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Deleted member 43

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You're talking about potential revenue though, I'm talking about actual revenue.

Look at the Wii for example. 100m consoles at the end, incredible revenue potential, but very little MAUs and user engagement meant it was bringing in nowhere near as much as the consoles with 20+ million less sales.

What would matter more to investors - a smaller number of subscription based sales that is climbing all the time, or a larger amount of possibly loss leading sales with lower engagement and potentially the same number of MAUs?

Obviously MS would switch the user base numbers around if they could, not debating that, but I think it's pretty clear that MS are more about getting people locked in to their ecosystem and getting recurring money than just getting xboxes sitting there under the tv collecting dust. A customer that doesn't bring in money to a service based company isn't worth having in a shareholders eyes.
...?

I am talking about actual revenue. Actually, the PS4 ecosystem makes significantly more revenue than the XBO ecosystem.

MS is all about getting XBOs under TVs. The number one factor in if someone will be a valuable member of their ecosystem is if they own the console. They just have been far less successful at it than the competition.

And I think you really misunderstood last gen if you think Nintendo wasn't making bank off the Wii.
 

gundamkyoukai

Member
Oct 25, 2017
21,136
You're talking about potential revenue though, I'm talking about actual revenue.

Look at the Wii for example. 100m consoles at the end, incredible revenue potential, but very little MAUs and user engagement meant it was bringing in nowhere near as much as the consoles with 20+ million less sales.

What would matter more to investors - a smaller number of subscription based sales that is climbing all the time, or a larger amount of possibly loss leading sales with lower engagement and potentially the same number of MAUs?

You really can't look at things that way because not everything is the same .
Nintendo is a company that sells first party software like mad .
Those 100 million Wii users were buying Nintendo software like crazy .
Plus whole bunch of other factor like Nintendo making money off the hardware etc etc .
 

Deleted member 26104

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...?

I am talking about actual revenue. Actually, the PS4 ecosystem makes significantly more revenue than the XBO ecosystem.

MS is all about getting XBOs under TVs. The number one factor in if someone will be a valuable member of their ecosystem is if they own the console. They just have been far less successful at it than the competition.

And I think you really misunderstood last gen if you think Nintendo wasn't making bank off the Wii.
You specifically mention potential revenue.

I know who makes the most revenue, we get those figures. I'm not specifically talking about the Xbox one and PS4 in the post of mine that you said shows misunderstanding, I was talking about metrics and how MAUs is one of the most important. It is, and it's not debatable. Total sales is one of the most important too, didn't say it wasn't.

Also people don't need to own a console to be part of Microsoft's ecosystem anymore, do they? PC exists. Xbox live is on Android and iOS. Those are all revenue streams for Microsoft that do not require a console sale, and MAUs is 100% the most important metric for them there.

Nintendo made bank off the Wii, but by the end they weren't. No-one was buying them, and no-one was buying games. I don't think we've seen sales of a console fall off a cliff as badly as they did with the Wii. MAUs would have been terrible.

Consoles sold also means more to Nintendo than to MS and Sony because Nintendo make bank off actual console sales whereas Sony and MS generally break even at best. The 64 made more profit than the PS2 iirc despite ending up at like 1/5 the sales, largely because the console sold at a healthy profit.

I think you'd find all of the big three want that same thing, not just MS.
MS are much more progressive in changing their business to be service focussed though, that's not debatable.
 

Dog of Bork

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Oct 25, 2017
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Also people don't need to own a console to be part of Microsoft's ecosystem anymore, do they? PC exists. Xbox live is on Android and iOS. Those are all revenue streams for Microsoft that do not require a console sale, and MAUs is 100% the most important metric for them there.
They don't, but I'd argue Xbox owners are more dedicated and enthusiastic users who generate more revenue than the other user groups you listed. I own a Windows PC, but I've never used the Windows store. I got Win10 for free. Not sure where they're making money off of me, tbh, especially when compared to the fees they collect from Xbox game sales.
 

Deleted member 43

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You specifically mention potential revenue.

