Gaming studios facing challenges and sustainability issues, like Bioware at the moment, present a great opportunity for Xbox to step in and strike a deal to have their games available on Game Pass from day one. The next Mass Effect might launch as a day-one title on Game Pass if Microsoft strikes a deal and funds the game's development.
Microsoft underwent a major restructuring by closing smaller studios like Tango, Arkane, and Initiative, and canceling projects such as Perfect Dark and Everwild, while laying off employees across all studios to focus only on its highly profitable IPs like Call of Duty, Halo, Warcraft, and Forza Motorsport etc. I think Microsoft should produce more AA titles and support smaller studios, but it seems they prefer to make more second-party and third-party deals to ensure 75 day-one game releases every year, while leaving first-party studios to focus on higher-budget, popular IPs. In the long term, it doesn’t matter much. Their strategy will succeed if they deliver high-quality games on Game Pass, whether first-party or second-party.
The lost revenue from the premium online and the XBOX store's revenue cut is so minimal because it is not the main source of revenue for XBOX. Xbox isn't generating much profit from these services, so it might be worth abandoning them to build a more valuable ecosystem with the next hybrid console. XBOX can easily recoup the lost revenue by further boosting game sales, and Game Pass increased revenue following the price hikes.
The Xbox Store faces challenges in generating sufficient profit from its 30% revenue share due to a limited user base on Xbox consoles and Steam's dominance on PC. Both the console and PC versions of the Xbox Store have lagged behind in competition with the PlayStation Store and Steam. Xbox has shifted its business model to stand apart from Steam and Sony, which earn significant revenue from third-party sales as dominant storefronts on console and PC. Xbox's new strategy focuses on creating and selling software across all platforms and subscription services like Game Pass.
"And didn't they just talk about their lofty goals of a 30% profit margin ?"
Game Pass growth, game sales across all platforms, microtransactions, and mobile games. The revenue from the Xbox storefront and online premium is minimal, making it irrelevant to Xbox's financials. However, that 30% profit margin target is unrealistic, because historically speaking, no other gaming company in the world has managed to achieve such high profits for years.
Sony has no incentive to offer free online services since it operates within a closed ecosystem tied to its hardware platform, following the traditional model of a hardware platform holder. As a market leader, Sony generates substantial revenue from premium online services, subscriptions, and 30% cut from third-party sales and microtransactions.
The next XBOX hybrid console will essentially feature PC hardware, built on an open PC ecosystem. It will support both Steam and Game Pass through a new gaming-focused Windows that combines the XBOX OS with console libraries and backwards compatibility. As a PC-based platform, the XBOX hybrid will need to offer free online access since stores like Steam don’t require premium online play.
If the Xbox hybrid console successfully competes with Sony in third-party market share through Steam and Game Pass, offering cheaper games at a lower cost, Sony might be compelled to enhance its services to stay competitive. This could include abandoning premium online services and providing free online access, similar to the Xbox hybrid model.
In this generation, Xbox's key selling point has been the Game Pass subscription service, competing against Sony's premium full-price model. With Game Pass reaching its subscription growth limit, the next generation with hybrid consoles will likely see Steam becoming a major competitor alongside Game Pass, challenging Sony's premium full-price approach.
I think Sony will stay the market leader in the next generation because, as Phil Spencer mentioned, most console gamers built their digital libraries within the PlayStation ecosystem during the PS4 era, tying them to it. However, I believe the upcoming Xbox hybrid console will be a competitive open platform that could capture a portion of the market share in third-party sales within the stagnant console market, as Spencer pointed out. Even a small loss in third-party sales could result in revenue losses for Sony's ecosystem.
The next Xbox hybrid console aims to merge PC gaming with the console market, creating a unified ecosystem for the first time in gaming history. This is the new era Spencer has been referencing over the years. The future of gaming revolves around competition in services across all hardware devices. Imagine having Steam and Game Pass on the same hybrid hardware, competing side by side. Offering multiple hardware options ensures access for millions of consumers without restricting exclusive content to a single hardware platform.
There’s no solid evidence that a truly GOTY-level AAA single-player game requires 6-7 years of development. Claiming that Naughty Dog absolutely needs 6-7 years to make a good game lacks any factual backing. It feels more like copium to defend Sony’s wrong decision to shift its first-party studios entirely toward live service games.
Naughty Dog's next major project after releasing The Last of Us Part 2 was intended to be Fractions, an online live-service game set in The Last of Us universe, which was ultimately canceled. If they hadn’t spent time on this failed live-service project, they might have had enough time between 2020 and 2025 to fully develop The Last of Us Part 3 with complete focus on the game's development.
It's absurd to compare Naughty Dog with Rockstar. Naughty Dog is an AAA studio focused on creating fully single-player AAA games, while Rockstar develops massive live service games. Do you really think the next GTA will have a billion-dollar budget solely for the single-player mode? It won’t, because GTA is essentially a live service game with a high-quality single-player story and GTA Online. The nearly $1 billion budget for the next GTA covers the base game, DLCs, season passes, and other content to sustain engagement for years, just like other live service games. Destiny 2 and Call of Duty reportedly have budgets between $400-500 million, but that includes the whole lifecycle of the live service game, not just the campaign story.
Naughty Dog had plenty of time to develop and release its next game between 2020 and 2025, but they squandered it on a failed online game that ended up being canceled, causing delays and disrupting their release lineup.
You're absolutely right. Sony itself acknowledged this when it recognized that its AAA first-party studio shines at creating outstanding single-player games rather than live service flops. Naughty Dog is now fully focused on single-player projects again, promising an impressive lineup over the next five years with a steady release schedule, just as it should have been all along.
Naughty Dog spent too much time on the failed Last of Us online project, which was eventually canceled. As a large studio with 400 developers, it's confirmed that they are working on multiple projects simultaneously. If Naughty Dog hadn't wasted time on that online project, they could have focused entirely on Intergalactic and Last of Us 3, potentially releasing both games between 2024 and 2027.
I know that's revenue, and Microsoft doesn't straight-up show profit numbers. However, recent financial reports indicate that the gaming division's profitability has improved and contributed to the overall profit margin during the last 2 quarters. I think it makes sense that profits have slightly improved with the increased revenue, as I don't expect that the XBOX had bigger profits with less revenue before the acquisition of ABK.
I quote the news related to Microsoft's revenue from the gaming division:
TL;DR: Microsoft's gaming division achieved a record $23.455 billion in FY25 revenue, driven by a 16% increase in Xbox content and services, including Game Pass and Activision Blizzard. Despite a 25% hardware revenue decline, Microsoft plans next-gen Xbox consoles as Windows 11 PCs, potentially partnering with OEMs like ASUS and Lenovo.
TL;DR: Xbox gaming contributed and helped increase the profitability of Microsoft's More Personal Computing segment throughout the Q3'25 period.
Xbox just delivered record Q3 results, and these earnings helped boost the profitability of its home segment.
According to Microsoft's latest quarterly SEC filing, gaming helped contribute to the increased profitability of the More Personal Computing segment. Throughout Q3,the segment's gross margin increased by 9% or $623 million, driven in part by gaming (by how much, we don't know). Operating income was up +21% and increased by $603 million. It's possible that Microsoft's bets towards more high-margin businesses like digital-oriented game sales and Xbox Game Pass subscriptions are paying off for the company.
