Jason Schreier: "Xbox is such a mess right now, I feel like their plan is changing every single year. They're talking about teasing handheld now."

[ghostwriter74]

Sony are in a very similar position to Microsoft, the key difference is Sony still selling consoles. Both have the worst software output in their history, both flapped around with live service and GaaS, Sony dabbled in PSN now while Microsoft went for gamepass. Both have rumoured to be making a proper handheld, not whatever the fuck portal was supposed to be.

A shift is happening in the industry and for some reason both Microsoft and Sony are playing off of the same handbook. Maybe it's an American/Californian thing?

There are quite a few differences. Sony has a different strategy than MS. Sony sells consoles to increase sales, but to get anyone to buy consoles at all, it needs an attractive exclusive range of games and a console that offers good value for money. This year alone, Sony has a number of titles on offer, including Helldivers 2, FF7 Rebirth, Rise of the Ronin, Silent Hill 2, Astro Bot, Until Dawn, Lego Horizon, the HZD Remaster and LoU 2 Remaster, which are sometimes only available on PS5.

In addition, Sony has all of the currently important F2P/Gacha/GaaS titles available, and Wuthering Waves has only been officially announced for PS5. That's why Sony is successful, because in addition to exclusive titles, players can also play almost all of the important titles such as EA FC, CoD, Fortnite, Genshin Impact, etc. Xbox decided a good 10 years ago to release everything for PC too, and Game Pass is now available for Fire Stick. One company wants you to buy the console and invest in the ecosystem, the others obviously don't care and even advertise that no one needs an Xbox to play their games. I don't know how anyone can unironically claim that Sony and MS both had the same plans or strategies.

 

[thicc_girls_are_teh_best]

This will be dismissed by the usual crowd as whataboutism and muh Xbot.

Sony are in a very similar position to Microsoft, the key difference is Sony still selling consoles. Both have the worst software output in their history, both flapped around with live service and GaaS, Sony dabbled in PSN now while Microsoft went for gamepass. Both have rumoured to be making a proper handheld, not whatever the fuck portal was supposed to be.

A shift is happening in the industry and for some reason both Microsoft and Sony are playing off of the same handbook. Maybe it's an American/Californian thing?

I don't think you're completely off-base here TBH. Like you, I've also said that MS and SIE are basically mirroring each other, but that was WRT their PC strategy. And the only difference there being, that SIE still has stagger windows between their console & PC ports. The other difference is they don't have timed PC exclusives the way Microsoft does (Flight Sim, Gears Tactics, Towerborne, Ara 2 etc.). Outside of those two areas, their PC strategy is more or less exactly the same.

On the software front....it depends on how you look at it. The overall quality of SIE's releases this gen have ranged from excellent (Astro Bot, GT7 etc.) to great (HFW, HD2, Rift Apart etc.) to good. On a technical level they haven't put out any truly bad games, tho their games have had more bugs Day 1 this gen than they ever did last gen (ironically right as they started going more multiplat...just a coincidence, right?).

However, in terms of overall software innovation, I think there's grounds to claim this gen has been one of SIE's safest, by far. In terms of internal 1P or 2P exclusives it's mainly been either sequels to very well-established franchises or trend-chasing GAAS. In terms of new non-GAAS IP we've mainly seen games in very well-established soulslike genre space or samurai-themed games with soulslike templates. All of the things I just mentioned are...very safe, especially when you get into the AAA tier of output.

That's not even getting into the remakes and remasters, because the only one so far I feel that's justified its existence from a major/obvious technical & QOL improvement POV, is Demon's Souls remake, and that launched with the PS5. There have been exceptions like Returnal, but they're few and far between. Ideally, you'd have wanted SIE to have this "safer" approach in the first couple of years for the console, where the goal is to solidify a strong core install base quickly. That way, you've got breathing room to get more experimental with software output in the latter years of the console lifecycle. Now the same thing could be playing out this gen, and I'd certainly say games like Death Stranding 2 fit that bill (even if it's also in a way a sequel), but I don't think this gen is going to be long enough to make players "feel" that happens, given the length of time it takes to make AAA and even some AA games these days.

