Microsoft ‘Transitioning’ Xbox Into ‘Live Service’ Model, Says Analyst
In a series of tweets posted earlier today, Niko Partners’ Daniel Ahmad, perhaps better known by his Twitter handle ZhugeEX, set out his belief about the direction Microsoft is heading in with the Xbox brand:
“My take on all this, and I’ve been seeing this for a while, is that Microsoft is transitioning all their games to the ‘live service’ model. Basically Microsoft want to have their games emulate what Minecraft has been able to do: long lifecycle; large user base; increased spend.
Microsoft’s future direction is about being able to offer the Xbox games and live services on multiple devices that run Windows 10.
Here are some truth facts about Microsoft’s Gaming Division. (W10/XBX)
+ Xbox Live users/rev is up
+ Xbox software rev is up
+ XBL users are spending more per transaction
+ XBL users are buying more games/add ons
+ XBL + software is more profitable than hardware
But XB1 sales aren’t doing well at all:
– XBX hardware revenue is decreasing
– XBX hardware margins are low
– Overall growth is slowing
Clearly the money for Microsoft is more in the services side than hardware – hence the W10/XBX gaming strategy and switch to service games.
The issue for Microsoft right now is growing those users/revenue across the ecosystem, which is not easy when W10 store sucks and XBX hardware is down; hence the focus on core gamers with live service and multiple platform options (Scorpio), and attempts to widen the overall ecosystem and player base.”
Ahmad’s comments were later reinforced by noted industry insider shinobi602, who posted on a NeoGAF thread dedicated to discussing Scalebound’s cancellation to state that Ahmad’s assessment was “exactly what I and some devs I spoken to feel”.
Posted:
Related Forum: Xbox Forum
Source: http://powerupgaming.co.uk/2017/01/09/microsoft-transitioning-xbox-into-live-service-model-says-analyst/
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Comments
BondsPosted:
That is strange all my friends buy tons of games I thought most people would be getting games like always but it's wierd to hear that sales are down
TomPosted:
thought xbox was doing amazing with their sales this time around. Kind of sucks hearing this,
VHzPosted:
They need to advertise scorpio more, the amount of oeople who still have no clue about it isnt good
DanielPosted:
This is good i can't wait to see what they do with this, Sounds weird hearing Xbox Sales not doing good.
SkatesPosted:
Xbox console sales are probably not doing well because people had their console for a while and not many people upgraded to the S and some users also switched over to Playstation.
FibrilPosted:
That game looks interesting to be honest, sadly it will most likely never see the light of day.
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