Also bear in mind that a sizable portion, perhaps even the majority, of this profitability may have been through search and advertising and not necessarily gaming; search and advertising revenue was up by over $440 million whereas gaming revenue was up $270 million.
Revenue increased $767 million or 6%. Windows and Devices revenue increased $46 million or 1%. Windows OEM and Devices revenue increased 3% driven by growth in Windows OEM, with inventory levels remaining elevated due to tariff uncertainty. Gaming revenue increased $270 million or 5% driven by growth in Xbox content and services. Xbox content and services revenue increased 8% driven by growth in Xbox Game Pass, Call of Duty, and Minecraft. Xbox hardware revenue decreased 6%. Search and news advertising revenue increased $449 million or 15%. Search and news advertising revenue excluding traffic acquisition costs increased 21% driven by higher revenue per search and higher search volume. Operating income increased $603 million or 21%. Gross margin increased $623 million or 9% driven by growth in Search and news advertising and Gaming. Gross margin percentage increased driven by improvement in Search and news advertising and Gaming. Operating expenses increased $20 million or 1%.
Microsoft's plan is already working with great success. XBOX had record revenue and profits in 2024 as a multiplatform publisher. The next big question is how the hybrid console will perform in the market. It could be a niche option for console gamers looking to enjoy Game Pass on their console while still benefiting from the open ecosystem of PC gaming. We have to wait and see!
Nintendo can still survive with the exclusive model because they basically make high-quality games but with a low budget, which is basically AA production, and making tons of sales of 5+ million, resulting in a high profit margin. The lower production cost and the shorter development time allow Nintendo to produce 10-12 first-party titles every year, which is crazy. Nintendo doesn't have the "AAA sustainability" issue that both Microsoft and Sony have to deal with. Pokémon ZA has only cost $13 million based on the leaks, and it's already sold 5 million units, meaning it has already achieved huge profits.
You make it sound like most PlayStation games haven’t been released on PC, but the opposite is true. Astro Bot is the mascot of the PS5, so it makes sense not to be on PC, even though there are rumors of a port. Gran Turismo has no reason to be on PC because the Forza series dominates PC gaming as the superior racing game. Gran Turismo was once a monopoly on PlayStation as an exclusive, but since Forza came to PlayStation, it has dominated the charts as the better racing game.
These are the only exclusive games that haven’t come to PC, as all other PlayStation games are available on PC. Games like God of War, Spider-Man, Uncharted, The Last of Us, Horizon, Ghost of Tsushima, Stellar Blade, Returnal, Days Gone, etc. All the major blockbuster PlayStation games are on PC, and this is because Sony doesn’t make enough money from PlayStation sales alone and needs extra revenue from the PC market.
The drama around XBOX is getting ridiculous. XBOX has transitioned from a traditional hardware platform holder to a multiplatform publisher with hybrid consoles that will have an open ecosystem and give access to multiple PC stores and services. The new "gaming windows" will merge with XBOX OS, which will combine the ΧΒΟΧ console library with Steam and Game Pass, and be free online.
The reason why XBOX transitioned to a multiplatform approach was that they realized it was more profitable than competing within the "console war" concept that favored Sony, which dominated the market.
I’ve already explained why XBOX couldn’t compete with Sony under the "console war" model, where exclusive games and hardware consoles were the main focus. The rules of the "console war" heavily favored Sony, which became the dominant leader during the PS4 era. XBOX couldn’t keep up, and it would have been unwise to invest a huge amount of money in exclusive games, knowing they wouldn’t generate significant sales on the smaller XBOX console user base, ultimately leading to heavy losses and potential bankruptcy.
Phil Spencer highlighted why the Xbox One/PS4 era was the "worst generation to lose." During that time, most gamers established their libraries on the PS4, which dominated the market and locked players into the PlayStation ecosystem for future generations. Even with GOTY-level exclusives, the Xbox Series S/X struggled to compete with the PS5 in hardware sales. Many gamers are hesitant to abandon the libraries they built during the PS4 era to start fresh in a new ecosystem.
This isn’t the end of Xbox; it’s the beginning of an innovative era with the creation of a hybrid console and a new optimized gaming Windows that bridges PC gaming with the console market. The new "console war," so to speak, is between the open system of hybrid consoles and traditional consoles like the PS6 or Switch, which operate in closed ecosystems and rely on exclusive games.
The new XBOX hybrid console will hit the market with Steam and Game Pass integrated into a gaming-focused Windows system that will incorporate the XBOX OS. It will include the entire console library with free online play, just like on PC. This is a change that's happening. The upcoming hybrid XBOX console will also offer more valuable third-party titles and even PlayStation games through Steam, which has lower prices, along with day-one releases on Game Pass. It will compete with the PS ecosystem, which remains more expensive due to Sony's $80 full-price model, necessary to profit from its 30% revenue cut on third-party sales.
Look, dude, I get that AI is getting out of hand, and the internet is full of AI filler content. My point is that I don't use ready-made text from generative AI and copy/paste like some of you accused me. I just use Grammarly autocorrect addon, which is useful when I want to type fast to write long comments without worrying about any grammar mistakes. That's all.
How do you know if I use AI or not? Does it even matter as long as I am making valid arguments and contributing positively to the discussion or debate? Personally, I am using Grammarly autocorrection to avoid any grammar mistakes because I type too fast, but I make my own comments, not generated by AI.
Sony probably can't afford to acquire Warner Bros, with the estimated cost of $50-60 billion being well beyond their financial reach. Their biggest acquisition so far was Bungie for $3.5 billion. Sony has dealt with significant debt issues for years, only partially improved by splitting their financial business. Warner Bros has $40 billion in debt, which Sony would need to take on. Adding that debt would leave Sony with $80 billion in total liabilities ($40-50 billion for the acquisition plus $40 billion in Warner Bros debt) . With limited cash reserves, narrow profit margins, and weak cash flow, handling such a massive debt would be impossible for Sony.
" All game sales will go through Steam, effectively making it a Valve machine. Xbox wouldnt see any profits through game sales via Steam."
The existence of the XBOX ROG ALLY seems to challenge your prediction. Microsoft isn't prioritizing competition with Steam through the XBOX store, as the store doesn't generate substantial revenue from full-price sales on PC or the relatively small user base of Series S/X consoles. Instead, Microsoft's gaming division primarily relies on Game Pass subscriptions, along with full-price sales and microtransactions across various platforms, as its main revenue sources.
The main goal of including Steam in the next XBOX hybrid console is to compete with Sony in the third-party market. XBOX isn’t focused on selling games through its own store since it doesn’t generate significant profit there. Instead, XBOX will continue offering games and microtransactions through Steam on its hybrid console and even on the PS6.
The gaming Windows launched with Xbox ROG Ally is designed to be optimized for gaming while seamlessly integrating Steam and other stores into its new gaming-focused OS.
Your argument assumes that most people own multiple hardware and have libraries across all platforms. Here's the reality: this doesn't reflect the behavior of the mainstream audience. You're part of a niche group of hardcore gamers who dedicate more time and money to gaming than the average user.
Data indicates that most casual or mainstream users don’t support multiple ecosystems. The majority typically own only one console and prefer sticking to a single ecosystem throughout the generation. In the console market, this is predominantly the PS5. This aligns with Phil Spencer’s statement that Xbox can’t out-console the PS5 with exclusive games, as most mainstream gamers have built their digital libraries within the PlayStation ecosystem since the PS4 generation.