And that's where I think SIE's big focus on GAAS early on this gen is going to hurt them. They had almost all of their 1P non-GAAS studios working on some form of GAAS project. These studios are finite in size and resources, so if the priority was to get a GAAS up-and-going, that means their non-GAAS title(s) were probably being worked on at a slower pace. And of those, the "safer" picks would probably be the ones getting majority of time & resources. There's also the question of SIE's budget allocation between GAAS and traditional titles. To be blunt, it sucks. Allocating 60% of your budget to GAAS is really going to constrain traditional game output no matter what, and it's not like SIE are doubling their budget amounts from FY to FY.

So yeah on the note of software...I can definitely see how from a certain POV this gen could be argued as SIE's weakest, both in 1P (as internal and 2P via 3P partnerships) and even 3P exclusivity (it's mainly only been mainline FF titles and that seems to be ending, with the occasional surprise like Stellar Blade but as brief timed exclusives).

And you're also right, in that there's a very strong defense force who will adamantly not admit to any of this being true, unfortunate as it is for them.

 

[Yurinka]

I'm not giving them the benefit of the doubt, I'm saying it is silly and clownish to get on them for "changing their plans."

I can't envision them releasing another traditional console. I just don't see Nadella signing up for that.

They won't do the Series S again and their next system is likely to have at least a 25 percent drop from this generation. They're at most going to sell 40 million units and that's with heavy help from price cuts and GTA. So only selling at most 30 million units next generation? I don't see the value in that.

The problem is they don't have the makeup to create better games and new IP. They've been in the market for 20+ years... what new IP have they generated organically?

ABK was a bad buy. Ubisoft would have been a better one ironically.

I think that some upcoming Windows version will have a mode (like Steam's Big Picture) to be optimized to be used in a tv with a gamepad, or in PC handhelds maybe even supporting both Intel and ARM CPUs in order to try to make it popular not only in PC shaped as handhelds or home consoles, but also the equivalent ones with ARM CPUs, who normally use Android or Linux because of that.

I assume MS will want that subsegment of devices made by third parties use that, putting there obviously their gaming store and GP by default (plus obviously Steam or whatever else if you want to install it).

I see MS doing that and partnering with some of these 3rd party hardware manufacturers to make their next gen "consoles" including home console and portable skus.

Regarding ABK, I think it wasn't a bad acquisition: they acquired the biggest 3rd party publisher, which gave them a ton of very popular IPs and also a ton of revenue and profit for every year. It greatly helps them in their path -which isn't new, they started it by acquiring Minecraft- to pivot to become a multiplatform publisher. Stuff like CoD and King make a lot of money and help them be the top publisher on PS, PC, Xbox and almost mobile. And in terms of global revenue will put them pretty close to Sony and Tencent fighting for the first place.

Even if yes, ABK is party almost an empty shell who lost a good chunk of the people who made their IPs great, are maybe too focused on old IPs and don't create successful new ones frequently, pretty likely are pretty bloated, have Activision too focused on CoD, may have extra internal issues to solve etc.

 

[SuperPotato]

ABK fucked Xbox. Jim Ryan tried to warn Xbox fanboys but they didn't want to listen.

 

[peter42O]

As an Xbox fan, I want their direction to be Game Pass because it's better for me. If all the benefits and positives I get on Xbox has to require giving up exclusivity, so be it. Those who play Doom The Dark Ages on PlayStation 5 day one while im playing it on Xbox Series X via Game Pass Ultimate isn't going to change if I like/dislike the game. This applies to every game.

As for the rumored Xbox Portable, I 100% believe it because it makes sense for Microsoft because when you look at certain regions, their consoles aren't doing shit and simply won't because those regions are not console based. They're mobile/handheld based so how do you combat that? By releasing a portable handheld. Microsoft has seen the success of Switch and will have their own portable handheld alongside their main more expensive console when they launch their next generation hardware.

