Xbox Business Update Podcast | Xbox Everywhere Direction Discussion

What will Xbox do

  • Player owned digital libraries now on cloud

    Votes: 3 23.1%
  • Multiplatform all exclusives to all platforms

    Votes: 3 23.1%
  • Multiplatform only select exclusive titles

    Votes: 8 61.5%
  • Surface hardware strategy

    Votes: 2 15.4%
  • 3rd party hardware strategy

    Votes: 2 15.4%
  • Mobile hardware strategy

    Votes: 1 7.7%
  • Slim Revision hardware strategy

    Votes: 1 7.7%
  • This will be a nothing burger

    Votes: 4 30.8%
  • *new* Xbox Games for Mobile Strategy

    Votes: 2 15.4%
  • *new* Executive leadership changes (ie: named leaders moves/exits/retires)

    Votes: 0 0.0%

  • Total voters
    13
  • Poll closed .
Yeah this is odd. Because as far as I can remember I have been paying $16.99. I think I got the first 4 months free from December 2020 up to around March 2021, but after that I have always paid full price for Ultimate. Quite odd they considered me a new member. Despite being a paying member for the past 4 years. Otherwise I'll wait and see their output, if its good then I'll resubscribe.
I don’t even recall getting that email and I stopped subbing a long time ago. I was a bit surprised there wasn’t something telling me to sign up right away to lock in my price point. In any event I am like you, except I will likely never have the available time to take advantage of GPU unless my kids are hammering away at it, and they only care about Roblox
 
I don’t think hardware is going to be going up much for either consoles until Fortnite and COD and Minecraft leave PS4XBO era.

This is where their player base is at. I’m not sure how much of that has actually transitioned to next gen.

Those of us that have already moved to next gen, I think many would agree it wasn’t worth the move, at least nothing notable for this generation has released that made people want to upgrade.

A next gen only version of Minecraft, Fortnite and Warzone would push the population to move. Perhaps release this around GTA or before since that also has a large population stuck on last gen. Then I suspect People will start moving.
 
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I don’t think hardware is going to be going up much for either consoles until Fortnite and COD and Minecraft leave PS4XBO era.

This is where their player base is at. I’m not sure how much of that has actually transitioned to next gen.
Agreed.
Those of us that have already moved to next gen, I think many would agree it wasn’t worth the move, at least nothing notable for this generation has released that made people want to upgrade.
I wouldn't say that "it wasn't worth the move", but rather than the perception is that it isn't worth the move. SSD alone makes it worth the move for $300.
A next gen only version of Minecraft, Fortnite and Warzone would push the population to move. Perhaps release this around GTA or before since that also has a large population stuck on last gen. Then I suspect People will start moving.
I know many people who only play those 3 games and so didn't bother to upgrade.
 
I don’t think hardware is going to be going up much for either consoles until Fortnite and COD and Minecraft leave PS4XBO era.

This is where their player base is at. I’m not sure how much of that has actually transitioned to next gen.

Those of us that have already moved to next gen, I think many would agree it wasn’t worth the move, at least nothing notable for this generation has released that made people want to upgrade.

A next gen only version of Minecraft, Fortnite and Warzone would push the population to move. Perhaps release this around GTA or before since that also has a large population stuck on last gen. Then I suspect People will start moving.
By the time "people start moving" the new Xbox will arrive.

From MS, the exit of Series consoles and/or contented profitable stagnation until the next console situation is clearly visible. They no longer care how many Series consoles sell (otherwise they would have brought a price cut). MS is already clearly looking at this generation as a kind of transition period until they launch their new, better-than-anything AI based console.
 
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I don’t think hardware is going to be going up much for either consoles until Fortnite and COD and Minecraft leave PS4XBO era.

This is where their player base is at. I’m not sure how much of that has actually transitioned to next gen.
Agreed. Console sales would have undoubtedly been better this gen though if they didn't work so hard to throw the console under the bus in the name of the MAU.

Speaking of MAU, I just converted points again to top off Game Pass Ultimate for three years so again I'm not spending. But it's definitely harder to do now that they've severely reduced the amount of points you can get.
Those of us that have already moved to next gen, I think many would agree it wasn’t worth the move, at least nothing notable for this generation has released that made people want to upgrade.
Performance over PS4/XB1 made the upgrade worth it. We got quick load times, quick updates and quick resume. And for that vocal minority there's the resolution/framerate bump.
A next gen only version of Minecraft, Fortnite and Warzone would push the population to move. Perhaps release this around GTA or before since that also has a large population stuck on last gen. Then I suspect People will start moving.
Ray Traced Minecraft would have been the next version that would have sparked a huge transition. But that somehow disappeared from all the initial marketing. With the rumored PS5 Pro having outstanding ray tracing capabilities, that could be huge for Sony. And since Microsoft cares about the MAU (even users like me that don't spend on Microsoft but still get counted) and not console sales, Microsoft could serve up that killer app to Sony.

