TheEstablishment

@Isolte It seems to be attributed the entertainment side if things. You never hear "My Sunbeam branded toaster is much better than your Foster branded toaster!". The last time I cared about the console war was back around the time Mortal Kombat came out on Genesis/SNES, when I was 12. That's the only time I ever cared and felt I needed to take a side.

I enjoyed evaluating the industry, it's in my nature and it's what I get paid to do and I understand it well (different industry). It makes me audibly laugh when people with zero business acumen make silly claims like "Xbox is dying" or "Xbox won't make consoles", when these people probably serve up hot dogs at the local gas station for a living and have no idea how to run a business.

@johnedwin1969 Or how about people look past childish "console wars" and focus on consuming the games they enjoy. You don't see this war mentality in other areas. "My TV sold more than yours, or my trading card brand sold more than yours". It's childish. I love evaluating the business side of the gaming industry but could care less if my favorite gaming brand was #1 or #768, as long as I'm entertained.

I wouldn't expect anyone over the age of 12 to care about "console wars".

@darylb24 Many industry analysts believe Microsoft will surpass PlayStation in gaming revenue in fiscal year 2025. They'd have to make about $7B a quarter to do it, and with the steady stream of software coming, GP subscriptions, hardware, and other cash streams, it does appear they're on track to do it.

@TheGameThrifter The reality is that gaming is moving off the console and going more broad. The console will always be a piece of the pie, just not the biggest slice. However, it'll always be there. Focusing on one box limits your reach and makes it impossible to reach all the possible gamers you can.

@Fiendish-Beaver Console sales mean next to nothing anymore and is such a mid 90's success metric that has aged terribly. Business 101 is to generate revenue, the console helps them to do that but focusing on it is limiting your reach. There are 3 billion gamers out there, you aren't good to reach them all on one single box. People need to think broadly and realize the console is a small PIECE of the puzzle, not the entire puzzle. It's but a mere piece. Chess/checkers.....

Software sales/GP subscriptions/Cloud/Console/PC.

@Cakefish Everyone always references either Sega or Windows phone whenever they make an unfounded claim that Xbox may go away. Problem is that the Xbox brand is so large that this year it will surpass PlayStation in revenue, and when Sega left the hardware business they were over a billion dollars in debt to where the dying president of the company granted Sega a half a billion dollar gift to try to keep them afloat. Windows phone wasn't profitable, wasn't generating revenue, and had no way to reap money from its users. The Xbox is still selling okay (35+M), it's Game Pass service has 70% usage among console owners, and the brand is generating record revenue. People who don't understand business need to chill and not make silly claims about the future of Xbox.

@Shy_Hallaman Silly comments floating around the web by people who have ZERO idea about business.. Obviously there will be a next powerful Xbox, and the handheld is all but confirmed. Remember, console is driving Game Pass more than any other platform for Xbox and while it may not be the only part of the puzzle the console is a prominent piece. You don't need to sell more plastic boxes than your competition to be #1, your brand just has to make the most revenue. Business 191, man. Don't let the negativity get you down.

@IOI It's about the money they're going to generate by doing so. Microsoft's job is to make money, not limit themselves by producing games for one single plastic box. There are several billion gamers in the world, why not try to reach as many as possible. Focusing on just one platform limits your revenue stream. Business 101, man.

Anyone who thinks the console is going away is clearly not understanding of the business, but anyone who thinks the console is the only (or even the biggest) piece of the puzzle clearly doesn't understand business as a whole. The console will always be a piece of the pie and just because it doesn't sell as much as the competition doesn't mean Xbox can't be the market leader. Selling plastic boxes helps, but there is a broader audience out there to grab. Console/Cloud/PC, that is the strategy.

Which is totally fine because the console will always be there as a piece of the pie, but there is so many more customers to find via PC and cloud that locking yourself into a plastic box just seems silly at this point. Keep the console around, let it bring in new customers, but the bulk of the new consumers will be found elsewhere and that's just facts.

My gaming New Year resolution is to actually play less games and to put more time into the games I do play. I also want to revisit more classic games that I love such as Fallout: New Vegas, Fallout 4, and older COD campaigns like MW2 2009.

Also, to not rub it into Ponies faces when Xbox surpasses Sony in gaming revenue this year. It'll be hard, but I think I can do it.

I purchased 17 games on the Xbox ecosystem in 2024, most of which were OG/360 games, and 4 newer games. The most amount of games I've purchased in years.

@Banjo- Let the non-business educated kiddos have their fun. They obviously don't understand the business and are stuck in 1996 where "conSoLE iS kINg!".

@NattyKing Again, I've already schooled you on finance several times over. I'm off to sip some bourbon and smoke a cigar.

You can't argue cold hard facts. And $29B in debt is a cold hard facts. Again, enjoy the cope. This time next year Xbox will be the market leader in generated money, which was my argument to begin with. You brought up profit, which I never said Xbox would be the highest. My argument has always been pure driven cash. But who knows? Maybe they'll go ahead and take down Sony with the profits too. Sony will be panhandling within the next few years anyhow so it won't matter much.

