-party deal to produce a high-quality RPG game with a 200 million budget for Game Pass
18) Supergiant Games, making a massive deal to bring all their old and new titles to Game Pass.
19) Deck Nine, making a big deal to bring all their old and new titles on Game Pass, while also making a second-party episodic game for Game Pass.
The subscription model is replacing the traditional full-price and ownership approach. We've already seen the film and music industries fully embrace subscriptions; now it's the gaming industry's turn to move forward.
I think AAA games can thrive through Game Pass. If Game Pass boosts its revenue from $5 billion to $9 billion after the price hikes, Xbox would have the funds to invest more in annual day-one AAA releases. Ideally, Game Pass should include 20 AAA titles out of the 75 promised day-one releases after the price increase, with the rest being high-quality indie or AA games like Clair Obscur, Hollow Knight, and others. Having more AAA titles, Game Pass can justify the high cost of the service after the price hike.
Let's assume Game Pass reaches $9 billion in revenue. We could allocate annual spending for investments in the following manner:
1) $2 billion for AAA games with an average budget of $300 million, resulting in 6-7 high-budget AAA games annually.
2) $2 billion for AA games with an average budget of $150 million, resulting in 13-14 AA games annually.
3) $2 billion for third-party day-one releases, with an average spending of $40 million per title, resulting in 40 day-one releases for third-party titles annually.
The total annual spending would amount to $6 billion over 65-day one releases, considering 7 high-budget AAA games, 14 AA games, and 40 third-party games.
Xbox has become a major publisher after its acquisitions, but it still lacks the manpower to produce 20-22 AA/AAA games annually. To achieve this, Xbox will need to strike significant deals for second-party games developed by third-party studios and secure more third-party titles, like Clair Obscur or Hollow Knight, as day-one releases on Game Pass. Assuming a five-year development cycle for each project, around 110 gaming studios would need to work simultaneously to produce 20-22 new releases every year. Xbox's first-party studios typically produce 6-7 new titles, leaving the remaining 15 games to be second-party projects like Ninja Gaiden 4 or Microsoft Flight Simulator, developed by third-party studios with Xbox funding.
The subscription model is replacing the traditional full-price and ownership approach. We've already seen the film and music industries fully embrace subscriptions; now it's the gaming industry's turn to move forward.
I think AAA games can thrive through Game Pass. If Game Pass boosts its revenue from $5 billion to $9 billion after the price hikes, Xbox would have the funds to invest more in annual day-one AAA releases. Ideally, Game Pass should include 20 AAA titles out of the 75 promised day-one releases after the price increase, with the rest being high-quality indie or AA games like Clair Obscur, Hollow Knight, and others. Having more AAA titles, Game Pass can justify the high cost of the service after the price hike.
Let's assume Game Pass reaches $9 billion in revenue. We could allocate annual spending for investments in the following manner:
1) $2 billion for AAA games with an average budget of $300 million, resulting in 6-7 high-budget AAA games annually.
2) $2 billion for AA games with an average budget of $150 million, resulting in 13-14 AA games annually.
3) $2 billion for third-party day-one releases, with an average spending of $40 million per title, resulting in 40 day-one releases for third-party titles annually.
The total annual spending would amount to $6 billion over 65-day one releases, considering 7 high-budget AAA games, 14 AA games, and 40 third-party games.
Xbox has become a major publisher after its acquisitions, but it still lacks the manpower to produce 20-22 AA/AAA games annually. To achieve this, Xbox will need to strike significant deals for second-party games developed by third-party studios and secure more third-party titles, like Clair Obscur or Hollow Knight, as day-one releases on Game Pass. Assuming a five-year development cycle for each project, around 110 gaming studios would need to work simultaneously to produce 20-22 new releases every year. Xbox's first-party studios typically produce 6-7 new titles, leaving the remaining 15 games to be second-party projects like Ninja Gaiden 4 or Microsoft Flight Simulator, developed by third-party studios with Xbox funding.
They should just make a complete remake collection from Halo 1 to 5 that will be released full price on PS5/Steam and day one on Game Pass, while also working on the new Halo 7 sequel
The drama around XBOX is getting ridiculous. XBOX has transitioned from a traditional hardware platform holder to a multiplatform publisher with hybrid consoles that will have an open ecosystem and give access to multiple PC stores and services. The new "gaming windows" will merge with XBOX OS, which will combine the ΧΒΟΧ console library with Steam and Game Pass, and be free online.
The reason why XBOX transitioned to a multiplatform approach was that they realized it was more profitable than competing within the "console war" concept that favored Sony, which dominated the market.
I’ve already explained why XBOX couldn’t compete with Sony under the "console war" model, where exclusive games and hardware consoles were the main focus. The rules of the "console war" heavily favored Sony, which became the dominant leader during the PS4 era. XBOX couldn’t keep up, and it would have been unwise to invest a huge amount of money in exclusive games, knowing they wouldn’t generate significant sales on the smaller XBOX console user base, ultimately leading to heavy losses and potential bankruptcy.
Phil Spencer highlighted why the Xbox One/PS4 era was the "worst generation to lose." During that time, most gamers established their libraries on the PS4, which dominated the market and locked players into the PlayStation ecosystem for future generations. Even with GOTY-level exclusives, the Xbox Series S/X struggled to compete with the PS5 in hardware sales. Many gamers are hesitant to abandon the libraries they built during the PS4 era to start fresh in a new ecosystem.
This isn’t the end of Xbox; it’s the beginning of an innovative era with the creation of a hybrid console and a new optimized gaming Windows that bridges PC gaming with the console market. The new "console war," so to speak, is between the open system of hybrid consoles and traditional consoles like the PS6 or Switch, which operate in closed ecosystems and rely on exclusive games.
The new XBOX hybrid console will hit the market with Steam and Game Pass integrated into a gaming-focused Windows system that will incorporate the XBOX OS. It will include the entire console library with free online play, just like on PC. This is a change that's happening. The upcoming hybrid XBOX console will also offer more valuable third-party titles and even PlayStation games through Steam, which has lower prices, along with day-one releases on Game Pass. It will compete with the PS ecosystem, which remains more expensive due to Sony's $80 full-price model, necessary to profit from its 30% revenue cut on third-party sales.
In a sense, yes. The current state of the attention economy is highly competitive across all kinds of entertainment. We don't have enough free time to enjoy the endless content available from games, TV streaming services, comics, and music. On top of that, we're addicted to short-form content on social media, which provides low-quality information that overstimulates dopamine, potentially causing brain fatigue and brainrot in the long term. The world is over-entertained to the point of exhaustion.
Selling games at full price on Steam? That's an XBOX.
Selling games at full price on PS5? That's an XBOX.
Selling games at full price on Switch 2? That's an XBOX?
Selling microtransactions across all platforms? That's an XBOX?
Subscribing to Game Pass on PC? That's an XBOX.
Subscribing to Game Pass on Series S/X? That's an XBOX?
Subscribing to Game Pass on a PC-handheld (XBOX ROG ALLY)? That's an XBOX.
Subscribing to cloud Game Pass on your phone? That's an XBOX.
Spending money on Candy Crush? That's an XBOX?
Console wars are over. Microsoft struggled to compete with the traditional model of hardware platforms and exclusives. Phil Spencer mentioned that losing the Xbox One generation was critical since most gamers built their libraries on PlayStation. Additionally, the console market has stagnated, while the cost of developing AAA games has more than doubled, leading to lower profit margins.
Xbox has evolved into a multiplatform publisher, and its next home console will be a hybrid model featuring Steam and Game Pass to deliver a "PC experience" and greater flexibility for console gamers. With this hybrid approach, PC gaming is becoming the new console market. Traditional consoles like PlayStation and Switch will need to rely on their loyal fanbase to support their closed ecosystems, which are more costly compared to PC services. Third-party games are more affordable on Steam, key stores, and Game Pass. Sony and Nintendo, if they lose third-party sales from PC consoles and Steam, will have to depend even more on their loyal fanbases, who are willing to buy exclusive games at full price to generate decent revenue. Nintendo has already been doing this for years, as its relatively weak hardware doesn't support AAA third-party games. Instead, Nintendo relies heavily on its first-party titles and iconic franchises like Mario, Zelda, Metroid, and Pokémon to make most of its profits.
Every company in the West want to achieve as many profits as possible for the stock market. Sony is a japanese company which has undergone into "westernization" in the last decade, so you can see the company prioritize high profits by investing on live service games for easy money - but they failed because live service is a high risk business and extremely competitive.
