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Xbox changes its tone on Game Pass

From GI.biz: "Microsoft’s latest financials, and Phil Spencer’s subsequent comments during the Wall Street Journal Live event, felt like a shift in tone.

The big takeaway for some is how Microsoft, for the second quarter running, failed to hit its targets around Game Pass subscription growth.

I am reluctant to draw conclusions from results posted during the last six months. Not only has there been a significant lack of major titles, but it also covers the first full post-lockdown summer, when people actually went on holiday. It was inevitable video game targets were going to get missed, and Microsoft isn’t the only one to experience that."

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gamesindustry.biz
darthv721312d ago

Bring out some damn first / second party games and they will start hitting those targets. People signed up on the promise of day one new releases from "Microsoft" and it only makes sense that if the games arent there... neither are the subs.

VenomUK1312d ago

Game Pass subs are proving popular with enthusiasts gamers (according to Microsoft) but Game Pass cannot hit its sub targets unless it attracts subscribers from the mainstream. Maybe in decade cloud gaming will be more widespread, but right now Game Pass is a product for gamers.

1Victor1311d ago

Phil Spencer estimated that Game Pass will probably only account for around 15% of Xbox’s content and services revenue going forward and stated: “We don’t have this future where I think 50% to 70% of our revenue comes from subscriptions.”

To this I say it will be hard even impossible for Microsoft to have that dream come true unless they walk away from consoles manufacturing and become a full fledged service on all devices. They have made too many mistakes here is the some of the biggest
1 Not supporting PC gaming in it’s earlier stages and half ass it only after valve took charge with steam and created a stable environment for PC gaming
2 Attempted to force its way into PC by charging for online play with Xbox live
3 Going and swinging their wallet around and buying publishers with the transparent goal to lockout their competitors from mayor 3rd party games.
Just those 3 are enough to get over half the industry in a bad term with Microsoft and let’s not forget their constant 180* on their promises.

jznrpg1311d ago

It’s pretty much the xbone1 crowd plus super cheap gamers .

neutralgamer19921312d ago

Darth

Exactly I been paying for months without using much because we all assumed we would get some big games. I really want to see if and when Ms starts delivering quality if these numbers stay up or go down

It's those steady monthly numbers that matter not just when big games launch and people may sign up for a week or free period

I want some awesome AAA games but Ms has to prove they can do it because their history suggests they mismanage a lot of things

So as of now I would give them the grade of incomplete

r2oB1312d ago

Why would you think Microsoft has to prove anything? You have, admittedly, been paying for months without using it because of the promise of day one AAA games. Don't you think it would have been wiser for you to see proof before throwing away money? It's not like Microsoft has a history of consistently releasing quality AAA games. It seems there are tons of people who don't mind spending money on empty promises.

EvertonFC1312d ago (Edited 1312d ago )

It's why when I here people stacking subs for multiple years i scratch my head, they think there making a saving buy in reality there throwing money away.
I think Netflix is great but I only get it about 4 times a year, same with Disney, appletv and Amazon.
Same with ps plus I've had the basic for the most part so far and only had ps plus extra twice and played what I wanted too in those 2 months.
It's the same with GP I'd be done with what interests me lin the library 2 months max.
Imagine having psplus premium and GP for 12 months ? Are you really playing the games you want to play or even have adequate time for ?
Also from you're comment you've basically admitted you have already consumed the game GP library which interests you ? So wouldn't you think it was best to dip in and out when things release in there you like ?
Not too great MS putting all there eggs in one basket and you've already consumed the library ? I think the Pandemic probably hurt GP more than helped cause Xbox gamers have consumed everything already ?

jznrpg1311d ago (Edited 1311d ago )

@r2ob you said it perfectly . Oh MS will do better this time . Well, never mind wait til next E3x15

1311d ago
+ Show (2) more repliesLast reply 1311d ago
Outside_ofthe_Box1312d ago

Well next year coming up in less than two months is supposed to be the year. No more excuses after 2023.

DivineHand1251312d ago

I recently purchased a series X and I do find game pass in it's current form an amazing deal for gamers but the lack of big first party releases is noticable. 2023 will be a critical year for Xbox. I know bathesda is set to release starfield but want to see games from some of the many studios that were aquired. When the Halo infinite delayed it's road map and canceled campaign co-op, gamers called for 343 to be removed from the Halo brand. If 2023 ends up being a dud, people may start pointing fingers at Phil.

EvertonFC1312d ago (Edited 1312d ago )

@divine
Also I get the impression MS thinks 30m plus subs will be gained from starfield release on GP when in reality 80m Xbox gamers who dont play or like fallout or oblivion/Skyrim.
Lots of gamers out there who don't like RPG from Bethesda just like 80m gamers on playstation didn't buy or play the tlou or GoW.
Gamers don't suddenly flock to these games cause there on subscription services.