@NattyKing And Xbox will laugh all the way to the bank, kiddo! I love seeing their games across all platforms, it's absolutely refreshing and they're loving the income. Smart business move. Hell, I hardly play games anymore, it's just fun schooling you on business 101. And again, nothing you can say will/can change that.

Enjoy the cope, son.

@NattyKing They're not supposedly drowning in debt, they are drowning in debt. PlayStation just happens to be a strong brand. Financials are financials and no matter what you say you can't talk your way out of Sony being buried in debt and are looked at as a poor company these days. Hey, it is what it is, bruh.

Again I've proved my point. Have fun with the cope. I'd find a new hobby to evaluate if I was you. Toodles, kiddo

@NattyKing Oh, I fully understand profits and revenue, but we're having two different discussions. I already said my knowledge of pure profit for Xbox is limited, but their revenue is public knowledge. My argument is that they're going to surpass PlayStation in revenue next year, nothing more and nothing less. And Kadokowa has a market cap of about $2.9B right now. Just agree to disagree and move along, dude. You can't talk financially with someone who's whole career revolves around it.

@NattyKing Cute. But $29B is still $29B and they're likely never to cut that below $20B no matter how hard they try. They're only strong brands are PlayStation and their film company, and they tend to treat their film company as a separate entity. They're not even a major player in televisions anymore. Goose is cooked no matter how you want to spin it. They're best bet is to sell PlayStation off and file bankruptcy at this point.

@Banjo- Well, if they've said 100 times that a new slew of hardware is coming than that obviously means they're transitioning away from the console and going 3rd party. Right? Right? LoL. People have no idea just how big Xbox is going to be in 2025 and 2026 and by this time next year they're going to be looking down from the mountaintop. Mark my words.

@NattyKing If being in debt $29B is you're idea of a company on the right track, than I can't help you.

Also, Kadokowa is only valued at about $2B, so that isn't really that large of a purchase. When your in debt $29B, what's another $2B?

@NattyKing Companies can't live forever posting horrendous year after year financial reports. Eventually they get purchased, merged, or they go out of business. I wouldn't be surprised to see Sony sell of the brands that are doing well, like PlayStation, and then fold as a husk of its former self within 10 years. Buying and selling companies, albeit smaller companies, is what I do for a living so I understand this segment well.

@NattyKing Okay, so absolutely no movement in the numbers in about a year's time seems right to you? All those games they put on the service and devices now capable of utilizing the service and you still think GP is at 35M? Not to mention what consoles they have sold since, albeit not a huge number, but still. Yeah, I'm the foolish one. I wouldn't be surprised if GP was closer to 41-44M by now.

@NattyKing Hate to break it to you, but that 35M was reported like a year ago. Since then Xbox has had a slew of big games hit the service and have expanded the service across countless devices. With Diablo IV, MW3, BO6, Indiana Jones, and the Firestick deal, it wouldn't be out of the ballpark to say they've grown GP a fair bit beyond 35M. I'm sure it isn't some astronomical growth, but to think Xbox is still at 35M would be utterly foolish.

@NattyKing The next Xbox can be niche, because it's the least most important metric when deciphering the business in 2024. It's important, sure, but it is literally the least important metric. I'm not discussing profits because I'm not sure what the total profits are since they don't discuss them much. They're could be a reason behind it, but if you want to talk profits....well....Sony, as a company, is literally lucky to still be in business with their poor portfolio.

Again, by this time next year Xbox is going to walk right by Sony in generated cash flow and there isn't anything Sony can do but sit and watch. It's probably only a matter of time until either Amazon or Google purchases Sony, anyhow. If not then than someone, because they can't keep going on forever in the red as a company.

Keep up the great work, Microsoft! I love seeing the Xbox brand represented across multiple platforms, I love seeing the advancements across cloud and PC, and I love hearing about the innovation across internal hardware. 2025 is primed to be a banner year for the brand!

And don't worry about the whiners, keep laughing all the way to the bank!

@NattyKing Console sales figures are but a small part of the overall landscape in gaming. Software sales and subscription revenue has become a huge part of how gaming revenue is reported. Back in 1995, sure, the plastic box was the end all be all, but as the plastic box becomes moot other avenues are producing the revenue. Sure, consoles will always have their place and should definitely be treated as important, but it's almost 2025, my brotha, and people are accessing their content in so many more ways. Gaming has evolved and Microsoft is going to reap the rewards. Nothing anyone can say will change that.

@NattyKing So, I'm guessing you don't run a business.....

Anyhow, mark my words. Xbox will surpass Sony in gaming revenue in 2025 and won't be looking back for a long time. It isn't a matter of "if", it's a matter of "when".

@NattyKing Xbox will likely post an $11B quarter when the next financial report comes down. By this time next year PlayStation will be looking up at Xbox from a revenue perspective as Xbox continues to grow. It isn't even debatable, it's simply going to happen. Business 101.

@Steel76 Yeah, R.I.P all the way to the bank lol. Xbox has never been stronger as a brand. Console sales mean very little in the gaming landscape these days, profits and revenue are coming in from other sources, consoles are just a small piece of the pie. Wait until the next financial report, Xbox is going to post $11B+ for sure for just one quarter of earnings.