The only company that doesn't care about profits so much is Nintendo that prioritizes long-term stability over short-term profits, staying true to its roots as a "traditional" Japanese company. Unlike others, Nintendo avoids massive layoffs or project cancellations. They take a conservative approach, focusing on creating high-quality, cartoonish games, which is what they excel at best.
Bloomberg reports that XBOX's profit margin was 12% for 2024. Xbox revenue was $29 billion last year, so the profitability is between $3 billion and $ 3.5 billion, which is not bad at all.
Nadella has been tasked with increasing profits to deliver higher returns for shareholders. Now it's pretty clear why Microsoft closed so many small studios and canceled projects that weren't big IPs. Even if a small game like Hi Fi Rush or Keeper makes some small profit or breaks even, it's not enough for Microsoft. Microsoft wants to focus on big IPs to make money from microtransactions, and they also expect to increase Game Pass profit margin with the price hikes.
I read that 70% of 35 million subscribers have Ultimate Game Pass. This is 25 million subscribers for Ultimate. Assuming Game Pass loses 5 million, the remaining 20 million will pay $360 per year, which is $7.5 billion in revenue. You could add another $2 billion for a total $9-10 billion in revenue with the price hikes. This is double the revenue from 2024, in which Game Pass had reported 35 million subs and $5 billion in revenue.
This is the tragedy of shareholder capitalism instead of stakeholder capitalism or collective capitalism(Japanese model). Most public companies in USA are always choosing to sacrifice long term vision for short-term profits to please shareholders.
I believe Phil Spencer had a completely different vision for the future of Xbox, but Nadella and the Microsoft leadership prioritized short-term profits over a long-term plan. A long-term strategy could involve reinvesting all the gaming division's profits back into Xbox for the next decade to develop high-quality games and enhance services, driving growth for the division. Xbox needs a growth-focused CEO, like Jeff Bezos, whose approach would be to reinvest all profits back into the business to expand the Xbox division.
Microsoft is multiplatform publisher with Game Pass as the main service. It's a good that they outsourcing hardware to third party companies like Asus. Microsoft doesn't need to waste resources for the hardware department, but they can instead focus to make more high quality games and invest more on their new windows gaming mode OS.
The PC hanheld are the first taste of the new hybrid model that include all store and services such as Steam and Game Pass. The next XBOX hybrid console will have the same software as ROG ALLY with all the stores. I just hope to further improve the "gaming window 11" OS and the full screen mode, which is buggy and in beta mode.
Microsoft doesn't view PS5 hardware or Switch as their rival anymore, because XBOX is now a multiplatform publisher that sells their games and microtransactions in these hardware platform. Microsoft's new rival is Valve with Steam OS and steam store. It's a battle of software services, not "console wars". Software is not tied to one hardware platform anymore. Only Nintendo has truly remained "traditional" to hardware platform as all their games and services exist on Switch and no one else.
The price is too high right now. I will consider to buy XBOX ROG during sales period with a price drop.
Personally, if I were to buy a handheld, I would never play AAA titles on the small screen, but I would play games in the Nintendo philosophy: cartoony 2d/3d action platformers, anime games, a small JRPG, or even an EA FC football - but with the best experience remaining on the big screen. That is, games like Ninja Turtles, Smurf games, Ninja Gaiden Ragebound, Coromon, Nexomon, Palworld, Digimon, Naruto, Lego games, Metal Slug, Cat Quest, Sonic, etc. Microsoft could implement a very nice tactic of continuously releasing such day one games on Game Pass, which would fit the "profile" of the XBOX ROG ALLY, and would constitute a nice purchase package for someone. If we knew that games like Digimon, Marvel Cosmic Invasion, Terminator 2D NO Fate, etc. would be released every month, it would be a nice reason for someone to get the XBOX ROG ALLY X.
I never replay games. There is no reason. They are too many games on the backlog and there is so little free time as an adult with work. I just play the game and move to the next one. If I am dedicated enough, I can play 1 hour per day from Monday to Friday, which I am working, and I can play 2-3 hours at the weekend that is my days off. This is 9-11 hour per week, or 35-44 hours per month, which is enough hours to beat 2-3 games. I mean action-adventure AAA game, not RPG. Games like Metaphor Refantazio or Yakuza can take 30-50 hours to finish.
I am playing Last of US part 1/2. I still play part 1, but it is awesome. It's a great narrative game with a very cinematic gameplay mechanics. I have already played God of War Ragnarok, Ghost of Tutshima, Spider-Man remastered and Miles Morales and Ratchet and Clan Rift Apart. This is the type of games that I want from Microsoft's first party studios to develop and boost Game Pass. Games such as Hellblade, South of Midnight, Hi Fi Rush, Indianna Jones, or even more high budget cinematic action adventure future projects.
@BaldB3lper78 I believe that the hybrid consoles will appeal to more console gamers who want an XBOX device in their living room but with all the benefits of PC services(steam, Game Pass). I don't expect many sales, it would be a niche market like PC handhelds. And I believe Microsoft knows that it would be a niche market both XBOX ROG ALLY and the next hybrid XBOX. They would probably make 10-15 million total sales.
I agree that Sony has created a strong brand loyalty around PlayStation. Phil Spencer was right when he said that "we lost the worst generation to lose," referring to the XBOX ONE era, because that was the generation that many gamers built their gaming libraries on PlayStation, and now they are tied to the PS ecosystem.
Microsoft made the right move to become a multiplatform publisher be selling at a full price in other platforms and having the hardcore XBOX fans to pay for Ultimate Game Pass to boost revenue close to $10 billion. Sony and Switch fanboys will be the full price games, and XBOX fans will pay for Ultimate. It's a win-win tactic for Microsoft for making money across all platforms.
The next hybrid XBOX will have Steam, which means Microsoft doesn't even care about the XBOX store, because they won't make enough money on third-party sales in their own ecosystem. They just want a hybrid console that will appeal to both PC and console gamers at the same time, offering tremendous value through Steam and Game Pass.
The next XBOX will be a hybrid console that will contain Steam and Game Pass. You won't need to buy third-party games on PlayStation, because you can buy them cheaper on Steam, which will also be available on the hybrid Xbox. You won't even need to buy first-party PlayStation games, because you can buy them cheaper on Steam on the hybrid XBOX. You won't need to pay $80 to buy XBOX games on PlayStation, because they are on Game Pass.
The best way to utilize Game Pass after the price increase is to rotate your subscription every few months. You wait for as many day one games as you want to play to come out, and sign up for 1-2 months of subscription to play them all at once. That's what I'll do. I'll wait until the end of December to see which games have been released in the last 4 months that I'm interested in, so I can sign up to play them.
Microsoft's tactics are completely out of the ordinary: it tries to justify the high prices with meaningless additions like Ubisoft classic with old Ubi games that are irrelevant in our time (and you can find them very cheaply on offers), with EA Play, and some trinkets for Fortnite. Who asked for all this? It could at least have a basic version of Ultimate for 20 dollars while having it as an optional choice with an extra cost that can add additional services like EA Play, Ubisoft Classic, and the Fortnite stupid benefits that nobody cares about.
Ultimate currently has EA Play, Ubisoft Classic, 450+ games in the back catalog, while also adding 75+ day one releases every year. It offers a lot of content for a very high price.
So, according to Microsoft new strategy , Ultimate is essentially aimed at very hardcore gamers, the completely burnt-out ones, who play dozens of hours and finish at least 2-3 games every month, to "recoup" the "investment" of 30 dollars in Ultimate. That is, you will have to finish at least 36 of the 72-day one releases to somehow justify the $360 you will pay each year for Ultimate. In the case that you do not belong to the kind of gamer that does not have much time to play continuously and needs more than a month to finish a game, then Ultimate is simply not worth it, because you will pay 60 dollars (almost full price) every two months for a game.
The XBOX ROG ALLY is a good choice for those who want Game Pass on a handheld. The price is pretty high because ALL gaming companies want to sell at a loss on hardware. Microsoft has outsourced hardware production to third-party companies like ASUS, which want to make a profit per unit from the ROG ALLY Series.
High inflation, tariffs, and geopolitical tension are the reasons why hardware has become more expensive. Phil Spence has said that Microsoft was losing $250 per unit for selling Series S/X consoles.
Microsoft doesn't care to sell hardware anymore. And I believe it's the right choice. Consoles, for Microsoft, are just an optional device to have access to the XBOX products and services(Game Pass). Microsoft is making money from Game Pass, full price sales, and microtransactions across all platforms.
Microsoft cares to be a subscriber to Game Pass on any hardware. It doesn't matter if you have a console, handheld, PC, or even a mobile device to be a subscriber or buy full-price sales/microtransactions. This is Microsoft's multiplatform strategy: sell anywhere, on any device.
