Xbox Business Update Podcast | Xbox Everywhere Direction Discussion

35 million users in a few years is actually really good.

They likely can't make 100 million by 2029, but 60 million is within reach.

That's because MS doesn't make any money from non-GP users.

The answer is in this thread. :)

Who cares about Grandma? Other than Nintendo, most consoles are targeted at 35 year old guys. That's one of the problems for Sony & MS these days. The kids don't care.

Xbox IS successful. The problem is your measurement criterion - number of units sold. If I'm right Sony has to sell twice as many units as MS to make the same money right now. I realize that they are, but they need to.
Grandma is important. It signifies that something is in the public discourse, and that's the publicity that companies want to have.

Also "If I'm right Sony has to sell twice as many units as MS to make the same money right now. I realize that they are, but they need to."

I don't understand the above.
 
Who cares about Grandma? Other than Nintendo, most consoles are targeted at 35 year old guys. That's one of the problems for Sony & MS these days. The kids don't care.

I have two kids (8 and 12) and a lot of their friends have consoles at home. Switch is the most popular from my limited sample size.
 
"77% of active console players belong to Gen Alpha and Gen Z. They are aged between 10 to 22 years old"
Video-Game-Demographics-2-768x527.jpg

If referring to this page it's wording is
77% of Gen Alpha and Gen Z are active console players - they do not make up 77% of the active console players.
According to your website:
* 38% of video game players in the US are aged 18-34
* 26% " " aged 35-54
* 21% " " aged < 18 years

The vast majority of console players are 18-54.

42% of active console and PC players in US, UK, SWD, FR, GER, and PO are Milennials between 23-38.
20% are Gen Z
19% are Gen alpha
19% are Gen X (39-50)

These are all 2020 stats, which is getting dated. But I would say the vast majority of console players here according by age, is well above 18.

This also lines up with my experience on day 1 console purchasing. Xbox crowd for day one was older, late 20s to 30s. PS5 launch was similar. Nintendo switch 2, was also similar, there was only a handful of people there buying it for their small children. We had 5 women in a line of 100 middle aged men. Everyone who can purchase a console, is making bank.
 
The Xbox division is making more money than ever, again, here are the business reports to prove it. So from a business perspective, their strategy is successful, and a lot of that clearly comes from Game Pass. If only because their multiplatform games haven't really been a big revenue driver so far, since they only really started this strategy this year. Well, as the major revenue streams from their multiplatform strategy are coming to MS, their Xbox division is now on two very strong legs. This is better than it's ever been, better than the revenue streams from the gaming division during the X360 era.

It's no surprise that there's some cloud (oh the cloud, their third revenue source :LOL:...) about their hardware strategy. But that's about to clear up as they announce the next Xbox PC consoles and the improved Xbox UI/OS for traditional PCs. First, the handheld Xbox is also here from an OEM partner. And this is just the beginning, soon there will be enough Xbox capable hardware on the market that can serve a wider audience, yes PCs too, but with console-like interface.

As for their traditional consoles, I am very happy with the Series X, with the increasingly powerful GP service, I get the best Xbox experience with a lot of games. And these games will be released on Series consoles in the next three years. In the meantime, if a poweful Xbox PC comes on the market that interests me, I will buy it.

The Summer Showcase gives us a lot of answers and a lot of new Xbox games! :)
 
So… Sega. This trend just means Xbox hardware ceases to exist, not some hybrid Xbox PC thing. They’d just be a publisher.
Sega isn't a platform.

Lots of platforms do not have to have hardware. I don't see Xbox leaving console hardware until that point is reached though. But this idea that there will be console generations forever is not realistic either.
 
Sega isn't a platform.

Lots of platforms do not have to have hardware. I don't see Xbox leaving console hardware until that point is reached though. But this idea that there will be console generations forever is not realistic either.
What is a ‘platform’?

They came in 3rd place that generation. Original Xbox - 3rd place. 360 -3rd place. One - 3rd place. Series - 3rd place. There is a trend.
It almost came in second but the PS3 pulled through at the very end. They were neck and neck. Compare this to their performance vs PS4 and PS5, it’s a world of difference.


The Xbox division is making more money than ever, again, here are the business reports to prove it. So from a business perspective, their strategy is successful, and a lot of that clearly comes from Game Pass. If only because their multiplatform games haven't really been a big revenue driver so far, since they only really started this strategy this year. Well, as the major revenue streams from their multiplatform strategy are coming to MS, their Xbox division is now on two very strong legs. This is better than it's ever been, better than the revenue streams from the gaming division during the X360 era.

