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Phil Spencer talks Microsoft's new studios and its commitment to PC gaming in 2019

What do the Microsoft acquisitions of Obsidian, Ninja Theory and more mean for PC gamers?

WombBat2637d ago (Edited 2637d ago )

quote me: Microsoft will lose next generation with their focus off of their console exclusivity and making all their games multiplatform.
1) There is no incentive to buy their console if you can play elsewhere.
2) you're slapping your current customers that invested in the Xbox One X with quick release of new console
3) their exclusives are solid, but few, predictable and tried

It almost looks like they want to burn the console business altogether. You might say they're cutting their nose to spite their face.

UltraNova2637d ago

Some would have you believe that MS has transcended this "mortal coil" (console competition) and they can no longer lose - de facto.

sagapo2637d ago

A gaming console is still a great “bang for the buck” gaming device imo, so there is still a reason to buy a xbox along side your playstation or so.

timotim2637d ago

When you say "lose next generation", what does that even mean? Do you mean they will sell less consoles than Sony? If so, I don't think that is Microsoft's strategy at all. You're thinking too much with antiquated ideas...the industry is moving forward...so are business models and measures of success.

2637d ago
n1kki62637d ago

Its NOT about hardware sales. Most consoles dont turn profit on console hardwar for years. Consoles used to be needed to get software into peoples homes. Now that isnt the case and Microsoft is smart to get software into peoples hands on every platform. Simple minded people don't understamd even the most simple business concepts.

Max_Eckhardt2637d ago

You make the money by seeling software not the hardware. Consoles are loss makers.

WombBat2633d ago (Edited 2633d ago )

Yes, most of the money is made on software. But dont forget:

- Console makers lose a LOT of money on hardware. Especially, Microsoft this generation as they have 3 consoles and one of them is very powerful, so they have to sell a lot of software to make up for it. But they wont, because not enough will buy the console to make a big return on it. There are rumors they will put out 2 more consoles soon enough. So they will have 5 or 6 consoles running concurrently and make less than Switch software sales by that time.

- They will make less by putting it on the PC because third party games will not have to give a chunk to Microsoft in royalty fees. This is a huge loss for MS, but overall good for gamers.

Honestly, I could see Microsoft getting out of the console business altogether and maybe go the Sega route of software only for all, or just sell off all of their IP altogether.

Game Pass is an interesting model, but it cannot make enough money to justify putting new games on it and so third parties and big games will opt out of it. It cant work, especially with value dollar inflating, game dev cost increasing, and game prices remaining stable. I would imagine that Game Pass pays developers less than what they would make by releasing it on shelves.

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2638d ago Replies(1)
Shikoku2638d ago

You should show your commitment and focus on support the box you produce not a platform you don't.

lelo2play2638d ago

Well... they make more money on Windows OS then Xbox.

2638d ago
obidanshinobi2638d ago

But they could make more money long term with a good console and exclusive games only for that console so people actually buy it, then you've also got sales of controllers, headsets and other accessories.
Yes consoles are initially sold at a loss but a few years in when parts and production gets cheaper then they can start to make a profit on each console sold.
Also MS get money from every game sold on an Xbox console not just the ones they make and/or publish, they don't get that on PC, maybe a bit from the Windows Store but then publishers on PC don't need to sell their games on the Windows Store. Seriously MS, Sony and Nintendo all get a slice from every game sold on their platform whether they had any part in it's development or not.

So they might make more money in the short term, but not in the long term if the next Xbox is a success.
It's short term profits over long term strategy.
It's short sighted get all the money now mentality rather than build a platform that's going to keep generating revenue for decades to come.

jznrpg2638d ago

Gamers don’t care about money they make (well they shouldn’t because they aren’t spending it in games , 1billion dollars spent for this gen and nothing to show) they want games . He talks about other platforms besides Xbox and doesn’t talk about any games .

starchild2638d ago

@jznrpg

Nothing to show for it? Quit exaggerating. They haven't done nearly as well as most of us would have liked them to do with their first party output, but that doesn't mean they've done nothing. That simply isn't true. They've released a number of games I've enjoyed, including Gears 4, Ori and the Blind Forest, Quantum Break, Sunset Overdrive, Cuphead, Forza Horizon 4 and others. Plus, they've made some well designed hardware, created the play anywhere initiative, started supporting the PC with MS exclusives, added backwards compatibility, are working to make crossplay happen in more games, and created the Gamepass program. Those are all good things they have done, in my book.