The New XBOX hybrid console will be the same as XBOX ROG ALLY: a pc premade console that will have all pc stores(steam etc) and Game Pass with optimized windows for gaming. The X ROG ALLY is the first taste of this new hybrid model that will include everything.
The PC hybrid console will replace "traditional" consoles like Switch and PS6. The new hybrid model offer more options, better value and more content. For example, Steam has cheaper games on third parties compared to PS5, which you are forced to pay $80 full price. Playstation doesn't have offer cheaper game on sales period compared to steam sales or key sites. You literally can buy AAA games with less than $35 dollars on PC through steam and key sites, and you also have Game Pass for 50+ day one releases.
Hardware will always be expensive from now on. It's like a gaming PC, you pay a lot of money to build a strong hardware, but you're offsetting your investment with cheaper games and valuable subscription services like Game Pass.
Microsoft is doing the smart move to outsource hardware in third party companies and invest more on software, which more profitable.
What I want from Microsoft is to bring at least 10 AAA games as day one releases on Game Pass per year. I want almost a new AAA game on Game Pass every month. Also, I want more older games on back catalog through remake like Oblivion remaster.
I believe that having 10 AAA games on Game Pass will further increase the value of the whole service and will attract more subs. Mainstream audience wants more AAA games, not some niche indie games - which is fine as additional content but not enough.
10 AAA games = either first party or third party. Games like Clair Obscur, Doom Dark Ages, Hellblade 2, South of Midnight, Indianna Jones etc etc
We have to unbderstand that layoffs is not about most projects not being profitable. The XBOX Division and Game Pass are profitable with record revenue. This is about corporate greed to maximize profits for short term returns for the shareholders without any long term strategy or vision about XBOX.
Nadella is literally layoff people to cut costing and invest more on AI bubble to please shareholders. He has the delusion that AI agents will make game development more cost efficient without giving a damn about the quality of the content.
I read an interesting opinion at the Verge from an ex- employee of Microsoft who lost his job in the recent layoffs. I think everyone should read this:
"I worked at Microsoft for over 30 years until yesterday. In those 30+ years, I did not have a single negative performance review, and I was usually rated above average. I have been awarded and recognized several times over the years.
I say all that because it's important to understand that Microsoft is laying off really strong performers. The company doesn't want to do the work or take the risk of targeting under-performers. Perversely, it means with each round of cuts, the average competence of the Microsoft employees goes down.
In the US, being fired for performance takes effort on the part of managers, and leaves the company vulnerable to a lawsuit.
I think anyone who was let go would understand performance-based layoffs, or shutting down an unprofitable business unit. But Microsoft doesn't do that. Instead, it's a person here, a person there, with no regard to the quality of the person, and no consultation with the managers closest to the employee.
Microsoft is also breaking every basic business rule with dribs and drabs layoffs now spanning four years. A basic rule of layoffs is get them done once and move on. The morale among the remaining employees is in the toilet as they now must cover for the missing person, and no one feels safe in their job. Everyone expects to be fired next week.
Lastly, I don't think Satya Nadella is actually running the company. Or, he is paying a lot of attention to the engineering (his background) and not the people and policies. He makes speeches and writes books about company culture and valuing employees, and then he oversees the firing of seriously good talent. (I'm not just talking about me. I survived the first 10 rounds of layoffs since 2021, and I saw quality walk out the door while idiots remained.)
Our best enterprise customers are absolutely stunned by these moves. People they know and trust are suddenly gone, with no replacement because the position was eliminated. (See above.) Microsoft is building an amazing cloud and amazing AI, with no one to sell or support it.”
@Stamnoso There is a mismanagement from Microsoft to handle succesful all these studios.
However, Microsoft doesn't care to replace failed studio and project with new ones. They want to reduce workforce, cut costing via layoffs and focus their remaining workforce to big IPs that make the most money.
Microsoft wants to scale down their own first party production in order to save money from projects that don't have high profitability and focus on IPs that make the big money and profits(Call of Duty, Warcraft etc)
It's all about maximizing profits and have returns for the shareholders. There is don't even care about a long term plan to make Game Pass bigger in terms of revenue and subscriber growth. Because a long term plan for Game Pass requires massive investment back to production lineup instead of shareholders dividends.
Microsoft is not replacing bad studios with new ones, it doesn't replace failed project with new ones, they are just reducing total workforce and reducing total production of first party content. They just decided to abandon an number of small projects and focus their remaining resources to popular IPs that brings more money and profits. This new strategy is to make quick profit to please shareholder without any long term vision for the XBOX.
After the disastrous failure of the XBOX ONE, there were rumors that Amazon wanted to acquire XBOX. We know from corporate history that Amazon has a philosophy of reinvesting all its profits back into production to grow the company. This is why Amazon showed little to no net profit until 2018, because it invested all of it back into production. XBOX, which had benefited the most from a regular reinvestment of profitability back into production for at least a decade. That is, in practice, this would mean that it would give more money to produce new games than to pay dividends to shareholders. Legally, every public company on the stock market has the right to use its profits as it sees fit. If shareholders are not satisfied with the dividends, then they cannot sell shares and reduce the value of their company by showing their dissatisfaction. But that doesn't mean the company itself is doing badly financially. And Nintendo is notorious for not paying out much in dividends, so it has low market value, but it remains solid in terms of production quality and a healthy financial base.
When you close one bad studio, you need to replace it with a new one. If you don't replace it, then that means you reduced production and content from your workforce.
Embracer is in weak financial position because of their bubble of massive acquisitionwhich they run out of money. They aqcuired Gearbox and they sold it to Take Two. They aqcuired Saber Interactive and sold it to Beacon. Microsoft could make an offer to buy Crystal Dynamics and Eidos Montreal for a good price.
There is a REDUCTION of first party studios. Tango Gameworks, Toys for Bob and Initiative were all former first party studios which could make game like Hi Fi Rush, Perfect Dark and Crash Bandicoot. All these studios were closed or left XBOX without being replaced by new studios or increased workforce.
I don't care either about outsourcing if that means bringing good content on Game Pass with games like Expendition 33 etc. However, the point is that Microsoft is shutting down studios and projects which reduce total first party production of new games. Microsoft is not replacing all these lost studios with new ones or making new single player games. They are just cutting workforce and focusing to already popular IPs that makes the most money.
Had Intiative being a bad studio, it should be shut down and being replaced with a new aqcuired studio like Crystal Dynamics. Microsoft doesn't seem to aqcuire new studios to replace the bad ones, so that means that they are reducing the production of first party single players game, while they are focusing to their popular IPs such as Halo, Doom, Diablo, Call of Duty, Warcraft, Elder Scrolls, Fallout, Forza etc which makes the most money.
Now, regarding first parties, I think they will replace the reduced first party production with agreements for day one games from third party companies. That is, for every Perfect Dark that is canceled, we will have an additional Expendition 33, Wuchang, etc...
Also, I do not rule out the possibility of outsourcing the smaller IPs to second party companies. We already know that Microsoft has closed commercial agreements with Toys for Bob, which was its former studio and is considering hiring them to make a Crash Bandicoot.
So it seems that Microsoft will focus first party production on big IPs, while increasing second/third party partnerships with third parties in order to fill Game Pass with day one releases.
After the disastrous failure of the XBOX ONE, there were rumors that Amazon wanted to acquire XBOX. We know from corporate history that Amazon has a philosophy of reinvesting all its profits back into production to grow the company. This is why Amazon showed little to no net profit until 2018, because it invested all of it back into production. XBOX, which had benefited the most from a regular reinvestment of profitability back into production for at least a decade. That is, in practice, this would mean that it would give more money to produce new games than to pay dividends to shareholders. Legally, every public company on the stock market has the right to use its profits as it sees fit. If shareholders are not satisfied with the dividends, then they cannot sell shares and reduce the value of their company by showing their dissatisfaction. But that doesn't mean the company itself is doing badly financially. And Nintendo is notorious for not paying out much in dividends, so it has low market value, but it remains solid in terms of production quality and a healthy financial base.
Zenimax online new MMORPG have been cancelled and they got layoffs.
Swedish mobile gaming studio, King, had 200 layoffs.
Rare had layoffs and they canceled Everwild.
Microsoft seems to shut down small studios and eliminate small games while focusing on their mainstream IPs like Warcraft, Halo, Diablo, Call of Duty, Gears of War, Fallout, Elder Scrolls, Overwatch etc.
They want big profit that only the most mainstream IPs can offer. However, smaller games like Perfect Dark, Hi Fi Rush, Everwild, South of Midnight, Avowed, Clockwork Revolution are good additions to Game Pass.