I know who makes the most revenue, we get those figures. I'm not specifically talking about the Xbox one and PS4 in the post of mine that you said shows misunderstanding, I was talking about metrics and how MAUs is one of the most important. It is, and it's not debatable. Total sales is one of the most important too, didn't say it wasn't.

Also people don't need to own a console to be part of Microsoft's ecosystem anymore, do they? PC exists. Xbox live is on Android and iOS. Those are all revenue streams for Microsoft that do not require a console sale, and MAUs is 100% the most important metric for them there.

Nintendo made bank off the Wii, but by the end they weren't. No-one was buying them, and no-one was buying games. I don't think we've seen sales of a console fall off a cliff as badly as they did with the Wii. MAUs would have been terrible.

Consoles sold also means more to Nintendo than to MS and Sony because Nintendo make bank off actual console sales whereas Sony and MS generally break even at best. The 64 made more profit than the PS2 iirc despite ending up at like 1/5 the sales, largely because the console sold at a healthy profit.


MS are much more progressive in changing their business to be service focussed though, that's not debatable.
You are still not getting the point.

Engagment numbers are absolutely important figures, I have spent this thread saying that. But total user base is still the most important one. Even though sales fell off, Nintendo made more $ on the Wii then MS made on the 360.

You can engage with MS's ecosystem without owning an XBOX, but the number one factor determining how valuable a member of that ecosystem will be is if they own an Xbox. Full stop. I am not saying that can't change at some point in the future, but that future is not now (nor is it imminent).
 

Deleted member 26104

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You are still not getting the point.

Engagment numbers are absolutely important figures, I have spent this thread saying that. But total user base is still the most important one. Even though sales fell off, Nintendo made more $ on the Wii then MS made on the 360.

You can engage with MS's ecosystem without owning an XBOX, but the number one factor determining how valuable a member of that ecosystem will be is if they own an Xbox. Full stop. I am not saying that can't change at some point in the future, but that future is not now (nor is it imminent).
You're misunderstanding my post though. I didn't say sales don't matter, nor that they aren't one of the most important. I don't know where you got that from, and you said that my post showed misunderstanding for saying MAU was one of the most important, despite you then saying the same thing.

I think Game Pass is a big step towards making console sales figures not the biggest factor in how valuable a member of the ecosystem a person is.
 

Lukas Taves

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Oct 28, 2017
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Well, no, that's not true. If the XBO was selling like the PS4, we would get unit sales from MS.

Talking about engagment and MAU is a perfectly reasonable thing to do. NOT talking about console sales is a PR, IR, and AR decision.
I agree with the second part, it's a business decision, but I don't agree that what drove that decision is just that it's behind Ps4. For one hiding the low Win Store numbers seems far more likely. Ms was being outsold 2:1 when it was reporting sales numbers, unless the ratio become way higher than that there's no reason for them to try and hide those numbers.
 

Deleted member 43

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9,271
You're misunderstanding my post though. I didn't say sales don't matter, nor that they aren't one of the most important. I don't know where you got that from, and you said that my post showed misunderstanding for saying MAU was one of the most important, despite you then saying the same thing.

I think Game Pass is a big step towards making console sales figures not the biggest factor in how valuable a member of the ecosystem a person is.
Well, you actually said it was:

TehPotentialz said:
if not the the main metric for success

And no, it's not. That, like all industries, is profit, which comes from revenue, and the main driver of total revenue for a video game platform holder is total platform sales.

Again, that could change, but it is NOT where we are now.
 

Deleted member 43

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I agree with the second part, it's a business decision, but I don't agree that what drove that decision is just that it's behind Ps4. For one hiding the low Win Store numbers seems far more likely. Ms was being outsold 2:1 when it was reporting sales numbers, unless the ratio become way higher than that there's no reason for them to try and hide those numbers.
They were behind 2:1 when they were reporting numbers, and stoped reporting numbers when that fact didn't change.

