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Could Xbox survive without Microsoft?

Alex Androski of The Game Fanatics ponders the future of Xbox under Microsoft’s new CEO.

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thegamefanatics.com
NatureOfLogic4465d ago

With Xbox One global sales not looking so hot, I can see MS getting rid of Xbox.

Mikelarry4465d ago

all thier investments (pc, surface) aren't doing well the only division making them money is the console business, it would be silly for them to get rid of it

Muffins12234465d ago (Edited 4465d ago )

Console has not made them money and only recently did the 360 start to bring in profitable amounts,but as a whole xbox division it has lost money and xbox one is selling horrible in Europe and will in asia. Its going to loose money this year and next year i grantee that.The thing they make money in is software dipshit and that's what their known for,not xbox. Its not silly when they are actually considering the idea of doing it now.Its not going to necessarily fail its just not going to have any profit and at best it will come close to breaking even with what they paid for,which its stupid to support something that does not make money.

Utalkin2me4465d ago

The Xbox division is still in the red since the original xbox, so no it couldn't.

LackTrue4K4465d ago

Microsoft ONLY brings in $$$ from there software!!!
pc/tablets, not so much....Xbox it's self profits suck.

MasterCornholio4464d ago

What's wrong with you?

How could you ignore the monopoly that Microsoft has with windows and their Office Suite programs?

ABizzel14464d ago

Could Xbox survive without Microsoft?

As a console manufacturer No. They need someone with enough money to invest in the console production, which means they'll have to hope someone like Amazon, or Apple scoops them up.

If they do, try to make a console on their own they're going to have to really balance sales expectations and market reach. If I were them I'd focus on an American launch, then a European Launch 6 months - 1 year later, and finally WW launch 2 years later once production fees were down, so each console is sold at a reasonable price and profit.

But even then it's going to be hard. If the Xbox division goes solo, it'll be best for them to shrink into a game publisher, making Forza, Fable, Gears, Halo, etc... for PC and PS. They would be best served integrating XBL into PSN, and having a unified system where PC and PS gamers can play with each other through. FInally they could make peripherals like controllers, Kinect, etc for PC and PS. Software and Peripherals are the money makers in console gaming, and that would be the easiest way for them to make it in the industry.

dcbronco4464d ago (Edited 4464d ago )

It's amazing that people still believe Xbox isn't profitable. I know stock brokers like to pretend it's not so they can short sell stock and play their games to increase their own portfolio. But for people to be incapable of using common sense to realize that Xbox is very profitable and has been for years is something that is actually pretty scary.

All of the re-negotiated contracts, all of the die shrinks, case shrinks and packaging shrinks. Add power saw shrinks and demands. All of that saves a lot of money. Almost every game sold on the consoles nets MS a ten dollar royalty. Xbox Live subscriptions are sold at a profit. Items sold on Live are sold at a profit. Don't be fooled into believing Xbox couldn't survive on it's own. And definitely don't believe those who will hate MS no matter what. They don't live in reality. Xbox would continue to flourish.

Also Xbox and games in general are a growing area of commerce. It would pure stupidity to abandon it while it is growing. It already beats most forms of entertainment.

Sayburr4464d ago

According to their financials the Entertainment Division is making a profit... They don't specifically breakout the Xbox from the rest of the division, but still "The Entertainment and Devices Division saw profits grow to $848 million for the full fiscal year. This is up from $380 million a year ago. Microsoft also shipped 1 million Xbox 360's in the quarter, which is down from 1.1 million a year ago. Xbox Live revenue grew 20 percent in the quarter."

dcbronco4464d ago (Edited 4464d ago )

The division has a lot of products, most don't make money. But basic knowledge of how the console business works makes it easy to see that Xbox makes a ton of money. The most expensive parts are the CPU and GPU and their cost goes down with die shrinks. The parts int he 360 went from 90nm to 65nm to 45nm then to being combined into one 45nm chip. Only a fool believes MS didn't save any money. Analyst know they did, but they are in the business of cheating people so they pretend it doesn't. I know many millions of Americans lost a lot of money on the market during the last couple of crashes but they continue to be fools for their 401ks. So brokers continue to cheat them. But back to the point.