@cragis0001 It really isn't. Worrying about selling consoles in 2024 is warranted, but only if you're looking at the console as a PIECE of the pie and not the whole pie. In 1993, sure, console sales meant everything, but it's simply not the case in 2024. If Microsoft worried only about their console and not about advance in the cloud, PC, and multiplatform, than they wouldn't have made the money they made in 2024. They're having a record year for revenue and 2025 will be even bigger. This is chess, not checkers.

@TheSimulator Make a ton of money based upon selling your games across multiple platforms instead of locking it behind your own and limiting your own success. Yeah, sounds like a bad idea.

2025 is the year Microsoft surpasses PlayStation in revenue. They're going to come close this year but should miss by about $3-$5B, which is the closest they have ever been, but next year they're going to likely surpass PlayStation revenue by $5B-$7B. Easy math.

@cragis0001 Of course Sony sees Xbox as a threat. Next year they'll walk right by Sony in revenue and they're going to come close this year. The market leader is determined by revenue and profits, not by how many plastic boxes you sell.

The goal is to make money, not cater to die hard console fans. Offer the console as an option, offer PC as an option, offer cloud as an option, and offer games across all platforms as an option, then watch the money pour in. Smart business strategy!

This isn't 1996 anymore and consoles are NOT the only way to make a buck.

@BacklogBrad It makes perfect sense. Selling the game to just your core audience limits your own success.

Wah wah Xbox needs exclusive games, wah wah. Meanwhile Microsoft is rolling in record revenue and will be the industry leader in revenue next year. Business is business. Console wars are for people who don't understand business.

They need to be constantly adding titles for this to be really effective. Sure a ton of Game Pass titles are streamable, but a vast majority of the catalog isn't and I'd love to see them constantly add games to this list. Id love to be able to play classic Star Wars titles via xcloud, 360 titles, OG Xbox titles, and games such as Fight Night and Vermintide II.

@TheGameThrifter Actually, they are quite close now. Sony did about $28B in 2023, Microsoft has been averaging about $7B a quarter and this upcoming quarter will be huge thanks to holiday sales revenue, GP subscription revenue, Indiana Jones, and BO6. I'm estimating around an $11B quarter for them. Next year they're going to surpass Sony in revenue and by 2027/2028 it won't even be close. Xbox as a brand is growing and adapting/evolving with the industry, while helping to change the industry itself. Look at it however to like, feel about it however you feel, but you can't stop it from happening.

As for the Xbox itself. As a business let it exist and pepper some love on it when you can. After all, the Xbox is a piece of the pie , not the whole thing.

Looks great, actually. It's snappy, sleek, and does a great job at making me forget I'm on a PC. Good job, Microsoft!

@TheGameThrifter Its about how much money you make as a company, not how many plastic boxes you sell. Microsoft has had a slew of amazing quarters and are primed to overthrow Sony in revenue in 2025, so in essence, Sony is helping Microsoft win. Not the other way around.

Sarah Bond said we'd see a glimpse into the next generation of Xbox hardware before the end of the year, so this could possibly be the event where it happens. Honestly, well probably just see more trailers for the bigger games that are coming out over the next few months.

@xxk7xx As long as they subscribe to Game Pass that's okay if they do. The age of no longer being tied to plastic boxes and physical software is fast approaching and Xbox is ready for when it does. Not that consoles are a bad thing, they're just one of many things that you can access Xbox content on. Again, a small piece of the pie.

@Balaam_ Circling the drain? More like making it rain.....money.....

@abe_hikura All your Xbox games will be playable on your PC sooner than later, so I don't see any reason not to buy games through Xbox since you'll be able to play them on any device you'd like to.

Good. This will make them tons of money and help keep the brand alive for generations to come. People need to realize that Xbox is a business and the gaming industry has changed and evolved and Xbox is doing the same. We can't sit around and pretend it's 1998 and gaming is only about buying a physical game and putting it into a plastic box anymore, the industry is different now and Microsoft has found a way to make tons of money off their IP's by using the competition to its advantage. Smart business 101.

@xxk7xx @xxk7xx LOL, you missed the point entirely. The console is just one piece of a whole Xbox pie. They want consumers to know that. Selling plastic boxes is a small piece of the business.

@Medic_alert Console is a PIECE of the pie, not the entire pie. It still needs to exist for those who simply can't let go, but I think a lot of people will realize not being attached to a plastic box is pure freedom.

@VoidPunk That's false. The more games that come out under the studios they own they'll continue to drive sales through multiplatform sales and Game Pass subscriptions. The more COD games that come out will continue to print money, Game Pass will continue to print money, Bethesda will continue to print money, ESO & WoW will continue to print money, and their mobile division will continue to print money.

@VoidPunk Yeah, making s crap ton of money is really killing Xbox. Great take!

In all seriousness, this is a good move. The console is just a PIECE of the pie, not the whole thing. They'll still sell a decent amount of plastic boxes and will still grab customers via PC/mobile/streaming devices.