Game Pass needs smaller but quality single player games that will bring more content to the subscribers. They many not have huge engagement or big profits, but they will boost Game Pass library.
Microsoft is following a different strategy and wants only the big money.
Skype was an outdated app with no value anymore. Microsoft Teams is a much better app with modern features, more revenue, and active users. I hope the Skype dev team becomes part of Microsoft Teams instead of having layoffs.
The game was released with bad optimization. It needs a lot of bug fixes and patches to improve performance. XBOX should create a supportive studio that will help the main game developers with optimization/performance for their games. Nintendo has a similar tactic with Mario Club, a supportive studio about testing, quality control, debugging, etc for all Nintendo titles.
It's a great 2D game filled with nostalgia! These are the type of indie games for day one release on Game Pass: small, high-quality games that are about 4-10 hours of fun!
Comments 141
Re: Xbox Series X & Series S Receive Small UK Discounts To Kick Off Black Friday 2025
Let's be honest: the Xbox Series S/X is finished, and Microsoft no longer cares about increasing hardware sales. This generation is over for Microsoft, and no one needs to invest in an expensive series when they can wait 1-2 years for the next-generation XBOX hybrid consoles, which will be a completely different platform that combines PC gaming with the console hardware format. The next XBOX hybrid will combine the console and PC libraries using the "XBOX Play Anywhere" feature; it will be backwards compatible and will include Game Pass, Steam, and other PC stores, all within the "gaming windows full screen" new gaming OS that we have already seen on the XBOX ROG ALLY. I fully expect the PC Game Pass to merge with Ultimate, which will be the only tier that includes day-one releases.
Re: Xbox Developers Are Reportedly 'Thrilled' To Release Their Games On PS5
Why did Xbox choose the multiplatform open ecosystem strategy instead of keeping the traditional "hardware platform holder—exclusive games" approach? Phil Spencer had the answer to that question from the start, but no one paid attention to his word, which proved true:
Phil Spencer decided for Xbox to become a multiplatform publisher with Game Pass as its main service, rather than continuing with the "hardware platform holder—exclusive games" model, which was unsustainable because most gamers have built their digital libraries on PlayStation and Steam and will not leave their digital libraries to join a new ecosystem and start from scratch even if Xbox produces stellar quality exclusive games.
Personally, I believe Microsoft made the correct decision by pursuing a multiplatform strategy, but they should invest more in Game Pass to significantly increase the value of the content in order to justify the recent price increase. I'd rather have 30-40 AA/AAA high-quality games than 75 low-quality indie slop releases on the first day.
I've created this scenario for a fantastic lineup of day-one games that can truly make Game Pass the dominant platform:
**September**: Remakes of Halo 2, 3, 4, and Reach ($200m) + new Halo 7 ($400m). Total $600m, 5 games.
**October**: Remakes of Gears of War 1–5 ($100m) + new Gears of War ($250m). Total $350m, 6 games.
**November**: Remakes of Fallout 1, 2, 3, 4, and New Vegas ($250m) + Fallout 5 ($300m). Total $550m, 6 games.
**December**: Remakes of Elder Scrolls 1–5 ($250m) + new Elder Scrolls ($300m). Total $550m, 6 games.
**January**: Remakes of Fable 1/2/3 ($150m), Fable: The Journey ($20m), Fable Heroes ($5m) + new Fable ($200m). Total $375m, 6 games.
**February**: Remakes of Doom 1/2/3/64/Final Doom ($200m) + new Doom ($200m). Total $400m, 6 games.
**March**: New Forza ($200m), Perfect Dark ($150m), OD ($200m). Total $550m, 3 games.
**April**: Hellblade 3 ($150m), Star Wars Eclipse ($250m). Total $400m, 2 games.
**May**: Blade ($150m), new Superman ($250m). Total $400m, 2 games.
**June**: Everwild ($50m), Hi-Fi Rush 2 ($80m), new Diablo ($400m). Total $530m, 3 games.
**July**: New Age of Empires ($100m), Banjo-Kazooie 1/2/3/5 remakes ($100m), new Banjo-Kazooie ($50m), Crash Bandicoot: Titans/Mind over Mutant/Crash 4 remakes ($100m), new Crash Bandicoot ($80m). Total $430m, 10 games.
**August**: New Minecraft project ($100m), new StarCraft ($150m). Total $250m, 2 games.
Overall: 31 projects, 53 individual games, total budget $5.385 billion. One major Xbox title every 10–12 days for an entire year.
Total Scope (12 months)
31 projects → 53 games
Total budget: $5.385 billion
Remakes: 10 bundles (≈32 games) – $1.375B
New games: 21 titles – $4.01B
Studios Required
25–35 studios
21 dedicated to new AAA games
1–2 for remake bundles + outsourcing for smaller titles
Shared QA/art/localization teams
Re: Poll: How Important Is The Xbox Play Anywhere Program To You?
The next-generation Xbox console will be a hybrid PC-console with full-screen gaming windows containing the entire console library and backwards compatibility, merging with the PC library via "XBOX Play Anywhere." The PC Game Pass tier will merge with Ultimate, making it the only tier with day-one releases. Also, the XBOX hybrid will include Steam and all of the other stores that are already available on the XBOX ROG ALLY X.
Re: NACON Is Kicking Off The Xbox Birthday Celebrations With This 360-Inspired Controller
It looks so good, but it's expensive AF. It's a good thing it's PC compatible, so I'll consider purchasing if the price drops during the sales period for the next year.
Re: Hands On: Perfect Dark Zero Is A Bizarre Time Capsule Of The Early Xbox 360 Days
The Initiative was closed because it was a problematic studio, but the cancelled Perfect Dark game can be saved by outsourcing the entire project to Crystal Dynamics, which was co-developing the game. Microsoft can save Perfect Dark and Everwild by outsourcing all canceled projects to third-party studios to be completed. Crystal Dynamics should handle Perfect Dark, while Toys for Bob, a former Xbox studio that also works on Crash Bandicoot, can work on Everwild.
Re: Roundup: All The Reveals From 2025's Xbox Partner Preview Showcase
It was a B show with some good games, but I'm expecting more high-quality content to justify the price increase.
As I've previously stated, Xbox should release more single-player AA/AAA content on day one to justify the price increase by increasing the overall value of Game Pass. Out of the 75 day-one games released each year, I fully expect 20-25 to be high-quality AA/AAA single-player games such as Clair Obscur, South of Midnight, Avowed, Hellblade 2, Hi-Fi Rush, Doom, Gears, Indiana Jones, Halo, the upcoming Fable, Clockwork Revolution, the Blade game, the new Crash Bandicoot, etc.
I'd also like to see more Japanese games like Yakuza, Persona, Final Fantasy, the Mana series, and Code Vein, as well as anime games like Naruto, Demon Slayer, Bleach, Jujutsu Kaisen, and so on. There are JRPGs/anime games that are very popular and can appeal to many anime fans who can use Game Pass exclusively for these types of games.
Re: Two Games Are Available Today With Xbox Game Pass (November 20)
As I've previously stated, Xbox should release more single-player AA/AAA content on day one to justify the price increase by increasing the overall value of Game Pass. Out of the 75 day-one games released each year, I fully expect 20-25 to be high-quality AA/AAA single-player games such as Clair Obscur, South of Midnight, Avowed, Hellblade 2, Hi-Fi Rush, Doom, Gears, Indiana Jones, Halo, the upcoming Fable, Clockwork Revolution, the Blade game, the new Crash Bandicoot, etc.
I'd also like to see more Japanese games like Yakuza, Persona, Final Fantasy, the Mana series, and Code Vein, as well as anime games like Naruto, Demon Slayer, Bleach, Jujutsu Kaisen, and so on. There are JRPGs/anime games that are very popular and can appeal to many anime fans who can use Game Pass exclusively for these types of games.
Re: Here's What Might Leave Xbox Game Pass In December 2025
All these games are small, so we haven’t lost any value. However, I believe XBOX should invest in more second-party and third-party deals to bring more games permanently to the service. That’s right—no game should leave the service. This would help grow the Game Pass library to 2,000 games in the next few years. To achieve this, XBOX should secure more second-party deals, like Ninja Gaiden and Flight Simulator, which involve funding and owning games developed by third-party studios. They should strike massive deals with 70-80 studios simultaneously if they want 20-30 day-one releases from second-party developers each year.
With a strategy of no games leaving the service, the value of Game Pass content would dramatically increase over time, building a massive library of both old and new games.
