Do you consider the Xbox Series S a genius move from Microsoft? Did they think of the components shortage when designing it?

[lunanto]

When one looks at news like these:

NPD February 2022: s/w #1 Elden Ring (also #1 YTD), h/w #1 Switch in Units & Revenue #2 Xbox Series

www.resetera.com

Just 130 PlayStation 5 were sold in Spain last week (update: only 33 the following week) Sales

DeepL translation: Welp. https://vandal.elespanol.com/noticia/1350752153/elden-ring-tuvo-un-excelente-debut-en-espana-con-60000-unidades-vendidas/

www.resetera.com

Not like a competition between the two platforms but more like a sign of scarcity/shortage in components isn´t going away anytime soon:

TSMC Executive Says Chip Shortage to Last Several More Years News - Tech

https://www.extremetech.com/computing/332352-tsmc-executive-says-chip-shortage-to-last-several-more-years Short me if old.

www.resetera.com

it seems is appropiate to wonder if the Xbox Series is or could end up being a genius move on Microsoft´s side. The design of the console itself allows Microsoft to manufacture more units of it and while it seems like majority of people could be more interested in the Series X or PS5, tides could be turning as the price point of the system is really attractive and general reception of folks who have purchased one seem to be overwhelmingly positive.

Enthusiasts and creators alike received the idea of the console with scepticism but little by little they seem to give it credit and work and optimize for it:

Dying Light 2 Patch Adds 60FPS For Xbox Series S, New Mode For Series X

Console parity

www.purexbox.com

So... What do you think? Is the Xbox Series S a genius move from Microsoft? Was it planned all along? Did they really see it coming?

 

[RoKKeR]

It fits into their broader strategy of getting their games (and Game Pass) into more people's hands with a cheap and accessible entry point.

0% chance they saw the chip shortage and inflation coming, but those two things mean the Series S will be quite successful this generation I think.

 

[Neural]

It wasn't planned to address the shortage, but creating a low cost console that will be the first one to hit the "magic" 199 price point is a genius move by itself. It's the same strategy behind the X360 Core/Arcade console, but now with Game Pass it's just perfect.

 

[Outtrigger888]

Well Bill Gates helped create Covid, so of course they knew a parts shortage was going to happen.

/s

 

[Theorry]

I mean they planned it so its easier to make. Easier for people to make the jump etc. It uses some xbox one components also they could re use. Its just that with COVID. That easier to make highlights it even more.

 

[big_z]

It's a business move to sell to a different segment of market. It's similar to the arcade 360 or the switch lite. There's a big chunk of consumers that won't buy into a console until prices are low enough and console prices don't drop like they used to. The series s offers a viable option to get in earlier and makes for a great secondary console for kids.

 

[Deleted member 14089]

What do you mean it was planned and in terms of they saw it coming?
Eurogamer had a in-depth interview and article about the creation of the Xbox Series S.

The big Xbox Series S interview: why Microsoft made an entry-level next-gen console

We knew it was in development, we even got to see it during our visit to the Microsoft campus back in March - but today…

www.eurogamer.net

"Series S has been very impactful for us. As we design our new consoles for the new generation, we're very much looking forward through the generation to be thinking ahead - like, how does this work? - and that's why we got to two consoles at the same time," Goossen continued."

"Moore's Law is certainly not dead! Moore's Law is continuing and we have a good path to 5nm and 3nm, and those are going to bring improved performance and good power," enthuses Goossen. "What they're not bringing any more is a good cost reduction cost per transistor - and so this has foundational impacts to console development, because now we'll get cost reductions, but they're slowing down and it won't be nearly the magnitudes that we've seen before."

"I've read a lot of question on the internet, like, why isn't Microsoft going to continue Xbox One X as the low-end machine. Well, one thing is that it would last a long time through the generation and we felt that the new generation is defined by aspects such as the Xbox Velocity Architecture, and graphics features such as variable rate shading and ray tracing and the 4x processing performance boost on the CPU," counters Goossen. "And so we wanted to make sure that there was an entry level at the right price-point so that we could really advance the generation rather than hold it back. I've heard that Series S is going to hold back the next generation but I actually see Series S advancing it because by doing Series S we'll have more games written to the characteristics of the next generation."

Click to shrink...