Ray tracing like the above is a clear difference the masses can see, that would get people off the old system, because resolution/framerate doesn't sell systems anymore. Well, unless ray tracing tanks the framerate into the low 20s. :cool:
 
Performance over PS4/XB1 made the upgrade worth it. We got quick load times, quick updates and quick resume. And for that vocal minority there's the resolution/framerate bump.
For those of us who can afford to yes. I think that large demographic in the 35+ > 50 was likely the first group of early adopters. The next group is that 16-30 ish group that plays the games above, and if they can't afford to move, then they will stay put on last generation consoles. They'll move with the population, so it's a forced upgrade. I do agree that current gen is definitely a much better experience than last gen, but the price point of these consoles keeps going up, I can't see next generation being cheaper than this generation. But gaming on a budget, you can still get away with on last gen. Nintendo and mobile have the younger markets all locked up.

It is quite interesting to see unfold.

Ray Traced Minecraft would have been the next version that would have sparked a huge transition. But that somehow disappeared from all the initial marketing. With the rumored PS5 Pro having outstanding ray tracing capabilities, that could be huge for Sony. And since Microsoft cares about the MAU (even users like me that don't spend on Microsoft but still get counted) and not console sales, Microsoft could serve up that killer app to Sony.
Agreed; context for those unaware, the largest MC population on console is on PS4. I'm aligned with your thinking on this one as well.

I am also curious why they moved away from RTMC. I wish I knew the business reason.
 
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A next gen only version of Minecraft, Fortnite and Warzone would push the population to move.
Well there are next-gen versions of these, but they aren't going to make next-gen only versions as they don't want to lose that large audience. If these games represent a sizeable chunk of the console audience, they'll never want to upgrade. Particularly as the hardware isn't dropping down to the $250, $200, and $250 marks like other consoles have, making the value of 'same games at better quality' better.
 
Well there are next-gen versions of these, but they aren't going to make next-gen only versions as they don't want to lose that large audience. If these games represent a sizeable chunk of the console audience, they'll never want to upgrade. Particularly as the hardware isn't dropping down to the $250, $200, and $250 marks like other consoles have, making the value of 'same games at better quality' better.
Yea and this is the challenge I think to the gaming market as a whole. We have more people making games than ever, but despite getting a temporarily audience to allure them to new titles, these same players groups always flock back to the same 'core' games. The F2P model really changed things for the industry and they are still trying to figure out how to adapt to it. The number one most played game is still counter-strike which is insane, and I agree the graphics haven't been updated all that much on it.

But there is value in making a next gen only version of these titles, as long as these next generation versions actually make the experience better, it can't just be a graphical update, it needs something that inherently drives gameplay differently. This is theory of course, in practice you are correct.
 
By the time "people start moving" the new Xbox will arrive.

From MS, the exit of Series consoles and/or contented profitable stagnation until the next console situation is clearly visible. They no longer care how many Series consoles sell (otherwise they would have brought a price cut). MS is already clearly looking at this generation as a kind of transition period until they launch their new, better-than-anything AI based console.
That would be such folly. Like, how on earth would they think that would work?

"Let's just keep making all our games playable on more popular platforms while bleeding market and mindshare til nobody cares about us as a hardware platform owner at all anymore, and then we'll come back with a new console and it'll go great!"

If they've really given up on this generation entirely and dont want to fight in the hardware market, they might as well not bother to ever release a new Xbox ever again. Seriously, it will just be an even bigger failure. All your initial and critical early momentum in a new console generation cycle comes from your level of success from the previous generation.

I mean, it would be the most ridiculous thing ever. "Hey everybody, check out our new best ever console. It does AI things! It's super powerful!"

"Do I need it to play any of the latest games?"

"Well....no, but it's really powerful! AI!"

"Nah I'm good, I'll wait for the PS6 so I can carry my PS4/PS5 library over and cuz it'll actually have next gen titles".

And it's not like Microsoft will have access to some special technology Sony wont. Heck, even in the AI world, they are seemingly ahead of Xbox in terms of like the single useful AI feature for gaming - reconstruction. Xbox cant win here. If they release a new console early like in 2026, it's just gonna get beaten badly in performance by a PS6 in 2028. And if they do a similar thing as with PS5/XSX where they launch at the same time as Playstation and have mostly the same tech, but just slightly better specs, it wont matter to anybody, as it'll provide such little tangible benefit, if any.