Re: Halo Infinite's Final Major Content Update Arrives This Month
Xbox should remake the entire Halo trilogy, along with Reach and 4, bundling them all together in a massive collection available on Game Pass. They should also add Halo 5 to Game Pass while focusing on developing Halo 7. Infinite was a missed opportunity—it had a strong story mode, but it failed as a live service project at its core.
Re: Square Enix Teases Roadmap For Next Few Years, With 'Several Large-Scale Releases' Planned
Asian gaming publishers, both Chinese and Japanese, are cutting ties with Western studios, which tend to have higher salaries and produce mediocre games. Instead, they are focusing their resources on their homeland and the emerging Asian gaming market. For Square Enix, it is more profitable to produce exclusively Japanese games with lower budgets that can sell millions of copies in the domestic market and even in the West.
The Chinese market is poised to become one of the most dominant gaming markets in the world within a few years, sharing a similar gaming culture with Japan, such as creating "anime-style" games and moreI expect Netease to completely divest and either close or sell its western studios, such as Quantic Dream, Bullet Farm etc
Re: BioWare Insists Mass Effect 5 Is Still In Development, Says Team Is 'Exclusively' Focused On It
Gaming studios facing challenges and sustainability issues, like Bioware at the moment, present a great opportunity for Xbox to step in and strike a deal to have their games available on Game Pass from day one. The next Mass Effect might launch as a day-one title on Game Pass if Microsoft strikes a deal and funds the game's development.
Re: These 11 Games Are Coming To Xbox Game Pass (November 5-14)
20) Microids: making a major deal to bring their classic and new games to Game Pass, featuring titles like Smurfs, Asterix & Obelix, Garfield, and Agatha Christie, while also developing second-party games for Xbox.
21) Outright Games: making a big deal to bring all their old and new game to Game Pass, enhancing its family-friendly and kids' catalog with titles like Barbie, Paw Patrol, Dora, and My Little Pony. They would also be working on creating new second-party games for Xbox.
22) Dotemu: massive deal to bring all their old and new games on Game Pass, such as Ninja Gaiden Ragebound, Ninja Turtles, Marvel Cosmic Invasion, Metal Slug, etc, while also developing new second-party titles for XBOX.
23) Tribute games: a massive deal to bring all their old and new games to Game Pass, while also developing new second-party titles for XBOX.
24) Kepler Interactive, making a second-party game with a $150 million budget for XBOX and Game Pass.
25) The Chinese Room: making a second-party game with $100 million budget for XBOX
26) Game Science: a deal to bring older and new games to Game Pass
27) Paradox Interactive: massive deal to bring all new and old games to Game Pass
28) Avalanche Studios, making a new second part game for XBOX
Re: These 11 Games Are Coming To Xbox Game Pass (November 5-14)
A potential scenario for Xbox's second and third-party strategy:
1) Sega: More partnerships to bring games like Persona and Yakuza to Game Pass.
2) Capcom: Additional deals to bring games such as Kunitsu Gami and major franchises like Monster Hunter, Street Fighter, and Resident Evil.
3) Square Enix: Further collaborations to include games like Final Fantasy and the Mana series, and Dragon Quest on Game Pass.
4) Bandai Namco: Expanded agreements to feature anime games like Naruto, Demon Slayer, Bleach, Jujutsu Kaisen, and JRPGs such as the Tales series, Code Vein, or platform games like Pac-Man.
5) Don't Nod: A deal to create a high-budget $200 million second-party game, focusing on a quality single-player experience.
6) Remedy: Agreements to develop second-party games for Game Pass, potentially funding titles like the next Alan Wake or Control, securing exclusive rights similar to Epic Games with Alan Wake 2.
7) Kojima Productions: Future second-party deals, including projects like "OD."
8) Bloober Team: A partnership to create a new second-party horror game with a $150 million budget.
9) CD Projekt: A significant deal to release the next Witcher and Cyberpunk titles as day-one Game Pass inclusions.
10) Koei Tecmo: More second-party collaborations for games like Ninja Gaiden and Wo Long to join Game Pass.
11) Ubisoft: A major agreement to bring multiple games to Game Pass annually. Xbox could also partner with Ubisoft and Disney to develop new titles like a Star Wars Outlaws sequel, Avatar games, or Marvel projects.
12) Warner Bros. Studios: Additional deals for day-one releases of games like The Lord of the Rings, Harry Potter, and DC titles on Game Pass.
13) Telltale Games: Deals to create second-party episodic games fully funded by Xbox as the publisher.
14) Tango Gameworks(former studio): A new second-party arrangement to develop a sequel to Hi-Fi Rush.
15) Toys for Bob(former studio): Already in a second-party deal for a rumored new Crash Bandicoot title for Game Pass.
16) Crystal Dynamics collaborated with The Initiative on the canceled Perfect Dark. Xbox should continue this partnership with Crystal Dynamics to complete the project and release it on Game Pass as a second-party deal.
17) Larian Studio, making a second-party deal to produce a high-quality RPG game with a 200 million budget for Game Pass
18) Supergiant Games, making a massive deal to bring all their old and new titles to Game Pass.
19) Deck Nine, making a big deal to bring all their old and new titles on Game Pass, while also making a second-party episodic game for Game Pass.
Re: These 11 Games Are Coming To Xbox Game Pass (November 5-14)
The subscription model is replacing the traditional full-price and ownership approach. We've already seen the film and music industries fully embrace subscriptions; now it's the gaming industry's turn to move forward.
I think AAA games can thrive through Game Pass. If Game Pass boosts its revenue from $5 billion to $9 billion after the price hikes, Xbox would have the funds to invest more in annual day-one AAA releases. Ideally, Game Pass should include 20 AAA titles out of the 75 promised day-one releases after the price increase, with the rest being high-quality indie or AA games like Clair Obscur, Hollow Knight, and others. Having more AAA titles, Game Pass can justify the high cost of the service after the price hike.
Let's assume Game Pass reaches $9 billion in revenue. We could allocate annual spending for investments in the following manner:
1) $2 billion for AAA games with an average budget of $300 million, resulting in 6-7 high-budget AAA games annually.
2) $2 billion for AA games with an average budget of $150 million, resulting in 13-14 AA games annually.
3) $2 billion for third-party day-one releases, with an average spending of $40 million per title, resulting in 40 day-one releases for third-party titles annually.
The total annual spending would amount to $6 billion over 65-day one releases, considering 7 high-budget AAA games, 14 AA games, and 40 third-party games.
Xbox has become a major publisher after its acquisitions, but it still lacks the manpower to produce 20-22 AA/AAA games annually. To achieve this, Xbox will need to strike significant deals for second-party games developed by third-party studios and secure more third-party titles, like Clair Obscur or Hollow Knight, as day-one releases on Game Pass. Assuming a five-year development cycle for each project, around 110 gaming studios would need to work simultaneously to produce 20-22 new releases every year. Xbox's first-party studios typically produce 6-7 new titles, leaving the remaining 15 games to be second-party projects like Ninja Gaiden 4 or Microsoft Flight Simulator, developed by third-party studios with Xbox funding.
Re: Five Games Are Leaving Xbox Game Pass In Early November 2025
The subscription model is replacing the traditional full-price and ownership approach. We've already seen the film and music industries fully embrace subscriptions; now it's the gaming industry's turn to move forward.
I think AAA games can thrive through Game Pass. If Game Pass boosts its revenue from $5 billion to $9 billion after the price hikes, Xbox would have the funds to invest more in annual day-one AAA releases. Ideally, Game Pass should include 20 AAA titles out of the 75 promised day-one releases after the price increase, with the rest being high-quality indie or AA games like Clair Obscur, Hollow Knight, and others. Having more AAA titles, Game Pass can justify the high cost of the service after the price hike.
Let's assume Game Pass reaches $9 billion in revenue. We could allocate annual spending for investments in the following manner:
1) $2 billion for AAA games with an average budget of $300 million, resulting in 6-7 high-budget AAA games annually.
2) $2 billion for AA games with an average budget of $150 million, resulting in 13-14 AA games annually.
3) $2 billion for third-party day-one releases, with an average spending of $40 million per title, resulting in 40 day-one releases for third-party titles annually.
The total annual spending would amount to $6 billion over 65-day one releases, considering 7 high-budget AAA games, 14 AA games, and 40 third-party games.