It wasn't just that they were behind the PS4, it's that they were way behind the PS4, AND were going to get to a point where they were behind their own previous product, the 360. MS isn't making a statement by not reporting HW numbers, they are avoiding broadcasting their struggles in HW sales every quarter.
 

Deleted member 26104

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Well, you actually said it was:



And no, it's not. That, like all industries, is profit, which comes from revenue, and the main driver of total revenue for a video game platform holder is total platform sales.

Again, that could change, but it is NOT where we are now.
? Where did I say sales weren't on of the most important or that they don't matter?

And again - didn't say that sales weren't the main revenue driver.

Not even sure why this has turned in to an argument lol. I think you misunderstood my post and called me out for misunderstanding, which has now led to this weird arguing things people didn't say loop.

MAUs are very important and not "PR spin". User engagement is very important and not "PR spin". Total console sales are very important, but are something that MS are trying to make less important over time. Agreed?
 

Deleted member 43

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? Where did I say sales weren't on of the most important or that they don't matter?

And again - didn't say that sales weren't the main revenue driver.

Not even sure why this has turned in to an argument lol. I think you misunderstood my post and called me out for misunderstanding, which has now led to this weird arguing things people didn't say loop.

MAUs are very important and not "PR spin". User engagement is very important and not "PR spin". Total console sales are very important, but are something that MS are trying to make less important over time. Agreed?
This isn't an argument, I'd call it a discussion :-)

Again, user base size is the single most important factor right now in the health and profitability of a console ecosystem. Average engagment is very import, but it is not on the same level. That's the point, and it's not a debatable one when looking at the world and business realities we live with right now.

As for the rest of your post, I said the very same thing:

MAU and engagement are not PR spin. They are very valid measurements of the health of an ecosystem. That MS would trade one situation for another in no way changes that basic fact.
 

Dog of Bork

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Oct 25, 2017
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MAUs are very important and not "PR spin". User engagement is very important and not "PR spin". Total console sales are very important, but are something that MS are trying to make less important over time. Agreed?
This is all true. At the moment, sales are the most important, though, and we aren't hearing about them because MS is not doing as well in that department as they were last gen. While eventually the others may catch up in importance, that is not the case today.

I think the issue people might have with your posts is that you're somewhat downplaying the gap in importance between sales and the metrics we see MS touting today.
 

Deleted member 26104

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This isn't an argument, I'd call it a discussion :-)

Again, user base size is the single most important factor right now in the health and profitability of a console ecosystem. Average engagment is very import, but it is not on the same level. That's the point, and it's not a debatable one when looking at the world and business realities we live with right now.

As for the rest of your post, I said the very same thing:
Ok, but again - the post of mine that you said shows misunderstanding was just saying that MAUs are one of the most important metrics and not PR spin. I don't think there was any misunderstanding there at all. It was essentially just saying that last part of my last post.

I think the issue people might have with your posts is that you're somewhat downplaying the gap in importance between sales and the metrics we see MS touting today.

If people are seeing that then they're seeing it incorrectly. Nothing I am talking about is PS4/XB1 specific. I'm not downplaying the total sales figures as a very important metric in any way. I'm merely saying that MAU and Engagement are very important metrics as well and not PR spin. Sony themselves now report MAUs, and no doubt will start reporting user engagement figures at some stage, if they don't already.

Certain people just seem to want to jump on everything I say and paint it as Xbox fanboy wars. It's pathetic.
 
Last edited:

Deleted member 43

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Ok, but again - the post of mine that you said shows misunderstanding was just saying that MAUs are one of the most important metrics and not PR spin. I don't think there was any misunderstanding there at all. It was essentially just saying that last part of my last post.
I was responding to the part where you said it was possibly "the main metric for success." If you posted that in error (or have reevaluated), then yes, we are on the same page.
 

Deleted member 26104

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I was responding to the part where you said it was possibly "the main metric for success." If you posted that in error (or have reevaluated), then yes, we are on the same page.

You missed a few words there that make a world of difference: "one of, if not the main".

