Xbox Business Update Podcast | Xbox Everywhere Direction Discussion

they also have a subscription service on PC hardly anyone uses.
Game Pass set a new quarterly revenue record, and grew its PC subscriber base by over 30%."
Gamepass' growth has shifted from console to PC. Those hours streamed also indicate a growth in cloud, but PC for sure has seen an uptick. "Nobody" might have used it in the past, but plenty more are using it now. And likely more in the future. They've essentially hit their saturation point with Gamepass on console.
 

Gamepass' growth has shifted from console to PC. Those hours streamed also indicate a growth in cloud, but PC for sure has seen an uptick. "Nobody" might have used it in the past, but plenty more are using it now. And likely more in the future. They've essentially hit their saturation point with Gamepass on console.
The cool thing about percentages is that they obscure actual usage. The people using a given service can go from 100 to 200 and that would be a '100% increase'. Notice how Xbox execs exclusively deal with percentage increases, and weird fake metrics like 'hours streamed this quarter'? Microsoft doesn't charge by the hour so if anything this is a bad thing lol, every hour streamed is a cost, the ideal subscriber is one that never uses the service (btw this is the only thing that keeps subscription services afloat).

So what I mean to say is: taking financial statements from earnings calls at face value is not a very good idea. If you went by those Xbox would literally always be in good shape, because despite all their problems their earnings calls still look rosy.

But anyway, I don't see Gamepass getting all that popular on PC. Games are incredibly cheap on PC, even cheaper than Xbox which is the cheaper of the two main consoles (Nintendo is it's own thing). With most games being broken on release fewer and fewer people care about playing 'day one' and just wait for the game to be fixed and on sale for 50% off on Steam. That also brings up another problem: with MS running it's own (inferior) platform, even people who are intrigued by GP are unlikely to want to leave the Steam ecosystem, which as any PC gamer knows is basically a permanent fixture in the PC gaming space.
 
Who says anyone has to leave Steam to subscribe to GP?

Your negative position is noted.

The rest of us will enjoy the best GP run yet.

Since December: Indiana Jones, Ninja Gaiden Black 2, Avowed, South of Midnight, Expedtion 33, Oblivion, Towerborne, and soon Doom DA.

Amazing. Thank you Phil!
 
Who says anyone has to leave Steam to subscribe to GP?
Because gamepass is housed in an entirely separate app? You’d have to maintain two libraries which historically people are rather opposed to on PC (see: Epic Games Store).

Your negative position is noted.

The rest of us will enjoy the best GP run yet.

Since December: Indiana Jones, Ninja Gaiden Black 2, Avowed, South of Midnight, Expedtion 33, Oblivion, Towerborne, and soon Doom DA.

Amazing. Thank you Phil!
Riveting discussion, literal Xbox ad copy lol
 
The cool thing about percentages is that they obscure actual usage. The people using a given service can go from 100 to 200 and that would be a '100% increase'. Notice how Xbox execs exclusively deal with percentage increases, and weird fake metrics like 'hours streamed this quarter'? Microsoft doesn't charge by the hour so if anything this is a bad thing lol, every hour streamed is a cost, the ideal subscriber is one that never uses the service (btw this is the only thing that keeps subscription services afloat).

So what I mean to say is: taking financial statements from earnings calls at face value is not a very good idea. If you went by those Xbox would literally always be in good shape, because despite all their problems their earnings calls still look rosy.

But anyway, I don't see Gamepass getting all that popular on PC. Games are incredibly cheap on PC, even cheaper than Xbox which is the cheaper of the two main consoles (Nintendo is it's own thing). With most games being broken on release fewer and fewer people care about playing 'day one' and just wait for the game to be fixed and on sale for 50% off on Steam. That also brings up another problem: with MS running it's own (inferior) platform, even people who are intrigued by GP are unlikely to want to leave the Steam ecosystem, which as any PC gamer knows is basically a permanent fixture in the PC gaming space.
Yes you bring up valid points. My money is on their PC space seeing more growth as well the third party publishing on consoles. Them not releasing Xbox gamepass figures isnt a good sign for the service. Alternatively maybe they dont want the highs and lows to influence their strategy for Xbox Gamepass. Maybe its performing well but they want to insulate it from market sentiment.
 
Because gamepass is housed in an entirely separate app? You’d have to maintain two libraries which historically people are rather opposed to on PC (see: Epic Games Store).

PC, where console wars are replace by store wars! ;)

What history really shows is that resistance to stores other than Steam crumbles when the alternatives actually offer value. Freebies and discounts in Epics case, Gamepass in the case the Xbox app.
 
Gamepass' growth has shifted from console to PC.
But it's also relative metrics. 30% growth could be from 5 million PC subscribers to 6.5 million, or from 10,000 PC subscribers to 13,000 or even from 10 users to 13. We have no indication how many are streaming on which platforms, and MS won't give that info.
"Nobody" might have used it in the past, but plenty more are using it now.
We don't know whether it's 'plenty' or 'some' or 'a few'!! Without a single defined count ever given, we can't compute all the growth figures into an actual number.
 