SurgicalMenace1311d ago

A second party game is developed exclusively by a company not owned by a publisher. Insomniac and Sucker Punch were two examples of 2nd party before they joined Sony. Their exclusivity is based on loyalty and good relationship over ownership.

itsmebryan1311d ago

Gamepass subs may have slowed but, it's still growing. Why is no one is talking about playstation plus losing 2 million subscribers if reports are to be believed?

+ Show (3) more repliesLast reply 1311d ago
Abracadabra1312d ago (Edited 1312d ago )

If Microsoft want more Game Pass subscriptions, they need more exclusive AAA games. How are they suppose to increase subscriptions if they don't release any noteworthy 1st party game in 2022?
Sony and Nintendo have a constant stream of games during the year... what the hell are Microsoft's 1st party doing? Sleeping on the job.

Like any subscription service (Netflix, Disney, Apple, HBO, etc), they need quality exclusive content...

EvertonFC1312d ago (Edited 1312d ago )

MS thinks 100s of millions of gamers are gonna flock to GP because of RPG Bethesda games ? Gamers don't suddenly like or want GP because of starfield ? 80m odd 360 gamers didn't play or like fallout, Skyrim or oblivion?
Gamers don't just suddenly like RPGs all of a sudden because of GP lol

1311d ago
keegamer801311d ago

I loved those games. Especially Oblivion! I would love for that game to get a remaster.

onisama1312d ago

COVID and current war (stalker2) had affected the studios but yeah your so right aside of playground,turn 10 and obsidian who in my eyes are the hardest workers that other xbox studios should follow!! Obsidian just released outer world in 2019 and grounded 2022 pentiment 2022 and working on outer world 2 and the avowed and they want to work on New vegas 2 if all xbox studios work as hard we will have exclusives every month

Petebloodyonion1312d ago

Well Gamepass faces a problem on 3 fronts
1) The current inflation crisis has ppl reconsidering how they're gonna spend some money (See same news with PS+)
2) recognizable brand name 1st party games. Please release some known games...
3) What's the difference between Gamepass and Gamepass PC again? Even Sony with barely supporting the PS+ premium tier can still provide a difference between Extra and Premium.

KillBill1312d ago

"3) What's the difference between Gamepass and Gamepass PC again? Even Sony with barely supporting the PS+ premium tier can still provide a difference between Extra and Premium."

Pretty straight forward. One is for PC the other is for console. Offering slight different variations in games due what is available to each system. Game Pass Ultimate gets you everything for a single price point. Choices. If you don't feel you need multiplayer gaming access and play on console then simply go with Game Pass. If you play primarily just PC then go with Game Pass PC. If you play on console and/or PC and/or mobile/cloud and want access to Gold online multiplayer access along with everything else offered then go with Game Pass Ultimate.

https://www.microsoft.com/e...

EvertonFC1312d ago

Xbox needs new AAA ips not known games.

Jericho13371311d ago

Like Starfield and Redfall?

-Foxtrot1312d ago (Edited 1312d ago )

Do you think there's a part of them that thought, arrogantly, that they could possibly get Game Pass on Sony and Nintendo devices by now but have failed to do it so now it's like "Shit, we ned to rely on our audience and our lacking first party games releasing day 1"

It's a lot different (and easier) to just take your backlog of games already made and give them to a potential new audience on PlayStation or the Switch. Having Halo streaming from Game Pass on the PS5 and Rare Replay on the Nintendo Switch would have given them more time to get things made for the future.

shinoff21831312d ago

Id gladly do gamepass on playstation. Especially when starfield and my main thing fallout come out.

EvertonFC1312d ago

I got so many disagrees the other day for saying within 5 years GP will be on Nintendo and playstation.
It'll happen, if anything it's been Nintendo and Sony who don't want it.
MS don't want to make consoles just sell GP across the globe on multiple devices like windows 10/11 on everything and office123 subscriptions.

ziggyzinfirion1311d ago

Buddy, I haven't seen your previous comment but I probably would have disagreed as well. I believe Sony and Nintendo is aware of MS plans for GP base on there recent actions and aquisitions and would not let the company cannibalize the industry. In 5 years, Sony may have already improved their subscription service that may potentially rival GP and by that same year, Nintendo may have already have their own subscription service that will try to compete with the two.

rippermcrip1311d ago

There's no way it will happen on Sony. Switch can't handle the games, streaming maybr but that experience is not like the real thing.

franwex1312d ago

The mood has for sure changed. The positive that I see is that they delayed games to 2023 instead of releasing them unfinished like Halo infinite to increase short term subs. I think they see the value in long term quality. At least I hope they do.

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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_Sakai38d ago (Edited 38d ago )

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

dveio38d 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.

Jingsing38d 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.

Tanktopmaster9238d ago

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

S2Killinit38d ago

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

Jingsing38d 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.

Tanktopmaster9237d 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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50°

Report: Injustice 3 in Development at NetherRealm Studios

Thanks to the slip-up of an artist working on the title, we now have more evidence that a new Injustice game is in the works.

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."