The Xbox One is already off to an abysmal start. However, it's in the same position Sony's now-beloved PS3 was in several years ago. Is it possible for the Xbox One to someday climb out of its hole, and show people its one heck of a console?
Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.
Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.
To me it's still quite remarkable how they can cash-in 5.3bn in revenue in a single quarter, since their hardware is basically dead.
The stock mark is what makes Microsoft remarkable, They have convinced every institutional and retail investor to just keep piling money into them. Like many big tech giants they are just a big growing pyramid scheme. As long as people keep dropping money into ETF's that cover the market Microsoft will always be liquid. At the same time it is completely stifling innovation and competition. People need to start being more discreet in how they invest their money as it's killing the system.
Riiiiight because people will just flock back to them for one or two games per year.
15+ years of bad performance is what they call irreparable in business. It is time for them to sell off the assets and get out of entertainment.
These declines are on the back of extra revenue received from releasing games like Forza horizon 5 on PlayStation. So I’m being sarcastic here when I said they should go back to exclusives. Killing off a revenue stream from Ps5 sales will only make things worse
For Southeast Asia, new price changes.
Prices effective starting May 1st, 2026.
Replies(1)Looks like PlayStation took a hit with Marathon and is now quietly adjusting prices worldwide to recover the losses
Lets be honest raising prices doesn't do that when no one's buying it. I imagine the profit it greater selling 10 times more at a lower price
LMFAO Your comment alone says a lot more about you than anything else. When has one game not selling 10 million copies made a company raise the prices of their console? Then Xbox would be costing $5000 by now lol. You remind of the crazy drug addicts on the street rambling on about conspiracies. xD You sure you don't need a hug, buddy?
One game that Sony payed $200 million for. lol
Also, you sure were quick to get triggered. Maybe your the one who needs a hug?
If nothing else, we should be united against the real issue here. AI and unnecessary tariffs that are effecting all gamers.
The price increases are due to the RAM demand associated with AI and the US-Iran war. You can look to any business news website and local news to see that. Heck, even the 2026 Asus Zenbook Duo I've been eyeing has faced delays and has had a price increase of $400; that laptop has two specs. Asus is doing a staggered release with per-orders for the lower spec now and shipping in May and pre-orders for the higher spec that I'm eyeing starting in June. Basically, all computer manufactures are affected. It'll most likely start affecting smart phones too if it hasn't already. I can't remember the last time any major console maker (Nintendo, Sony, Sega, etc) increased the price of their console mid cycle outside of Microsoft just to make more profit.
War is causing gas prices to rise. Transport of everything requires gas so the prices of those items go up as well. So it does have an impact
The blockage of the Straight of Hormuz due to the US-Iran war has affected raw components used in semi-conductor manufacturing such as bromine, aluminum, and helium. Iran had attacked the liquified natural gas (LNG) plant in Qatar which is a large producer (1/3 globally) of helium which is used in semiconductor etching. So it's the both the war and the RAM crises.
Xbox boss Asha Sharma has discussed how component shortages will impact the company's plans for Project Helix.
When does this end? Its killing everyone. Consoles and PC. And for what? AI? The benefits of AI are completely outweighed by the negatives. And the government should have never allowed one company to buy up all the RAM.
This kind of proves this is an after thought product, most products like this are in r&d 5 years before they start mass producing. So they typically have the cost of components and things worked out long before assembly starts.
This is an assumption still, but I wouldn’t be surprised if project helix is similar to Scalebound,perfect dark and sod3. They had an idea but no actual execution other than concept stage. Being impacted by the ram shortage likely would also put this device 3-4 years out.
I’m not even sure MS has that endurance with Xbox yet
I mean.... what?
We're at a point that Samsung wont even provide their own phone department ram because they can sell it at higher prices to 3rd parties (AI). Its more profitable to sell the ram than make their own devices with it.
You think because R&D starts 5 years ago the 3rd party component manufacturers will honour that price? They'll sell it to whomever is paying the most today, not some gentlemens agreement they made years ago. AI farms will buy more volume at higher prices than any console manufacturer will. It'll be the same for Playstation.
Contractual agreements are not the same as “gentlemen” agreements. If you think that they work with their distributors a month before production then their entire business model is trash. They work with companies like nvidia constantly for building the graphics cards they need. They work with companies that build motherboards years in advance. This is what proper business planning does.
They are not buying components on a whim like a consumer. So again, considering the ram isn’t a singular module and is integrated into the motherboard I highly doubt they wouldn’t have a final schematic that they are supposed to be building around.
If they are delaying production another 3 years then it’s obvious again this is an after though project and is just trying to be responsive to their bad execution they had the last 14 years.