But, yes, they do need more good exclusives. And indications are that they are working on it. We'll see how much this improves their first party output, but to say they've done nothing this generation is simply false.

Thundercat772638d ago

Funny how suddenly Xbox doesn't matter and is about Windows.

timotim2637d ago

@Zacfolder

But thats exactly what Sony did when they created PS View! They used the audience they were getting in gaming to push a TV service onto these same peoples...

Donnie812635d ago

They make more money on windows OS than 99% of the companies on earth.

+ Show (4) more repliesLast reply 2635d ago
ZeroX98762638d ago

Since PC is their biggest division by FAR, why keep it locked to Xbox?
I'm planning on buying Halo Infinite, something I haven't done since the 360 era (buying an halo game) on PC.

Razzer2638d ago

Same here. Hopefully MS will realize the wisdom of porting the rest of the Halo games to PC prior to Infinite's release. Or just the MCC.

mcstorm2638d ago

I've gone the other way. Due to having a little one and less time to game I own a powerful laptop and the games I owned that were cross play played just as good if not beeter than on my X so I sold my X and switch and just a pc gamer now.
Gutted MCC is not on GP but I will be getting the next halo and not miss out on the exclusives I would of before this change.

TiredandRetired2637d ago

I'd buy the Master Chief Collection also if it came to PC. I'm not going to run out and buy an XBox for it, but if I already have the hardware, sure thing.

starchild2638d ago (Edited 2638d ago )

@Shikoku

What are you talking about specifically? Everybody knows their first party output has been anemic. But they have made the changes that one would expect would need to take place in order to improve in that area. There's no purpose in continuing to bash them over and over about things that have already happened and can't be changed. They've opened new studios and bought a good number of studios and that's exactly what they needed to do. Now we just have to wait to see what kinds of games will come out of that. It's true we don't know how it will all turn out exactly, but I can't envision any scenario that these charges don't result in some kind of notable improvement in their first party output.

On the other hand, if you're implying that Microsoft putting their exclusives on both Xbox and PC is somehow hurting Xbox owners I strongly disagree. Their weakness has been not having enough good exclusives, not that their exclusives are available on both of the platforms they're invested in.

People that want a console will buy a console and people that want a gaming PC will buy/build a gaming PC. Aside from people heavily invested in imaginary system wars who want exclusives merely to use as ammo against other platforms, normal gamers would never care if a game can be played on another platform, they just want to play the games they want to play on the platform of their choice.

PC gamers might buy a console but generally it's just to play the exclusives that aren't available on PC. It could be argued that gamers having to buy an extra piece of hardware just to play a small number of exclusives held hostage on the console isn't a good thing. MS putting their games on both Xbox and PC brings mostly positives with it. PC gamers get to play more games, Xbox gamers don't lose those games, those games have a much larger userbase to sell to, the games have the potential to earn more money and encourage investment in more games, and player counts for crossplay games can be larger.

The_Sage2638d ago (Edited 2638d ago )

I was with you until you went into exclusives being held hostage. These companies are trying to sell a product. The thing that they try to use to entice you to buy their product is exclusives. It's the same with any product that shows you features that only their product has. It's business.

starchild2637d ago

I understand it's business. But so are microtransactions, DLC and GAAS. That doesn't stop some people from thinking those things aren't good for gamers.

I'm just saying that the argument could be made that it's not a good thing to have to buy a piece of hardware that isn't capable of anything that the hardware you own isn't already capable of just to play a small number of games that they choose to make exclusive. They are making those games exclusive not because other platforms couldn't run them but rather for business reasons. But just because there's a business reason doesn't mean it's ideal for gamers. And even if we acknowledge that there are aspects of it that are good for gamers there may be other approaches that offer their own benefits as well.