At this stage it's not the most. MS are trying to get to the stage where it is the most important. They ultimately don't care about having their own box under your tv. They care about you using their services and having a continuous revenue stream from you. Office 365 is a great example of that. They sell office standalone, but they care more about subscriptions.

The "offending" post was this below. I struggle to see any way in which that shows misunderstanding.

I do love how people on here spin almost the most actually important figures as "PR spin", like they know better than multibillion dollar companies and their investors.

First it was MAU, which was instantly laughed at despite being one of, if not the the main metric for success for service based companies. Now it's user engagement, a term that is pretty self explanatory and is definitely important.
 

Dog of Bork

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Oct 25, 2017
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They ultimately don't care about having their own box under your tv.
They definitely do, though, because it's the most important thing that drives revenue generation.

If they didn't really care, they wouldn't have put so much effort into making the (excellent) XB1X.

The air of "not caring" is a conscious PR decision not to report these numbers. Them not reporting those numbers has nothing to do with their importance to MS, it's because they don't look as good in that area.
 

Kaako

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Oct 25, 2017
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I find it funny that some are still not willing to admit that overall user base size is actually more valuable and important than MAU/HECs. This should be common sense by now lol.
 

Deleted member 26104

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They definitely do, though, because it's the most important thing that drives revenue generation.
I'm not talking about now or the immediate future.

I find it funny that some are still not willing to admit that overall user base size is actually more valuable and important than MAU/HECs. This should be common sense by now lol.
Who are you talking about? Who is saying that install base isn't the most important at the moment? Or is this just shitposting to try and paint people as fanboys? I don't think I've seen a single person say what you're accusing people of saying lol.
 

Dorfdad

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Oct 27, 2017
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User warned: Ignoring mod edit and further context given on the statement
And what exactly does this mean?

Any Ching JU Want Baby!

It's all hyberbole PR bullshit. Investors want positive news and somone has to put a positive spin on things. Sony does it Microsoft and Nintendo do it but console sales don't lie.
 

Deleted member 43

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You missed a few words there that make a world of difference: "one of, if not the main".

At this stage it's not the most. MS are trying to get to the stage where it is the most important. They ultimately don't care about having their own box under your tv. They care about you using their services and having a continuous revenue stream from you. Office 365 is a great example of that. They sell office standalone, but they care more about subscriptions.

The "offending" post was this below. I struggle to see any way in which that shows misunderstanding.
Dude, I didn't miss anything, that's why I said "possibly." And, again, I was responding to the idea that it could possibly be the most important metic. Because no, in no way is that possible today. Not even close, not even worth consideration.

And yes, ultimately they DO care about having a box under your TV, because ultimately, in the world of today and the world for the next several years at least, that's how they earn the most revenue. Implying they don't REALLY care about this is completely wrong. They care, they care a whole lot, they just don't talk about it anymore.

When and if a day comes where individuals can and do engage with the Xbox ecosystem with the same profit-generating impact as dedicated boxes bring, that is when they won't really care anymore. But we are not there, and we will not be there during the XBO's lifetime, so that cannot be the lens through which we analyze the overall impact and success of the One.
 
Oct 27, 2017
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No I didn't. I said ultimately they don't care, as in end goal. Sorry if that maybe isn't as clear as it is meant to be.
I just find this so hard to believe seeing how they are still heavily invested in making hardware and that isn't changing. Which they continue to make that very clear even with a shift to services. Maybe I missed some statement or such from Microsoft.
 

Deleted member 26104

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Dude, I didn't miss anything, that's why I said "possibly." And, again, I was responding to the idea that it could possibly be the most important metic. Because no, in no way is that possible today. Not even close, not even worth consideration.

And yes, ultimately they DO care about having a box under your TV, because ultimately, in the world of today and the world for the next several years at least, that's how they earn the most revenue. Implying they don't REALLY care about this is completely wrong. They care, they care a whole lot, they just don't talk about it anymore.