Xbox has become a major publisher after its acquisitions, but it still lacks the manpower to produce 20-22 AA/AAA games annually. To achieve this, Xbox will need to strike significant deals for second-party games developed by third-party studios and secure more third-party titles, like Clair Obscur or Hollow Knight, as day-one releases on Game Pass. Assuming a five-year development cycle for each project, around 110 gaming studios would need to work simultaneously to produce 20-22 new releases every year. Xbox's first-party studios typically produce 6-7 new titles, leaving the remaining 15 games to be second-party projects like Ninja Gaiden 4 or Microsoft Flight Simulator, developed by third-party studios with Xbox funding.
Re: Rumour: Halo 2 & 3 Remakes Are Supposedly Coming After Halo: Campaign Evolved
They should just make a complete remake collection from Halo 1 to 5 that will be released full price on PS5/Steam and day one on Game Pass, while also working on the new Halo 7 sequel
Re: Microsoft CEO Says Xbox 'Wants To Innovate' With Its Next-Gen Console
The drama around XBOX is getting ridiculous. XBOX has transitioned from a traditional hardware platform holder to a multiplatform publisher with hybrid consoles that will have an open ecosystem and give access to multiple PC stores and services. The new "gaming windows" will merge with XBOX OS, which will combine the ΧΒΟΧ console library with Steam and Game Pass, and be free online.
The reason why XBOX transitioned to a multiplatform approach was that they realized it was more profitable than competing within the "console war" concept that favored Sony, which dominated the market.
I’ve already explained why XBOX couldn’t compete with Sony under the "console war" model, where exclusive games and hardware consoles were the main focus. The rules of the "console war" heavily favored Sony, which became the dominant leader during the PS4 era. XBOX couldn’t keep up, and it would have been unwise to invest a huge amount of money in exclusive games, knowing they wouldn’t generate significant sales on the smaller XBOX console user base, ultimately leading to heavy losses and potential bankruptcy.
Phil Spencer highlighted why the Xbox One/PS4 era was the "worst generation to lose." During that time, most gamers established their libraries on the PS4, which dominated the market and locked players into the PlayStation ecosystem for future generations. Even with GOTY-level exclusives, the Xbox Series S/X struggled to compete with the PS5 in hardware sales. Many gamers are hesitant to abandon the libraries they built during the PS4 era to start fresh in a new ecosystem.
This isn’t the end of Xbox; it’s the beginning of an innovative era with the creation of a hybrid console and a new optimized gaming Windows that bridges PC gaming with the console market. The new "console war," so to speak, is between the open system of hybrid consoles and traditional consoles like the PS6 or Switch, which operate in closed ecosystems and rely on exclusive games.
The new XBOX hybrid console will hit the market with Steam and Game Pass integrated into a gaming-focused Windows system that will incorporate the XBOX OS. It will include the entire console library with free online play, just like on PC. This is a change that's happening. The upcoming hybrid XBOX console will also offer more valuable third-party titles and even PlayStation games through Steam, which has lower prices, along with day-one releases on Game Pass. It will compete with the PS ecosystem, which remains more expensive due to Sony's $80 full-price model, necessary to profit from its 30% revenue cut on third-party sales.
Re: Xbox Has More Competition From TikTok Than PlayStation, Claims Microsoft Exec
@DonkeyFantasy
In a sense, yes. The current state of the attention economy is highly competitive across all kinds of entertainment. We don't have enough free time to enjoy the endless content available from games, TV streaming services, comics, and music. On top of that, we're addicted to short-form content on social media, which provides low-quality information that overstimulates dopamine, potentially causing brain fatigue and brainrot in the long term. The world is over-entertained to the point of exhaustion.
Re: Talking Point: How Do You Feel About Halo: Campaign Evolved Launching Day One On PS5?
Removed; user is banned
Re: Talking Point: How Do You Feel About Halo: Campaign Evolved Launching Day One On PS5?
Selling games at full price on Steam? That's an XBOX.
Selling games at full price on PS5? That's an XBOX.
Selling games at full price on Switch 2? That's an XBOX?
Selling microtransactions across all platforms? That's an XBOX?
Subscribing to Game Pass on PC? That's an XBOX.
Subscribing to Game Pass on Series S/X? That's an XBOX?
Subscribing to Game Pass on a PC-handheld (XBOX ROG ALLY)? That's an XBOX.
Subscribing to cloud Game Pass on your phone? That's an XBOX.
Spending money on Candy Crush? That's an XBOX?
Console wars are over. Microsoft struggled to compete with the traditional model of hardware platforms and exclusives. Phil Spencer mentioned that losing the Xbox One generation was critical since most gamers built their libraries on PlayStation. Additionally, the console market has stagnated, while the cost of developing AAA games has more than doubled, leading to lower profit margins.
Xbox has evolved into a multiplatform publisher, and its next home console will be a hybrid model featuring Steam and Game Pass to deliver a "PC experience" and greater flexibility for console gamers. With this hybrid approach, PC gaming is becoming the new console market. Traditional consoles like PlayStation and Switch will need to rely on their loyal fanbase to support their closed ecosystems, which are more costly compared to PC services. Third-party games are more affordable on Steam, key stores, and Game Pass.
Sony and Nintendo, if they lose third-party sales from PC consoles and Steam, will have to depend even more on their loyal fanbases, who are willing to buy exclusive games at full price to generate decent revenue. Nintendo has already been doing this for years, as its relatively weak hardware doesn't support AAA third-party games. Instead, Nintendo relies heavily on its first-party titles and iconic franchises like Mario, Zelda, Metroid, and Pokémon to make most of its profits.
Re: Report: Xbox Has Been Asking Its Studios To Hit 'Higher Profit Margins' Since 2023
@Banjo-
Every company in the West want to achieve as many profits as possible for the stock market. Sony is a japanese company which has undergone into "westernization" in the last decade, so you can see the company prioritize high profits by investing on live service games for easy money - but they failed because live service is a high risk business and extremely competitive.
The only company that doesn't care about profits so much is Nintendo that prioritizes long-term stability over short-term profits, staying true to its roots as a "traditional" Japanese company. Unlike others, Nintendo avoids massive layoffs or project cancellations. They take a conservative approach, focusing on creating high-quality, cartoonish games, which is what they excel at best.
Re: Report: Xbox Has Been Asking Its Studios To Hit 'Higher Profit Margins' Since 2023
Bloomberg reports that XBOX's profit margin was 12% for 2024. Xbox revenue was $29 billion last year, so the profitability is between $3 billion and $ 3.5 billion, which is not bad at all.
Nadella has been tasked with increasing profits to deliver higher returns for shareholders. Now it's pretty clear why Microsoft closed so many small studios and canceled projects that weren't big IPs. Even if a small game like Hi Fi Rush or Keeper makes some small profit or breaks even, it's not enough for Microsoft. Microsoft wants to focus on big IPs to make money from microtransactions, and they also expect to increase Game Pass profit margin with the price hikes.
I read that 70% of 35 million subscribers have Ultimate Game Pass. This is 25 million subscribers for Ultimate. Assuming Game Pass loses 5 million, the remaining 20 million will pay $360 per year, which is $7.5 billion in revenue. You could add another $2 billion for a total $9-10 billion in revenue with the price hikes. This is double the revenue from 2024, in which Game Pass had reported 35 million subs and $5 billion in revenue.
This is the tragedy of shareholder capitalism instead of stakeholder capitalism or collective capitalism(Japanese model). Most public companies in USA are always choosing to sacrifice long term vision for short-term profits to please shareholders.
I believe Phil Spencer had a completely different vision for the future of Xbox, but Nadella and the Microsoft leadership prioritized short-term profits over a long-term plan. A long-term strategy could involve reinvesting all the gaming division's profits back into Xbox for the next decade to develop high-quality games and enhance services, driving growth for the division. Xbox needs a growth-focused CEO, like Jeff Bezos, whose approach would be to reinvest all profits back into the business to expand the Xbox division.
Re: Xbox President Explains Why Microsoft Ditched Its First-Party Handheld
Microsoft is multiplatform publisher with Game Pass as the main service. It's a good that they outsourcing hardware to third party companies like Asus. Microsoft doesn't need to waste resources for the hardware department, but they can instead focus to make more high quality games and invest more on their new windows gaming mode OS.
The PC hanheld are the first taste of the new hybrid model that include all store and services such as Steam and Game Pass. The next XBOX hybrid console will have the same software as ROG ALLY with all the stores. I just hope to further improve the "gaming window 11" OS and the full screen mode, which is buggy and in beta mode.
Microsoft doesn't view PS5 hardware or Switch as their rival anymore, because XBOX is now a multiplatform publisher that sells their games and microtransactions in these hardware platform. Microsoft's new rival is Valve with Steam OS and steam store. It's a battle of software services, not "console wars". Software is not tied to one hardware platform anymore. Only Nintendo has truly remained "traditional" to hardware platform as all their games and services exist on Switch and no one else.
