Court Documents show Microsoft Console Revenue Cut at 12% in CY21 [2021-05]

Discussion in 'Console Industry' started by liams, May 1, 2021.

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  1. DSoup

    DSoup X
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    Where does it say publishers would need to give perpetual rights?
     
  2. see colon

    see colon All Ham & No Potatos
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    That would be the downside for devs/publishers that would require a financial incentive.
     
  3. zed

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    Its a bit unclear what streaming is, I assume streaming like what google tried and failed to do recently or spotify? But perhaps not
    So the publisher of the game must also get money from this streaming as well?
    If not then thats a terrible deal? Surely the sales will massively go down if the user also can also stream the game cause then why would you also want to buy it

    I wouldnt be surprsied if numbers would be like
    1000000 sales x $10 @ 70% = $7 million dollars (MS takes 30%)
    100000 sales @ 88% = $880,000, you're getting much higher percent but the numbers are a lot smaller

    Its like with spofity and streaming, why would I also want to also want to buy the album? (OK its a bit different with games than music as a game works better when its not streamed),
    but Im sure if its costing the players/buyers less money they will accept the compromise of game quality for a large number of games
     
  4. Silent_Buddha

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    It's also possible that once the service is fully operational that some titles from some publishers will only allow a game to be streamed if a person owns a copy of the game (which could then be either played on their console or streamed from MS's servers).

    Regards,
    SB
     
  5. zed

    zed
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    Could be, we will have to wait and see.

    In looking into this I came up with some interesting info WRT gamepass and possible dangers for publishers

    OK typically for the UK for PS/Xbox games the revenue split is typically 55-60% PS and 40-45% Xbox, due to there being slightly more PS users, see past charts for this data

    --------- part A ------
    https://www.gamesindustry.biz/artic...-6-as-fifa-21-returns-to-no-1-uk-boxed-charts
    Outriders 83% PS and 17% Xbox, less than 40-45% most likely due to it being also on gamepass, i.e. why spend money on something when you can get it for free (well technically $120-$180 a year)

    The above makes sense everyone agrees, (though I would think 17% is prolly too high If it was me, I'ld get gamepass for 3 months and you get to play the game and still save money)
    now look at last weeks sales
    https://www.gamesindustry.biz/artic...22474487139-is-no-1-in-the-uk-uk-boxed-charts
    Nier Replicant ver 1.22 89% PS and 11% Xbox!

    Now this game is NOT on gamepass, so why only 11% and not the usual 40-45%?
    well the last Nier game, NieR:Automata was on Gamepass, so ppl are most likely thinking oh this game will also come to gamepass later so why spend money now when I can just get it for 'free' later.
    The publishers have kneecapped themselves
    ----------------

    OK you say well they can also release it on gamepass and get the money from MS to make up for the lost sales,
    yes they can but I assume it would go something like this.
    MS - Well last time we gave you $20 Million to entice you to release on gamepass, this time though since you're coming to us the offer is now $2 million, take it or leave it
    Nier - (Gulp) Well we better take it since we are not selling many copies on Xbox

    Of course this is nothing like the modus operandi of a drug dealer :nope:, shame on anyone thinking such a thing. :lol:
     
  6. Nesh

    Nesh Double Agent
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    Is the title correct?
     
  7. DSoup

    DSoup X
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    Where does it say publishers need to give rights in perpetuity? Am I missing something?
     
  8. BRiT

    BRiT (>• •)>⌐■-■ (⌐■-■)
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    Nitpick taken, title updated.
     
  9. see colon

    see colon All Ham & No Potatos
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    Is the split that close in the UK? Last I check for all of Europe the installed base was something like 48 million PS4's to 12 million Xbox One's, a 60/40 split in games sales would be a huge win for Microsoft on the software side. I mean, you have a 4 to 1 hardware ratio, and getting a 3 to 2 software ratio would be a big deal. I would expect those things to scale linearly, so 4 to 1, or 80% to 20%.

    Also, Nier: Automata was a PS4 exclusive for a year, so that probably has a bit of brand loyalty on the Playstation side.
     
  10. Nesh

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    Are you sure? :p
    upload_2021-5-3_20-19-58.png
     
  11. BRiT

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    Yes. The Court Documents did indeed show the revenue cut at 12%.

    It makes no statement on if or when they may or may not switch over.
     
  12. zed

    zed
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    UK is far closer to the USA than it is the rest of europe in tastes
    heres some recent figures splits (PS done a bit better than I recalled)

    Cyberpunk 2077 ps 60% xb 35% pc 5%
    Call of Duty: Black Ops Cold War ps 56% xb 43%
    Assassin's Creed Valhalla ps 60% xb 40%
    Hitman 3 ps 74% xb 27%
     
  13. eastmen

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    microsoft will switch over and forget to tell the rest of microsoft it did so until it comes up on the news and then they scramble to figure out if they did in fact do the thing in question
     
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  14. fehu

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    Hitman 3 has been a such success that just on console reached 101%. And remember that you must still sum up the pc's percentage.
     
  15. liams

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    the original title was correct, here is the document from tom warrens tweet that says that is was being considered by the gaming leadership team

    upload_2021-5-3_21-59-41.png
     
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  16. Insight

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    Epic released the revenue split for Fortnite
    [​IMG]
     
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  17. see colon

    see colon All Ham & No Potatos
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    I would have never guessed Fortnite's PC revenue was so low. I would have assumed it would have the player base that at least matched Xbox, although it could be a case that PC players are players and not spenders.

    @zed are those Cyberpunk numbers physical only? Or do they include digital sales?
     
  18. zed

    zed
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    Um rounding? This is very common eg look at the diagram 2 posts under yours, it also doesnt add up to 100%
    I believe these are just physical so PC will be near zero

    @see colon, Yes PC is surprisingly low. I believe its physical only
     
  19. PSman1700

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  20. Malo

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    Yeah from memory they reported PC was at least 60% of overall sales.
     
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