You might be right. We're just making educated guesses at this point. Perhaps Microsoft is aiming for a high-end hybrid console that caters to Xbox gamers who enjoy playing Game Pass on a console, while also providing the full value of PC gaming with Steam.
It doesn't matter what your buying preferences are. Whether you purchase Halo on PS5 or play it on day one via Game Pass, Microsoft profits as a multiplatform publisher. Their multiplatform strategy appeals to all kinds of gamers. It doesn't matter if you prefer to "buy" or "rent" the game, as the creator remains the same.
These aren’t just generic third-party deals; they’re second-party or timed exclusives. If Sony loses third-party market share due to competition from Steam and Game Pass through the Xbox hybrid console, it may be forced to invest more in exclusive deals to add value to its ecosystem.
"Are you saying Sony should now preemptively go multiplat because of this hypothetical scenario that Xbox gains the mainstream audience so much that Playstation loses third party support?"
I'm genuinely surprised that you couldn't grasp such a clear estimation I made for the next generation. Let me repeat:
The next Xbox hybrid PC-console will feature Steam and Game Pass, offering more competitive prices for third-party games, whether through Steam sales or day-one releases on Game Pass. Microsoft isn’t focusing on competing with the Xbox store against Steam for full-price sales, as they’re not concerned about the 30% revenue cut and don’t generate significant income from the Xbox store. Their goal is to provide a value-for-money PC-console that combines the advantages of PC services with lower prices for third-party games. It’s more affordable to purchase third-party titles like Cyberpunk, Death Stranding, or even Sony’s first-party games through Steam sales, key stores, or by playing day-one releases on Game Pass, compared to buying them on PlayStation. These benefits makes the Xbox hybrid model appealing for mainstream gamers seeking third-party titles, potentially leading Sony to lose some market share in this area. This shift could make Sony more reliant on first- and second-party content, similar to Nintendo’s approach over the years. While third-party games are unlikely to stop releasing on the PS6, Sony might face reduced revenue from third-party sales due to direct competition from Steam and Game Pass via the Xbox hybrid console.
No, it didn’t state that Rise of Ronin didn’t break even. I was just pointing out what you mentioned—that the game didn’t meet sales expectations. I’m not sure if that applies to FF16/Rebirth since Square Enix reported losses in the last fiscal year due to weak PS5 sales. The first Death Stranding managed to recoup its budget after reaching 3 million sales, which made Kojima happy, but Sony was disappointed as it had expected much higher numbers.
The point is that most PS5 exclusives struggle to surpass 3-5 million in sales and lack a high profit margin.
Again, you're missing the point.I think Sony's current strategy is effective, focusing on exclusive games to strengthen the PS ecosystem and attract a mainstream audience, while also benefiting from strong third-party sales with a 30% revenue cut.
My argument is that Sony might lose third-party support if the next Xbox hybrid model manages to attract the mainstream audience through Steam and Game Pass. This would force Sony to rely even more on PlayStation exclusives to add value to its closed ecosystem, similar to how Nintendo has operated for years with its massive first-party lineup, as it never had strong third-party support.
The creation of digital libraries is a major reason for gamers to stay loyal to a particular ecosystem. No one wants to risk losing their library when switching to another platform or deal with the hassle of managing multiple libraries across different stores and services.
Phil Spencer acknowledged that they lost the "console war" during the PS4/Xbox One era because the PS4 dominated the market, and most gamers built their libraries within the PlayStation ecosystem. This is completely accurate! Even if Xbox produced GOTY-level AAA exclusive games, it wouldn't be enough to persuade people to leave the PlayStation ecosystem and start rebuilding their digital libraries on Xbox from scratch. Phil Spencer recognized this early on, which is why they focused on creating Game Pass—a subscription-based model offering a different and more valuable way to enjoy games compared to the traditional full-price model.
The same trend is happening in PC gaming. Steam was the first ecosystem where most gamers built their libraries, and they’re unlikely to switch to another store. Epic Games has tried for years to compete with Steam and attract new users to the Epic Store by offering free games, but it hasn’t achieved much, while Steam continues to thrive by simply providing its services. Neither the Xbox PC store nor Epic Games can rival Steam’s dominance because it has held a monopoly for years, and the majority of PC gamers have their libraries on Steam. Additionally, Steam offers great value during its sales with excellent deals on games. Microsoft can’t offer anything better through the Xbox Store, but they can compete with the Game Pass subscription model, which provides day-one releases every month for a relatively low fee.
It's not just about the numbers; it's about how you present the facts and the narratives you want to promote. According to Koei Tecmo's revised financial forecast for the fiscal year ending 2025, Rise of Ronin fell short of expectations as a timed PS exclusive. A year after its launch, the game still didn’t meet sales expectations on PS5, as confirmed by the latest financial report ending March 2025. This is despite the positive buzz during its launch period and the earlier 2024 financial report, which highlighted "strong" performance on PlayStation. Feel free to review the complete report here:
The truth is, there’s no hidden agenda here. You’re chasing ghosts that don’t exist. Phil Spencer openly admitted that Xbox lost the "console wars" during the Xbox One era, leading to a complete shift in strategy—focusing on becoming a multiplatform publisher and making Game Pass their main service. There’s no point in pouring massive amounts of money into exclusive games hoping to boost Xbox console sales in a stagnant market dominated by PlayStation. Microsoft changed the game, stepping away from the "console wars" and abandoning the traditional hardware-exclusive model because it wasn’t sustainable. Current gaming market trends emphasize PC gaming growth, live services, mobile games, and flexible hardware choices. The new hybrid PC-console model includes platforms like Steam and Game Pass, offering gamers more value for their money. Game Pass exists on multiple devices and through the cloud, PC, consoles, handhelds, and soon on mobile with Microsoft’s upcoming Xbox mobile store.
Companies often make positive comments during launch period as part of their marketing strategy, which doesn't always reflect the true situation. For instance, Square Enix initially expressed satisfaction with the launch sales of FF Rebirth and FF 16, but later admitted that these games had made low sales and significant losses. As a result, they decided to shift their strategy, ending exclusivity deals with PlayStation and transitioning to a full multiplatform publisher to boost sales across all platforms.
I have to admit that Rise of Ronin didn't have the same high budget as FF16 or Rebirth and didn't require a lot of sales to break even. With just 1-1.5 million sales on PS5, Koei Tecmo could cover the game's budget, even if they initially expected higher sales.
Actually, if you carefully read my first comment, I said that Sony will depend even more on exclusivity in the next generation if it loses third-party support from the new Xbox hybrid PC-consoles, which will offer cheaper third-party games through Steam sales and Game Pass day-one releases. The only way for Sony to differentiate and remain competitive is by offering more exclusive games at a premium price, just like Nintendo. This strategy will add value to the PS6, which will be a "traditional" console with a closed ecosystem, unlike the hybrid Xbox console and Xbox ROG Ally X handheld with a gaming Windows OS that features multiple stores and services.
Nintendo remains true to its exclusivity model, having realized decades ago that it doesn’t need to compete with PlayStation and Xbox for high-end gaming. Instead, Nintendo focuses on producing lower-tier AA games with budgets ranging from $10-50 million, achieving sales of 5, 10, or even 15 million units, resulting in high profit margins. This contrasts with Sony's approach of delivering "AAA cinematic experiences" with PlayStation exclusives. According to Pokémon leaks, all Pokémon games on Switch 1 had budgets under $20 million but achieved sales of over 15 million units, ensuring high profit margins. The leaks also revealed that the last Pokémon ZA had a budget of $13 million and has already reached 5 million in sales.