When and if a day comes where individuals can and do engage with the Xbox ecosystem with the same profit-generating impact as dedicated boxes bring, that is when they won't really care anymore. But we are not there, and we will not be there during the XBO's lifetime, so that cannot be the lens through which we analyze the overall impact and success of the One.
I'm sorry, but again, I'm not talking about right now and only right now and only with these current consoles. Current sales figures and console brands etc are irrelevant to what I was saying.

I'm not sure why this is causing so much confusion, my posts have been taken out of context and twisted so far to make it seem like I'm saying sales aren't at all important and MS are the best.

Let's just leave it and not shit the thread up any further (which you would think is hard to do with this train wreck of a thread but somehow it's happened). Sales are important. MAU are important. Engagement is important. None of them are PR spin. Fair?
 

Tickling

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Oct 29, 2017
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No one is arguing that userbase isn't important. It is clear ms is well behind in console sales and money (gaming wise) than Sony. It's not a difficult concept to appreciate that ms could be making more money per user.
 

Deleted member 43

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I'm sorry, but again, I'm not talking about right now and only right now and only with these current consoles. Current sales figures and console brands etc are irrelevant to what I was saying.

I'm not sure why this is causing so much confusion, my posts have been taken out of context and twisted so far to make it seem like I'm saying sales aren't at all important and MS are the best.

Let's just leave it and not shit the thread up any further (which you would think is hard to do with this train wreck of a thread but somehow it's happened). Sales are important. MAU are important. Engagement is important. None of them are PR spin. Fair?
I don't think you have been misinterpreted, I think your argument would be better served in a thread that isn't explicitly about the MS CEO commenting on the current situation with their current platform. But, I agree, lets let that be the end of it.

No one is arguing that userbase isn't important. It is clear ms is well behind in console sales and money (gaming wise) than Sony. It's not a difficult concept to appreciate that ms could be making more money per user.

MS is making more $ per user, and good on them for that.
 

Dr. Caroll

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Oct 27, 2017
8,111
Engagment numbers are absolutely important figures, I have spent this thread saying that. But total user base is still the most important one. Even though sales fell off, Nintendo made more $ on the Wii then MS made on the 360.
While this is true, DLC wasn't the insane source of revenue that it is now. That said, it's not like Nintendo can't leverage that.
 

khamakazee

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Oct 27, 2017
3,937
You are still not getting the point.

Engagment numbers are absolutely important figures, I have spent this thread saying that. But total user base is still the most important one. Even though sales fell off, Nintendo made more $ on the Wii then MS made on the 360.

You can engage with MS's ecosystem without owning an XBOX, but the number one factor determining how valuable a member of that ecosystem will be is if they own an Xbox. Full stop. I am not saying that can't change at some point in the future, but that future is not now (nor is it imminent).

Isn't there many variables to how profitable things can be to another? What I mean by this since you mentioned Nintendo is this for example, Nintendo sells 100 million pieces of software each for an average price of $50 but half of those sales are 1st party games, compare that to Sony and Microsoft who may sell the same amount of software but far more from third party. Wouldn't a bigger piece of that pie go towards Nintendo?

It's also going to be interesting to see the attach ratio on Switch once online comes with a fee attached. Will Switch owners be just as likely to pay for it even if it's cheaper if they mainly buy it for Nintendo titles and have a secondary platform like the PS4 or Xbox One or pc for third party? I think this is where Nintendo is smart by keeping the price much lower but I'm not sure the engagement on Switch will compare to the PS4 and Xbox One.
 

Deleted member 26104

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I just find this so hard to believe seeing how they are still heavily invested in making hardware and that isn't changing. Which they continue to make that very clear even with a shift to services. Maybe I missed some statement or such from Microsoft.
Look at the surface line of hardware as an example. Their goal wasn't to become the best selling laptop/tablet. It would have been nice if it did, but that wasn't the goal. The goal of the X isn't to become the best selling console.

Microsoft as a whole are transitioning to everything being service based. This has been evident since Nadella took over. Office 365, game pass, azure, groove, windows 10. Their goal is to have everyone hooked in their ecosystem, not through having them only use their hardware, but by using their software on any hardware.