It also isn’t far fetched to use their failure to produce first party titles the last 7 years including the highly anticipated games I mentioned all being cancelled. That they would continue to you know… lie
Helix is going to be stupidly expensive
Instead of leaning into smarter upscaling techniques they're brute forcing hardware that will cost them dearly and it remains to be seen if it's genuinely going to provide a meaningful differential
I know in the oc.doace people like to brag about not using frame gen or dlss to get to high on a game but for the majority of players they happily use those technologies without a second thought
That's going to be ps6 vs Helix
While this does seem to be the case, I am encouraged by the statement from Microsoft about wanting to provide affordable options. If this means a Series S style Helix, at least there will be something affordable being offered.
It's called systematic inflationary. Yes we get it Microsoft, keep raising in the name ofall kinds of stuffs
Honestly if there was thing I learned from this generation is that new consoles arnt day one anymore.
I can wait 1-3 years.
Another important lesson from this generation: while Nintendo showed us that prices don't necessarily need to ever drop, we've now learned that waiting 1-3 years does carry some risk that prices increase. This generation is just bizarre in all the wrong ways.
The factors are largely external. Covid and Russia-Ukraine war causing inflation led to the first price increase in 2022.
Then we get Trump's tariffs increasing hardware prices, AI boom causing a RAM crisis, war on Iran causing a worldwide fuel crisis which impacts the cost of everything.
Gaming doesn't exist in a vacuum. The last few years have been a shitshow and lot of it was definitely avoidable.
LucasRuinedChildhood,
For sure. No disagreement on the external factors doing a lot of this. Where I have to gently push back however is on two fronts:
1. The pandemic definitely caused some issues: asynchronous development was a big issue and really complicated timelines and affected game quality. At the same time, when it comes to price hikes, it's really difficult to know what was genuine necessity and what was taking consumers for a ride. The pandemic brought about "stag-flation" which was increasing prices and stagnant wages, which was a problem caused by supply chain constraints. There was also "Greed-flation", where companies that were slightly affected or had no issues took advantage of the situation and squeezed everyone citing supply chain issues when there were none.
2. It's definitely true that the tariffs, AI boom, and RAM crisis were all things enabled by tech broligarchs throwing money at this caricature of a world leader, one of them being Satya Nadella. I don't think Sony and Nintendo have contributed much to this problem if at all, but Microsoft's Nadella I feel was instrumental in causing every one of those issues. Microsoft as a company contributed to both candidates (though they gave Harris 4x as much if I recall), but Nadella was all in on letting AI run wild. He paid for unregulated AI, and got a war that's not a war (even though Trump called it that at least five times on television) that screwed up helium access. So for me, I feel that one of the players in the gaming industry is a key architect of these issues, and for that reason I struggle a bit to think of it as "external".
Part of the Xbox 360's massive success was owing to Microsoft's ability to keep adding new features/applications/producti vity to it. Will be interesting to see if Xbox One/PS4 have a similar life span - can they regain new life after the initial launch.
"it's in the same position Sony's now-beloved PS3 was in several years ago"
No it isn't, not by any LSD-inspired leap of the imagination. It's in a far worse situation.
PS3 was the third in line after two of history's highest-selling consoles. Sony had a ton of goodwill with its fanbase (it only hit the fan @ E3 2006 when Sony announced $599, you'll work more hours to afford it, Giant Enemy Crab, etc). Believe it or not, but most magazines and sites were still singing the PS3's praises up until launch. It wasn't until about 3-6 months after launch that the vitriol began (kicked off by the now-infamous EGM magazine cover: http://www.gamesetwatch.com... )
Sorry, but the Xbox brand does not have that sort of heritage or goodwill, not that brand loyalty means much nowadays (look at the Wii-U). The X1 is getting widespread hate BEFORE launch. That's pretty significant. Not to mention Sony was in a fantastic place, financially. Xbox, on the other hand, is a bleeding brand that has lost Microsoft money since Day One, and the only guy who did anything to change that (Mattrick) just left the company. And now Microsoft is restructuring, which will probably turn the Xbox gaming division into the Xbox "Media" divsion, make gaming even less of a priority.
I know it's attractive to revise history and say "Xbox One is in the same boat as PS3, and look how THAT turned out! Everything will be fine, guys!" but the PS3 had to fight and struggle and persevere for YEARS before it clawed out of the hole it dug.
Will Microsoft demonstrate the same dedication to gaming? Well, what has their behavior been over the last three years? What did the Xbox One console reveal focus on? Microsoft failed to "tough it out" even when the times were good, closing many veteran game studios in the process. You think when times are tough that Microsoft will snap their suspenders and devote the next several years to winning back the hardcore gamer?
Still expecting that the one-time internet connection requirement is going to wind up kicking the console in the teeth. That hardware reliability is still a question for both the PS4 and XB1 but especially the latter given the 360's launch.
Hasn't even started yet.
Now that Xbox has corrected its policy, if they bring a sku out at 399, or 349 before launch.
They will be in competitive shape. Dont count MS out, SONY did this once, and got bitten for it.
However I think PS4 has the momentum right now.