It’s not my concern if you’re having trouble adjusting to the current reality. You’re free to live in denial and maintain unrealistic expectations about the sales performance of PS exclusive games. Extreme fanaticism often creates delusions that are tough to break—a "perfect" narrative of a flawless success story that no one dares to challenge. This mindset appeals to emotionally fragile and irrational individuals who struggle with reality and prefer to escape into their own fantasy. A small community of such individuals can create the false impression of a microcosm that doesn’t actually exist. You seem to be part of that group. Copium has taken a toll on you, mentally.
Regarding the overall AAA sustainability issue, Phil Spencer has mentioned "console market stagnation" and pointed out that AAA games are becoming unsustainable due to high development costs and low sales performance. The market remains stagnant, showing no growth compared to the previous generation, yet development costs have more than doubled. This means similar sales performance with double the budget, leading to lower profit margins and higher-risk investments.
Even Shawn Layden has pointed out that AAA games are no longer sustainable due to modest sales and extremely high development costs. That's why Layden's advice to Sony is to focus on creating more AA games, like Astro Bot, with lower budgets and higher profit margins.
Another piece of "evidence" that single-player exclusive games might not be sustainable is Sony's significant investment in live service games, aiming to create a hit like COD or Fortnite and establish a new cash cow generating millions in annual revenue, instead of continuing to invest in high-risk single-player AAA titles. Sony hasn't achieved major success with its live service strategy and realized it was a mistake to push its "traditional" AAA studios, which specialize in single-player games, to develop live service games. Studios like Naughty Dog, Santa Monica, Insomniac, and Sucker Punch excel at creating single-player experiences and cannot easily transition to developing live service games, which are an entirely different type of projects.
We do know that the current state of AAA single player games has sustainability issues. We do know that exclusive games are not making enough money to justify the high risk investment of hundred of millions of dollars.
5)Death Stranding is quite a complex case. There are many reports that the first game had a $100 million budget and achieved 3 million sales during its debut year on PlayStation in 2020. It’s said that Kojima was pleased the game broke even with those 3 million sales, but Sony was less satisfied with the modest results. These are all fact condirmed by game journals.
Death Stranding 2 reportedly has a $200 million budget, double that of the first game. Initial reports indicate it has achieved 1.5 million sales as a PS5 exclusive. With the higher budget, it will likely require over 3 million sales to break even, compared to the original. We'll have to wait a few months to see the total sales during its debut year on PS5, but all signs suggest it might just barely break even as a PS5 exclusive.
6) Ghost of Yotei seems to have had a similar budget to Tutshima, which was $60 million. It makes sense since Sucker Punch is a Europe-based studio and a relatively small AAA team with lower salaries and production costs. Ghost of Yotei appears to have broken even with 1.6 million sales and $100 million in revenue, but it doesn't change the fact that its launch was lower compared to Tutshima.
8) Assassin's Creed Shadows reportedly had a budget over of $100 million. Most analysts believe the game underperformed and barely broke even, which is likely why Ubisoft has not released any official data on sales figures or net revenue.
You're criticizing me for not having clear evidence, yet you haven't provided any actual proof that exclusive games are commercially successful on the PS5. Instead, you rely on copium and weak excuses to support your flawed narrative. I’ll try to counter your points, even if it feels like a waste of time arguing with a blindfolded, fanatic fanboy who refuses to change or question his narrative due to strong brand loyalty to PS.
1) The argument that the poor sales performance of the FF games is solely due to losing hype among their fanbase is flawed. Even if Final Fantasy has lost some appeal to a broader audience, it doesn't negate the fact that the timed exclusivity on PS5 negatively impacted sales and caused financial losses.
Square Enix itself has acknowledged significant losses from the poor sales of FF16 and Rebirth, leading to the decision to end timed exclusivity deals and adopt a fully multiplatform strategy to boost sales. This serves as clear evidence that making FF games PS5 exclusives failed to meet the company's commercial expectations.
It’s true that there isn’t clear data about Astro Bot 2's budget, but there’s plenty of information indicating it was developed by a team of 60 developers in Japan, where salaries and development costs are lower, over a span of four years. Even if the budget was less than 60 million, it doesn’t change the fact that Astro Bot was a low-tier AA game that broke even with modest sales of 2 million units. It wasn’t an AAA game with high expectations to begin with, and Sony itself confirmed it was satisfied with Astro Bot’s 2 million sales.
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Re: The Best BioWare Can Do on N7 Day Is Insist Mass Effect PS5 Is Still in Dev
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Re: The Best BioWare Can Do on N7 Day Is Insist Mass Effect PS5 Is Still in Dev
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Re: The Best BioWare Can Do on N7 Day Is Insist Mass Effect PS5 Is Still in Dev
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Re: The Best BioWare Can Do on N7 Day Is Insist Mass Effect PS5 Is Still in Dev
@REALAIS
lol
Do you have any valid arguments against my opinion on Game Pass? Or you're just trolling all the time?
Re: The Best BioWare Can Do on N7 Day Is Insist Mass Effect PS5 Is Still in Dev
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Re: The Best BioWare Can Do on N7 Day Is Insist Mass Effect PS5 Is Still in Dev
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Re: The Best BioWare Can Do on N7 Day Is Insist Mass Effect PS5 Is Still in Dev
Gaming studios facing challenges and sustainability issues, like Bioware at the moment, present a great opportunity for Xbox to step in and strike a deal to have their games available on Game Pass from day one. The next Mass Effect might launch as a day-one title on Game Pass if Microsoft strikes a deal and funds the game's development.
Re: Rumour: Crash Team Racing Could Be Making a Comeback, If This Strange Leak Is to Be Believed
@LikelySatan Xbox is Game Pass—a subscription service rather than a hardware platform holder.
Re: Rumour: Crash Team Racing Could Be Making a Comeback, If This Strange Leak Is to Be Believed
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Re: After Xbox's Contraband Cancellation, Don't Expect Another Just Cause Game
Microsoft underwent a major restructuring by closing smaller studios like Tango, Arkane, and Initiative, and canceling projects such as Perfect Dark and Everwild, while laying off employees across all studios to focus only on its highly profitable IPs like Call of Duty, Halo, Warcraft, and Forza Motorsport etc. I think Microsoft should produce more AA titles and support smaller studios, but it seems they prefer to make more second-party and third-party deals to ensure 75 day-one game releases every year, while leaving first-party studios to focus on higher-budget, popular IPs. In the long term, it doesn’t matter much. Their strategy will succeed if they deliver high-quality games on Game Pass, whether first-party or second-party.
Re: Talking Point: If Xbox Drops the Cost, Would You Be Happy Still Paying for PS6 Multiplayer?
@gaston
The lost revenue from the premium online and the XBOX store's revenue cut is so minimal because it is not the main source of revenue for XBOX. Xbox isn't generating much profit from these services, so it might be worth abandoning them to build a more valuable ecosystem with the next hybrid console. XBOX can easily recoup the lost revenue by further boosting game sales, and Game Pass increased revenue following the price hikes.
Re: Talking Point: If Xbox Drops the Cost, Would You Be Happy Still Paying for PS6 Multiplayer?