Seems like a lot of answers are there in the article, in hindsight, with the situation as it is now. It has certainly been the right move to make, but I don't think the reasoning or motivation was coming from a chip shortage perspective primarily, as if they've seen it coming.

 

[Dyle]

Aren't those kinds of sales numbers completely different month to month and mostly indicative of different shipping schedules from the respective companies?

 

[Man Called Aerodynamics]

They planned for it to be cheap and easily accessible, so its advantages were intentional, it just turned out to be a much larger advantage than I think they could have foreseen.

 

[Bulby]

Imagine when it drops to 199 or whatever.

I think that is their long term plan. Having a sub 200 dollar console to play the latest games.

 

[Theorry]

Imagine when it drops to 199 or whatever.

I think that is their long term plan. Having a sub 200 dollar console to play the latest games.

Click to shrink...

Also big splash. Starfield need to run great on it. And Starfield needs to be good offcourse. If then Series X is still hard to get. I see alot of people just opting for Series S just to play it.

 

[Izanagi89]

Wasn't there a codename for Series S long, long before there was any indication of trouble with the chip shortages? Way I saw it was they always planned for a cheaper next gen console

 

[oldyella]

Personally, no. Microsoft developed the Series S as another part of their "Xbox Anywhere" initiative, where people can play their games on systems as powerful as the Series X, or on a cellphone if they wish. Or on anything in between. I can't call that "genius" because I don't think they made any decisions based on notifications of chip shortages that they wouldn't really have been privy to, but I guess I won't go out of way to disagree with anyone who says it was.

 

[Theorry]

Wasn't there a codename for Series S long, long before there was any indication of trouble with the chip shortages? Way I saw it was they always planned for a cheaper next gen console

Click to shrink...

Thats not the question tho. :)
They made the console for a better cheaper entry. Helping gamepass etc. Not because of the upcoming chip shortages because of COVID.
They couldnt have known that with years of planning before that also

 

[Izanagi89]

Thats not the question tho. :)
They made the console for a better cheaper entry. Helping gamepass etc. Not because of the upcoming chip shortages because of COVID

Click to shrink...

OP was asking if they saw the chip shortage coming?

 

[Deleted member 14089]

Imagine when it drops to 199 or whatever.

I think that is their long term plan. Having a sub 200 dollar console to play the latest games.

Click to shrink...

On the 2nd hand market, it has been regularly going around for 220-250 euro. I've seen some retailers go sell it at 250. It will definitely drop in price and when it does, it'll be a replacement for many streaming boxes for people. Imagine buying an NVIDIA Shield, apple tv, 4k amazon stick or whatever when you've got a solid offering with the Xbox series S. A large negative is power consumption, however.
Imagine a collaboration with Samsung and Microsoft (they had some partnership deals in the past) where an Xbox Series S is built-in your TV 🤣 .

 

[Theorry]

OP was asking if they saw the chip shortage coming?

Click to shrink...

Maybe i am reading your post wrong.

 

[JCADX]

I think Series S is more like a refinement of the idea of the Xbox One S All Digital. This is, to have a cheap console as an entry point for their ecosystem, like Apple, for example, has the basic iPad or the iPhone SE ir their line-up.

 

[Tigerfish419]

I'm not sure they planned for the chip shortage but being such a big company like Microsoft, I would not be shocked if they knew it was coming since they have so many PC makers and chip makers, building PCs with Windows on them so they'll have an idea of that sort of stuff.

It really doesn't matter if they planned for the chip shortage or not this console was genius because it creates a very low bar of entry and even without the chip shortage they could utilise the chips better because of the smaller chip the Series S uses. The Series S is going to help move on the generation for Microsoft because they have a low cost new console right out of the gate and now with the shortage that only makes it even better.

 

[vixolus]

I think it was obviously planned and a good move even without a chip shortage. The interview quote posted above explains it.

But no, i highly doubt they predicted or made it with the intention of mitigating the effects of a global pandemic and supply chain issue

 

[jobrro]

Genius? No. It was a good and logical move to lower the barrier to entry for current gen Game Pass and I guess 'lucky' in the current circumstances.

 

[digitalrelic]

It was planned in that it was intended to be their best selling Series console and they've said as much.

It was not planned around the chip shortage, of course.

A Series S + Game Pass is the best value in gaming, and obviously Microsoft knows that and intended for that to be the case.