I for one am very excited for their next console and handheld. Most of all, I am expecting it to release in Fall 2026 because the going head to head with Sony makes no logical sense. Nintendo learned it a long time ago and have been far better off for it. It will be the same for Microsoft. Do your own thing at your own time. And for me, having Switch 2 in 2025, next Xbox in Fall 2026 and PlayStation 6 in Fall 2028 is awesome because instead of everything be all lumped together which becomes overkill, it being all spread out will get me even more hyped because it's three separate launches.

So yeah, im definitely one of the very few that's not only hyped for Xbox but also hyped for Switch 2 and eventually PlayStation 6.

 

[Yurinka]

I think they aren't a mess: they bought companies to improve their first party catalog and since their console failed at competing against Sony and Nintendo, they have been slowly expanding to becoming multilplatform and cover the other devices where the money is, particularly mobile, PC and PS.

They also tried to outspend Sony with first parties and failed, and with the gamesub and failed. So they are focus even more in their shift to become a multiplatform publisher. Games like Indy or Starfield were sold as exclusive, but they already knew that pretty likely they were going to end being timed console exclusivities.

Regarding hardware, they saw that can't compete so pretty likely will ask 3rd party manufacturers make the hardware. They saw that can't compete against Sony on home consoles, and same goes with Nintendo on portables. So pretty likely they'll focus on PC handhelds and maybe a more powerful home console shaped PC. Very likely they'll fail there too.

But the important thing is that they'll end focusing on being a full multiplatform publisher and fighting to be the top grossing gaming company. And in this area will be very close to Sony and Tencent.

 

[CrackmanNL]

ABK fucked Xbox. Jim Ryan tried to warn Xbox fanboys but they didn't want to listen.

They could'v bowed out during the trial out and pay the 3 billion fine (and maybe give more for CoD marketing).
It's such a strange timeline that cause of the concessions to Jim Ryan they went multiplat and if they actually failed to get it everything would'v remained like prior or if they did had their way CoD would'v been exclusive.. Now Phil's in 80 billion debt to HQ.

 

[mibu no ookami]

I think that some upcoming Windows version will have a mode (like Steam's Big Picture) to be optimized to be used in a tv with a gamepad, or in PC handhelds maybe even supporting both Intel and ARM CPUs in order to try to make it popular not only in PC shaped as handhelds or home consoles, but also the equivalent ones with ARM CPUs, who normally use Android or Linux because of that.

I assume MS will want that subsegment of devices made by third parties use that, putting there obviously their gaming store and GP by default (plus obviously Steam or whatever else if you want to install it).

I see MS doing that and partnering with some of these 3rd party hardware manufacturers to make their next gen "consoles" including home console and portable skus.

Regarding ABK, I think it wasn't a bad acquisition: they acquired the biggest 3rd party publisher, which gave them a ton of very popular IPs and also a ton of revenue and profit for every year. It greatly helps them in their path -which isn't new, they started it by acquiring Minecraft- to pivot to become a multiplatform publisher. Stuff like CoD and King make a lot of money and help them be the top publisher on PS, PC, Xbox and almost mobile. And in terms of global revenue will put them pretty close to Sony and Tencent fighting for the first place.

Even if yes, ABK is party almost an empty shell who lost a good chunk of the people who made their IPs great, are maybe too focused on old IPs and don't create successful new ones frequently, pretty likely are pretty bloated, have Activision too focused on CoD, may have extra internal issues to solve etc.

Outside of CoD none of ABK's IP are console system sellers.

If your goal is to sell more systems, you'd be better off with Assassin's Creed, Far Cry, Rainbow Six, Splinter Cell, Ghost Recon e.t.c.

ABK without CoD and you're pushing yourself to be a 3rd party publisher or collapse on the weight of development costs.

 

[mibu no ookami]

They are bleeding like a mofo!
You can only cover a gash with a bandaid for so long.
Period! no need for walls of text.

If you think that was a wall of text lol...

 

[Cool hand luke]

@mibu no ookami the point is they have no foresight or credibility. Yes, they pivoted or changed (not corrected) course multiple times. A better company with a superior strategy wouldn't have flopped like a fish as often.