@11001100110zero
Nope, I use Grammarly AI assistant to quickly fix any grammatical or spelling mistakes while I type, but I make my own comments.
Re: Talking Point: If Xbox Drops the Cost, Would You Be Happy Still Paying for PS6 Multiplayer?
@SeaDaVie
The Xbox Store faces challenges in generating sufficient profit from its 30% revenue share due to a limited user base on Xbox consoles and Steam's dominance on PC. Both the console and PC versions of the Xbox Store have lagged behind in competition with the PlayStation Store and Steam. Xbox has shifted its business model to stand apart from Steam and Sony, which earn significant revenue from third-party sales as dominant storefronts on console and PC. Xbox's new strategy focuses on creating and selling software across all platforms and subscription services like Game Pass.
Re: Talking Point: If Xbox Drops the Cost, Would You Be Happy Still Paying for PS6 Multiplayer?
@gaston
"And didn't they just talk about their lofty goals of a 30% profit margin ?"
Game Pass growth, game sales across all platforms, microtransactions, and mobile games. The revenue from the Xbox storefront and online premium is minimal, making it irrelevant to Xbox's financials. However, that 30% profit margin target is unrealistic, because historically speaking, no other gaming company in the world has managed to achieve such high profits for years.
Re: Talking Point: If Xbox Drops the Cost, Would You Be Happy Still Paying for PS6 Multiplayer?
Sony has no incentive to offer free online services since it operates within a closed ecosystem tied to its hardware platform, following the traditional model of a hardware platform holder. As a market leader, Sony generates substantial revenue from premium online services, subscriptions, and 30% cut from third-party sales and microtransactions.
The next XBOX hybrid console will essentially feature PC hardware, built on an open PC ecosystem. It will support both Steam and Game Pass through a new gaming-focused Windows that combines the XBOX OS with console libraries and backwards compatibility. As a PC-based platform, the XBOX hybrid will need to offer free online access since stores like Steam don’t require premium online play.
If the Xbox hybrid console successfully competes with Sony in third-party market share through Steam and Game Pass, offering cheaper games at a lower cost, Sony might be compelled to enhance its services to stay competitive. This could include abandoning premium online services and providing free online access, similar to the Xbox hybrid model.
In this generation, Xbox's key selling point has been the Game Pass subscription service, competing against Sony's premium full-price model. With Game Pass reaching its subscription growth limit, the next generation with hybrid consoles will likely see Steam becoming a major competitor alongside Game Pass, challenging Sony's premium full-price approach.
I think Sony will stay the market leader in the next generation because, as Phil Spencer mentioned, most console gamers built their digital libraries within the PlayStation ecosystem during the PS4 era, tying them to it. However, I believe the upcoming Xbox hybrid console will be a competitive open platform that could capture a portion of the market share in third-party sales within the stagnant console market, as Spencer pointed out. Even a small loss in third-party sales could result in revenue losses for Sony's ecosystem.
The next Xbox hybrid console aims to merge PC gaming with the console market, creating a unified ecosystem for the first time in gaming history. This is the new era Spencer has been referencing over the years. The future of gaming revolves around competition in services across all hardware devices. Imagine having Steam and Game Pass on the same hybrid hardware, competing side by side. Offering multiple hardware options ensures access for millions of consumers without restricting exclusive content to a single hardware platform.
Re: PS5's Intergalactic: The Heretic Prophet Draws Closer with Naughty Dog Recruitment Drive
@LogicStrikesAgain
There’s no solid evidence that a truly GOTY-level AAA single-player game requires 6-7 years of development. Claiming that Naughty Dog absolutely needs 6-7 years to make a good game lacks any factual backing. It feels more like copium to defend Sony’s wrong decision to shift its first-party studios entirely toward live service games.
Naughty Dog's next major project after releasing The Last of Us Part 2 was intended to be Fractions, an online live-service game set in The Last of Us universe, which was ultimately canceled. If they hadn’t spent time on this failed live-service project, they might have had enough time between 2020 and 2025 to fully develop The Last of Us Part 3 with complete focus on the game's development.
It's absurd to compare Naughty Dog with Rockstar. Naughty Dog is an AAA studio focused on creating fully single-player AAA games, while Rockstar develops massive live service games. Do you really think the next GTA will have a billion-dollar budget solely for the single-player mode? It won’t, because GTA is essentially a live service game with a high-quality single-player story and GTA Online. The nearly $1 billion budget for the next GTA covers the base game, DLCs, season passes, and other content to sustain engagement for years, just like other live service games. Destiny 2 and Call of Duty reportedly have budgets between $400-500 million, but that includes the whole lifecycle of the live service game, not just the campaign story.
Naughty Dog had plenty of time to develop and release its next game between 2020 and 2025, but they squandered it on a failed online game that ended up being canceled, causing delays and disrupting their release lineup.
Re: PS5's Intergalactic: The Heretic Prophet Draws Closer with Naughty Dog Recruitment Drive
@LogicStrikesAgain
You're absolutely right. Sony itself acknowledged this when it recognized that its AAA first-party studio shines at creating outstanding single-player games rather than live service flops. Naughty Dog is now fully focused on single-player projects again, promising an impressive lineup over the next five years with a steady release schedule, just as it should have been all along.
Re: PS5's Intergalactic: The Heretic Prophet Draws Closer with Naughty Dog Recruitment Drive
@LogicStrikesAgain
Naughty Dog spent too much time on the failed Last of Us online project, which was eventually canceled. As a large studio with 400 developers, it's confirmed that they are working on multiple projects simultaneously. If Naughty Dog hadn't wasted time on that online project, they could have focused entirely on Intergalactic and Last of Us 3, potentially releasing both games between 2024 and 2027.
Re: 'We Want to Be Everywhere, on Every Platform': Microsoft CEO Once Again Commits to PS5
@Weebleman
I know that's revenue, and Microsoft doesn't straight-up show profit numbers. However, recent financial reports indicate that the gaming division's profitability has improved and contributed to the overall profit margin during the last 2 quarters. I think it makes sense that profits have slightly improved with the increased revenue, as I don't expect that the XBOX had bigger profits with less revenue before the acquisition of ABK.
Re: 'We Want to Be Everywhere, on Every Platform': Microsoft CEO Once Again Commits to PS5
@Weebleman
I quote the news related to Microsoft's revenue from the gaming division:
TL;DR: Microsoft's gaming division achieved a record $23.455 billion in FY25 revenue, driven by a 16% increase in Xbox content and services, including Game Pass and Activision Blizzard. Despite a 25% hardware revenue decline, Microsoft plans next-gen Xbox consoles as Windows 11 PCs, potentially partnering with OEMs like ASUS and Lenovo.
Read more: https://www.tweaktown.com/news/106738/xbox-delivers-record-23-45-billion-annual-revenue-hardware-drops-25/index.html
TL;DR: Xbox gaming contributed and helped increase the profitability of Microsoft's More Personal Computing segment throughout the Q3'25 period.
Xbox just delivered record Q3 results, and these earnings helped boost the profitability of its home segment.
According to Microsoft's latest quarterly SEC filing, gaming helped contribute to the increased profitability of the More Personal Computing segment. Throughout Q3,the segment's gross margin increased by 9% or $623 million, driven in part by gaming (by how much, we don't know). Operating income was up +21% and increased by $603 million. It's possible that Microsoft's bets towards more high-margin businesses like digital-oriented game sales and Xbox Game Pass subscriptions are paying off for the company.