Those dies shrinks have brought the cost of the entire GPU/CPU chip to under $30 for MS. Down from over $250 from the launch price of the parts. Yet the 360 still sells for $300. With the addition of a hard drive that any of us can get for $70 and some software they already own or can buy cheaply.

http://www.newegg.com/Produ...

MS makes over $100 on every Xbox sold. They said they would drop the price every year before launch. The high price of the PS3 allowed them to keep it higher then it should been. But I'm sure MS appreciates all those that believe they are losing money on the 360.It al;lows them to keep the price high.

+ Show (5) more repliesLast reply 4464d ago
lolCHILLbro4465d ago

Xbox One sold quicker than any other Xbox, as far as MS is concerned Xbox One is doing great, only a fanboy would think its not selling well just because PS4 has sold more! PS4 is 25% cheaper and in 3x as many territories, Xbox One is doing fine, sorry to burst your fanboy bubble

Utalkin2me4464d ago

This about Xbox division as a whole, and not just what the Xbox1 is doing.

GhostTurtle4464d ago

Not to mention the games look 25% better.

AngelicIceDiamond4465d ago

@Nature 3.9m Yep MS is on its way out the door.

WilDRangeRrfc4464d ago

I have PS4 but MS are making more money than Sony last gen and so far this gen,don't forget Xbox Live has made around a Billion alone,plus they are making more on each console sold compared to PS4.I read an article the other day saying profit wise MS is ahead so I don't know why all the doom and gloom for Xbox,disagrees don't change facts,in the end though I expect PS4 to at least double X1 sales worldwide by end of this gen,and PS+ subscriptions to increase ten fold making PS4 the more profitable eventually,Sony need it and I am more worried about Sony as a whole than Xbox

christocolus4465d ago (Edited 4465d ago )

@nature

lol...You know that aint happening. right? The xbx one aint selling as well as the ps4 but that doesnt mean it aint selling really good.its selling faster than 360 did within the same period and faster than the wiiu.

It aint going anywhere.

@mikelarry

All their investments(pc, surface) aint doing well? lol, wth? you need to go back and read their latest earnings report before making such comments.

4465d ago Replies(2)
maniacmayhem4465d ago

By some logic Sony should have sold of the PlayStation brand and name since it's own launch wasn't so hot.

Anyone remember that? The million of "Ps3 is Doomed" articles that most moaned and complained about on this site.

Utalkin2me4464d ago

Well in defense the PS3 was clearly the better system with better hardware. Where the Xbox1 lacks in every aspect compared to the PS4. So i do not see how thats the same.

Retroman4464d ago (Edited 4464d ago )

could x-1 survive without MS 44 billion dollar support??

i'd say NOPE!!

+ Show (4) more repliesLast reply 4464d ago
Mikelarry4465d ago (Edited 4465d ago )

without knowing who the contenders looking to purchase the division its really hard to tell but i think without ms the xbox division will die as only ms has that deep pockets to really make the xbox one a viable system to entice both gamers and developers. i mean seriously which other company can really take a billion dollar hit (rrod fisaco) and act like its nothing

XiSasukeUchiha4465d ago

Pretty much because of all IPs so MS make your decision now!

isarai4465d ago

I honestly don't think so since many things Xbox has in its favor is from MS throwing money at it

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60°

Final Fantasy X 25th Anniversary Website Launches With New Nomura Artwork and Merchandise

Square Enix launches Final Fantasy X 25th anniversary site, revealing new Nomura art, books, music releases, and merchandise.

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twistedvoxel.com
-Foxtrot6d ago

Look I know VIII has its issues and all that but how on earth can the do big anniversary events with new artwork and merchandise for VII, IX and X yet VIII got sweet f*** all.

They could have given it something during its 25th anniversary yet all it got was a single Happy Anniversary post on their social media.

solideagle6d ago

they should know that we are OG fans of VIII as it sold truckload as well. not as much as VII or X. I personally didn't like IX but X and VI are my personal fav.