It's no surprise that there's some cloud (oh the cloud, their third revenue source :LOL:...) about their hardware strategy. But that's about to clear up as they announce the next Xbox PC consoles and the improved Xbox UI/OS for traditional PCs. First, the handheld Xbox is also here from an OEM partner. And this is just the beginning, soon there will be enough Xbox capable hardware on the market that can serve a wider audience, yes PCs too, but with console-like interface.

As for their traditional consoles, I am very happy with the Series X, with the increasingly powerful GP service, I get the best Xbox experience with a lot of games. And these games will be released on Series consoles in the next three years. In the meantime, if a poweful Xbox PC comes on the market that interests me, I will buy it.

The Summer Showcase gives us a lot of answers and a lot of new Xbox games! :)
This reads like an LLM generated ad for Xbox lol.
 
What is a ‘platform’?
Platforms house content. It’s the architecture where content or data resides. It encompasses all the technology, the licensing, the technology involved in the distribution of content. They provide the tools and APIs, storage, etc to enable content developers to do this.

Xbox as a platform allows content to be distributed to a world wide network, it provides marketing for titles, it provide subscription services, servers, licensing and payment mechanisms, language services, etc etc.

Sega only produces content. That is why they are only a publisher. They can’t handle payment, there’s no way for a player to step into Sega and buy their games. They have no way to properly transact that. They don’t have channels to ship their physical titles. They don’t own their own channels to ship digital titles.

They sign their content into platforms for them to make money. In turn the platforms take a cut of their revenue for providing access to the platform as well as support for it.

Xbox will forever stay a platform. They will never be just a publisher.
 
If referring to this page it's wording is
77% of Gen Alpha and Gen Z are active console players - they do not make up 77% of the active console players.

No, I quoted it verbatim. ;)

1745915579809.png

According to your website:
* 38% of video game players in the US are aged 18-34
* 26% " " aged 35-54
* 21% " " aged < 18 years
Not console stats but video game stats.
The vast majority of console players are 18-54.
That's shifted a bit from the 35 yo value presented without data.

And I'm not trying to argue this source is authoritative - only that there's zero evidence presented for younger gamers don't matter. This was the first collection of relevant stats I found. The "35 years old" argument seems an average, which you'd expect with gamers growing older even when new blood joins. Anecdotally, I know plenty of kids and teens who play on consoles. So I'd just like to see some proper numbers that show children are irrelevant in the future of consoles. I don't think that's true and just because they might game on mobile, doesn't mean they aren't also interested in gaming on consoles. the two aren't mutually exclusive.
 
No, I quoted it verbatim. ;)

View attachment 13478


Not console stats but video game stats.

That's shifted a bit from the 35 yo value presented without data.

And I'm not trying to argue this source is authoritative - only that there's zero evidence presented for younger gamers don't matter. This was the first collection of relevant stats I found. The "35 years old" argument seems an average, which you'd expect with gamers growing older even when new blood joins. Anecdotally, I know plenty of kids and teens who play on consoles. So I'd just like to see some proper numbers that show children are irrelevant in the future of consoles. I don't think that's true and just because they might game on mobile, doesn't mean they aren't also interested in gaming on consoles. the two aren't mutually exclusive.
Right, imo, those footnotes have major mistakes in their English. If you keep reading its
Just a summary of the graph. They can’t have both generations own 70%+ of the active console list. It has to add up to 100 here.

I agree they are still an important demographic. It’s the key reason why MS is moving towards multiplatform strategy, younger generations expect to be able to access their content everywhere.
 
Right, imo, those footnotes have major mistakes in their English. If you keep reading its
Just a summary of the graph. They can’t have both generations own 70%+ of the active console list. It has to add up to 100 here.
Not necessarily. It depends on what they were measuring. One console can serve multiple people across the ages. Clearly they aren't measuring distribution of play across the years, but something like, "if there is a console in your household, do you play on it?" Then you could find 77% of <22 year olds play on console, and 75% of Millennials (I have no clear idea what these age brackets are or why it's suddenly become the de facto way to talk about demographics!). The only meaningful take-home I can see from this data is under 25s play on consoles as much as over 25s. The data here is overall ill-formed.

I agree they are still an important demographic. It’s the key reason why MS is moving towards multiplatform strategy, younger generations expect to be able to access their content everywhere.
Johnny Awesome might still have a point. If it's shown on non-Switch (and particularly XB) that under 25s don't game on consoles, it's potentially a pointless market for them, particularly if they can reach younger audiences through other devices. I'd just like to see some data supporting the view of this '35 year old' assertion.