Also bear in mind that a sizable portion, perhaps even the majority, of this profitability may have been through search and advertising and not necessarily gaming; search and advertising revenue was up by over $440 million whereas gaming revenue was up $270 million.
Revenue increased $767 million or 6%.
Windows and Devices revenue increased $46 million or 1%. Windows OEM and Devices revenue increased 3% driven by growth in Windows OEM, with inventory levels remaining elevated due to tariff uncertainty.
Gaming revenue increased $270 million or 5% driven by growth in Xbox content and services. Xbox content and services revenue increased 8% driven by growth in Xbox Game Pass, Call of Duty, and Minecraft. Xbox hardware revenue decreased 6%.
Search and news advertising revenue increased $449 million or 15%. Search and news advertising revenue excluding traffic acquisition costs increased 21% driven by higher revenue per search and higher search volume.
Operating income increased $603 million or 21%.
Gross margin increased $623 million or 9% driven by growth in Search and news advertising and Gaming. Gross margin percentage increased driven by improvement in Search and news advertising and Gaming.
Operating expenses increased $20 million or 1%.
Re: 'We Want to Be Everywhere, on Every Platform': Microsoft CEO Once Again Commits to PS5
@zebric21
Microsoft's plan is already working with great success. XBOX had record revenue and profits in 2024 as a multiplatform publisher. The next big question is how the hybrid console will perform in the market. It could be a niche option for console gamers looking to enjoy Game Pass on their console while still benefiting from the open ecosystem of PC gaming. We have to wait and see!
Re: 'We Want to Be Everywhere, on Every Platform': Microsoft CEO Once Again Commits to PS5
@HonestHick
Nintendo can still survive with the exclusive model because they basically make high-quality games but with a low budget, which is basically AA production, and making tons of sales of 5+ million, resulting in a high profit margin. The lower production cost and the shorter development time allow Nintendo to produce 10-12 first-party titles every year, which is crazy. Nintendo doesn't have the "AAA sustainability" issue that both Microsoft and Sony have to deal with. Pokémon ZA has only cost $13 million based on the leaks, and it's already sold 5 million units, meaning it has already achieved huge profits.
Re: 'We Want to Be Everywhere, on Every Platform': Microsoft CEO Once Again Commits to PS5
@Ainu20
You make it sound like most PlayStation games haven’t been released on PC, but the opposite is true. Astro Bot is the mascot of the PS5, so it makes sense not to be on PC, even though there are rumors of a port. Gran Turismo has no reason to be on PC because the Forza series dominates PC gaming as the superior racing game. Gran Turismo was once a monopoly on PlayStation as an exclusive, but since Forza came to PlayStation, it has dominated the charts as the better racing game.
These are the only exclusive games that haven’t come to PC, as all other PlayStation games are available on PC. Games like God of War, Spider-Man, Uncharted, The Last of Us, Horizon, Ghost of Tsushima, Stellar Blade, Returnal, Days Gone, etc. All the major blockbuster PlayStation games are on PC, and this is because Sony doesn’t make enough money from PlayStation sales alone and needs extra revenue from the PC market.
Re: 'We Want to Be Everywhere, on Every Platform': Microsoft CEO Once Again Commits to PS5
The drama around XBOX is getting ridiculous. XBOX has transitioned from a traditional hardware platform holder to a multiplatform publisher with hybrid consoles that will have an open ecosystem and give access to multiple PC stores and services. The new "gaming windows" will merge with XBOX OS, which will combine the ΧΒΟΧ console library with Steam and Game Pass, and be free online.
The reason why XBOX transitioned to a multiplatform approach was that they realized it was more profitable than competing within the "console war" concept that favored Sony, which dominated the market.
I’ve already explained why XBOX couldn’t compete with Sony under the "console war" model, where exclusive games and hardware consoles were the main focus. The rules of the "console war" heavily favored Sony, which became the dominant leader during the PS4 era. XBOX couldn’t keep up, and it would have been unwise to invest a huge amount of money in exclusive games, knowing they wouldn’t generate significant sales on the smaller XBOX console user base, ultimately leading to heavy losses and potential bankruptcy.
Phil Spencer highlighted why the Xbox One/PS4 era was the "worst generation to lose." During that time, most gamers established their libraries on the PS4, which dominated the market and locked players into the PlayStation ecosystem for future generations. Even with GOTY-level exclusives, the Xbox Series S/X struggled to compete with the PS5 in hardware sales. Many gamers are hesitant to abandon the libraries they built during the PS4 era to start fresh in a new ecosystem.
This isn’t the end of Xbox; it’s the beginning of an innovative era with the creation of a hybrid console and a new optimized gaming Windows that bridges PC gaming with the console market. The new "console war," so to speak, is between the open system of hybrid consoles and traditional consoles like the PS6 or Switch, which operate in closed ecosystems and rely on exclusive games.
The new XBOX hybrid console will hit the market with Steam and Game Pass integrated into a gaming-focused Windows system that will incorporate the XBOX OS. It will include the entire console library with free online play, just like on PC. This is a change that's happening. The upcoming hybrid XBOX console will also offer more valuable third-party titles and even PlayStation games through Steam, which has lower prices, along with day-one releases on Game Pass. It will compete with the PS ecosystem, which remains more expensive due to Sony's $80 full-price model, necessary to profit from its 30% revenue cut on third-party sales.
Re: 'Significant' Layoffs Are Set to Hit Amazon Game Studios
@Shepherd_Tallon
Look, dude, I get that AI is getting out of hand, and the internet is full of AI filler content. My point is that I don't use ready-made text from generative AI and copy/paste like some of you accused me. I just use Grammarly autocorrect addon, which is useful when I want to type fast to write long comments without worrying about any grammar mistakes. That's all.
Re: 'Significant' Layoffs Are Set to Hit Amazon Game Studios
@nessisonett @Shepherd_Tallon @opo02
How do you know if I use AI or not? Does it even matter as long as I am making valid arguments and contributing positively to the discussion or debate? Personally, I am using Grammarly autocorrection to avoid any grammar mistakes because I type too fast, but I make my own comments, not generated by AI.
Re: 'Significant' Layoffs Are Set to Hit Amazon Game Studios
Removed; user is banned
Re: Sony Rules Out Acquiring Batman, Mortal Kombat Maker Warner Bros
Sony probably can't afford to acquire Warner Bros, with the estimated cost of $50-60 billion being well beyond their financial reach. Their biggest acquisition so far was Bungie for $3.5 billion. Sony has dealt with significant debt issues for years, only partially improved by splitting their financial business. Warner Bros has $40 billion in debt, which Sony would need to take on. Adding that debt would leave Sony with $80 billion in total liabilities ($40-50 billion for the acquisition plus $40 billion in Warner Bros debt) . With limited cash reserves, narrow profit margins, and weak cash flow, handling such a massive debt would be impossible for Sony.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@LogicStrikesAgain
" All game sales will go through Steam, effectively making it a Valve machine. Xbox wouldnt see any profits through game sales via Steam."
The existence of the XBOX ROG ALLY seems to challenge your prediction. Microsoft isn't prioritizing competition with Steam through the XBOX store, as the store doesn't generate substantial revenue from full-price sales on PC or the relatively small user base of Series S/X consoles. Instead, Microsoft's gaming division primarily relies on Game Pass subscriptions, along with full-price sales and microtransactions across various platforms, as its main revenue sources.