Shadow Hearts 2 covenant is another game I love. I hope one day someone can make remake, I would be delighted

Relientk776d ago

Final Fantasy VIII is great and you are always the first to defend it in the comments

40°

Star Wars: Bounty Hunter Let Jango Fett Loose

LucasArts gave Jango Fett his own game in 2002, and it pulled Star Wars into a much dirtier, rougher, and more interesting corner of the galaxy.

Read Full Story >>
swtorstrategies.com
Relientk7711d ago

I remember playing this back in the day on PS2. What a sick game!

270°

We Are Xbox

Dear team,

Xbox has always been different.

We started with a simple idea. Games should bring people together through shared experiences. That led to the first Xbox in 2001, Xbox Live in 2002, and new ways to connect, from friends lists and achievements to parties and play across devices. Today, Xbox reaches over 500 million players around the world, with some of the most important franchises in entertainment.

Read Full Story >>
news.xbox.com
12d ago Replies(15)
Outside_ofthe_Box12d ago (Edited 12d ago )

If they go back to exclusive games it at least shows that they are finally getting it. They would be turning down immediate money for something that will potentially workout in the long term.

Only issue is they've already opened Pandora's box. A lot of their base has moved to PC or jumped to PS. So will be a long road to get back on track.

We have been saying this from day one exclusives are a must if you are going to be selling hardware look at Nintendo and Sony before Jim Ryan. That's the proven formula. You had some that were deluded and blinded by loyalty accepting that multiplat was the future and that MS was merely getting ahead of where the industry was headed, but at least they can finally see the light and agree with what everyone has been saying for a decade+

pwnmaster300012d ago

True, blame it on the rabid fanboys. MS can do no wrong and spinner this multiplatform move. While the actual fans moved on.

I feel like with the new Xbox coming they are hoping to bring back those old fans and then if it goes well. Bring back exclusives.

If the new console is performing like series x and one. Naw they staying multiplatform.

darthv7211d ago

Actual fans dont move on... they can add to their hobby while waiting for the next new release. If you believe what you typed then I guess PS fans moved on too.... you know, since its been a Sahara for 1st party games this gen.

S2Killinit11d ago

The fans didn’t tell them to go multilat. MS was forced to after the 82 billion they spent to destroy gaming. Then, while xbox fans cheered, MS realized they can’t justify the price tag by selling through xbox only, so they went multiplat and in the process began to downplay console gaming.

12d ago Replies(4)
CrashMania12d ago

I think it's too late, xbox sales were diving even before ABK, they got even worse since then even long before the full multiplatform push. I'd be surprised if they even went back to timed exclusivity at this point, Helix is basically a PC and is going to be expensive, they already struggle to sell cheaper xbox consoles, it will be low volume and they'll have a very small 'console' base to sell to, which has already been conditioned to just play via gamepass anyway.

S2Killinit11d ago

They will do what they always do, they will promise the world at the beginning of next GEN and then failed to deliver all generation long. But there will always be some gamers who will buy into their promises.

ocelot0711d ago

Absolutely agree, Do people genuinely believe Microsoft are now going to go. Hang on how's about we go back to 2020. Then GP was stagnating, Games sold where awful because of GP. Outsold by Playstation by a landslide.

They have sold 5m of Forza I believe on PS5. Spite it being a old game. I think Starfield is going to sell well in the end. Halo is deffinetly going to sell well as is Fable and Forza Horizon 6.

I think at best (for Xbox fans). Single player titles like Clockwork will have a timed exclusivity. Multiplayer centric games like Forza, E Day will release day and date on all platforms.

Or all games will release on all platforms day and date. But maybe Xbox and Windows Store copies will have exclusive bonuses. Or may even get timed exclusive dlc like Fallout and Elder Scrolls and COD use to do.

I think they will treat Xbox players like the premium customers or at least act the way. But will serve just the Playstation and Switch 2 customers as well.

Neonridr12d ago

I don't see them removing PC from the equation. Considering MS has a heavy enough investment in the PC market, it would be foolish to abandon them. I could see them taking away games from PlayStation or ensuring they are timed exclusives at the very least. Say what you will but if Call of Duty ends up becoming a timed exclusive to Xbox machines, that would hurt PlayStation, don't pretend like those games don't sell millions.

