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Microsoft May Exit Gaming Business If GP Subscribers off Console Don't Increase Enough by 2027

Microsoft's Phil Spencer said in testimony that the company may exit its gaming business if Game Pass subscribers off consoles don't increase a lot by fiscal year 2027.

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wccftech.com
Vits977d ago

Yeah, hopefully, we don't see that happening.
Otherwise, we will get "Sony's you need two jobs to afford this back".

977d ago Replies(6)
blackblades977d ago

Last time it was they might be leaving the console business and maybe be 3rd party like Sega. Which would be a better option in IMO considering the studios they have now. Sell the games on PlayStation, Nintendo and steam, as well cloud gaming on other devices

bloop976d ago

I've been thinking this myself. How long can they keep pumping all this cash into Xbox and Gamepass with no real return? They'd be much better off becoming 3rd party and getting their games, and even GP, on as many devices, including competitors consoles at this stage.

blackblades976d ago

Those leaked documents showed how much it cost or could cost for a game to be on game pass. It's kinda expensive from the looks of it.

Palitera976d ago

@bloop
They have nearly infinite money, enough to knock a competitor like Sony out of the market.
That’s how long.

bloop976d ago (Edited 976d ago )

I didn't mean that in a literal sense Palitera. Business is business and it doesn't matter how much they have in the bank. They're in this more than 2 decades now, spanning 4 generations and have only had relative success with one console, the 360, which was partly due to the PS3 release being delayed multiple times. They've finished last every time so someone's going to pull the plug eventually. Snapping up all these publishers and developers is a desperate last move in trying to stay in the game. They'd be better off going 3rd party at this rate, unless Series consoles literally start flying off shelves.

FinalFantasyFanatic976d ago

I don't think they even want to be in the hardware business, although it's strange they make so many Xbox controllers (but they also make for good PC/Steam controllers as well).

jeromeface975d ago (Edited 975d ago )

@palitera what a foolish take @bloop you think MS doesnt want GP on ps5? LOL

blacktiger975d ago

last time was a rumor, this one is coming from phil spencer

+ Show (4) more repliesLast reply 975d ago
crazyCoconuts977d ago

Is having them still in business, but NOT buying up the entire gaming industry an option? That's what I want...

-Foxtrot977d ago (Edited 977d ago )

To be fair people always go on about that quote from Sony in the wrong way

They didn’t say it in a way like “tough shit, get two jobs if you want it” it was “this thing is so good you’ll WANT to get two jobs” . Still cocky as f*** but no where near as bad.

GamerRN976d ago

..... it's just as bad.

Popsicle976d ago (Edited 976d ago )

It was a comment filled with hubris and it haunted them at the beginning and near the middle of gen 7.

Kayser81976d ago

@-FOXTROT
oh it was bad like here is a quote from ken kutaragi :
(On PS3's price) "It's probably too cheap."
(On PS3's price) "We want consumers to think to themselves 'I will work more hours to buy one.'"
yeah it was bad and they have learned their lesson , that same with microsoft with xbox one and nintendo with the WIIU .
and the reason is because of the competition .

StarkR3ality976d ago (Edited 976d ago )

@Vits

Wish more people thought like you. The same people complaining about Xbox buying up the industry are the same people who would happily see Xbox gone and Playstation the only option. It's laughable.

Less competition = Worse deal for gamers.

Popsicle976d ago (Edited 976d ago )

It baffles me that gamers do not understand the importance of competition. Granted I see Microsoft’s vision for gaming as dystopian for consumers, but without competition, Sony would have less incentive to provide the absolute best content and services. There would be nothing to keep their decision making in check from a consumer perspective.

I wish Microsoft would revert back to the OG Xbox and 360 days because I do not see their current vision of having gamers own nothing and rent everything as being desirable or sustainable.

StarkR3ality976d ago

Agreed, I don't even own an Xbox but to say they shouldn't be in business is stupid, Sony have already showed this gen and the PS3 gen what overconfidence does to a corporation.

There's an air of arrogance about them that I simply do not like, that would be worse by tenfold if Xbox wasn't in the picture, you can take that to the bank.

shinoff2183976d ago

Stark, what has Sony done this Gen that's arrogant

Huey_My_D_Long975d ago (Edited 975d ago )

@starkR3ality.
I don't agree with your first sentences at all, although the last one is on point. . I have a PC and PS5, been a playstation gamer since PS1. I don't want MS to get out because competition is good for both companies... but the tactic of buying up the industry itself is an anticompetitive tactic.
What will happen to the majority of the studios if MS does leave? How many can sell off and which studios will have to be closed down.
...Although I will say Embracer group is far more problematic for the gaming industry right now than MS...Selling with MS, you have at least a couple years...Embracer will buy you and shut you down within a year.