 

[Trey]

console scarcity and chip shortages highlighted the clear reasoning of the series S console. easier to produce entry level machine that has all the new next gen console features while still producing visuals at a reasonable standard.

 

[supercommodore]

OP was asking if they saw the chip shortage coming?

Click to shrink...

Who would possibly think that?

They would never have foreseen the level of shortages coupled with increased demand that covid has driven.

 

[Izanagi89]

Maybe i am reading your post wrong.

Click to shrink...

I think so. Just meant that Series S seemed like it was something they always planned on making as a cheaper entry into GP and the Xbox ecosystem and not necessarily because of the chip shortage.

 

[Theorry]

I think so. Just meant that Series S seemed like it was something they always planned on making as a cheaper entry into GP and the Xbox ecosystem and not necessarily because of the chip shortage.

Click to shrink...

ah oke.

 

[Frieza]

Series S was a great move and once third party current gen only titles start releasing it'll shine even more.

 

[dlauv]

Did they know a pandemic would lead to a chip shortage? No. Did they know it would be far easier to pump these out? Yes. The answer to the second question holds true during a chip shortage as well.

 

[Jencks]

It doesn't really matter if they planned for a component shortage or not. It's a smart move on their part that caters to a different section of the market. It's success through the pandemic is a byproduct of that.

 

[ILikeFeet]

these devices are planned long in advance. no one saw the shortage coming, the MO for the Series S just happen to be the optimal move in the midst of a shortage

 

[dusan]

I think the situation is like a coin.

One side is, tons of people (including me) put the Series S next to their PS5s even though they don't have an Xbox in their plan. It's a good offer to reach minds. On the other side, they prevented their the expensive console, Series X from selling more. If this console was not on the market, people would still buy the expensive one for Game Pass, in one way or another.

Of course I didn't look at the official records and I could be wrong. But that's how I feel about this console.

 

[Tigerfish419]

Did they know a pandemic would lead to a chip shortage? No. Did they know it would be far easier to pump these out? Yes. The answer to the second question holds true during a chip shortage as well.

Click to shrink...

I can't remember where I read it from but according to what I read it is a misconception that the chip shortage was purely down to the pandemic, sure it sped it up but we were going down this path without a pandemic according to the article I read a while back, can't remember where it was from though sadly Otherwise I'd link it but you can probably Google it.

 

[Calvinien]

When one looks at news like these:

NPD February 2022: s/w #1 Elden Ring (also #1 YTD), h/w #1 Switch in Units & Revenue #2 Xbox Series

www.resetera.com

Just 130 PlayStation 5 were sold in Spain last week (update: only 33 the following week) Sales

DeepL translation: Welp. https://vandal.elespanol.com/noticia/1350752153/elden-ring-tuvo-un-excelente-debut-en-espana-con-60000-unidades-vendidas/

www.resetera.com

Not like a competition between the two platforms but more like a sign of scarcity/shortage in components isn´t going away anytime soon:

TSMC Executive Says Chip Shortage to Last Several More Years News - Tech

https://www.extremetech.com/computing/332352-tsmc-executive-says-chip-shortage-to-last-several-more-years Short me if old.

www.resetera.com

it seems is appropiate to wonder if the Xbox Series is or could end up being a genius move on Microsoft´s side. The design of the console itself allows Microsoft to manufacture more units of it and while it seems like majority of people could be more interested in the Series X or PS5, tides could be turning as the price point of the system is really attractive and general reception of folks who have purchased one seem to be overwhelmingly positive.

Enthusiasts and creators alike received the idea of the console with scepticism but little by little they seem to give it credit and work and optimize for it:

Dying Light 2 Patch Adds 60FPS For Xbox Series S, New Mode For Series X

Console parity

www.purexbox.com

So... What do you think? Is the Xbox Series S a genius move from Microsoft? Was it planned all along? Did they really see it coming?

Click to shrink...

Not a genius move...but a good move that turned out to be a lucky

Ultimately you don't need to be a genius to figure out that you can sell more consoles if said consoles are cheaper. And the idea of having 2 SKUS aimed at different demographics goes back to the 360 launch. The series S was just a perfect storm. It was the refinement of the multi sku strategy that happened to launch at a time when being able to pump out cheap next gen consoles quickly was very advantageous.