Even when they were all in with windows phone they still had their services on, and actually had more apps on, android and iOS. They've got Minecraft on everything under the sun. They're releasing all their games on PC now. They've got office on everything from under the sun. They've got azure supporting all sorts of things, not just MS stuff.

They want as many people using their services as possible. For xbox the key to that is hardware sales at the moment. The end goal is not to have people having to buy a console to be in their ecosystem, it's to have people in their ecosystem spending money on their services no matter what hardware they're on. They've been pretty explicit about that.
 

New Fang

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Oct 27, 2017
5,542
It seems obvious Microsoft would have to value having a box under the tv over everything else because that's where the $60 per year for Live factors in.

Sure, they'll take customers on PC over no customer, but ultimately that $60 a year for Live is a huge source of revenue that simply doesn't exist on PC.
 

Deleted member 43

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Isn't there many variables to how profitable things can be to another? What I mean by this since you mentioned Nintendo is this for example, Nintendo sells 100 million pieces of software each for an average price of $50 but half of those sales are 1st party games, compare that to Sony and Microsoft who may sell the same amount of software but far more from third party. Wouldn't a bigger piece of that pie go towards Nintendo?

It's also going to be interesting to see the attach ratio on Switch once online comes with a fee attached. Will Switch owners be just as likely to pay for it even if it's cheaper if they mainly buy it for Nintendo titles and have a secondary platform like the PS4 or Xbox One or pc for third party? I think this is where Nintendo is smart by keeping the price much lower but I'm not sure the engagement on Switch will compare to the PS4 and Xbox One.
Sure! But the user base difference is so massive in this case that other small contributing factors can't possibly compete.

If the PS4 we to, I don't know, not have a digital storefront, then that would be a big enough factor to radically change this discussion. But that's obviously not the case.
 

VallenValiant

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Oct 27, 2017
1,598
The engagement level percentage is a useful metric, that is true.
Some of us just disagree that high engagement percentage is a positive. Because it is a valid interpretation from the data that Xbox isn't attracting new customers as much as its competitors.
 

Deleted member 43

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The engagement level percentage is a useful metric, that is true.
Some of us just disagree that high engagement percentage is a positive. Because it is a valid interpretation from the data that Xbox isn't attracting new customers as much as its competitors.
Well that's just wrong.

That a larger user base with broader range of engagment would be better does NOT mean that having a (lets be clear, not small) high engagment user base isn't a positive thing.

And it's not like the PS4 and the Switch don't have a highly engaged user base. They both do.
 
Feb 17, 2018
85
And no, it's not. That, like all industries, is profit, which comes from revenue, and the main driver of total revenue for a video game platform holder is total platform sales.

Again, that could change, but it is NOT where we are now.

I mean they report revenues. MAUs are more useful for determining future revenue growth though, much moreso than total platform sales. IE the PS2 has a ton of total platform sales, but probably very low MAUs... therefore PS2 gamers will probably not be a big driver of revenue growth for Sony going forward. Total platform sales is something that is more of an interest to gamers than investors, imo. Back when consoles were used primarily offline, there was no good way to track MAUs and user engagement, so unit sales was the best they could do. Nowadays though, these metrics are a lot more useful than unit sales... at least for investors.
 

Dog of Bork

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Total platform sales is something that is more of an interest to gamers than investors, imo. Back when consoles were used primarily offline, there was no good way to track MAUs and user engagement, so unit sales was the best they could do. Nowadays though, these metrics are a lot more useful than unit sales... at least for investors
Maybe in 5-15 years when we've moved on to platform agnostic game streaming and average consumer behavior moves away from console gaming and higher spending on console gaming, but for now this is completely inaccurate. This thread is about the now, not the unknown future.
 