2637d ago
timotim2637d ago

???🤔 They do produce Windows 10, which is what these games will be coming out on, as well as their own consoles and store that sells these games. They even produce Windows 10 hardware with their Surface line of products. A Surface Book 2 can play games even better than an original Xbox One can haha.

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Razzer2638d ago

"I know we’ve talked quite a bit over time about what we want to deliver for the player on PC, but at E3 this year, and throughout 2019, you’ll begin to see where we’ve been investing to deliver across Store, services, in Windows and in great games. It’s just the beginning."

Extremely interested in seeing where they are going with gaming on PC. I'm hoping for expanded Game Pass on PC personally.

battlegrog2638d ago

I think you will see a entire different vision on pc. I think you will pretty much see them merge the xbox menu onto the pc. They know having the games on this store full of other crap is not working. It needs to be separate. Since theres talk xbox games soon to be working native on pc this is a clear indication

Razzer2638d ago

I hope you are right. Love the sound of that

rainslacker2637d ago

I think they have to be careful about integrating such things into the OS. They got slapped hard on that with Internet Explorer, and even their Metro UI was scrutinized by the FTC to consider if it was anti-competitive in the same vein as IE.

I never knew if it was such a big deal, but I guess some people did back in the day.

When I use Win10 now, I have never once seen the Windows Store be thrown up anywhere. In fact, I wouldn't know how to find it if I didn't search for it in the start menu. The Xbox app is there way at the bottom of the list though.

It's actually rather surprising considering how much they could leverage it, and I'd imagine if I used more casual type apps those things may pop up more, but the most casual thing I use on my PC is chrome.

agent45322637d ago

Hopefully they add mod support to Windows Store

Futureshark2638d ago

Sorry Phil, but i just don't trust you. You will say any sort of marketing spin to try to sound relevant when the actual content you provide is vacuous at best.

EasilyTheBest2638d ago

You were never going to trust him, your a Sony fan boy, you have no interest only to put a negative spin on everything Microsoft... They bought 6-7 studios if they buy another 10 and bring out double the number of exclusives that Sony has and they review amazing you'll still find fault..

yomfweeee2638d ago

Ya, double the number of exclusives wouldn't mean anything if they're the quality of SoT, CD3, SoD2.

mark_parch2638d ago

To be fair nothing phil says means anything to me now. I'll just wait until the games are released and only then will I be interested to see if they're actually any good. I still can't believe how let down I was with sea of thieves, I was so hyped for that game.

I am still hoping that game pass and xbox live become available on ps5. That would be just amazing for me as I would only need to buy one console and could play all the great ps exlusives plus potential rumoured back compat games whilst still keeping my xbox digital library and getting all the future Microsoft studio games.

I know this might sound unpopular to some and anybody who disagrees I would love to hear your opinion instead of just down voting.

Ricegum2638d ago

EasilyTheBeast

But let's be honest, that just isn't going to happen. Microsoft has somehow managed to keep people like you constantly holding out for all the upcoming 'amazing' stuff they have, only for people to be constantly disappointed. This has been the case since 2013. People should not give them a free pass for mediocrity.

Although, I do get that some people who spent money on an Xbox will need to justify purchasing one, so they'll defend anything Microsoft regardless.

2638d ago
obidanshinobi2638d ago

Well I'm certainly not a Sony fanboy and I agree with Futureshark.
Xbox under Phil Spencer has nose dived, I'd take Mattrick back in a heartbeat.
It doesn't matter how many studios MS buys, if they're as poorly funded and badly managed as MS games have been this gen then it's just going to be poor quality GamePass filler games.
Besides not all these studios they bought are great - Compulsion Games that produced the utter sh* show that is We Happy Few, it's quite remarkable how they messed that game up from what was an initially great idea. I wouldn't touch that studio with a barge pole yet Phil bought them.
Same with Undead Labs, all that time they had to create State of Decay 2 and they produced an unfinished buggy mess that improves little if any over the first game.

The 360 was a great console with loads of good exclusives, if you were into gaming you owned one it was that simple. All my PC gaming mates had them, none of them bought Xbox Ones, because what's the point, and what's the point in them, or me now as I have a good PC, from buying the next Xbox.