Their only chance was to actually make a fight of it this generation and try and regain some momentum, and they seem to be doing quite the opposite. They aren't giving anybody a reason to buy their consoles, so people wont.
 
That would be such folly. Like, how on earth would they think that would work?

"Let's just keep making all our games playable on more popular platforms while bleeding market and mindshare til nobody cares about us as a hardware platform owner at all anymore, and then we'll come back with a new console and it'll go great!"

If they've really given up on this generation entirely and dont want to fight in the hardware market, they might as well not bother to ever release a new Xbox ever again. Seriously, it will just be an even bigger failure. All your initial and critical early momentum in a new console generation cycle comes from your level of success from the previous generation.

I mean, it would be the most ridiculous thing ever. "Hey everybody, check out our new best ever console. It does AI things! It's super powerful!"

"Do I need it to play any of the latest games?"

"Well....no, but it's really powerful! AI!"

"Nah I'm good, I'll wait for the PS6 so I can carry my PS4/PS5 library over and cuz it'll actually have next gen titles".

And it's not like Microsoft will have access to some special technology Sony wont. Heck, even in the AI world, they are seemingly ahead of Xbox in terms of like the single useful AI feature for gaming - reconstruction. Xbox cant win here. If they release a new console early like in 2026, it's just gonna get beaten badly in performance by a PS6 in 2028. And if they do a similar thing as with PS5/XSX where they launch at the same time as Playstation and have mostly the same tech, but just slightly better specs, it wont matter to anybody, as it'll provide such little tangible benefit, if any.

Their only chance was to actually make a fight of it this generation and try and regain some momentum, and they seem to be doing quite the opposite. They aren't giving anybody a reason to buy their consoles, so people wont.
"All your initial and critical early momentum in a new console generation cycle comes from your level of success from the previous generation"

Really? WiiU >>> Switch, So...

AI (will) be the biggest buzzword in the world of computer entertainment in the next generation. You can build great marketing and great hardware on this. MS has invested a lot of money in AI in recent years, and according to latest information, they are already making their next games with the help of AI, and there can be no doubt that they will equip these games with AI features that will appeal to the masses.

So yes, they will release a console that is based on this and not just like the PSpro (only upscaling). A completely new AI Xbox with games equipped with AI FUNCTIONS and the same games on more modern PCs only. MS will have a significant advantage over Sony in the next generation and they can take advantage of this.
 
"All your initial and critical early momentum in a new console generation cycle comes from your level of success from the previous generation"

Really? WiiU >>> Switch, So...
Nintendo is a completely different beast from the Playstation/Xbox market. Using Nintendo as an example doesn't work. They play in their own little space with their own rules, and without any direct competition to worry about. I could write a ton about how what Nintendo does cannot be used as a 'model' for others, but I dont want to get this too off-topic.

AI (will) be the biggest buzzword in the world of computer entertainment in the next generation. You can build great marketing and great hardware on this.
Tech investors love talk about AI. But Xbox doesn't have its own stock ticker, so it matters little here. Do you really think gamers are gonna be the type to get all super hyped up about AI buzzwords? I really dont think so.

So much of the usefulness for AI in gaming going forward is likely to come from offline use. Stuff publishers/developers use, not things that we'll need super powerful local AI processing for.

And again, Microsoft wont have access to any magic hardware that Sony wont. If Microsoft goes full in on adding AI performance to their new console and Sony doesn't, that's gonna be because Sony is betting they dont need all that, not because they couldn't have done so.

If you're talking software, then also - Microsoft have not demonstrated any practical advantages of their investments into AI when it comes to gaming at all. Sony will do so soon with their own AI reconstruction for PS5 Pro, all while Microsoft have nothing.
 
Nintendo is a completely different beast from the Playstation/Xbox market. Using Nintendo as an example doesn't work. They play in their own little space with their own rules, and without any direct competition to worry about. I could write a ton about how what Nintendo does cannot be used as a 'model' for others, but I dont want to get this too off-topic.


Tech investors love talk about AI. But Xbox doesn't have its own stock ticker, so it matters little here. Do you really think gamers are gonna be the type to get all super hyped up about AI buzzwords? I really dont think so.

So much of the usefulness for AI in gaming going forward is likely to come from offline use. Stuff publishers/developers use, not things that we'll need super powerful local AI processing for.

And again, Microsoft wont have access to any magic hardware that Sony wont. If Microsoft goes full in on adding AI performance to their new console and Sony doesn't, that's gonna be because Sony is betting they dont need all that, not because they couldn't have done so.