Re: Poll: Are You More Interested In The ROG Xbox Ally Now That Reviews Are Out?
The price is too high right now. I will consider to buy XBOX ROG during sales period with a price drop.
Personally, if I were to buy a handheld, I would never play AAA titles on the small screen, but I would play games in the Nintendo philosophy: cartoony 2d/3d action platformers, anime games, a small JRPG, or even an EA FC football - but with the best experience remaining on the big screen. That is, games like Ninja Turtles, Smurf games, Ninja Gaiden Ragebound, Coromon, Nexomon, Palworld, Digimon, Naruto, Lego games, Metal Slug, Cat Quest, Sonic, etc. Microsoft could implement a very nice tactic of continuously releasing such day one games on Game Pass, which would fit the "profile" of the XBOX ROG ALLY, and would constitute a nice purchase package for someone. If we knew that games like Digimon, Marvel Cosmic Invasion, Terminator 2D NO Fate, etc. would be released every month, it would be a nice reason for someone to get the XBOX ROG ALLY X.
Re: Talking Point: How Often Do You Replay Games?
I never replay games. There is no reason. They are too many games on the backlog and there is so little free time as an adult with work. I just play the game and move to the next one. If I am dedicated enough, I can play 1 hour per day from Monday to Friday, which I am working, and I can play 2-3 hours at the weekend that is my days off. This is 9-11 hour per week, or 35-44 hours per month, which is enough hours to beat 2-3 games. I mean action-adventure AAA game, not RPG. Games like Metaphor Refantazio or Yakuza can take 30-50 hours to finish.
Re: Talking Point: What Are You Playing This Weekend? (October 11-12)
I am playing Last of US part 1/2. I still play part 1, but it is awesome. It's a great narrative game with a very cinematic gameplay mechanics. I have already played God of War Ragnarok, Ghost of Tutshima, Spider-Man remastered and Miles Morales and Ratchet and Clan Rift Apart. This is the type of games that I want from Microsoft's first party studios to develop and boost Game Pass. Games such as Hellblade, South of Midnight, Hi Fi Rush, Indianna Jones, or even more high budget cinematic action adventure future projects.
Re: Xbox 'Magnus' Leak Suggests Next Console Will Be Powerful, Expensive & Maybe A Hybrid Device
@BaldB3lper78 I believe that the hybrid consoles will appeal to more console gamers who want an XBOX device in their living room but with all the benefits of PC services(steam, Game Pass). I don't expect many sales, it would be a niche market like PC handhelds. And I believe Microsoft knows that it would be a niche market both XBOX ROG ALLY and the next hybrid XBOX. They would probably make 10-15 million total sales.
Re: Xbox 'Magnus' Leak Suggests Next Console Will Be Powerful, Expensive & Maybe A Hybrid Device
@BaldB3lper78
I agree that Sony has created a strong brand loyalty around PlayStation. Phil Spencer was right when he said that "we lost the worst generation to lose," referring to the XBOX ONE era, because that was the generation that many gamers built their gaming libraries on PlayStation, and now they are tied to the PS ecosystem.
Microsoft made the right move to become a multiplatform publisher be selling at a full price in other platforms and having the hardcore XBOX fans to pay for Ultimate Game Pass to boost revenue close to $10 billion. Sony and Switch fanboys will be the full price games, and XBOX fans will pay for Ultimate. It's a win-win tactic for Microsoft for making money across all platforms.
The next hybrid XBOX will have Steam, which means Microsoft doesn't even care about the XBOX store, because they won't make enough money on third-party sales in their own ecosystem. They just want a hybrid console that will appeal to both PC and console gamers at the same time, offering tremendous value through Steam and Game Pass.
Re: Xbox 'Magnus' Leak Suggests Next Console Will Be Powerful, Expensive & Maybe A Hybrid Device
The next XBOX will be a hybrid console that will contain Steam and Game Pass. You won't need to buy third-party games on PlayStation, because you can buy them cheaper on Steam, which will also be available on the hybrid Xbox. You won't even need to buy first-party PlayStation games, because you can buy them cheaper on Steam on the hybrid XBOX. You won't need to pay $80 to buy XBOX games on PlayStation, because they are on Game Pass.
Re: These 12 Games Are Coming To Xbox Game Pass (October 8-21)
The best way to utilize Game Pass after the price increase is to rotate your subscription every few months. You wait for as many day one games as you want to play to come out, and sign up for 1-2 months of subscription to play them all at once. That's what I'll do. I'll wait until the end of December to see which games have been released in the last 4 months that I'm interested in, so I can sign up to play them.
Re: Talking Point: How Do You Feel About Ubisoft+ Classics Being Added To Game Pass Ultimate?
Microsoft's tactics are completely out of the ordinary: it tries to justify the high prices with meaningless additions like Ubisoft classic with old Ubi games that are irrelevant in our time (and you can find them very cheaply on offers), with EA Play, and some trinkets for Fortnite. Who asked for all this? It could at least have a basic version of Ultimate for 20 dollars while having it as an optional choice with an extra cost that can add additional services like EA Play, Ubisoft Classic, and the Fortnite stupid benefits that nobody cares about.
Ultimate currently has EA Play, Ubisoft Classic, 450+ games in the back catalog, while also adding 75+ day one releases every year. It offers a lot of content for a very high price.
So, according to Microsoft new strategy , Ultimate is essentially aimed at very hardcore gamers, the completely burnt-out ones, who play dozens of hours and finish at least 2-3 games every month, to "recoup" the "investment" of 30 dollars in Ultimate. That is, you will have to finish at least 36 of the 72-day one releases to somehow justify the $360 you will pay each year for Ultimate. In the case that you do not belong to the kind of gamer that does not have much time to play continuously and needs more than a month to finish a game, then Ultimate is simply not worth it, because you will pay 60 dollars (almost full price) every two months for a game.
Re: The ROG Xbox Ally Is Rapidly Selling Out At Retailers Around The World
The XBOX ROG ALLY is a good choice for those who want Game Pass on a handheld. The price is pretty high because ALL gaming companies want to sell at a loss on hardware. Microsoft has outsourced hardware production to third-party companies like ASUS, which want to make a profit per unit from the ROG ALLY Series.
High inflation, tariffs, and geopolitical tension are the reasons why hardware has become more expensive. Phil Spence has said that Microsoft was losing $250 per unit for selling Series S/X consoles.
Microsoft doesn't care to sell hardware anymore. And I believe it's the right choice. Consoles, for Microsoft, are just an optional device to have access to the XBOX products and services(Game Pass). Microsoft is making money from Game Pass, full price sales, and microtransactions across all platforms.
Microsoft cares to be a subscriber to Game Pass on any hardware. It doesn't matter if you have a console, handheld, PC, or even a mobile device to be a subscriber or buy full-price sales/microtransactions. This is Microsoft's multiplatform strategy: sell anywhere, on any device.
The New XBOX hybrid console will be the same as XBOX ROG ALLY: a pc premade console that will have all pc stores(steam etc) and Game Pass with optimized windows for gaming. The X ROG ALLY is the first taste of this new hybrid model that will include everything.
The PC hybrid console will replace "traditional" consoles like Switch and PS6. The new hybrid model offer more options, better value and more content. For example, Steam has cheaper games on third parties compared to PS5, which you are forced to pay $80 full price. Playstation doesn't have offer cheaper game on sales period compared to steam sales or key sites. You literally can buy AAA games with less than $35 dollars on PC through steam and key sites, and you also have Game Pass for 50+ day one releases.
Hardware will always be expensive from now on. It's like a gaming PC, you pay a lot of money to build a strong hardware, but you're offsetting your investment with cheaper games and valuable subscription services like Game Pass.
Microsoft is doing the smart move to outsource hardware in third party companies and invest more on software, which more profitable.
What I want from Microsoft is to bring at least 10 AAA games as day one releases on Game Pass per year. I want almost a new AAA game on Game Pass every month. Also, I want more older games on back catalog through remake like Oblivion remaster.
I believe that having 10 AAA games on Game Pass will further increase the value of the whole service and will attract more subs. Mainstream audience wants more AAA games, not some niche indie games - which is fine as additional content but not enough.
10 AAA games = either first party or third party. Games like Clair Obscur, Doom Dark Ages, Hellblade 2, South of Midnight, Indianna Jones etc etc
Re: Former Xbox Dev Claims Turn 10's Forza Motorsport Team 'Is No More'
We have to unbderstand that layoffs is not about most projects not being profitable. The XBOX Division and Game Pass are profitable with record revenue. This is about corporate greed to maximize profits for short term returns for the shareholders without any long term strategy or vision about XBOX.