The main goal of including Steam in the next XBOX hybrid console is to compete with Sony in the third-party market. XBOX isn’t focused on selling games through its own store since it doesn’t generate significant profit there. Instead, XBOX will continue offering games and microtransactions through Steam on its hybrid console and even on the PS6.
The gaming Windows launched with Xbox ROG Ally is designed to be optimized for gaming while seamlessly integrating Steam and other stores into its new gaming-focused OS.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@EfYI
Your argument assumes that most people own multiple hardware and have libraries across all platforms. Here's the reality: this doesn't reflect the behavior of the mainstream audience. You're part of a niche group of hardcore gamers who dedicate more time and money to gaming than the average user.
Data indicates that most casual or mainstream users don’t support multiple ecosystems. The majority typically own only one console and prefer sticking to a single ecosystem throughout the generation. In the console market, this is predominantly the PS5. This aligns with Phil Spencer’s statement that Xbox can’t out-console the PS5 with exclusive games, as most mainstream gamers have built their digital libraries within the PlayStation ecosystem since the PS4 generation.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@LogicStrikesAgain
You might be right. We're just making educated guesses at this point. Perhaps Microsoft is aiming for a high-end hybrid console that caters to Xbox gamers who enjoy playing Game Pass on a console, while also providing the full value of PC gaming with Steam.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@Propaperpusher
It doesn't matter what your buying preferences are. Whether you purchase Halo on PS5 or play it on day one via Game Pass, Microsoft profits as a multiplatform publisher. Their multiplatform strategy appeals to all kinds of gamers. It doesn't matter if you prefer to "buy" or "rent" the game, as the creator remains the same.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@Dodoo
You're right, I mixed up Sucker Punch and Guerilla for some reason.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@Oram77
These aren’t just generic third-party deals; they’re second-party or timed exclusives. If Sony loses third-party market share due to competition from Steam and Game Pass through the Xbox hybrid console, it may be forced to invest more in exclusive deals to add value to its ecosystem.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@LogicStrikesAgain
"Are you saying Sony should now preemptively go multiplat because of this hypothetical scenario that Xbox gains the mainstream audience so much that Playstation loses third party support?"
I'm genuinely surprised that you couldn't grasp such a clear estimation I made for the next generation. Let me repeat:
The next Xbox hybrid PC-console will feature Steam and Game Pass, offering more competitive prices for third-party games, whether through Steam sales or day-one releases on Game Pass. Microsoft isn’t focusing on competing with the Xbox store against Steam for full-price sales, as they’re not concerned about the 30% revenue cut and don’t generate significant income from the Xbox store. Their goal is to provide a value-for-money PC-console that combines the advantages of PC services with lower prices for third-party games. It’s more affordable to purchase third-party titles like Cyberpunk, Death Stranding, or even Sony’s first-party games through Steam sales, key stores, or by playing day-one releases on Game Pass, compared to buying them on PlayStation. These benefits makes the Xbox hybrid model appealing for mainstream gamers seeking third-party titles, potentially leading Sony to lose some market share in this area. This shift could make Sony more reliant on first- and second-party content, similar to Nintendo’s approach over the years. While third-party games are unlikely to stop releasing on the PS6, Sony might face reduced revenue from third-party sales due to direct competition from Steam and Game Pass via the Xbox hybrid console.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@PuppetMaster
No, it didn’t state that Rise of Ronin didn’t break even. I was just pointing out what you mentioned—that the game didn’t meet sales expectations. I’m not sure if that applies to FF16/Rebirth since Square Enix reported losses in the last fiscal year due to weak PS5 sales. The first Death Stranding managed to recoup its budget after reaching 3 million sales, which made Kojima happy, but Sony was disappointed as it had expected much higher numbers.
The point is that most PS5 exclusives struggle to surpass 3-5 million in sales and lack a high profit margin.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@LogicStrikesAgain
Again, you're missing the point.I think Sony's current strategy is effective, focusing on exclusive games to strengthen the PS ecosystem and attract a mainstream audience, while also benefiting from strong third-party sales with a 30% revenue cut.
My argument is that Sony might lose third-party support if the next Xbox hybrid model manages to attract the mainstream audience through Steam and Game Pass. This would force Sony to rely even more on PlayStation exclusives to add value to its closed ecosystem, similar to how Nintendo has operated for years with its massive first-party lineup, as it never had strong third-party support.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@EfYI
The creation of digital libraries is a major reason for gamers to stay loyal to a particular ecosystem. No one wants to risk losing their library when switching to another platform or deal with the hassle of managing multiple libraries across different stores and services.
Phil Spencer acknowledged that they lost the "console war" during the PS4/Xbox One era because the PS4 dominated the market, and most gamers built their libraries within the PlayStation ecosystem. This is completely accurate! Even if Xbox produced GOTY-level AAA exclusive games, it wouldn't be enough to persuade people to leave the PlayStation ecosystem and start rebuilding their digital libraries on Xbox from scratch. Phil Spencer recognized this early on, which is why they focused on creating Game Pass—a subscription-based model offering a different and more valuable way to enjoy games compared to the traditional full-price model.
The same trend is happening in PC gaming. Steam was the first ecosystem where most gamers built their libraries, and they’re unlikely to switch to another store. Epic Games has tried for years to compete with Steam and attract new users to the Epic Store by offering free games, but it hasn’t achieved much, while Steam continues to thrive by simply providing its services. Neither the Xbox PC store nor Epic Games can rival Steam’s dominance because it has held a monopoly for years, and the majority of PC gamers have their libraries on Steam. Additionally, Steam offers great value during its sales with excellent deals on games. Microsoft can’t offer anything better through the Xbox Store, but they can compete with the Game Pass subscription model, which provides day-one releases every month for a relatively low fee.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@PuppetMaster
It's not just about the numbers; it's about how you present the facts and the narratives you want to promote. According to Koei Tecmo's revised financial forecast for the fiscal year ending 2025, Rise of Ronin fell short of expectations as a timed PS exclusive. A year after its launch, the game still didn’t meet sales expectations on PS5, as confirmed by the latest financial report ending March 2025. This is despite the positive buzz during its launch period and the earlier 2024 financial report, which highlighted "strong" performance on PlayStation.
Feel free to review the complete report here:
https://www.reddit.com/r/riseoftheronin/comments/1iecdd8/ronin_did_not_meet_sales_expectations_but_neither/
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@FuzzieGinge88
The truth is, there’s no hidden agenda here. You’re chasing ghosts that don’t exist. Phil Spencer openly admitted that Xbox lost the "console wars" during the Xbox One era, leading to a complete shift in strategy—focusing on becoming a multiplatform publisher and making Game Pass their main service. There’s no point in pouring massive amounts of money into exclusive games hoping to boost Xbox console sales in a stagnant market dominated by PlayStation. Microsoft changed the game, stepping away from the "console wars" and abandoning the traditional hardware-exclusive model because it wasn’t sustainable. Current gaming market trends emphasize PC gaming growth, live services, mobile games, and flexible hardware choices. The new hybrid PC-console model includes platforms like Steam and Game Pass, offering gamers more value for their money. Game Pass exists on multiple devices and through the cloud, PC, consoles, handhelds, and soon on mobile with Microsoft’s upcoming Xbox mobile store.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@PuppetMaster
Companies often make positive comments during launch period as part of their marketing strategy, which doesn't always reflect the true situation. For instance, Square Enix initially expressed satisfaction with the launch sales of FF Rebirth and FF 16, but later admitted that these games had made low sales and significant losses. As a result, they decided to shift their strategy, ending exclusivity deals with PlayStation and transitioning to a full multiplatform publisher to boost sales across all platforms.