Outside_ofthe_Box11d ago

They would lose out on a lot of CoD sales tho. Doesn't PS make up most of the sales?

Neonridr11d ago

@Outside - possibly, but it might push people to want Xbox hardware so they can play with their buddies day one.

Who knows.

S2Killinit11d ago (Edited 11d ago )

it would but remember doing that can splinter the COD fan base and in the process damage the call of duty brand which is probably the only franchise in that $82 billion purchase that in anyway gets even close to delivering what Microsoft thought they bought. If Microsoft fudges around too much with the COD franchise, you might even see a competitor franchise show up on the scene and that would be a catastrophe after the huge debt that Microsoft put itself into with the ABK purchase.

But Its almost guaranteed that Microsoft will want to do something drastic at the beginning of the next generation as they always do. We will see.

Pyrofire9511d ago

Their lifeline of solely the Xbox consoles is dry. Good-Great games on a 1st party scale can't be made at a loss so willingly - sent to the Xbox to only sell limited copies.
They invested billions scooping up studios and need to start making returns.
Sucks that nearly every company is publicly traded and have to be so shareholder biased but that's how it is.
Their words are strong but it'll take time to see what their actions accomplish. Lowering the cost of Game Pass and taking CoD off of it was a good clear start.

darthv7211d ago

More like, allot of their base just played game pass. So now they need to encourage them to start buying again.

S2Killinit11d ago (Edited 11d ago )

A lot of their base left for greener (bluer?) pastures.

--Onilink--11d ago

What exactly is the long term goal with exclusives though?

Because for the most part, the hardware side of things has never been the most profitable, even sometimes being subsidized for a period before breaking even. And that’s before the hardware component nightmare we currently live in.

The whole point of exclusives was to get more people to buy your console in order to have a bigger install base, which meant even bigger software sales.

But if their ports to PS5 are selling (for the most part it seems) quite well, then other than negating the cut Sony takes there, unless you are REALLY increasing your software sales on your own console, it probably doesn’t make that much of a difference?

Honestly I don’t even understand Sony’s decision to scale back on it for PC unless they weren’t even recouping the port expenses. They released ports when the hardware sales never really dropped, and now that all consoles will undoubtedly take a noticeable drop in sales due to the ridiculous prices, that’s when they decide they don’t want to sell to a larger install base to more easily recoup dev costs… it’s just weird

Outside_ofthe_Box11d ago (Edited 11d ago )

I agree. I mean once they went multiplat, in theory there should be no going back especially when you have games that have sold really well on other platforms.

Microsoft are the ones that announced that they are reevaluating. So I'm just guessing on what their end goal is. Right now Xbox as a hardware is not a must buy for anyone but fans of the brand because their games can be played elsewhere. Going exclusive would solve this, but you lose out on a ton of money instantly which has always been what the company does not want to do so not really sure what their "reevaluating exclusives" means unless they are pulling a Phil Spencer and are just saying what people want to hear and will continue to do what they are currently doing.

darthv7211d ago

Their ports to PS5 are selling because Sony's output has been so dry... the fans are thirsty, and MS is the oasis.

SIdepocket11d ago

Unfortunately, the studios they buy wither under their leadership.

mcstorm11d ago

Microsoft still has a name with Xbox the issue is the casual games are not looking at the console because its not the same console their friends have. Look at that poll on how many users upgraded from xbox 365 to one and then the X. Part of Microsoft's downfall was thinking that the Wii was the market they had to be in when really it was the core market. If you get the core gamers you then get the market to. As I posted a few minuets ago on another post Microsoft putting exclusives on PS this gen could bold well if they hit next gen with all our games are staying exclusive from this new gen. They will then get gamers wanting Halo, Forza Gears but this is also where Microsoft fell over with the xbox one and X in terms of they did not have may quality 1st party games affter they fell into the Gears, Forza and Halo cycle. If they can get some old IPs back to bring back the old core gamers as well as fresh ips to bring in new gamers things could improve next gen. But as I said in my last post its all if buts and maybes at the moment. No one knows if the next home consoles will be to expensive that people move to pc as we are now seeing or look at the stem deck as a cheepier alternitive.