Gaming at this point is fundamentally universal, and there's no clear reason why gaming on consoles should be less appealing to younger gamers than older, particularly as it's a different experience to gaming on touch screens.
 
You guys are taking my comments out of context anyway. I specifically excluded the Switch, which makes up a huge amount of the 10-18 year old, I'm sure.

I was merely pointing out that MS and Sony are having a harder time getting the teens interested in their consoles. Does anyone here actually disagree with that?
 
You guys are taking my comments out of context anyway. I specifically excluded the Switch, which makes up a huge amount of the 10-18 year old, I'm sure.

I was merely pointing out that MS and Sony are having a harder time getting the teens interested in their consoles. Does anyone here actually disagree with that?
Yes, maybe MS should make more Banjo, Conker, Crash Bandicoot games to convince parents to buy such a console.
 
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I was merely pointing out that MS and Sony are having a harder time getting the teens interested in their consoles. Does anyone here actually disagree with that?
Yes, because you've presented no evidence for that, and I know teens who play on non-Switch consoles.

Here's another one: https://newzoo.com/resources/rankings/top-ps5-games

1745935315169.png

Probably not that many 35+ year olds playing Minecraft and Roblox. Loads of teens play Fortnite, COD, GTA and FIFA. These probably top the charts because the younger players play fewer games more often, so all their game time is these games were the older gamers possibly spread their play over other titles.

There's an argument that younger players are limited in spending and game they'll play, making them not worth targeting (although in game currencies are very lucrative for platform holders) but I'm still seeing nothing to convince me that children and young adults aren't interested in gaming on consoles. The only number that hints at as such is the 'average age of a gamer is 35' but that's just an average and tells you nothing of distribution.
 
Yes, because you've presented no evidence for that, and I know teens who play on non-Switch consoles.

Here's another one: https://newzoo.com/resources/rankings/top-ps5-games

View attachment 13480

Probably not that many 35+ year olds playing Minecraft and Roblox. Loads of teens play Fortnite, COD, GTA and FIFA. These probably top the charts because the younger players play fewer games more often, so all their game time is these games were the older gamers possibly spread their play over other titles.

There's an argument that younger players are limited in spending and game they'll play, making them not worth targeting (although in game currencies are very lucrative for platform holders) but I'm still seeing nothing to convince me that children and young adults aren't interested in gaming on consoles. The only number that hints at as such is the 'average age of a gamer is 35' but that's just an average and tells you nothing of distribution.
Believe me, 10-18 year old kids are really interested in consoles, but they're not the ones buying them, their parents need to be convinced not to just buy them phones and computers.

But maybe MS will serve this young generation more on a phone platform since even a 10 year old has a smartphone.
 
Wii outsold both PS3 and 360. 360 came in third place.
You aren’t reading what I’m saying. The Wii was the most popular console literally ever, non-gamers bought it it was so popular. I’m comparing it to the PS3, which it almost beat that generation.

Compare that to now: it’s selling less than half what PS5 is.


Platforms house content. It’s the architecture where content or data resides. It encompasses all the technology, the licensing, the technology involved in the distribution of content. They provide the tools and APIs, storage, etc to enable content developers to do this.

Xbox as a platform allows content to be distributed to a world wide network, it provides marketing for titles, it provide subscription services, servers, licensing and payment mechanisms, language services, etc etc.

Sega only produces content. That is why they are only a publisher. They can’t handle payment, there’s no way for a player to step into Sega and buy their games. They have no way to properly transact that. They don’t have channels to ship their physical titles. They don’t own their own channels to ship digital titles.

They sign their content into platforms for them to make money. In turn the platforms take a cut of their revenue for providing access to the platform as well as support for it.

Xbox will forever stay a platform. They will never be just a publisher.
So without a console, what ‘platform’ will Microsoft have? The Windows store?
 
You aren’t reading what I’m saying. The Wii was the most popular console literally ever, non-gamers bought it it was so popular. I’m comparing it to the PS3, which it almost beat that generation.

Compare that to now: it’s selling less than half what PS5 is.



So without a console, what ‘platform’ will Microsoft have? The Windows store?
The Series X/S is still available and will be for years to come. I can still buy it from several EU MS stores if I want, it will arrive in 3 days. And there will be XboxPC hybrids that can be used as consoles as well.
 
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