 

[Prine]

It wasn't planned to address the shortage, but creating a low cost console that will be the first one to hit the "magic" 199 price point is a genius move by itself. It's the same strategy behind the X360 Core/Arcade console, but now with Game Pass it's just perfect.

Click to shrink...

Mostly agree with this. But would say they had to think about Azure blades so probably did consider the silicon necessary for those + SX which may limit how much they'd be able to put out and Series S helped mitigate that.

 

[tapedeck]

Let's just say MS made a good call lol. IMO the system is perfect for our current situation with supply constraints and the more casual consumer looking for an inexpensive and easy way to just get into Gamepass. It certainly holds it own at 1080p and has really made an undeniable dent into the market share..and potentially even expanded it.

That said..personally I'm not really a fan of the console. I'm not sure about it's ability to keep up performance wise throughout this entire generation. Also I actually think the Series X is the better deal financially when you look at storage capacity and the ability to own and sell your games. The one big bright spot for me is the potential of Series S as a 'portable' system using one of those slick new screens, sure it still needs to be plugged into something but it's small size makes it easy to take on vacations/work trips, that's very appealing to me, especially if MS officially licenses one those new screens.

 

[Prine]

Not a genius move...but a good move that turned out to be a lucky

Ultimately you don't need to be a genius to figure out that you can sell more consoles if said consoles are cheaper. And the idea of having 2 SKUS aimed at different demographics goes back to the 360 launch. The series S was just a perfect storm. It was the refinement of the multi sku strategy that happened to launch at a time when being able to pump out cheap next gen consoles quickly was very advantageous.

Click to shrink...

Nah, completely different hardware, you can't compare it to 360 or others as it's not just same hardware with removable parts like HDD size. The core philosophy was to solve the problem faced in every gen where price conscious gamers wait a few years for the price to drop, typically during mid gen, they wanted to appeal to them day 1 (they shouldn't have to wait if they're not concerned about resolution/highest fidelity). This was mentioned in an interview with Phil and his team during Xbox Series launch.

 

[TaySan]

It was a smart move made even better due to being at the right time and place. Get Gamepass into as many households as possible.

 

[bionic77]

Enthusiasts are generally horrible at predicting any sort of trends because most of them are only fixated on what they want.

I don't think the system was designed around any chip shortages but I thought the idea was interesting from the start. On paper it seemed like a very smart idea to have multiple SKUs and it can play the exact games games just at a lower resolution. The idea is to get as many boxes in as many homes as possible so you can sell more software.

I am glad it worked out for MS and I won't be surprised if it becomes standard in future gens. Though I also did not predict it and I am just as bad as everyone else here at predicting anything.

Fans of the most powerful console will complain about anything that is less powerful because they are convinced that games are not being made directly for their console and they are losing features for it. But they are not going to make business decisions based on what enthusiasts want.

 

[Deleted member 93062]

Enthusiasts are generally horrible at predicting any sort of trends because most of them are only fixated on what they want.

I don't think the system was designed around any chip shortages but I thought the idea was interesting from the start. On paper it seemed like a very smart idea to have multiple SKUs and it can play the exact games games just at a lower resolution. The idea is to get as many boxes in as many homes as possible so you can sell more software.

I am glad it worked out for MS and I won't be surprised if it becomes standard in future gens. Though I also did not predict it and I am just as bad as everyone else here at predicting anything.

Fans of the most powerful console will complain about anything that is less powerful because they are convinced that games are not being made directly for their console and they are losing features for it. But they are not going to make business decisions based on what enthusiasts want.

Click to shrink...

Yeah I've seen people who don't even have a Series S complaining about how in some games it sub-1080p and how it's such a bad console. However, I think they're missing the overall point. This system isn't for people who talk about what resolution and frame rate of games are. (It can be but not the main demographic.) It's for the more casual audience who just need a system to play the latest sports games, Fortnite, COD.. all which run great on the Series S and target 60FPS or sometimes even more on it. I honestly cannot imagine once Call of Duty goes current gen the kind of sales the Series S sees.

 

[Damn Silly]

It was a smart move anyway, that just so happened to benefit from an unforeseen set of circumstances.

 

[bionic77]

Yeah I've seen people who don't even have a Series S complaining about how in some games it sub-1080p and how it's such a bad console. However, I think they're missing the overall point. This system isn't for people who talk about what resolution and frame rate of games are. (It can be but not the main demographic.) It's for the more casual audience who just need a system to play the latest sports games, Fortnite, COD.. all which run great on the Series S and target 60FPS or sometimes even more on it. I honestly cannot imagine once Call of Duty goes current gen the kind of sales the Series S sees.