If you're talking software, then also - Microsoft have not demonstrated any practical advantages of their investments into AI when it comes to gaming at all. Sony will do so soon with their own AI reconstruction for PS5 Pro, all while Microsoft have nothing.
This does not explain the fact that your statement that the success of a new console depends only on the success of the previous console was not correct. The case of WiiU and Switch was just one example. Nintendo is also a console manufacturer, it has been up and down. When it was down, many people buried it during the Wiiu and it still hasn't happened. The same could be true for any other console manufacturer. Just because the Xbox now only needs 40-50 million on the market (still a much better position than, for example, the WiiU), it does not mean that the next Xbox won't sell twice as much or more.

Regarding AI, it is worth knowing that MS has much more resources and money than Sony. And it is known that tens of billions of dollars are being invested in AI. I don't think Sony is at the level to do that. However, this is not only a hardware issue, but also a software issue. Well, MS has been training its AI software for years and is making investments in this segment in terms of video games that go beyond previous standards.
From now on, in the video game industry, the game is played with much higher stakes, precisely because of AI. We will soon see all of this.
 
This does not explain the fact that your statement that the success of a new console depends only on the success of the previous console was not correct. The case of WiiU and Switch was just one example. Nintendo is also a console manufacturer, it has been up and down. When it was down, many people buried it during the Wiiu and it still hasn't happened. The same could be true for any other console manufacturer. Just because the Xbox now only needs 40-50 million on the market (still a much better position than, for example, the WiiU), it does not mean that the next Xbox won't sell twice as much or more.

Regarding AI, it is worth knowing that MS has much more resources and money than Sony. And it is known that tens of billions of dollars are being invested in AI. I don't think Sony is at the level to do that. However, this is not only a hardware issue, but also a software issue. Well, MS has been training its AI software for years and is making investments in this segment in terms of video games that go beyond previous standards.
From now on, in the video game industry, the game is played with much higher stakes, precisely because of AI. We will soon see all of this.
Thinking that Microsoft has any advantage compared to Sony in ai products or investment is wrong.

Sony has been investing in ai for a long time with it's ai division, from the best in class ai autofocus in cameras to ai upscaling in TV's that's also at the top for quality, and even in videogames with Sophy in GT7. Let's not make the same mistake again and again and again, from Xbox that will destroy Sony with it's capital in the 2000's, to the cloud capabilities that Sony could never reach, to now ai. Then again, I was thinking those too at the time.
 
This does not explain the fact that your statement that the success of a new console depends only on the success of the previous console was not correct. The case of WiiU and Switch was just one example. Nintendo is also a console manufacturer, it has been up and down. When it was down, many people buried it during the Wiiu and it still hasn't happened. The same could be true for any other console manufacturer. Just because the Xbox now only needs 40-50 million on the market (still a much better position than, for example, the WiiU), it does not mean that the next Xbox won't sell twice as much or more.

Regarding AI, it is worth knowing that MS has much more resources and money than Sony. And it is known that tens of billions of dollars are being invested in AI. I don't think Sony is at the level to do that. However, this is not only a hardware issue, but also a software issue. Well, MS has been training its AI software for years and is making investments in this segment in terms of video games that go beyond previous standards.
From now on, in the video game industry, the game is played with much higher stakes, precisely because of AI. We will soon see all of this.
Sony doesnt need to invest 10s of billions to have better AI applications than MS. MS's problem in gaming is execution and focus and not money. For example Open AI, Meta and other companies building some of the best LLM models didnt invest the billions into AI research that Google did to come up with Transformers. But its their competitors benefitting the most.
 
This does not explain the fact that your statement that the success of a new console depends only on the success of the previous console was not correct. The case of WiiU and Switch was just one example.
Since it seemed to go in one ear and out the other - I was referring to the situation with Xbox vs Playstation. Nintendo is its own thing nowadays and does not apply to this situation. They are their own little world and market, where totally different rules apply. They do not have direct competition. If Nintendo falters, like they did with Wii U, they do not have to worry about losing previous long-term customers to some directly competing platform. Nintendo fans will always come back if Nintendo does something good. They've got such an insanely rich amount of super popular IP, they do not compete on hardware specs/graphics, and they are the only platform owner who takes a heavy focus on targeting the kid's market.

It's funny too, cuz what I'm saying absolutely does apply Nintendo back when they were trying to compete more directly with Playstation and Xbox. And Nintendo were losing steam, only regaining it once they dipped out of the direct competition and created the Wii instead. They've successfully carved out their own niche since. Even with the failure of the Wii U, it was an entirely insulated failure. As I said, they didn't have to worry about getting punished by everybody leaving to become invested in some competing platform instead.