Huey_My_D_Long975d ago

Love PS, but you are not lying. The arrogance in PS3 days was the worst. and I do think Sony would return to it if they didnt have any competitors..I know nintendo, but they are just too different for Sony to progress because of them

+ Show (2) more repliesLast reply 975d ago
PhillyDonJawn976d ago

Facts when 1 remain we all lose.

MrBaskerville976d ago

If ms leaves, Amazon, Apple or Google will step in.

jeromeface975d ago

apple would push thing forward hard but charge you a car price to do it.

WelkinCole976d ago

Every shitty business strategy we have had in gaming is because of MS.

The best gaming console generations (PS1,PS2) is when Sony was the most dominant

So no

Miraak82 976d ago (Edited 976d ago )

That's how I've always felt , I mean steam basically dominates the pc market and Nintendo has handhelds and no one seems to have a problem with it . Why do people feels like Sony always has to have a competitor in the console space , out of all the gaming spaces why (Pc, Handheld,Mobile,Console) only Sony has to deal with MS's BS for the sake of competition. This isn't 25 years ago like when you had just Consoles on the market from everyone,

MrDead976d ago (Edited 976d ago )

Problem is MS doesn't want to or need to compete.

MS buying up publishers means less competition in who makes games, a higher entery cost to anyone that wants to enter the console market because of less third party publishers, we also have found out plans for what they want with Nintendo.
MS are not good for the industry, at any point they have the money to lock away huge chunks of it that competing platforms really on.

F0XH0UND922976d ago

That was a person building hype for a console, not Sony. It's so weird how people still try and use that as a gotcha moment.

Soulsborne976d ago

M$ bleeds you dry , and gives zero in return. Your little netflix of games isnt all that profitable afterall.

Flakegriffin976d ago

Or even worse; we would go from one Sony studio exclusive a year to 1 Sony studio exclusive every two years lmao

Rynxie974d ago

No, I hope it does happen. MS is trying to change the gaming industry for the worst. They are a cancer to the gaming industry. I just hope they do leave the business and another manufacturer steps in, so there's still competition to keep pushing the industry forward.

+ Show (10) more repliesLast reply 974d ago
jesujohn977d ago

Don't you stone-hearted guys feel pity for them? You must all subscribe to GP asap.

Magog976d ago

Which is exactly why they are awful for the industry. They don't want to succeed at making good games or good hardware all they care about is subscriptions. It's been true of Microsoft for decades.

CptDville976d ago

Moreover, they are forcing us to subscribe by slowly but steadily stopping physical game sales. And a lot of people don’t even see it coming (most here on N4G won’t even believe that I can’t buy physical disc of Starfield on my country - Brazil - I’ll have to spend 180 USD on Amazon to buy it from Us if I really want to).

977d ago Replies(4)
italiangamer977d ago

They could leave this very second, one less toxic company to deal with.

DarXyde976d ago

With a replacement, I wouldn't mind.

Nintendo isn't in the same space really and it would be great to have a competitor that is similar financially to Sony —no more of these ridiculous trillion dollar imperialist corporations, please.

Who would that be? No idea. Samsung, perhaps? I think that would be great.

I despise Microsoft. Deeply. That said, leaving the market with Ryan at the reins of PlayStation is asking to get the George Carlin "customer service" treatment.

Outside_ofthe_Box977d ago (Edited 977d ago )

So GamePass is in fact their last resort.

Aloymetal976d ago

Yes GP is their last resort, either that or buy most of the gaming industry forcing their way. MS tried to compete with PS for the last 20 yrs but they realized a while back that they just can't defeat that huge and loyal fanbase PS (and Ninty) have ALL OVER THE WORLD. GP is already 7 yrs old and hasn't changed anything in their favor.