Nadella is literally layoff people to cut costing and invest more on AI bubble to please shareholders. He has the delusion that AI agents will make game development more cost efficient without giving a damn about the quality of the content.
I read an interesting opinion at the Verge from an ex- employee of Microsoft who lost his job in the recent layoffs. I think everyone should read this:
"I worked at Microsoft for over 30 years until yesterday. In those 30+ years, I did not have a single negative performance review, and I was usually rated above average. I have been awarded and recognized several times over the years.
I say all that because it's important to understand that Microsoft is laying off really strong performers. The company doesn't want to do the work or take the risk of targeting under-performers. Perversely, it means with each round of cuts, the average competence of the Microsoft employees goes down.
In the US, being fired for performance takes effort on the part of managers, and leaves the company vulnerable to a lawsuit.
I think anyone who was let go would understand performance-based layoffs, or shutting down an unprofitable business unit. But Microsoft doesn't do that. Instead, it's a person here, a person there, with no regard to the quality of the person, and no consultation with the managers closest to the employee.
Microsoft is also breaking every basic business rule with dribs and drabs layoffs now spanning four years. A basic rule of layoffs is get them done once and move on. The morale among the remaining employees is in the toilet as they now must cover for the missing person, and no one feels safe in their job. Everyone expects to be fired next week.
Lastly, I don't think Satya Nadella is actually running the company. Or, he is paying a lot of attention to the engineering (his background) and not the people and policies. He makes speeches and writes books about company culture and valuing employees, and then he oversees the firing of seriously good talent. (I'm not just talking about me. I survived the first 10 rounds of layoffs since 2021, and I saw quality walk out the door while idiots remained.)
Our best enterprise customers are absolutely stunned by these moves. People they know and trust are suddenly gone, with no replacement because the position was eliminated. (See above.) Microsoft is building an amazing cloud and amazing AI, with no one to sell or support it.”
Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
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Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
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Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
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Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
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Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
@Stamnoso There is a mismanagement from Microsoft to handle succesful all these studios.
However, Microsoft doesn't care to replace failed studio and project with new ones. They want to reduce workforce, cut costing via layoffs and focus their remaining workforce to big IPs that make the most money.
Microsoft wants to scale down their own first party production in order to save money from projects that don't have high profitability and focus on IPs that make the big money and profits(Call of Duty, Warcraft etc)
It's all about maximizing profits and have returns for the shareholders. There is don't even care about a long term plan to make Game Pass bigger in terms of revenue and subscriber growth. Because a long term plan for Game Pass requires massive investment back to production lineup instead of shareholders dividends.
Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
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Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
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Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
@Kaloudz
Microsoft is not replacing bad studios with new ones, it doesn't replace failed project with new ones, they are just reducing total workforce and reducing total production of first party content. They just decided to abandon an number of small projects and focus their remaining resources to popular IPs that brings more money and profits. This new strategy is to make quick profit to please shareholder without any long term vision for the XBOX.
After the disastrous failure of the XBOX ONE, there were rumors that Amazon wanted to acquire XBOX. We know from corporate history that Amazon has a philosophy of reinvesting all its profits back into production to grow the company. This is why Amazon showed little to no net profit until 2018, because it invested all of it back into production. XBOX, which had benefited the most from a regular reinvestment of profitability back into production for at least a decade. That is, in practice, this would mean that it would give more money to produce new games than to pay dividends to shareholders.
Legally, every public company on the stock market has the right to use its profits as it sees fit. If shareholders are not satisfied with the dividends, then they cannot sell shares and reduce the value of their company by showing their dissatisfaction. But that doesn't mean the company itself is doing badly financially. And Nintendo is notorious for not paying out much in dividends, so it has low market value, but it remains solid in terms of production quality and a healthy financial base.
Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
@Stamnoso
When you close one bad studio, you need to replace it with a new one. If you don't replace it, then that means you reduced production and content from your workforce.
Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
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Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
@MasterTanookiChief
Embracer is in weak financial position because of their bubble of massive acquisitionwhich they run out of money. They aqcuired Gearbox and they sold it to Take Two. They aqcuired Saber Interactive and sold it to Beacon. Microsoft could make an offer to buy Crystal Dynamics and Eidos Montreal for a good price.
There is a REDUCTION of first party studios. Tango Gameworks, Toys for Bob and Initiative were all former first party studios which could make game like Hi Fi Rush, Perfect Dark and Crash Bandicoot. All these studios were closed or left XBOX without being replaced by new studios or increased workforce.
I don't care either about outsourcing if that means bringing good content on Game Pass with games like Expendition 33 etc. However, the point is that Microsoft is shutting down studios and projects which reduce total first party production of new games. Microsoft is not replacing all these lost studios with new ones or making new single player games. They are just cutting workforce and focusing to already popular IPs that makes the most money.
Re: Two More Xbox Games Are Being Cancelled, Including Perfect Dark
@MasterTanookiChief
Had Intiative being a bad studio, it should be shut down and being replaced with a new aqcuired studio like Crystal Dynamics. Microsoft doesn't seem to aqcuire new studios to replace the bad ones, so that means that they are reducing the production of first party single players game, while they are focusing to their popular IPs such as Halo, Doom, Diablo, Call of Duty, Warcraft, Elder Scrolls, Fallout, Forza etc which makes the most money.
Now, regarding first parties, I think they will replace the reduced first party production with agreements for day one games from third party companies. That is, for every Perfect Dark that is canceled, we will have an additional Expendition 33, Wuchang, etc...
Also, I do not rule out the possibility of outsourcing the smaller IPs to second party companies. We already know that Microsoft has closed commercial agreements with Toys for Bob, which was its former studio and is considering hiring them to make a Crash Bandicoot.
So it seems that Microsoft will focus first party production on big IPs, while increasing second/third party partnerships with third parties in order to fill Game Pass with day one releases.
Re: Xbox Layoffs Begin As Phil Spencer Shares Internal Microsoft Gaming Update
After the disastrous failure of the XBOX ONE, there were rumors that Amazon wanted to acquire XBOX. We know from corporate history that Amazon has a philosophy of reinvesting all its profits back into production to grow the company. This is why Amazon showed little to no net profit until 2018, because it invested all of it back into production. XBOX, which had benefited the most from a regular reinvestment of profitability back into production for at least a decade. That is, in practice, this would mean that it would give more money to produce new games than to pay dividends to shareholders.
Legally, every public company on the stock market has the right to use its profits as it sees fit. If shareholders are not satisfied with the dividends, then they cannot sell shares and reduce the value of their company by showing their dissatisfaction. But that doesn't mean the company itself is doing badly financially. And Nintendo is notorious for not paying out much in dividends, so it has low market value, but it remains solid in terms of production quality and a healthy financial base.
Re: Rumour: Xbox Boss Phil Spencer Could Step Down After Next-Gen Console Launch
Initiative and Perfect Dark have been shut down
Zenimax online new MMORPG have been cancelled and they got layoffs.
Swedish mobile gaming studio, King, had 200 layoffs.
Rare had layoffs and they canceled Everwild.
Microsoft seems to shut down small studios and eliminate small games while focusing on their mainstream IPs like Warcraft, Halo, Diablo, Call of Duty, Gears of War, Fallout, Elder Scrolls, Overwatch etc.
They want big profit that only the most mainstream IPs can offer. However, smaller games like Perfect Dark, Hi Fi Rush, Everwild, South of Midnight, Avowed, Clockwork Revolution are good additions to Game Pass.
Game Pass needs smaller but quality single player games that will bring more content to the subscribers. They many not have huge engagement or big profits, but they will boost Game Pass library.
Microsoft is following a different strategy and wants only the big money.
Re: Talking Point: As Skype Shuts Its Doors, An Old Xbox Feature Retires To The History Books
Skype was an outdated app with no value anymore. Microsoft Teams is a much better app with modern features, more revenue, and active users. I hope the Skype dev team becomes part of Microsoft Teams instead of having layoffs.
Re: Avowed New Update Now Live For Xbox, Here Are The Full Patch Notes
The game was released with bad optimization. It needs a lot of bug fixes and patches to improve performance. XBOX should create a supportive studio that will help the main game developers with optimization/performance for their games. Nintendo has a similar tactic with Mario Club, a supportive studio about testing, quality control, debugging, etc for all Nintendo titles.
Re: 'Terminator 2D: No Fate' Announced For Xbox, And It's Out This September
It's a great 2D game filled with nostalgia! These are the type of indie games for day one release on Game Pass: small, high-quality games that are about 4-10 hours of fun!