If Microsoft thinks they can use Nintendo's track record in order to inform their own decision making, they are going to destroy themselves in even shorter order than they already are today. lol Buying an Xbox today doesn't provide anything of extra special value to potential customers. The vast majority of the big games on these platforms are 3rd party and shared between them and Playstation. They've had significantly disappointing 1st party releases to bolster any exclusive appeal, and even if those 1st party games get better, they are now in the process of putting them on Playstation anyways. The situation simply isn't remotely comparable to Nintendo's.

Short of Microsoft holding back a huge avalanche of amazing 1st party titles for a new Xbox and making them full on, permanent, next gen console exclusives, then everybody is just gonna shrug. A new system that's simply more powerful, but doesn't offer a library of exciting, exclusive next gen games just isn't gonna drum up the kind of excitement to get back all the people they've lost to Playstation over the past decade and change.

As for AI, you're not actually detailing what advantages Microsoft would actually have with their greater investment into AI when it comes to gaming. It seems like you're just buying into AI magic buzz rather than really thinking through what all is going to be some game changer for them over a new Playstation.
 
"Let's just keep making all our games playable on more popular platforms while bleeding market and mindshare til nobody cares about us as a hardware platform owner at all anymore, and then we'll come back with a new console and it'll go great!"
Microsoft will always need hardware. Even if Xbox's console install base is small, they are banking on growing the market via cloud, and those cloud servers are Xbox hardware, for better or worse. If they are going to offer a console experience via the cloud, then the cloud will be made up of the console.

Microsoft also has a history of success releasing it's software on rival platforms, from Office on Mac, Arrow Launcher on Android, Monster Truck Madness on GBA, and Age of Empires on DS, to the more recent examples like them publishing Ori on Switch. It's worked out for them in the past, why wouldn't they want to keep doing it?
 
That would be such folly. Like, how on earth would they think that would work?

"Let's just keep making all our games playable on more popular platforms while bleeding market and mindshare til nobody cares about us as a hardware platform owner at all anymore, and then we'll come back with a new console and it'll go great!"

If they've really given up on this generation entirely and dont want to fight in the hardware market, they might as well not bother to ever release a new Xbox ever again. Seriously, it will just be an even bigger failure. All your initial and critical early momentum in a new console generation cycle comes from your level of success from the previous generation.

I mean, it would be the most ridiculous thing ever. "Hey everybody, check out our new best ever console. It does AI things! It's super powerful!"

"Do I need it to play any of the latest games?"

"Well....no, but it's really powerful! AI!"

"Nah I'm good, I'll wait for the PS6 so I can carry my PS4/PS5 library over and cuz it'll actually have next gen titles".

And it's not like Microsoft will have access to some special technology Sony wont. Heck, even in the AI world, they are seemingly ahead of Xbox in terms of like the single useful AI feature for gaming - reconstruction. Xbox cant win here. If they release a new console early like in 2026, it's just gonna get beaten badly in performance by a PS6 in 2028. And if they do a similar thing as with PS5/XSX where they launch at the same time as Playstation and have mostly the same tech, but just slightly better specs, it wont matter to anybody, as it'll provide such little tangible benefit, if any.

Their only chance was to actually make a fight of it this generation and try and regain some momentum, and they seem to be doing quite the opposite. They aren't giving anybody a reason to buy their consoles, so people wont.
Excellent points. A lot of good will associated with their gaming services will be eroded away by how badly they handled the hw business. Consumers would rather invest in the Sony and Nintendo ecosystems because those goes execute well in the few things they do. And from this it can be inferred even when they(Sony & Nintendo) make cloud gaming a priority it will be done at the right time, not because they want to save face for their failures in the hw business like Phil is doing.
 
And from this it can be inferred even when they(Sony & Nintendo) make cloud gaming a priority it will be done at the right time, not because they want to save face for their failures in the hw business like Phil is doing.
They aren't trying to save face, they are trying to force the future that isn't here yet. They've been trying to do that since they TVTVTV launched the Xbox One leveraging the power of the cloud. We weren't there yet, just like we aren't there with streaming.
 
They aren't trying to save face, they are trying to force the future that isn't here yet. They've been trying to do that since they TVTVTV launched the Xbox One leveraging the power of the cloud. We weren't there yet, just like we aren't there with streaming.
You're right actually!! For as long as the Xbox has existed there's been a diversionary goal. Today its a focus on play anywhere through cloud, streaming, multiplatform, even if the core gaming experience is left behind. Only exceptions were with the OG Xbox where Seamus Blackely and Ed Fries shielded the division and large parts of the Xbox 360 where the diversionary goals werent allowed to set the agenda.
 
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