I have to admit that Rise of Ronin didn't have the same high budget as FF16 or Rebirth and didn't require a lot of sales to break even. With just 1-1.5 million sales on PS5, Koei Tecmo could cover the game's budget, even if they initially expected higher sales.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@LogicStrikesAgain
Actually, if you carefully read my first comment, I said that Sony will depend even more on exclusivity in the next generation if it loses third-party support from the new Xbox hybrid PC-consoles, which will offer cheaper third-party games through Steam sales and Game Pass day-one releases. The only way for Sony to differentiate and remain competitive is by offering more exclusive games at a premium price, just like Nintendo. This strategy will add value to the PS6, which will be a "traditional" console with a closed ecosystem, unlike the hybrid Xbox console and Xbox ROG Ally X handheld with a gaming Windows OS that features multiple stores and services.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@Lowdefal
Nintendo remains true to its exclusivity model, having realized decades ago that it doesn’t need to compete with PlayStation and Xbox for high-end gaming. Instead, Nintendo focuses on producing lower-tier AA games with budgets ranging from $10-50 million, achieving sales of 5, 10, or even 15 million units, resulting in high profit margins. This contrasts with Sony's approach of delivering "AAA cinematic experiences" with PlayStation exclusives. According to Pokémon leaks, all Pokémon games on Switch 1 had budgets under $20 million but achieved sales of over 15 million units, ensuring high profit margins. The leaks also revealed that the last Pokémon ZA had a budget of $13 million and has already reached 5 million in sales.
It’s not my concern if you’re having trouble adjusting to the current reality. You’re free to live in denial and maintain unrealistic expectations about the sales performance of PS exclusive games. Extreme fanaticism often creates delusions that are tough to break—a "perfect" narrative of a flawless success story that no one dares to challenge. This mindset appeals to emotionally fragile and irrational individuals who struggle with reality and prefer to escape into their own fantasy. A small community of such individuals can create the false impression of a microcosm that doesn’t actually exist. You seem to be part of that group. Copium has taken a toll on you, mentally.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@Lowdefal
Regarding the overall AAA sustainability issue, Phil Spencer has mentioned "console market stagnation" and pointed out that AAA games are becoming unsustainable due to high development costs and low sales performance. The market remains stagnant, showing no growth compared to the previous generation, yet development costs have more than doubled. This means similar sales performance with double the budget, leading to lower profit margins and higher-risk investments.
https://app2top.com/news/phil-spencer-the-gaming-industry-is-stagnating-the-growth-of-game-budgets-is-dangerous-for-exclusives-egs-and-other-stores-may-appear-on-xbox-264802.html
Even Shawn Layden has pointed out that AAA games are no longer sustainable due to modest sales and extremely high development costs. That's why Layden's advice to Sony is to focus on creating more AA games, like Astro Bot, with lower budgets and higher profit margins.
https://www.vgchartz.com/article/463274/former-playstation-boss-shawn-layden-cost-of-aaa-games-is-not-sustainable/
Another piece of "evidence" that single-player exclusive games might not be sustainable is Sony's significant investment in live service games, aiming to create a hit like COD or Fortnite and establish a new cash cow generating millions in annual revenue, instead of continuing to invest in high-risk single-player AAA titles. Sony hasn't achieved major success with its live service strategy and realized it was a mistake to push its "traditional" AAA studios, which specialize in single-player games, to develop live service games. Studios like Naughty Dog, Santa Monica, Insomniac, and Sucker Punch excel at creating single-player experiences and cannot easily transition to developing live service games, which are an entirely different type of projects.
We do know that the current state of AAA single player games has sustainability issues. We do know that exclusive games are not making enough money to justify the high risk investment of hundred of millions of dollars.
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@Lowdefal
5)Death Stranding is quite a complex case. There are many reports that the first game had a $100 million budget and achieved 3 million sales during its debut year on PlayStation in 2020. It’s said that Kojima was pleased the game broke even with those 3 million sales, but Sony was less satisfied with the modest results. These are all fact condirmed by game journals.
Death Stranding 2 reportedly has a $200 million budget, double that of the first game. Initial reports indicate it has achieved 1.5 million sales as a PS5 exclusive. With the higher budget, it will likely require over 3 million sales to break even, compared to the original. We'll have to wait a few months to see the total sales during its debut year on PS5, but all signs suggest it might just barely break even as a PS5 exclusive.
6) Ghost of Yotei seems to have had a similar budget to Tutshima, which was $60 million. It makes sense since Sucker Punch is a Europe-based studio and a relatively small AAA team with lower salaries and production costs. Ghost of Yotei appears to have broken even with 1.6 million sales and $100 million in revenue, but it doesn't change the fact that its launch was lower compared to Tutshima.
7) Rise of Ronin was a timed exclusive game, similar to Final Fantasy and Death Stranding. According to Koei Tecmo's latest financial reports, Rise of Ronin sold less than 1.6 million copies as a PlayStation exclusive before being ported to PC.
https://www.reddit.com/r/riseoftheronin/comments/1iecdd8/ronin_did_not_meet_sales_expectations_but_neither/
8) Assassin's Creed Shadows reportedly had a budget over of $100 million. Most analysts believe the game underperformed and barely broke even, which is likely why Ubisoft has not released any official data on sales figures or net revenue.
https://www.tweaktown.com/news/106503/assassins-creed-shadows-budget-confirmed-to-be-over-euro-100-million/index.html
Re: 'Our Biggest Competition Isn't Another Console': Xbox Doubles Down on Multiformat After Halo PS5 Shock
@Lowdefal @Lowdefal
You're criticizing me for not having clear evidence, yet you haven't provided any actual proof that exclusive games are commercially successful on the PS5. Instead, you rely on copium and weak excuses to support your flawed narrative. I’ll try to counter your points, even if it feels like a waste of time arguing with a blindfolded, fanatic fanboy who refuses to change or question his narrative due to strong brand loyalty to PS.
1) The argument that the poor sales performance of the FF games is solely due to losing hype among their fanbase is flawed. Even if Final Fantasy has lost some appeal to a broader audience, it doesn't negate the fact that the timed exclusivity on PS5 negatively impacted sales and caused financial losses.
Square Enix itself has acknowledged significant losses from the poor sales of FF16 and Rebirth, leading to the decision to end timed exclusivity deals and adopt a fully multiplatform strategy to boost sales. This serves as clear evidence that making FF games PS5 exclusives failed to meet the company's commercial expectations.
It’s true that there isn’t clear data about Astro Bot 2's budget, but there’s plenty of information indicating it was developed by a team of 60 developers in Japan, where salaries and development costs are lower, over a span of four years. Even if the budget was less than 60 million, it doesn’t change the fact that Astro Bot was a low-tier AA game that broke even with modest sales of 2 million units. It wasn’t an AAA game with high expectations to begin with, and Sony itself confirmed it was satisfied with Astro Bot’s 2 million sales.