DarXyde11d ago

"Only issue is they've already opened Pandora's box."

That's very optimistic. It's not the only issue, far from it. There is a serious rupture between Microsoft generally and the public caused by their weird Game Pass price fluctuations, taking down physical game space in stores, and being the first to go nuts on hardware price hikes that they themselves played a big part in.

They're also charging beyond a premium for Helix which is just vile at a time when the economy is in shambles.

The company itself is really not doing itself any favors with the approach they're taking Windows. Even France is looking to ditch Windows in favor of Linux.

But the most offensive thing is this AI push. They're doubling, tripling, and quadrupling down on the very technology they're using to replace a considerable proportion of their workforce... And the slap in the face is how they bake copilot into everything when nobody likes it—they couldn't even make Bing stick, so why on earth are they trying so hard? You know it's bad when people would rather use ChatGPT than Copilot which is killing their OS. But aside from their snatching up of farmland to build data centers (and reduce the agriculture capacity of whichever country allows them to build them), they made an AI-generated gamer gurl that loves AI the head of Xbox.

Even if we grant them the full benefit of the doubt, it hardly matters what Xbox wants to do if Nadella says no, and that includes exclusive games. Microsoft's relationship with Xbox is the opposite of Sony's relationship with PlayStation—Microsoft pulls the reins of Xbox, but Sony damn near went under for the PS3.

Tanktopmaster9211d ago (Edited 11d ago )

“If they go back to exclusive games it at least shows that they are finally getting it.”

Great strategy, especially after Forza selling 5 million on PlayStation and sea of thieves selling at least another million (2 million) for example. In March 2026, Xbox consoles sales ratio vs PS was 10:1.

In addition to that, with Gamepass, which unequivocally cuts out chunks of sales (Cannibalizing revenue from 1st month sales especially).

I’m sure going exclusive again after releasing everything on Ps5 is going to work out great for business.

+ Show (8) more repliesLast reply 11d ago
maximusprime_12d ago

Despite all of that, it's clear that Microsoft's Xbox division is broken beyond repair.

12d ago
BeHunted12d ago

PlayStation is currently draining money on flop after flop. It's Sony that needs to re-evaluate their strategy

12d ago
CrashMania12d ago (Edited 12d ago )

Wonder how much money was lost on perfect dark, hellbalde 2, 300 million lost revenue
by putting cod on gamepass. The recent Jason schrier news that Xbox has cancelled dozens of projects, spent 70 billion just to see Xbox sales further collapse and gamepass see little growth.

The fact is this has been PlayStation's most profitable generation and they are making loads of money and selling plenty of consoles and games. While MS won't give you any sales figures or profit numbers for Xbox, says it all really.

S2Killinit11d ago

Sony PlayStation has deservedly dominated xbox. Facts

Tanktopmaster9211d ago (Edited 11d ago )

Ok tween.

Xbox series SX got outsold 10:1 last month. lol.

11d ago
+ Show (3) more repliesLast reply 11d ago
shadowT12d ago

"Our presence on PC isn’t strong enough."

Fishy Fingers12d ago

It isnt. But I dont think they mean in 'games', rather, footprint.

They own the OS but as far as gaming is concerned, Steam dominate. I imagine the VAST majority of people who use the Xbox app/launcher are PC gamepass subs. No ones buying their 3rd party PC games through Xbox PC.

badz14911d ago

and many gamers prefer SteamOS for gaming over Windows too. If only Valve would be more uncompromising to the anti-cheat makers that locked out non-windows players, more pc gamers would have moved onto SteamOS by now and not looking back to Windows. overall, Win11 is a terrible, bloated, unoptimized OS which is not what many people want

ocelot0711d ago

Agreed and I think that's where they are going to focus on more. I think cheaper games on Windows/Xbox store (MS IP) compared to Steam and Epic and maybe even compared to PSN store as well.

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