We don't know whether it's 'plenty' or 'some' or 'a few'!! Without a single defined count ever given, we can't compute all the growth figures into an actual number.
Last quarter they announced 140M hours, this quarter 150M hours. That’s about a
7% gain on cloud per quarter thats pretty decent upswing.

Napkin math will be 50M hours per month now. Assume the average playtime is 50H a month for easy math that’s 1M dedicated cloud players. I’d you reduce cloud playing time to 25H per person that’s 2M players. And so forth.

That’s fairly substantial, no other cloud service likely has values this high. Game pass is continuing to improve in its offerings and now game ownership is now being released on cloud. The service is dramatically improving with respect to latency. By all measures the service is showing health and the market is responding. Slowly of course, there is so much animosity towards MS.
 
Is that more people streaming, or the same number of people streaming more?
Either would be good. You definitely want people playing more instead of people just playing in passing. At least imo, it speaks to the actual value of the service as being an alternative to owning hardware as opposed to being a stop gap.
 
'Xbox', playable across devices. It's a software platform offering a game library on PC and small-hardware (presumably another XB console or new PC family) and game streaming on anything.
In just a few months, MS has released Indiana Jones, Avowed, South of Midnight, and Towerbone. And they're going to bring back IPs like Ninja Gaiden, Perfect Dark, and Fable. Games are getting worse (EA, Ubisoft etc), but not all games are in the same boat. And on top of that, there's the success of Expedition 33.

Nowadays I'm not on Windows, I don't have a Xbox console, I dislike cloud gaming, but I still can play Xbox games and follow them on Steam. So yeah...
 
But it's also relative metrics.
They are relatively good metrics, though ;)
New numbers came out today.
  • Xbox and gaming grew by 6% overall, with hardware down 6% and content and services growing 8%. PC Game Pass grew by 45% year over year, and Xbox Cloud Gaming hit 150 million hours streamed for the quarter, up 10 million.
Also...
  • Xbox Cloud Gaming posted its highest use rate ever, at 150 million hours streamed, up 10 million hours quarter over quarter.
The comments to investors undermine recent analyst suggestions that Xbox Game Pass has flatlined in growth, although most analyses tend to focus on U.S. centric markets. I've heard that Xbox Cloud Gaming (which is part of Xbox Game Pass Ultimate) is now bigger than both console and PC in certain markets, most likely countries like Brazil where import taxes make owning native hardware cost prohibitive.
Yes, still relative numbers. But that's a pretty big percent to growth. And it tracks what I said earlier, that Gamepass' growth is coming from cloud and PC because they've reached a near saturation point on console.
 
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Here in Europe, Xbox Series X will cost £499.99 / €599.99 - an increase of £20 / $50. The 512GB Xbox Series S will meanwhile cost £299.99 / €349.99 - an increase of £50 / €50. If you're splashing out on the 2TB Xbox Series X model, that's up £40 or €50 to £589.99 / €699.99.
 


Probably wiaiting official confirmation but it seems price will increase by 50 euros in Europe.

Official:

EDIT: Xbox Games will be 80 dollars too
What a joke of a generation honestly, who can honestly say Xbox is doing well here?
 
What a joke of a generation honestly, who can honestly say Xbox is doing well here?
You can play on their platform on any laptop, any old xbox one, any mobile devices, Samsung and LG TVs, as well as being able to buy a cheap amazon kindle fire and play off that as well. On top of selling their titles on Xbox Store and Battle.net, they own some of the largest GaaS properties in the industry today.

They have the largest cloud gaming service in both users, time played, as well as global reach.
They have the largest game subscription service with the same metrics.
They make great money off selling their titles on numerous store fronts.

And despite revenue being massively decreased with the loss of hardware, Xbox has grown this quarter.
I would say that the long term outlook is that they are doing well.

People are paying more attention each month. Console gaming is getting too expensive to sustain any more growth, you're only going to see the industry contract now, I've spoken to this point repeatedly to deaf ears.
 
It's regrettable, but it makes sense. Costs have risen on everything.

I don't think there's a hard cap on console subs, but they have reached most of the Xbox owners that are interested at this point, although they'll likely still grow slowly on console as people continue to buy Xbox consoles.

I'll elaborate on PC GP a bit. If the rumours about GP being at 38 million subs are true, then PC is probably 8 million of those, up from 6 million or about 30% growth. It's a start. The new growth has to mostly come from PC and Cloud and Cloud is going to be a slow burn.

I have a decent gaming PC with a 3080 in it and a Series X with GP Ultimate. All I play on my PC is Lord of the Rings Online, but if my Xbox died I would definitely use my PC with GP and then supplement GP with the odd Steam purchase. I know that I'm not the typical gamer, but just wanted to offer some perspective on why someone might get GP (amazing value) and supplement with Steam. They don't have to be mutually exclusive.

Lastly, I've always thought GP could really gain traction if the game release schedule got great enough. This is beginning to happen now. Day 1 GP has been on fire for 6 months now and I believe we'll see subs reflect that later this year.
 
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