MrDead976d ago

Unfortunately for gamers and competition MS sees an industry it can just buy and lock away behind GamePass, I'm hoping this fails.
The problem is MS has never shown any interest in it's own platform, they like the money that comes from gaming but don't want to contribute. A company the size of MS has very little care for doing well in this industry because just doing well doesn't bring the returns for company of that size, they need to dominate in order to raise MS stock price.
...also it helps that MS don't need Xbox, as it stand right now if Xbox disappeared it would barely be noticed by them.

sagapo976d ago

Wouldn’t say they never showed intrest honestly. The first and especially the 360 era were great as MS try to beat PS with their own exclusives. And they had great ones, you can’t deny this. But after that MS screwed up and tried a different approach with Gamepass, which cleary isn’t working.

Rynxie974d ago

@sagapo

No, MS never cared about the industry, they cared about the money. They showed their true colors with the release of the Xbox one and their outrageous anti-consumer policies. They shot themselves in the foot. However, as blind xboys fanboys are failing to see, MS is still trying to push their digital only, online only, no physical copies, no game trading/selling unless MS gets their cut policies back. They are just trying a new approach.

ChasterMies976d ago

Xbox sells enough to stay in business. But you know how these companies work. Why run a business that is merely profitable? They want that sweet monopoly like they gave with Office and Windows, and they see the subscription service and acquisitions as the way to get there.

blacktiger976d ago

thats why they said if gamepass fail, they are out. Seem you and Microsoft has two different take.

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60°

Take-Two CEO Once Again Side Steps Grand Theft Auto 6 Price Point

Strauss Zelnick says price of GTA 6 is being carefully considered and that Rockstar is focused on "making the most spectacular piece of entertainment on Earth."

Kuma24d ago

If GTA 6 abandons everything that made GTA 5 great, it will crash and burn right out of the gate. GTA 5 was funny and not at all PC. My worry is that they will cave to the PC crowd and ruin the vibes.

Eonjay23d ago

They got freaking BBLs twerking on the top of trucks for the gram, the freaking Flordia joker, and dude running down the stree in their undies and you are worried about it being 'too PC'? The internet has runied gamers. It doesn't matter how non-PC they make the game, you will all listen to the grifters telling you not to believe your lying eyes lol.

gigoran823d ago

"Rockstar Games’ co-founder and former VP of Development Jamie King said he envisions GTA 6 as a game that’s “maybe not quite as edgy or quite as funny” as its satirical predecessors."

oh yeah, totally internet grifters spreading rumors...

blacktiger23d ago

That's part of the plan, they destroyed you but they need to destroy the shareholders? Only 1 shre holder is the true elite that don't care

1nsomniac24d ago (Edited 24d ago )

Meh.., if it’s above £55 I ain’t buying it.

Rockstar are genuinely not half the company they used to be. I was a die hard GTA fan I’ve purchased every game and expansion and spin off day 1.

My opinion of GTA6 is that I can take it or leave it. Not bothered. They burnt too many bridges.

DaReapa23d ago (Edited 23d ago )

So they're actually leaving the door open for an L.A. Noire sequel? Nice!

VaNdAl23d ago (Edited 23d ago )

He should just come out and say it already it's getting stupid it's going to be a 100 bucks $200 for the special edition🤡🤡; 29315;🤣♿

Storm2323d ago

I won't be getting this game until I can get it for $70. SHoot, I could wait for it to be even lower. I don't need the game that badly as my backlog is still huge and I am enjoying playing other things.

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40°

Talking Aliens: The Video Games With Author Mike Diver

Skewed and Reviewed have posted an interview with Author Mike Diver about his pending book on Aliens video games.

70°

Xbox boss: Memory crisis could impact next-gen hardware pricing

Xbox boss Asha Sharma has discussed how component shortages will impact the company's plans for Project Helix.

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gamedeveloper.com
Eonjay25d ago

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.

Lexreborn225d ago

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

Fishy Fingers25d ago (Edited 25d ago )

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.

Lexreborn225d ago

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

Sitdown25d ago

You don't really know how this works huh?

Profchaos25d ago (Edited 25d ago )

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

Eonjay25d ago

Yeah with FSR 5 they should be able to offer a much cheaper version of Helix.

Eonjay25d ago

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.

XBManiac24d ago

Series S is what has killed Xbox Series so... Will they dare?

blacktiger25d ago

It's called systematic inflationary. Yes we get it Microsoft, keep raising in the name ofall kinds of stuffs

pwnmaster300025d ago

Honestly if there was thing I learned from this generation is that new consoles arnt day one anymore.
I can wait 1-3 years.

DarXyde25d ago

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.

LucasRuinedChildhood25d ago (Edited 25d ago )

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.

DarXyde25d ago

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".

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