Deleted member 43

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I mean they report revenues. MAUs are more useful for determining future revenue growth though, much moreso than total platform sales. IE the PS2 has a ton of total platform sales, but probably very low MAUs... therefore PS2 gamers will probably not be a big driver of revenue growth for Sony going forward. Total platform sales is something that is more of an interest to gamers than investors, imo. Back when consoles were used primarily offline, there was no good way to track MAUs and user engagement, so unit sales was the best they could do. Nowadays though, these metrics are a lot more useful than unit sales... at least for investors.
Once again, no, that's completely untrue, and brining up the PS2 is frankly a pretty ridiculous straw man.
 

nycgamer4ever

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Oct 30, 2017
861
Were you around when Sony combined sales into a Playstation family because their sales were terrible? Or were you not even born yet.

Glad to see some folks getting banned, the hate towards MS is amazing to see as if they are directly responsible for some terrible shit in their personal lives.

Woah damn why such strong defensive response? Honestly didn't think my comment was inflammatory and certainly didn't mean it that way. I owned an Xbox one s and upgraded to an Xbox one x and am a gold member. Own every exclusive. I also own a gaming pc,, PS4 and a Switch. Not sure how my comment came across as hating MS?!!! Wow.
 

nycgamer4ever

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Oct 30, 2017
861
What do you want them to do? Do you know what PR is? And I am not sure how it is awkward.

How about just give us straight sales numbers and tell us consumers who spent $300 and then another $500 on their consoles what they are doing to bring give us more exclusive games? I'm in sales and in 15 years what I found out my clients appreciate the most is me being straight with them.
 

Deleted member 43

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How about just give us straight sales numbers and tell us consumers who spent $300 and then another $500 on their consoles what they are doing to bring give us more exclusive games? I'm in sales and in 15 years what I found out my clients appreciate the most is me being straight with them.
You have already been warned for your behavior in this thread, so I would advise you stop.

This thread is about comments from the MS CEO on an investors call, this was not a communication to Xbox customers.
 

DamSea

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Nov 11, 2017
60
How about just give us straight sales numbers and tell us consumers who spent $300 and then another $500 on their consoles what they are doing to bring give us more exclusive games? I'm in sales and in 15 years what I found out my clients appreciate the most is me being straight with them.

So... you think investors are unhappy about how MS presented this quarter's results? What would providing these numbers get MS?
 

Fiery Phoenix

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Oct 26, 2017
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Since Satya took over, Microsoft has placed particular emphasis on consumption of its services and products. That is a word I heard a lot when I interned there last year. One-off sales are no longer interesting to them; they want you to continue to use these services after the fact, because that's where the money is.

So with that in mind and from my perspective as someone who's actually worked at Microsoft, what Satya is saying is completely in line with the agenda. There's no PR spin; it's literally their business model.
 

Deleted member 43

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Oct 24, 2017
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Since Satya took over, Microsoft has placed particular emphasis on consumption of its services and products. That is a word I heard a lot when I interned there last year. One-off sales are no longer interesting to them; they want you to continue to use these services after the fact, because that's where the money is.

So with that in mind and from my perspective as someone who's actually worked at Microsoft, what Satya is saying is completely in line with the agenda. There's no PR spin; it's literally their business model.
Yes, that is all correct.

However, currently the first step on being a high-consumption user is buying an Xbox.
 

Jaxar

Member
Oct 25, 2017
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Australia
MS are much more progressive in changing their business to be service focussed though, that's not debatable.

Sure MS have clearly taken a bigger interest in focusing on GAAS, but just like Sony and Nintendo, they are in the business of selling consoles to attract and retain an ever growing customer base. They are not in a unique position, and all three have the same goals.
 

Fiery Phoenix

Member
Oct 26, 2017
5,840
Yes, that is all correct.

However, currently the first step on being a high-consumption user is buying an Xbox.
Yeah, for sure. It's just that hardware sales alone no longer cut it for them. In fact, I remember Phil specifically saying something along the lines that they don't really benefit financially from Xbox hardware sales.
 

Deleted member 43

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Yeah, for sure. It's just that hardware sales alone no longer cut it for them. In fact, I remember Phil specifically saying something along the lines that they don't really benefit financially from Xbox hardware sales.
They don't really benefit from the Xbox sale in and of itself, that's true. But an Xbox does need to be sold for all the other benefit to come.