 

[Yurinka]

Outside of CoD none of ABK's IP are console system sellers.

If your goal is to sell more systems, you'd be better off with Assassin's Creed, Far Cry, Rainbow Six, Splinter Cell, Ghost Recon e.t.c.

ABK without CoD and you're pushing yourself to be a 3rd party publisher or collapse on the weight of development costs.

Microsoft wants to make more money, not to sell more consoles.

This is the reason of why they buy companies that makes a lot of money in other platforms and keep them selling the games there, and why even are porting their games to rival consoles.

Diablo IV has around 9000 people on its credits, CoD MW3 has over 9300, Starfield over 4000. It would be a financial suicide (another one) to don't release these games on PS and PC.

Same goes with Ubi: SW Outlaws (6,657 people), Far Cry 6 (over 7000), Skull & Bones (almost 6900), AC Valhalla (almost 6000). You can't pay these budgets releasing them only on Xbox. They must be on PS and PC.

I mean, MS would prefer to get to continue selling over 20M of the next AC and pay Sony 30% of a third or so of these copies. Than to sell like 5M because they give it away on GP day one on PC and and Xbox and because it isn't available in PS.

All MS very expensive AAA games will end sooner or later being only on GPU as day one. And then some time later won't be day one even in GPU. MS is slowly moving to a model where they make more revenue and are more profitable, and will be wihtout having to produce themselves console hardware, and without putting their games day one on GP.

Mr. Nutella is tired of throwing dozens of billions to the garbage bin as they kept doing and now they are taking actions to start getting this money back, or at least to turn their gaming business into a profitable one. And will be focusing on selling their games on mobile, PC and PS because it's where the game publishers (if you aren't Nintendo) money are.

 

[anonpuffs]

they should just get the fuck out

 

[R4tion4l Sk3pt1c]

majority of zoomers and gen alpha play their games mostly on a mobile device such as a tablet or PC we can’t blame companies like Sony and Microsoft for keeping up with the times

 

[ToTTenTranz]

The thing about Jason Schreier is that in everything that doesn't involve culture wars, he's usually right. And he's right in this.


I've said time and again that Microsoft would stand to gain immensely from making a decent Windows 11 front-end for videogames and gamepad interaction. SteamOS is nothing but a testament to Microsoft's current incompetence in that area.
And then they should pick up a handheld hardware platform, say the Z1 Extreme with 16GB RAM, make game config presets, and then implement some optimizations like shader cache downloads, system-level AFMF2, variable graphics memory and regular custom drivers.

 

[Gods&Monsters]

I wonder if Jason would dare to print something negative about Microsoft in Bloomberg? All their articles are anti-Sony while they write puff pieces for Microsoft.

Jason has to flee on low-profile podcasts to speak the truth.

 

[anonpuffs]

I wonder if Jason would dare to print something negative about Microsoft in Bloomberg? All their articles are anti-Sony while they write puff pieces for Microsoft.

Jason has to flee on low-profile podcasts to speak the truth.

thats probably because microsoft has a lot of money going into media sponsorship. editor in chief is gonna nix any negative energy towards their bread sources

 

[Nomen_Nescio]

Somebody needs to tell MS their problems are not solved buying publishers or hardware power. It’s lack of games and new popular IP.

 

[Danja]

I wonder if Jason would dare to print something negative about Microsoft in Bloomberg? All their articles are anti-Sony while they write puff pieces for Microsoft.

Jason has to flee on low-profile podcasts to speak the truth.

I don't think his role would allow him to do this anyways unless he's doing some sorta deep dive into the Xbox division.

 

[ethomaz]

They were always a mess…
Uncle Phil never had any ideia where the brand is going.

 

[Bryank75]

Lack of direction.

Xbox has had that for a long time now and it's terminal for any organization.

I see it at PlayStation now to some degree too.

Chasing money is not a direction, it's not a goal. Becoming the biggest gaming platform is. Growing to an ambitious install base is a target.

You then put all your effort behind that sharpened edge to hit the target.