Click to shrink...

Yeah most people definitely don't care about that. If it looks great on their Xbox X they will attribute it to the insane power of the new system. But if you showed them Forza on the Series S they would be pretty happy with the graphics as well. My opinion on this is not popular at all but I feel like most games have looked really good for at least 10 years now.

But I was actually a little shocked how good GT7 and Horizon looked on the based PS models as well. Though I shouldn't be because we have seen this with PC games for a long time now. You can play the same exact game on lesser hardware, you just get reduced performance.

 

[Trey]

Enthusiasts are generally horrible at predicting any sort of trends because most of them are only fixated on what they want.

I don't think the system was designed around any chip shortages but I thought the idea was interesting from the start. On paper it seemed like a very smart idea to have multiple SKUs and it can play the exact games games just at a lower resolution. The idea is to get as many boxes in as many homes as possible so you can sell more software.

I am glad it worked out for MS and I won't be surprised if it becomes standard in future gens. Though I also did not predict it and I am just as bad as everyone else here at predicting anything.

Fans of the most powerful console will complain about anything that is less powerful because they are convinced that games are not being made directly for their console and they are losing features for it. But they are not going to make business decisions based on what enthusiasts want.

Click to shrink...

yeah basically. much of that "series s will hold back the generation!" talk has given way to "wow a price conscious console that really only compromises on resolution and storage is both easier to build and has a more palatable form factor" reasoning, as if that wouldn't always be an attractive proposition.

people always see what they want to see.

 

[UltimateHigh]

I dunno about genius and obviously they didn't know shortages were coming but it seems to be working out for them.

 

[PinkSpider]

I don't think it's planned but I'm good with it doing well in these times, PC wise too there is not much to push outside of what we have now for a year or two (Maybe with ray tracing not that I can do that or care massively). Deserved win on their part though, wonder if the rumoured Sony platform will come out with a PS5mini.

 

[AHA-Lambda]

They can't have planned for covid, chip shortages, and the cost of living rises no, but it was clearly always positioned as an accessible entry point for the Xbox ecosystem
I said back when it was announced it would do very well and I still feel so

 

[TooBusyLookinGud]

It's always a good decision to have a lower barrier of entry for your product period. Nothing will change that idea; look at what Apple does, for example. Knowing that there would be a chip shortage when the SS, SX, and PS5 were designed years before release is not a reasonable assumption. These consoles weren't designed and made when they were released; this is years of R&D.

They are benefiting from the shortage with the SS, but it was still a very smart move by them to provide a cheaper entry into their ecosystem.

 

[EPLirish]

Right now, it might be a genius move by MS but in the long term when people have no issues ordering consoles, they might be probably the worst next-gen console you could get if you don't want to pay for Gamepass but pay for your game. PS5 digital is just a bit 100$ more expensive than Series S but performs as powerful as PS5 discs and end up having the same storage. I think Series S could be more attractive if they just increase their storage and drop Seagate exclusives. 360 GB is not enough for consumers with a huge library of games, especially when a game like Horizon 5 is just 100+ GB. Expansion storage SSD is just expensive as hell, 140$ for 500+ GB for past-gen SSD with 2,400 speed is crazy when you compare it to all other SSD with similar speed, they sell 1 TB for around 75-100$.


Xbox Series S is available in Spain all time but end up selling 750 units in a week, twice as Xbox Series X which was always out of stocks is not a great indication of Xbox Series S being popular.

 

[BassForever]

It was a smart move even in a world of no covid to have a cheap, digital only option as a gamespass gateway. Makes it a lot more impulse even for people who own a ps5 that either want access to Microsofts exclusives or to play backlog games for "free" on gamespass.

It ended up accidentally being a brilliant move in a pandemic world due to chip shortages hampering the ps5 and series x.

 

[GlamPrime]

If it were on Par spec wise with it's counterparts then it'd be something to consider. But for me, personally, sub 1080p games on my 65' OLED makes that console a non factor.

 

[Rayasab]

Is era the only place that love Series S? Plenty of them used on Amazon warehouse from $220-$260. It's just last Gen tech that plays current Gen games