Phil f*cked Xbox up big time, and that's from a gamer whose mostly played on the One this gen.

Potnoodle9992638d ago

Nobody has to try to put a negative spin on anything ms do....they do it themselves😳

starchild2638d ago

@ yomfweee

Maybe so, but I really enjoyed games like Gears 4 , Quantum Break, Forza Horizon 4, Ori and the Blind Forest, Cuphead and Sunset Overdrive. I played them on PC and I would enjoy seeing more games like them. I'm also looking forward to seeing Halo come back to the PC just like the first two games.

I mean, it's easy to sit there and pretend that every MS game was as average as those games. They have certainly had a rough patch lately. However, across the generation they've released some good games, just not enough of them. Now they've greatly expanded the number of first party studios and even if there continues to be some average or mediocre releases there's also going to be more games like the ones I enjoyed.

FanboySpotter2638d ago

A lot of this sounds like blind fanboyism. "Double don't mean shit if they are like sea of thieves. Don't ask me if i saw halo infinite or gears 5. Forza horizon 4? What even is that i only know crackdown and state of decay 2" that's like saying "ugh i will never go to nintendo they'll just make another wii u" or "ugh never trusting sony ever again after seeing the 2005&2006 e3" watch the disagrees be like "duh! It only makes sense when it's a plastic box i hate!" sony is known for rarely lauching consoles with exclusives am I supposed to go "ugh can't and won't ever trust sony always having me get their console with no exclusives until mid gen"? Nope that sounds stupid

optimus2638d ago

@yomfwee. that makes no sense when the games you mentioned were done by entirely different developers. so how would the quality be the same? you act like sony has never put out mediocre games. 🙄

InTheLab2638d ago

There's a ton of "if" in there. Based on his history, he has lied his way into the hearts of xbox hopefuls. Remember this guy is Mr Crackdown, Sea of Thieves, and every disappointment launched on the xbox one, which has been a failure since launch and after he took over.

Judge the man on his body of work and not his empty well of promises.

rainslacker2637d ago

Regardless of console preference, Phil really hasn't done much to deserve the trust of the consumer. Saying someone is a fanboy implies they have blind faith, or trust, and to me, anyone who trusts what Phil says exhibits that quality. It's fine to be hopeful, but trust should be earned.

FGHFGHFGH2637d ago

@zacfoldor

"I wonder what promises were made in the past, and were they kept?"

Here's a list of their past pc commitment promises
https://www.neogaf.com/thre...

They've been saying this since 2005! Now they're doing the same thing for xbox users who have had to wait and wait and now we are hearing wait till next gen LOL

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70°

Microsoft Gaming Revenue Drops 7% Year-on-Year, Content and Services Down 5%, Xbox Hardware Down 33%

Microsoft announced its financial results for Q3 of fiscal year 2026, including an update on its gaming Xbox business and more.

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simulationdaily.com
Jin_Sakai19d ago (Edited 19d ago )

Not looking good. Hopefully Asha Sharma is able to turn Phil’s disaster around.

dveio19d ago

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.

Jingsing19d ago

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.

Tanktopmaster9219d ago

Once they re-evaluate exclusive all will be fine….

S2Killinit19d ago

Riiiiight because people will just flock back to them for one or two games per year.

Jingsing19d ago

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.

Tanktopmaster9219d ago

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

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40°

Games Done Quick is coming to Europe for the first time with 3 days of Gamescom speedruns

The charity event will be streamed live from Gamescom in August.

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videogameschronicle.com
50°

Spiders Studio, Developers of GreedFall: The Dying World, Announce Liquidation of the Company

Spiders: "We're going to cut straight to the chase so you're not left wondering: After a long period without clear answers, we have received confirmation that Spiders is being liquidated.

What does it mean? This means the company as a whole no longer exists. We'll cease our functions immediately. The planned DLC will release via Nacon, and then-- well, that's it.

We're sorry that it's come to this and would like to thank each and every one of you for your support over the years.

If you have any questions or run into issues with your games, please contact Nacon directly as we'll no longer be able to reply."